Global marketing decisons - CIM Level 07

40074851 | GLOBAL MARKETING DECISION | DECEMBER 2020
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Contents
TASK 01 – BREFING REPORT.............................................................................................................5
a.1.a) Importance of understanding consumer behavior for Toyota ....................................................6
a.1.b) Toyota’s ability to understand it current customer base and buying behavior...........................6
1.b.1 Toyota’s Organization Culture....................................................................................................8
1.b.2 Toyota’s current strategic intent and strategy .............................................................................8
1.b.3 Fit between Toyota organizational culture , Current strategic intent and strategy......................8
TASK 02 – BREFING REPORT...........................................................................................................10
2.a.1. Three Strategic market options available for Toyota ...............................................................11
2. a.1.i.Startegic Options................................................................................................................11
2.a.1.ii.Market Penetration.............................................................................................................11
2.a.1.iii Product Development........................................................................................................12
2.a.1.iii. Diversification..................................................................................................................13
2.b.1. Sustainable founding sources and financial approaches for Toyota ........................................14
2.b.1.a Importance of having founding sources for business expansion of Toyota .......................14
2.b.1.b Founding Sources Available for Toyota ............................................................................14
2.b.1.b Financial Approaches of Toyota........................................................................................15
TASK 03 – BREFING REPORT...........................................................................................................17
3.a.1 Organization Name ...................................................................................................................18
3.a.2 .Organization Information.........................................................................................................18
3.a.3.Size of Organization..................................................................................................................18
3.a.4 Range of Product and Services..................................................................................................18
3.a.5 Customer Base ..........................................................................................................................18
3.a.7 Key Internal & External Stakeholders ......................................................................................18
3.a.6 Main Competitors......................................................................................................................18
3.a.8 Current Approach to Customer Satisfaction and Loyalty .........................................................18
3. b.1.Corporate Branding..................................................................................................................18
3.b.2 Brand Value ..............................................................................................................................19
3.b.3 Brand Equity.............................................................................................................................19
3.b.4.How Singer corporate brand helps to increase brand value and brand equity ..........................19
3.c.1.Strategic Risk and mitigation strategies to reduce strategic risk...............................................21
3.c.1.1Strategic Risk Management ................................................................................................21
3.c.1.2What are risk mitigation strategies......................................................................................21
3.c.2 Two major risks face by Singer Sri Lanka PLC and mitigation strategies............................21
Analysis and Decision............................................................................................................................24

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Table 1. – SWOT Analysis................................................................................................................24
Table 2. Critical success factors and Key Issues................................................................................24
Table 3. PESTEEL Analysis..............................................................................................................25
Table 6.Ansoff Matrix .......................................................................................................................25
Table 4. Strategic capabilities............................................................................................................25
Table 5. Stakeholder Mapping...........................................................................................................25
Table 7. Stakeholder Analysis ...........................................................................................................26
Table 8. Porter’s five forces...............................................................................................................26
Table 9. Customer Needs Analysis....................................................................................................26
Table 10. Competitor Analysis ..........................................................................................................27
Table 11. Value Chain .......................................................................................................................27
Table 12. Customer Analysis.............................................................................................................28
Table 13. Strategic Intent...................................................................................................................28
Table 14. Triple bottom line ..............................................................................................................28
Table 16 . Ratio Analysis...................................................................................................................29
Table 15. Scenario Planning ..............................................................................................................29
Table 17. Culture analysis (Schein 2010) ..........................................................................................29
Table 18. Harvard and Seth model.....................................................................................................29
Table 19. Cultural Web......................................................................................................................29
List of Tables
Table 1. Toyota Market penetration.......................................................................................................11
Table 2.Founding Sources .....................................................................................................................14
Table 3. Organization size of the singer ................................................................................................18
Table 4.Stake holders of Singer .............................................................................................................18
Table 5. Risk Matrix - Singer.................................................................................................................22
Table 6. Risk mitigation strategies.........................................................................................................22
List of Figures
Figure 1, Market share Toyota...............................................................................................................11
Figure 2 Market Share Singer................................................................................................................18
Figure 3. Risk Mitigation Strategies ......................................................................................................21
Figure 4. Risk Radar Singer...................................................................................................................22

