BSBLDR802: Leading Strategic Planning at Toyota Australia

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This report outlines a strategic organizational plan for Toyota Australia, addressing contractual and financial requirements, industry trends (AI, Machine Learning, Automation), and resource management (human, financial, marketing). It details strategic goal setting, SWOT analysis (strengths, weaknesses, opportunities, threats), and the development of strategic and operational plans involving analysis, direction, and execution. Practical activities cover mission and vision importance, adaptation to consumer preferences, stakeholder involvement, and project implementation. The report further examines the Australian market, Toyota's position, competitive landscape, risk assessment, stakeholder expectations, and communication strategies. It concludes by emphasizing the importance of aligning marketing, production, and financial departments for successful strategy implementation.
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Running head: STRATEGIC ORGANIZATIONAL PLANNING
STRATEGIC ORGANIZATIONAL PLANNING
Name of the Student
Name of the University
Author Note
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1STRATEGIC ORGANIZATIONAL PLANNING
Written Activity
Outline of the Contractual Requirements and Implications for the business
The contractual requirements are offer, acceptance by the business. There are another
requisites for the contract that are mutual obligations, legal competencies and abiding the
formalities. This can affect the business in abiding the following way to maintain the legality
for the business.
Financial management requirements and processes of the business
The business process of Toyota Australia is one of the major issue that has been
associated with the development of the organization. The key business processes are
inclusive of production system and it is one of the major activity for financial management
that is associated with the development of the production line-up to ensure the proper usage
of the funds.
Researching industry trends and practices that are relevant to the
organisations strategic directions
The trends in the research industry has been inclusive of the factors such as AI,
Machine Learning and Automation. Toyota being one of the market leader has incorporated
them in enhancing their production systems and incorporating them in the cars as well. These
trends in the car industry can help the company to increase the engagement in the country and
enable them the freedom to incorporate the changes to attain the strategic goals.
Types of resources required to undertake projects
There are mainly three types of resources that are required for Toyota to undertake the
projects includes the human resources, financial resources and marketing resources. It is one
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2STRATEGIC ORGANIZATIONAL PLANNING
of the major resources that are associated with undertaking the project. This enables the
company to use those resources and engage in the process of undertaking the projects.
Processes involved in identifying strategic goal setting and activities
One of the main ways to develop a strategic plan is to consider the vision statement as
it is one of the major contributor towards building the various aspect that are related to the
enhancement of the long-term goals. For Toyota the vision statement, being successful in the
market by offering value to its stakeholders.
SWOT
Strengths
Toyota is one of the market
leaders in the segment of car
manufacturers. This enables the
company to enjoy a success.
Production line of Toyota is one
of the superiority that Toyota
possesses. This helps the
company to get involved in one
of the most efficient and lean
production line in the industry.
Toyota possesses a supply chain
that is lean and better than any of
the competition which enable the
company to enjoy a competitive
advantage over the other players
in the market.
Toyota is one of the brand that
have a higher perceived value of
among the customer. For the
customer Toyota perceived as
one of the most sustainable
Weaknesses
Toyota needs to improve the brand
image among the customer. It is
one of the major aspect to build
the customer loyalty among the
customer which can contribute to
the enhanced sales in the region
and help in reaching the long term
organisational goals.
Toyota should avoid being
involved with the aspects that are
related to the risk management of
the company. The company should
not engage in the activities that
can adversely affect the
company’s image among the
customers.
Toyota’s one of the major issues
that customers perceives it the
crisis handling situation. It is one
of the major drawbacks for Toyota
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3STRATEGIC ORGANIZATIONAL PLANNING
companies in the market.
The key factors that have
contributed to generating the
sales is inclusive of the factors
such as innovation and quality
provided by Toyota. It is one of
the brand that have contributed
to the enhancement of the
products that have contributed to
the enhancement of customer
delight.
to be involved in such issues.
The factors that are associated
with making the sales volume low
for Toyota are, premium prices
and the negative publicity in the
market.
Opportunities
Growing sector for the SUVs is
one of the major aspect that is
associated with providing Toyota
with a nice place in the market.
Trend of technological
advancement that have been
incorporated in the cars along
with the sustainability initiatives
that have been taken by the
company is one of the major
aspect that is associated with the
organization. The trend of the
market about the SUVs is one of
the major factors that have
contributed to the organization.
The government of Australia has
also incorporated legislation to
support the owners of the vehicle
to abide the laws.
The growth in the car market is
also a positive indicator for the
organization to incorporate the
Threats
The current obstacle for Toyota is
the negative image that have been
perceived by the customers in the
market. This can affect the
company’s brand image and
impact the sales of the cars.
Competition in the market of cars
is very high in Australia. The
competition is incorporating the
technological innovations in their
products and to add to that
initiative to reduce the
consumption of the fuels is one of
the key areas that is needed to be
addressed by the company.
