Toyota's Strategic Planning: Techniques, Issues, and Implementation

This report provides an overview of business strategy, focusing on strategic contexts and planning techniques. It defines key terminologies such as missions, visions, objectives, goals, and core competencies, highlighting their importance in strategic planning. The report discusses issues involved in strategic planning, including developing a strategic vision, setting objectives, crafting a strategy, strategy implementation, and corrective actions. It also examines two specific planning techniques: the BCG Matrix, which classifies businesses based on market growth rate and relative market share, and Ansoff's Matrix, which focuses on growth opportunities through market penetration, market development, product development, and diversification. The analysis is contextualized with examples relevant to Toyota, illustrating how these techniques can be applied in a real-world business environment. Desklib provides access to this and many other solved assignments.

BUSINESS STRATEGY
TASK 1

STRATEGIC CONTEXTS
• A company's strategy is a combination of competitive moves
and approaches which managers undertake to satisfy
customers, which allows firms to compete successfully and
move towards achieving organizational goals.
• Strategy is both Pro-active and Reactive, as per the situations.
• A strategy ensures that always right fit is achieved between the
firm and its environment.

TERMINOLOGIES
Missions:
a) formulated to regulate the present business of the company.
b) tells you the fundamental purpose of the organizations.
c) highlights the purpose of the existence of the organization.
Visions:
d) Vision is said to be the road which company has to undertake to
achieve its long-term objectives.
e) It provides insights about: technology, capabilities of the
company(present and future), markets to be pursued.

TERMINOLOGIES
Objectives:
a) Objectives are performance targets, results and outcomes a company wants to
achieve.
b) should be SMART- Specific, Measurable, Achievable, Realistic, Transparent.
Goals:
c) Goals are close-ended elements of the company which are more specific than
objectives.
d) Goals are more precise in nature.
Core competencies:
e) Combination of various resources and strategies which gives a firm competitive
advantage in the market place.
f) Provides access to different markets.
.

Issues Involved in Strategic Planning
• Main purpose of strategic planning is to establish a process
which help an organization to achieve its desired objectives.
• Planning is a future oriented process, it is done to have a clear
view of the future operations of business.
• Good planning leads to good management.
• A Strategic planning process is basically deriving the
resources which will be needed to commence the operations.

Issues Involved in Strategic Planning
Developing a Strategic Vision:
a) Needs to strategize against the Changes which will impact the
company in future and due to which they can improve market
position.
b) A Strategic vision is a road map for the organization.
Setting Objectives:
c) Objectives flow from mission and vision statement of the
corporation.
d) They shows the short-term desirability of the firm in a given
time frame .
e) Should be framed in this manner that they are achievable,
reliable, easy to understand, specific to a task and a tool of
motivation.

Issues Involved in Strategic Planning
• Crafting a Strategy:
To achieve what you have planned for the company's future you need to
get a sound strategy which focuses on goals and objectives of the firm.
• Strategy Implementation:
Need to make sure that all the things, resources are dully compiled within
the execution processes.
• Corrective Actions:
Monitoring is the key to success and in a business environment like this
where everything is uncertain Toyota need to have control over the
processes.

Different Planning Techniques
 For the purpose of the study two techniques are taken in context
with Toyota and the techniques are:
BCG Matrix
• In BCG matrix, a company classifies its businesses on a two-
dimensional growth share matrix.
• The two dimensions are:
a) Market Growth Rate
b) Relative Market Share.

BCG MATRIX
Stars:
a) Products that are Growing Rapidly.
b) This Stage shows High share in the Market.
Cash Cows:
c) The products have low growth but have high market share.
d) This stage generate good profit for company.
e) They generate cash & have low costs.

BCG MATRIX
Question Marks:
a) In this stage a firm needs to hold its share & generate more cash in order
to survive in the market.
b) If the products or services left unattended then they are capable of
becoming loss products.
Dogs:
c) Companies may be generating some profits but the products which lies in
this stage does not have much future to continue.
d) Sometimes companies have to incur cash to make the product survive in
market.

Ansoff's Matrix
• This matrix focuses on the growth opportunities for a particular company
in the environment.
• It is a Portfolio-planning tool for identifying company Growth
opportunities.
Market Development:
a) Business seeks to sell its existing products into markets. Strategy for
company's growth should be,
b) by identifying and developing new markets for current company
products.

Ansoff's Matrix
Market Penetration:
a) Focus is on selling existing products into existing markets.
b) Growth is achieved by making more sales to present customers without
changing products in any major way.
Diversification:
c) Situation where business expands into new markets with new products.
d) A firm can start by acquiring businesses outside the company's current
products and markets.