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TASK 01 – BREFING REPORT
To – Senior Management Team – Toyota Holdings PLC
From – Marketing Consultant, DT Consulting
Subject – Understanding Customer behavior, Toyota’s Culture and Strategy
Date – 22.11.2020
a) This task will elaborate Toyota’s ability to understand current Customer base and their
buying behavior
b) This task will elaborate fit between Toyota’s current organizational culture and its
strategic intent and strategy
Word Count – 1,221

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a.1.a) Importance of understanding consumer behavior for Toyota
Toyota was established in 1937 and in 1947 Toyota introduced its first small car. there on today Toyota
has become number two in the world in terms of overall vehicle sales and brand valuation. Toyota has
sold 8.97 million vehicle in 2019.further Toyota has identified world’s second auto mobile brand valued
at $ 52,291 million.as per this given data it can clearly understand how depth Toyota has established the
brand name and develop large scale customer base around the globe.
As per the customer segmentation (Table No 12 ) Toyota has produced vehicle to cater Mass, Medium
and premium segments.currenty all these segments addressed by brands of Toyota, Daihatsu and Hino
these there brands produced hybrid vehicles , conventional engine vehicle & fuel cell vehicles.
Further Toyota has identified consumer’s income and their spending ability to produce vehicle in above
mentioned segments as consumers’ expectations are different
Moreover life style of consumers are change with their social class. Mass market segment consumers
are looking more towards fuel efficiency, durability and affordability factors.in the medium segment
looks at comfort and safty.in premium segment, they expect more than all other segments such as social
status, VIP service, Innovation and attention.
As per customer need analysis (Table no 09).there are many changes affected on consumers buying
behavior such as consumers are more keen on safety, environment sustainability aspects. Also current
pandemic situation drives automobile industry in to different direction since work from home concepts
and people avoid using public transport. These are more dynamic factors that every automobile
manufacturer face today’s world. There is more uncertainty that these concepts would continue to
future.most of the countries around the globe is encourage consumers to use vehicle which can reduce
carbon emission and better sustainable tomorrow. Therefore consumers also educated and aware about
these factors and demand increased for hybrid and electric cars.
Due to the rapid advancement technology, consumers are excited to experience new technology which
will inbuilt in vehicles such as AI, Connected car, advance driving support technologies.
As a global vehicle manufacturing company Toyota should always research on these consumer behavior
changes and market dynamics in order to retain existing customer base and expand its operation and
acquire new customers and increase the market share.
From its beginning Toyota has kept more interest on these changes and address those and won consumers
mind, otherwise Toyota would never become this much popular and establish Toyota brand name among
consumers well.
a.1.b) Toyota’s ability to understand it current customer base and buying behavior
With reference to the SWOT analysis ( Table no 01 ) and Toyota’s strategic capability analysis ( Table
no 04 ) identified Toyota’s ability and areas that to be improved.
Invested $9.98 billion on R &D and Toyota has 16 R&D Centers, more focuses on AI, robotic
technologies. Toyota Connected Inc. develop connected car technology .by doing this Toyota strongly
engage with future technologies where Toyota brand would not be outdated and Toyota address future
requirement of consumers by early adapting for future changes
Worldwide manufacturing based enhance economics of scale, with the current situation globally
consumers are looking for vehicle which comparatively affordable due reduction in their income. Toyota
has ability to produce quality vehicle at an affordable price.