The quality of the Toyota products
are very high thus, the customers
are paying a premium for that
quality. However, the competitive
pricing in the market is one of the
key threats that the company needs
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4STRATEGIC ORGANIZATIONAL PLANNING
enhancements to the cars to face.
There has been threat by the other
competitors as electric cars have
been one of the new trends that is
associated with the customers.
Though the company is offering
the Hybrid Solution but there is a
threat from the companies such as
Tesla.
One of the weakness that is
associated with the negative
publicity of the brand can impact
the company in an adverse way
that can be treated as the threat to
the company.
Processes involved in developing a strategic and operational plan
There are mainly three issues that are related to the development of the strategic plan
for Toyota. The three steps are analysis, direction and execution. The analysis part will be
concerned with the assessment and planning then developing a vision for the business and
indulged in the process of analysing internal and external factors. The direction part will be
involved in the process of developing the aspect to develop long term and short term goals by
developing vision and mission statement. The final process is to execution of the plan that is
associated with implementing the strategies.
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5STRATEGIC ORGANIZATIONAL PLANNING
Practical activities
1. There are some parameters that are considered to be more important than other when
it comes to strategic planning. Describing the mission and vision enable the company
to set clear goals. Assessing the external environment and conducting a SWOT
analysis enable companies to be prepared to meet the competition and formulate
strategies accordingly. Furthermore, it should involve a clearly defined time and
budget that helps companies manage time and capital effectively.
2. Toyota Australia has realised the importance of planning. The company has
identified components such as changing tastes and preferences of the consumers and
they have devised plans accordingly. They have put forward initiatives to supply the
market with eco-friendly vehicles that contribute to environmental sustainability.
3. The stakeholders involved are the employees of the company, members of the board,
executives, local authorities, the government and the consumer community.
Implementation of the company’s plan is deemed to benefit all the stakeholders who
are associated with the company. They can contribute to the success of the plan by
choosing to support the sustainable initiatives of the company.
4. The project that has been undertaken by the company includes five steps. The
Initiation stage where the actual project is formulated, the planning phase that include
scoping the budget and the schedule and communication plan. It is followed by
implementation of the plan, followed by checking alignment with the actual
objectives, keeping track of what is being produced and quality checks.
5. Internationally renowned organisation have acted as pioneers and have set examples
for strategic planning. Companies such as Samsung have McDonald’s have
implemented planning through the glocalisation approach. The market of Australia
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comprises of individuals from various culture and the country has witnessed a rise in
eco-conscious consumers. Thus the company can capitalise on the initiatives.
6. The market of the country is comprised of vehicles such as micro passenger vehicles,
light and large passenger vehicles, large medium and heavy SUVs. As of 2018,
approximately, 42.8 vehicles on the road where SUVs, followed by light and heavy
commercial vehicles at approximately 19% and 2% respectively. The rest are
passenger cars and is around 36%.
7. Toyota is the market leader in the market of Australia, followed by Ford and Mazda.
Other key players in the market include Hyundai, Mitsubishi, KIA, Honda, Nissan
and Subaru. Mazda has the 9.8% market share, followed by Hyundai at 8.2%. The
latter are the companies who are closest to the Toyota whose market share is
approximately 18.2%.
8. Following is a SWOT analysis of Toyota Australia;
Strengths
Organisation culture full of innovation
Diverse range of products
Technological advancement and strong brand image.
Highly functional supply chain and production capacity
Weaknesses
Subject to negative publicity
High level of dependency on suppliers
Opportunities
Implementation of eco-friendly technology
Environmental sustainability initiatives
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Expansion in developing countries
Threats
Presence of high number of competitors
High cost of raw materials
9. There are certain risks that are associated to the operations of all companies across the
world. The risk can be categorised as short-term, medium-term and long-term. In the
short-run, the risk associated to the functioning of Toyota are the threats from the
competitors. This can turn out to become a threat in the long term as the potential
companies could take over the market share that is currently in possession of Toyota.
10. The strategic operation that has been put forward by Toyota is subject to expectations
form the stakeholders. The employees of the company expect increase in pay or
employee welfare activities. The members of the board expect improved returns on
their investment, the customers and government expect, high value for money and
favourable alignment to the regulations devised by the company.
11. Following were the discussions and conclusions;
Discussion regarding the sustainable initiatives of the company with the board
of directors. The board of directors responded favourably.
The employee of the company were iterated about the initiative of the
company after which the welfare policies were discussed, same received
favourable responses.
Customers were informed through social media and newsletter, while some
showed favourable responses, some of them raised question regarding the
additional prices that they would have to pay for the innovative products.
12. The key to transferring ideas of initiatives lies in establishment of a proper
communication culture. The mission of the company is to cater to the changing needs
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of the society while mitigating the adverse environmental effects that are being faced
by the environment. It success of the strategy will be determined by the success of the
marketing and the production team. Thus clear communication needs to be established
with the said departments.
