Strategic Analysis and Recommendations for Toyota Motor Corporation

This report provides a comprehensive analysis of Toyota Motor Corporation, examining its business operations, strategic objectives, and market position within the automotive industry. It delves into key aspects such as the company's global presence, product portfolio, financial performance, and brand strategies. The report identifies significant operational issues, including poor marketing staff performance, quality problems, customer loyalty concerns, and digital marketing inadequacies. For each of these issues, the report presents potential solutions and recommendations, such as employee training, recruitment of skilled staff, effective marketing strategies, and the adoption of digital marketing tools. Furthermore, the report explores the potential impact of these improvements on the organization's short, medium, and long-term performance, considering both internal and external consequences. The analysis concludes with recommendations for enhancing operational efficiency, including training programs, rumor control strategies, and the effective use of digital marketing, to improve forecasting and overall business performance.

Toyota Motor Corporation

About Toyota Motor Corporation
• Public limited company founded in 1937, headquartered in Japan
• Industry: Automotive industry.
• Product portfolio: Luxury vehicles, engines, commercial vehicles and
automobile products.
• It is world’s top automobile manufacturing company that produces
above 10 million vehicles every year.

Contd…
• The company also become champion in the hybrid electric vehicle
sales.
• It is primary listed on TYO while secondary listing includes LSE and
NYSE.
• It has a worldwide presence as it operates in North America, Europe
and Australia.

Fortune Global 500 Ranking
• Global Fortune Ranking:
5th position
• Revenue and employee:
$254,694m and 364,445
employees

Company World Location

Business Segments
• Automotive segment: manufacturing and selling passenger cars,
vehicles and associated parts and accessories
• Financial service: Loan and financing services to the buyers
• Other: Industrial vehicles

Vision and Mission
• Vision: “To become the most successful company by having market
leadership in the automotive industry”
• Mission: “To attract and retain maximum customer base by offering
highly valued goods and services satisfying users requirements”

Top popular brands
• Hino
• Lexus
• Ranz
• Daihatsu
• Toyota Brand

Electrical Vehicle Segment

Strategic Operational Objectives
• To maximize wealth of shareholders and deliver increased return on money
invested.
• To take actions to control cost and maximize profitability
• To make appropriate allocation of utilization of resources manpower, funds, assets
etc.
• To deliver top quality products that meet consumer specification
• To use the best technology in vehicle designing and manufacturing for quality
production

Contd….
• To create sound corporate image in the market by delivering increased
value to the buyers
• To maintain high level of honesty, professionalism and integrity by
ethical working practices
• To undertake corporate social responsibilities program to satisfy all
the stakeholders i.e. customers, employees, community and others

Key Strategic Operational Issues
• Poor marketing staff performance
• Quality problems
• Customers loyalty
• Digital marketing issues

Poor marketing staff performance:
• The performance of the marketing staff is poor in current fiscal year
which reduced the income of company by 31.3 percent.
• The revenues are not only declining but there is increase in marketing
expenses of company.
• The performance of marketing staff affects the image of brand and
also their share of market.
• Marketing staff is not so efficient in Toyota but has a high salary
demand.
• Marketing function is not performed properly to improve the
promotions strategies.

Contd
 They follow traditional marketing process which not attract the
customers towards their cars.
 Marketing staff is not trained because of which they are not able to
handle advancement in marketing techniques.
 The marketing function is also not funded more by Toyota which
reduces motivation level of employees.

Poor marketing staff performance
• Potential solution:
• Training to existing employees
• Recruitment of new skilled employees

Quality problems:
• The media make it popular that Toyota has defects in their quality
which is not true as per actual data.
• The rumours are publicized in market that Toyota has unintended
acceleration this effects their position in market. This quality issues
affects marketing strategies of the company.
• This is the duty of marketing to keep safe image of company
otherwise it affects sales of company.
• Negative marketing of company in media reduce the faith of
customers on auto-mobiles produces by Toyota.

Quality problems:
• Potential solution:
• Stop rumours
• publicizing information opposite to rumours
• to provide evidence opposite to negative rumours
• For example: In case when there are rumours related to unintended
acceleration Toyota publicized the investigation of products.

Customers loyalty:
• This is also a big marketing problem as the customers are not loyal
towards the company because of high prices of Toyota auto-mobiles.
• New companies with the latest technologies enter in market which
attract customers with low prices and effective discounting strategies

Customers loyalty:
• Potential solution:
• Marketing strategies
• to generate good image in market there is a need to develop
plans.
• to interact with customers on regular basis.
• to understand their demands and problems related to cars and
then make plans as per their demands.

Digital marketing issues:
• Toyota promote their products mostly through traditional mediums.
• In modern era there are many new methods of marketing available
which is not followed in Toyota.
• Communication of Toyota with their customers is very bad because
they are not using modern tools to communicate with customers.

Digital marketing issues:
• Potential solution:
• digital marketing functions which help in promoting their vehicles and cars
• Digital marketing is modern marketing tool which includes email marketing,
social media marketing like on Face book, twitter etc. this help in promoting
Toyota cars in large number of customers.
• This helps increasing sales and also helps to increase market share.
• This ultimately helps in growth of business and increase the profitability.

Recommendations for Improving
Operations Efficiency
• Training and
recruitment programs
organizes
• To Stop rumors plans
are made.
• Form effective
Marketing strategies.
• Use Digital marketing
tools.

Recommendations for Improving
Operations Efficiency - Forecasting
and Predictions• If the efficiency of the selected issues is improved, what will this do
for the organisation?
• Consider:
• Short run
• Medium run
• Long run
• External and Internal consequences

Bibliography
• http://articles.latimes.com/2010/feb/09/business/la-fi-toyota-
marketing10-2010feb10
• https://www.forbes.com/sites/stephenharner/2011/10/09/japans-
automakers-face-new-challenges-1-toyota-in-china/#22178f521321
• http://marketrealist.com/2016/05/toyota-plan-deal-challenges/