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Toyota follows Kaizen, Genchi Genbutsu, PDCA , Seikaku + Shinsetsu = Shinrai concepts which assure
the quality and increase trust of consumers towards Toyota Brand.
Toyota’s ecommerce platform Gazoo.com reported $10.23 billion revenue in 2018.with the today’s
dynamic environment Toyota has opportunity to increase earn through E commerce they can develop
Augmented reality experience through Gazoo.com which attract more consumers towards it
With Today’s environment peoples have reduce interaction each other, therefore Toyota Needs to
enhance contactless service support for consumers in order to have better continuation of the sales and
service.
Further strategic alliance which Toyota has with other automotive and other relative product
manufacturers which always supports Toyota to come with better version of its products and that
benefitted not only for Toyota but it’s all for consumers as well.
As a part of strength Toyota has wider 170 distributors, 280 dealers and 4,700 sales and service outlets
this always benefitted to consumers where they will receive better aster sales service and continues spare
parts supply. Consumers’ faith on the brand more increases with Toyota’s capability of serving in
globally.

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1.b.1 Toyota’s Organization Culture
As per culture analysis (table no 17) Toyota has rich heritage and culture.Toyota drives with unique
moral and principles “ Toyota Way” and “Toyota code of conduct” these main principles are driving
Toyota for its success. Currently Toyota operates with more than 370,000 employees and every process
employees are more engage in every process. Continues improvement through Kaizen, Genchi Genbutsu
philosophies also Toyota beliefs that respect and team work are the other values. Toyota strongly
believes that employee engagement in quality assurance cycle gain customer’s confidence and
trust.furthermore Toyota concerns environment sustainability, Toyota has established recycling nickel,
use renewable energy in production. Toyota always tries to create healthy working environment for
workforce enrichment.
1.b.2 Toyota’s current strategic intent and strategy
Current strategic intent of Toyota (table no 13 ) elaborates enriching lives, product quality , social
sustainability and continues innovation will lead Toyota’s to its ultimate vision.in order to achieve
Toyota’s vision , they have set mission is to create vehicle that are popular with consumers.in order to
become popular among consumers Toyota believes that customer first and quality first principles.current
values of Toyota Continues improvement , respect , team work there values are well matched with its
vision. Engagement of employees in every business functions and make necessary correction on site.also
Toyota values teamwork and new ideas.as per their vision , they believes innovation is a key for its
success .therefore Toyota invest and make strategic alliances and partnership for innovation through
more research and development.
Toyota’s current strategy is to produce vehicle with quality and best sales and service.and Toyota aims
to produces vehicles at an affordable price without compromising the driving and quality performance.
1.b.3 Fit between Toyota organizational culture , Current strategic intent and strategy
Toyota has well align its organization culture, current strategic intent and strategy towards it vision.
Toyota’s culture always encourage employees towards improvement, rectify issues on site and
innovation and environmental sustainability through manufacturing. Currently Toyota focuses on
manufacturing but as their future aim Toyota needs concerns towards innovation and with their extreme
investment on R & D must focus on addressing vehicle suit to it future requirement such as driverless,
connected cars, IOT, AI technologies and meet the demand of hybrid and electric vehicles.
With current infrastructure and capability and investment of Toyota will helps to achieve its mission and
lead to its vision.with above resources and Toyota identified its human capital value and enriching
workforce which strengthen and reduce the burden their journey for its success. because employees of
Toyota well understand its vision as they already engage in the process and delivering superior customer
value in terms of product and service.
Strategic partnerships and alliances brings knowledge and experience which enrich the culture of Toyota
finally it helps Toyota to produces vehicle exceeds customers expectation and increase customer life
time value and through sustainable manufacturing understand and importance of the environment for a
better tomorrow for community.

