Toyota Motor Manufacturing Canada: A Business Environment Analysis

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MGMT1101: RESEARCH & ANALYSIS PAPER – PART I
MGMT1101: RESEARCH & ANALYSIS PAPER – PART I
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MGMT1101: RESEARCH & ANALYSIS PAPER – PART I
Introduction
The assignment is related to research and study of a company and all about its internal
organizational values, structure and other relevant aspects. The company chosen for the
completion of this particular assignment is Toyota Motor Manufacturing, Canada. The
assignment will focus on the study of macro and micro business environment of the company.
There will be a discussion about the strengths, weakness, threats, and opportunities of the
business. The target customers will also be analyzed in the assignment and the values and culture
of the organization will be discussed in the study.

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MGMT1101: RESEARCH & ANALYSIS PAPER – PART I
Summary of the organization
Toyota is a well-known automotive brand and has its operations almost all over the world.
Toyota motor manufacturing Canada is an automobile producer and is the wholly owned subsidy
of Toyota Motor Corporation. The company has 2 plants. One plant is in Cambridge and the
other is in Woodstock. The president of the Canada division of Toyota Motor Manufacturing is
Fred Volf. The company is specialized in manufacturing budget as well as luxury cars for its
customers. The company produces highly sophisticated and conformable automobiles for the
target market. The company is currently engaged in the manufacturing of Toyota Corolla, Toyota
RAVA and Lexus RX.
Customer Base
The customers of Toyota Motor manufacturing are really very important for the company. The
target customers of the company are the common people of medium to high social class. The
company manufactures automobiles for the general and common population of the country. The
target customers are the businessmen having esteem needs and the common people with limited
income sources. The automobiles of the company are affordable with high-class comfort and
driving experience. The company is engaged in the production of cars for people wanting more
at a lesser price. The perfect customers of the company are the medium social class population
having more requirements but less income. The company also produces luxury cars for the
people for whom price is pride.
Mission and Core Values

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MGMT1101: RESEARCH & ANALYSIS PAPER – PART I
The mission of the company is to deliver exceptional customers care to its target market and also
to guide the North America operations for the sustainable growth of the business and society.
The company is committed towards its target to satisfy the customers by providing them with
world-class products and services (Tmmc, 2019).
Vision
The vision of Toyota Motor Manufacturing, Canada states that the company is proud to call the
area of its operations as its home. The company is committed to quality and works as a team to
accomplish its organizational and social goals. The business is socially responsible and is proud
to have high ethical standards and values in its operations (Tmmc, 2019).
Corporate Level Strategies
The major strategy of the company is to "Make things better". The company believes in
continuous improvement in its operations so that the market is always in its hands. The company
has a strategy to analyze the strategies and moves of the competitors and then formulate
strategies for the business. It makes sure that the business is always better than rivals. The
company the corporate level strategies of the company also include the business environment
changes that are necessary to be implemented to really make the things better. The strategy of
regular technological innovation is also adopted by the company. Te corporate level strategy of
the business consists of a strategy of customization in the production which suits the demands of
the target market. The combined transport of people and things is also a part of the big strategies
of the business.
Business Level Strategies

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MGMT1101: RESEARCH & ANALYSIS PAPER – PART I
The business level strategies of Toyota Motor Manufacturing, Canada involves the
empowerment of its employees. The company organizes various training and development
programs for the overall development of the employees so that they can work to their full
potentialities. The company also believes in ethical operations. The strategy of the company is
that if products are manufactured with ethics, they will always be of high quality. Toyota Motor
Manufacturing has a business strategy of analyzing the customer’s demands and needs before
starting any new product development, this ensures that the automobiles provide the needed
utility to the target customers. The company has a business strategy of differentiation. The
automobiles of the company are always different from the competitors and this creates a good
image in the minds of the customers. The company also is focused on its operations. All the
activities in the manufacturing plant are carried out with great care and commitment.
SWOT analysis
Strengths
 Research and Development: Toyota is recognized globally to have an effective research
and development department which has led to numerous gigantic innovations in the
automobile industry. The company is recognized to invest heavily in the research and
development department to ensure competitive advantage and effective business strategy
for the business. The business of Toyota is also known as one of the most valuable and
most recognized automotive brands globally (Debnath, 2015).
 Socially responsible: The business has developed and enforced integrated and planned
corporate social responsibility strategies and plans which have developed the global