13. The marketing team of the company will be delegated with the role of spreading the
initiative of the company to the masses. The production department will have to work
with the market research department to collaborate their efforts to analyse the
demands. This will be followed by the approval form the financial department who
will be responsible for backing the initiative with capital.
14. The main performance indicators that will determine the success of the initiative will
be determined by the innovation spending, EBITDA, customer volume by channel,
increase in market share and net profitability. The aforementioned factors are said to
take place as a result of the boosted brand image of the company.
15. The cost associated with the sustainable initiative of the company include the cost
related to acquiring the units and equipment required for production of low emission
and electronically powered vehicles. The other major chunk of the budget will be
invested in the marketing activities and PR campaigns that will enable the company to
educate the community and its stakeholders.
16. The sustainable initiative of the company is deemed to be beneficial for the
environment and the customer community. This objective of the company will be
beneficial for the company in the long run. This is the reason behind the success of
the initiative will be determined the commitment of the higher level from the part of
the every functional division of the organisation.
17. The board has given the initiative a green light. Their acceptance will determine
favourable response from every other functional department of the organisation.
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9STRATEGIC ORGANIZATIONAL PLANNING
Success of the initiatives will require optimum level of commitment from every
employee of the organisation. The government will supposedly favour the operation
and the strategic initiative of the company.
18. The implementation of the plan would suit the long term goals of the company. The
aim of the company to promote sustainability of the company will result in
achievement of long term organisational goals. Goals as such include, profit
generation and goodwill maximisation. Carrying out the operation favourable will
result in long term profitability of the company.
19. The priorities of the company will be ranked as follows:
Rank 1: Machinery required for creation of eco-friendly environmental vehicles.
Rank 2: Investment in acquiring skilled individuals who are specialised in sustainable
initiative formulation.
Rank 3: Eco friendly plants required for the creation of components related to the highly
innovative automobiles.
Rank 4: Investment in marketing and sales promotional activities.
20. The organisation has been operating in the Australian market for several years in the
past. They have been able to adapt to the changing demand of the consumers of the
country. They have further identified the changing mind sets of the customer
community and have devised the aforementioned plan. There is no new topic that the
company needs to adapt.
21. In order to make sure that the business can sustain its employees, the HR policies
within the organisation would have to be favour and be aligned to employee welfare.
The organisation should encourage recruitment form diverse cultures as it would
increase the organisations chance of acceptability.
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22. In order to perform the task favourably, the people associated with the functional
departments, especially the personnel associated to production and manufacturing
should be educated about the change initiatives. Furthermore, proper training
associated should be imparted to the employees which cater to the sustainable
initiatives of the organisation.
23. The staff of the company will be informed about the initiative of the company through
seminars and workshops, the board of directors will have to be informed about the
initiative in a board room meeting, the shareholders will be informed by regular
newsletters, the initiative will be communicated to the customer community through
social media and other promotional activities.
24. The success of the initiative will be measured by the spread of consciousness among
the members of the community. The aim of the company is to spread the same
initiative and capitalise on the environmental sustainability needs. The management
will be responsible for the success of implementation of the plan as they have the
necessary human capital associated with the operations.
25. The implementation of the initiative successfully would result in increased awareness
regarding the use of eco-friendly technology among the customers and the community
in general. Thus, this mind set of the customer community will direct them to the
innovative products offered by the company. This will lead to realisations of the
organisation’s ultimate goal of profit generation.
26. The initiative that has been undertaken by the organisation will lead to realisation of
the goals of the organisation regarding the eco-conscious initiatives. The adverse
effects of the polluting by products of the vehicles will make the customers choose
Toyota over others. It is assumed that such change will bolster the goodwill of the
company and lead to achievement of organisational goal achievement.
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11STRATEGIC ORGANIZATIONAL PLANNING
Questions
1. There are some components that must be included in a strategic plan to ensure that the
plan is successful. They are the vision and mission statements, the objectives, the
strategies that are to be carried out and the action plan to check the success of a successful
strategic plan.
2. The key documents to be scanned that will determine successful implementation of the
strategic plan and moulding it according to the needs of the organisation are the SWOT
analysis, the strategic issues that are being faced by the company, proper segmentation
documents and competitive analysis of the external environment.
3. The characteristics that will needed to be considered are:
Environmental consciousness of the stakeholders.
Changing attitudes of customers as a result of adverse economic conditions.
Need for corporate governance that will help retain the board of directors and
attract new investors.
Efficacy and efficiency of the technically adept employees.
4. The basic step that are included in the planning process while determining the
methodology within a project plan are:
Identification of the needs and demands of the stakeholders who will be
affected by the strategic plan.
Setting clear goals and objectives.
Definition of the deliverable and project schedule.
Risk assessment.
5. There a quite a few sources form which information regarding the best local and
international practices can be obtained. They are annual reports of reputed companies,
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