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To – Senior Management Team – Toyota Holdings PLC
Subject – Strategic marketing options, funding sources and financial approaches available for
Toyota
Date – 22.11.2020
a) Discussion about three strategic marketing options available to Toyota for maximizing
growth and profitability
b) Discussion about Sustainable funding options and financial approaches available to
Toyota to implement above mention strategic marketing options
Word Count 1,676

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2.a.1. Three Strategic market options available for Toyota
2. a.1.i.Startegic Options
As a leading automobile manufacturing company Toyota always need to seek and critically evaluate
strategic options in order to go for its vision.implementing strategic options will helps to increase sales
volume and revenue, also helps beat completion.as Toyota been rank no 02 as most valuable automobile
brand.but this rank will not be remained in the same place with today’s dynamic
environment.competitiors always come up with new technology evolved product and hit in the market
.amplified investment on R &D gives Toyota for competitive advantage and also strategic acquisition
and partnership strengthen and increase ability of Toyota to sustain in the automobile industry better.
in the long run , Toyota must address market dynamics and be more proactive and work towards it vision
.research on available strategic options and invest will help Toyota to become more diversified and it
will helps to capture market share and consumers trust , confidence and adoration towards the Toyota
brand.
2.a.1.ii.Market Penetration
Refer to the ansoff growth strategies ( table no 06 ) as one strategic option , Toyota can focus on Market
Penetration.
Japan North America Europe Asia Rest of the world
31.60% 35.20% 10% 15.30% 7.90%
Table 1. Toyota Market penetration
Figure 1, Market share Toyota
According to above table 1 even Toyota is originated in Japan they are dominating vehicle sales in North
America region with highest percentage. And secondly in Japan.Toyota’s penetration in Europe and rest
of the world is weaker.
As per SWOT (Refer Table no 01) Toyota has opportunity to expand the business in Europe and Latin
America Regions. Currently attention on region like Brazil Toyota almost has less focus but car sales of
this region significantly increased. Other markets like Asia and America has a sharp decline. Toyota
might experience in losing sales in those region in near future.
These region Toyota can expand their Sales and distribution network through establishing Sales/Service
outlets and even Toyota can easily find good dealers and distributors in these region.
Toyota Automobile Sales 2019
Japan North America Europe Asia Rest of the world

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As per competitor analysis (Table no 10 ) major competitors for Toyota found from Europe region such
as Volkswagen, Daimler AG , BMW . Volvo. all of these automobile manufacturers are having
capability on production of specially high-end cars suit with consumers are in Europe region.
As an example Volkswagen has it biggest market share comes from Europe and Volvo gain 50% of the
market share from Europe .when Toyota is more focusing on Europe religion they have to compete with
European brand where consumers are having country of origin driven mind set.
Even though the car market constrained by 4% but still Hybrid and electrical market is rapidly
growing.as Toyota is one of the pioneer in making hybrid cars and with strategic alliances with
Panasonic, Tesla, BMW, and with the heavy investment on R&D Toyota has capability to capture this
Hybrid and electric vehicle market share.
Toyota market is in Asia also has shown a growth , Toyota can further penetrate for this market with
current capability of economics of scale also countries like China and India relaxed their FDI restrictions
therefore Toyota has more opportunity to establish production / assembly plants in those countries in
order to reduce the production cost and compete in the Asian market.
2.a.1.iii Product Development
As per the customer need analysis ( Table no 09 ) on of the key aspect which customers are looking
forward is not just a car with it relevant basic features but they look for advance features like IOT ,
connected cars , AI , Driverless Cars features. With current Toyota’s ability and continues investment
which will definitely help to develop new cars equipped with advance features.
With the rapid technological advancement happening today, consumers are look to make their life easier
and they adopt more and more technology driven culture.buying a car they would not expect them to
full fill their transport need but they experience in different angle.as an example in future people will
prefer to use driverless cars which would makes their transport needs full filled with technology.
Consumer would need only the get in to the car and select required destination and car start driving on
its own and takes customer in to required destination in a safest way.there customer will not require to
concerns on traffic and get tired by driving.this is all about future trends might happen in very near
future.
Since Toyota is currently stronger in R&D that can be mentioned as a positive facts for Toyota as they
early adopting to future technological changes.as an automobile company they needs to continuously do
these thing in order to retain and expand the market share.
Including these new technology not only gives Toyota to retain and expand market share but that also
gives opportunity to Toyota to charge premium price which will increase revenue and also brand value
and equity. Toyota brand will recognize as innovative brand among consumers.
With these advance technologies Toyota would find new ways of protecting environment that also would
support their vision.
Current Toyota’s strategic partnerships and alliances helps to innovate products and bring new
technology for vehicles.

