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Ahmad U3072227
Ario Ardianto Baroto U3088020
Fatima Al Ghardaqa U3035594
Julie Wang U3060588
Tsering Choden U3105935
Presentation Outline
 Introduction
 General Environment Analysis
 Industry Environment Analysis
 Competitors Analysis
...
Introduction
 Inception of Toyota – Founded by Kiichiro Toyoda, Japanese
businessman in 1937
 3rd positioned in automoti...
General Environment Analysis
 The general environment analysis process has four steps:
Scanning, monitoring, forecasting ...
General Environment Analysis
 Political/Legal: - Laws enacted in some countries to reduce Cos
create challenges to Toyota...
The Four Characteristics of global economy
1. The economic integration
2. The capital movements
3. Production has no corre...
Porter’s Five Competitive Forces
Competitive environment analysis
9.60%
7.60%
7.00%5.90%5.30%
5.10%
4.80%
3.10%
2.40%
2.30%
Auto Industry Market Share in 2...
Net Income Comparison
20529
18950 18994 18584
1082 1550
3418
6380
2717
6557
20222
5664
0
5000
10000
15000
20000
25000
2009...
Contrast of Sale
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
2009 2010 2011 2012
T
h
o
u
s
a
n
d
s
Toyota
Volkswa...
Internal Environment Analysis
To attract & attain customers with high-valued
products & services & the most satisfying own...
Internal Environment Analysis
CORE COMPETENCIES
Produce
- What is needed
- In the amount that is needed
Total quality cont...
Internal Environment Analysis
VALUE CHAIN OF TOYOTA1.Efficient & effective marketing and sales service
a. Qualified staff
...
SWOT Analysis
Recommendation
Business level strategy >>
 Focus on technology and innovation of
Hybrid vehicles as future
differentiatio...
Recommendation
Enhance market share >>
 Develop presence in emerging markets; China and India
 Concentrate on USA market...
Conclusion
 Toyota has sources of strong competitive advantages in global
automotive industry, such as TPM, value chain, ...
Thank You
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Strategic management toyota case study

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Strategic management toyota case study

  1. 1. Ahmad U3072227 Ario Ardianto Baroto U3088020 Fatima Al Ghardaqa U3035594 Julie Wang U3060588 Tsering Choden U3105935
  2. 2. Presentation Outline  Introduction  General Environment Analysis  Industry Environment Analysis  Competitors Analysis  Internal Environment Analysis  SWOT Analysis  Recommendation  Conclusion
  3. 3. Introduction  Inception of Toyota – Founded by Kiichiro Toyoda, Japanese businessman in 1937  3rd positioned in automotive company in the current market  Competitors of Toyota - General Motors and Ford in United States and Honda in Japan.  Sale of Vehicle by unit- 8.871 million units  Net Income earned in 2013 - Yen 962.1 billion
  4. 4. General Environment Analysis  The general environment analysis process has four steps: Scanning, monitoring, forecasting and assessing (Hanson et el. 2011).  Has six segments:  Demographic: Toyota faces a decreasing population in Japan (-0.1%)  Macroeconomic: -Interest rates, exchange rates & inflation. Rise in Yen makes Japan a high cost production location & requires Toyota to move production overseas
  5. 5. General Environment Analysis  Political/Legal: - Laws enacted in some countries to reduce Cos create challenges to Toyota.  Socio-cultural: - Changes in values and preferences of customers and the society at large provides both threats and opportunities.  Technological: - There is a technological shift taking place in the automobile industry. while Toyota continues to stick with hybrid technology, other companies (such as GM with the Chevy Volt) are starting to introduce all electric vehicles.  Global: - The move toward the globalization of markets requires Toyota to become more of a global company.
  6. 6. The Four Characteristics of global economy 1. The economic integration 2. The capital movements 3. Production has no correlation to the employment 4. The internet
  7. 7. Porter’s Five Competitive Forces
  8. 8. Competitive environment analysis 9.60% 7.60% 7.00%5.90%5.30% 5.10% 4.80% 3.10% 2.40% 2.30% Auto Industry Market Share in 2013 Toyota Volkswagen Ford Chevrolet Hyundai Nissan Honda Kia Renault Fiat
  9. 9. Net Income Comparison 20529 18950 18994 18584 1082 1550 3418 6380 2717 6557 20222 5664 0 5000 10000 15000 20000 25000 2009 2010 2011 2012 M i l l i o n s Toyota Volkswagen Ford
  10. 10. Contrast of Sale 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 2009 2010 2011 2012 T h o u s a n d s Toyota Volkswagen Ford
  11. 11. Internal Environment Analysis To attract & attain customers with high-valued products & services & the most satisfying ownership experience in America To be the most successful & respected car company in America World domination with regard to car supply. The company seeks to achieve market leadership by delivering value to customers & providing high quality vehicles
  12. 12. Internal Environment Analysis CORE COMPETENCIES Produce - What is needed - In the amount that is needed Total quality control All workers to meet customers’ needs Involve all workers in the company (BEING INCLUSIVE) - To achieve total effectiveness of the production system - To ensure total productive maintenance Computer integrated manufacturing to include: - Design - Production - Distribution - After sales service - Support in the field - Use computers & IT
  13. 13. Internal Environment Analysis VALUE CHAIN OF TOYOTA1.Efficient & effective marketing and sales service a. Qualified staff b. Marketing program (Oh What a Feeling) 2. Supply after sales service a. handle complaints & provide solutions b. provide sales training 3. Efficient production method a. Toyota has quality instruments to assemble & tune new car engines b. Has an effective method of stopping work if there is a problem – therefore there is no poor quality 4. Upright inbound logistics ensures: a. The clients’ demands are met b. therefore there is no storage costs or wastage do to lack of demand 5. Good accessibility: a. Toyota manages its own showrooms in all countries b. Toyota does not outsource its services c. the products are easily accessible & their values are not inflated.
  14. 14. SWOT Analysis
  15. 15. Recommendation Business level strategy >>  Focus on technology and innovation of Hybrid vehicles as future differentiation strategy  Develop fuel efficient, compact vehicles for emerging markets Functional level strategy >>  Operation strategy : Focus on product quality control, continuous learning and improvement on manufacturing systems for efficiency  Marketing strategy : Reinforce Toyota brand image to restore reputation and build brand loyalty to increase value of Toyota
  16. 16. Recommendation Enhance market share >>  Develop presence in emerging markets; China and India  Concentrate on USA market by Americanize the design, production and marketing  Invest and expand in European market  Continuous learning and improvement of Toyota product and process through technology and innovation  Increase customer responsiveness; identify and satisfy needs, improve support and after sale services
  17. 17. Conclusion  Toyota has sources of strong competitive advantages in global automotive industry, such as TPM, value chain, strong brand, wide product offering and hybrid vehicles  Major recalls, economic crisis, natural disasters and intense global competition have posed serious challenge for Toyota  Growing emerging markets and shifting customers demands offer opportunities for Toyota to attain superior profitability and growth  Toyota must sustain its competitive advantages to retain its position and achieve future success
  18. 18. Thank You

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