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MGMT1101: RESEARCH & ANALYSIS PAPER – PART I
image of the business as a reputed and socially responsible organization in the world. The
overall brand ranking for Toyota in 2017 was ranked at 7th position, and the brand value
was recognized as US$ 50.291 billion.
 Regular Technological Improvements: The business functions with the approach of
Product Development and Innovation for the new and existing products. The business
develops for integrated technologies and approaches to develop for existing automobiles
along with the new products.
 Customers care: The business is also recognized for establishing a strong consumer base
and consumer services in the market. The company is dedicated to providing with
effective and result oriented consumer services to maintain the relationship with
consumers in the market (Debnath, 2015). Toyota engages in executing regular consumer
feedbacks and surveys to gather information regarding consumer satisfaction level from
the company services and products.
Weaknesses
There are various weaknesses of the company which needs to be improved for better services to
the customers and also for the success of the business. The weaknesses are listed below:
 Dependent on the suppliers: The suppliers of the company are scattered all over the
world. This is a weakness as the production function of the company depends upon the
suppliers and makes the function a little sloth.

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MGMT1101: RESEARCH & ANALYSIS PAPER – PART I
 Negative publicity: all car manufactures companies have negative publicity because of
some of the other reason. The high prices of the cars manufactured by Toyota lead to
negative publicity.
 Management Not taking effective marketing decisions: The management of the
company sometimes fails to take effective business decisions like launching cars in a
suitable market where the products will be accepted by the customers.
Opportunities
There are numerous market opportunities available for the company. The opportunities are
discussed beneath:
 Green Vehicle Technology: The technology of Green Vehicle is adopted by many
competitors around the world. The adoption is slower but the technology will surely gain
popularity in the coming years. Toyota must also focus on green vehicle technology to
beat the customers and have long term success (Luria, et. al., 2018).
 Concern for the environment: The Company must focus on the environment-friendly
methods of production. This can also act as a strategy for the company as the people
around the world are becoming more concerned about the pollution level of the
environment. The company must also make changes in the production function to grab
this opportunity.
 Demands in the developing nations: There is a great opportunity for the company to
extend its operations to the developing nations as the demand for cars is increasing day
by day in these nations (Bhasin, 2018).

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MGMT1101: RESEARCH & ANALYSIS PAPER – PART I
Threats
In the market, there are various threats also present for the company. The threats are enumerated
below:
 An increasing number of competitors: The Company has a threat of an increasing
number of competitors in the market. The main competitors of the company in the
automobile market are Mitsubishi, Ford, Volkswagen, and BMW.
 High prices of the raw material: The raw materials used in the manufacturing process
of the company are high prices as they are imported from different countries. This makes
the end product also pricey (Bhasin, 2018).
(Fig. 1: SWOT analysis of Toyota Motor Manufacturing, Canada)
(Source: By author)
Strenghts
Customers care
Regular Technological
Improvements
Socially responsible
Research and Development
Weakness
Dependent on the suppliers
Negative publicity
Management Not taking
effective marketing decisions
Opportunities
Green Vehicle Technology
Concern for the environment
Demands in developing
nations
Threats
High prices of the raw material
Increasing number of competitor
s
SWOT

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MGMT1101: RESEARCH & ANALYSIS PAPER – PART I

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MGMT1101: RESEARCH & ANALYSIS PAPER – PART I
Conclusion
The assignment concludes about a very big and well-known manufacturer of automobiles,
Toyota Motor Manufacturing, Canada. The company is committed towards its work and has the
mission to provide the best quality services and products to its target customers. There are
various strengths of the company like the regular improvisation in the technology and research
and development which is contributing to the organizational goals of the company. The company
needs to grab market opportunities like green vehicle technology and expansion of its operations
in the developing countries. The threats of the company can be avoided by the formulation and
adoption of business and corporate level technology by the business.

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MGMT1101: RESEARCH & ANALYSIS PAPER – PART I
Reference
Debnath, S. C. (2015). Environmental regulations become restriction or a cause for innovation–a
case study of Toyota Prius and Nissan Leaf. Procedia-Social and Behavioral
Sciences, 195, 324-333.
Luria, D., Baum, A., & Sharpe, B. (2018). Automobile production in Canada and implications
for Canada’s 2025 passenger vehicle greenhouse gas standards. Working Paper, 2018.
Tmmc, (2019). Toyota Vision and Mission - Toyota Motor Manufacturing Canada. [Online].
Tmmc. Retrieved 26 February 2019, from https://www.tmmc.ca/en/about-tmmc/vision-
mission
Bhasin, H., (2018). SWOT analysis of Toyota - Toyota SWOT analysis. [Online]. Marketing91.
Retrieved 26 February 2019, from https://www.marketing91.com/swot-analysis-toyota/