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2.a.1.iii. Diversification
As per (Table no 01 ) in SWOT analysis , it found that Toyota has only one premium product brand to
cater for high end of the segment. Competitors like Volkswagen has Bugati , Lamborgini , Porsche and
Bentley.where BMW has Mini & Rolls Royce. These competitors are charging premium price from
consumers and even sales qty low but revenue perspective is high.
Having these kind of brand will not bring only revenue but it bring more value for the brand and increase
brand equity.above mentioned competitors are well doing in Europe region with their product brand
strength. Competitors have position these brand in different level on consumers mind and especially on
product features, performance.
Currently Toyota compete only with Lexus and premium customer segment has identified it has only all
as one version of Lexus.by bringing product brand differentiation, Toyota can develop new cars with
advance performance and features which will increase brand strengthen , value and equity
Most of the consumers are using these high end product brands not only to fulfill transport requirement
but they always expect attention , maintain social class and status.and they prefer VIP experience in
terms of comfort , having advance features and performance of cars.
For Toyota Middle East is a good market for these different high end product brands. Currently sales
decrease reports from this region. If Toyota would bring this high end product branded strategy they
would gain the market share where they have had a decline in recent past.

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2.b.1. Sustainable founding sources and financial approaches for Toyota
2.b.1.a Importance of having founding sources for business expansion of Toyota
As even Toyota is a big Automobile company today, they require a an additional ways of funding sources
to expand the business.there are pros and cons of having these funding sources for an organization.even
after received enough resources and deploying it and expand the business, if expected result is not meet,
there organization would at a risk of repaying the investment back.this will take organization for
bankrupt level. Therefore organization has to manage these funds properly and gain maximum benefit
out of it in order to get real profit and pay back the funds they have brought for the business expansion.
2.b.1.b Founding Sources Available for Toyota
Market Penetration Market Development Diversification
Funding
Options
Retained Profit - this the
fund that already built at
Toyota by selling their
products and services
Debentures - instruments
issued to public to gain
source of financing
Venture Capital - obtain
financing from investors
Pros
Toyota can immediately
source this fund and does
not have a responsibility to
pay back the capital
amount invested or
interest to pay
Founds can be received at
a reasonable fixed rate
which Toyota can repay
with reasonable interest
rate and period
Toyota can access to
sufficient amount of funds
and which has no any
repayment burden and tax
advantages also involved
Cons
It will reduce Toyota
liquidity capital and
company will be at a risk
as if toyota finds any
immediate funds
requirement to set of any
of borrowings or face for
an emergency situation.
Toyota will have an issue
to meet those demand if
the retained profit level is
reduced. Also it will take
time to get ROI out of this
retained profit invested.
Toyota face for a burden
that it will be a fixed cash
outflow and cannot earn
extra profits through
debentures
Major risk occur for
Toyota is a risk of losing
ownership. Toyota has
less power to control this
and needs to be more
carefully handling venture
capital as a source of fund.
Table 2.Founding Sources

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2.b.1.b Financial Approaches of Toyota
Even after Toyota receives require funds for business expansion, it has to be managed properly and gain
maximum benefit out of it.in order to do that Toyota should have a better finance approaches which to
have a better mutual understanding both internal and external parties.below are the a few ways of having
financial approaches for Toyota for handling better way of financing.
 Toyota can assess finance requirement and forecast
As positive approach Toyota can predict its future funds requirement in advance and get ready
for it.
 Sourcing Finance from a reliable and low risk method
In order to manage debt Toyota has to find a trust and reliable way otherwise Toyota will have
a burden in operation and it falls Toyota in to a risk situation
 Right investment decisions
Toyota has to invest the money in a proper way and assessing the risk involve in order to gain
maximum benefit out of the investment
 Transparency in finance functions
As a moral principles, Toyota always has to show it finance transparency to its internal and
external stakeholders.it will create more trust among investors to gain more and more
involvement by further investing on Toyota and they feel trust and verified they have done a
right investment and it’s secured.

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To – Senior Management Team – Singer Sri Lanka PLC
Subject – Analysis of Singer Sri Lanka PLC , Corporate Brand , increasing Brand value Equity
of Singer / Strategic risks face by Singer and mitigation strategies
Date – 22.11.2020
a) Analysis of Singer Sri Lanka PLC and current approaches customer satisfaction and
loyalty
b) Singer Corporate brand contribute towards increasing brand value and equity
c) Two strategic risks face by Singer and mitigation strategies to reduce the risks
Word Count 1,560

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3.a.1 Organization Name
Singer (Sri Lanka) PLC
3.a.2 .Organization Information
Started in 1977 with Singer sewing machine selling and.Sri
Lanka’s one of largest conglomerate uses multi brand
strategy combined with own and word renewed brands for
its households , industrial and financial categories
Singer (Sri Lanka ) PLC catering Sri Lankan household
consumer though their own manufacturing , assembling and
also brings top consumer electronics brand such as
Samsung , Sony , Huawei , Beko , Whirlpool , Dell , Hitachi
, Mitsubishi, etc
In 2017 Singer (Sri Lanka) PLC was acquired by another
large conglomerate called Hayleys PLC.
3.a.3.Size of Organization
Singer (Sri Lanka) PLC is listed under Colombo Stock
Exchange as a Public Liability Company.
Current
Employees
Number of
outlets
Annual Turn
over
2926 430 +
54.7 Billion –
LKR
Table 3. Organization size of the singer
3.a.4 Range of Product and Services
Singer Sri Lanka PLC provides and cover range of Sri
Lankan consumers’ household requirements starting from
kitchen appliances , TV , Refrigerators , Washing Machines
, Mobile phones , Computers , Fans , Fitness equipment ,
3.a.5 Customer Base
Singer (Sri Lanka) PLC caters over 05 million Sri Lankan
households and private, government institutions across the
country
3.a.7 Key Internal & External Stakeholders
Stakeholders
Internal Connected External
Board of
Directors Customers Government
Senior
Management Suppliers Competitors
Employees
Business
Partners
Media
Local
Community
Table 4.Stake holders of Singer
3.a.6 Main Competitors
Singer Sri Lanka has four major
competitors in retail consumer
electronics sector
3.a.8 Current Approach to Customer
Satisfaction and Loyalty
Singer (Sri Lanka) PLC has won Sri
Lankan consumers mind by providing
range of products with and excellent after
sales service.been in Sri Lankan
consumer Electronics market for decades
Singer has won best Retail Brand of the
year 2020 for consecutive 14th
times at
SLIM Neilson Peoples Awards. Also
become no 1 in consumer durable brand
in Sri Lanka.
Currently Singer has customer loyalty
programme in place.this has more
strengthen the relationship with
consumers. Consumers who engaged
with this programme receives additional
discounts, newsletters on products and
promotions.also they can redeem points
what they have earn during previous
purchases.
Figure 2 Market Share Singer

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3. b.1.Corporate Branding
An act of using the brand name of the company in the overall advertising efforts and all the
communication to the stakeholders. It is the intangible attitude and spirit behind the company that gives
it a distinguishing identity in the industry and in the minds of consumers. It is the much broader concept
as compared to promoting the products and services of the company. (December 17, 2019 by Hitesh
Bhasin)
A strong corporate brand would bring following benefits to the organization
- Attract consumers towards an organization
- Easy to communicate with consumers
- Attract and retain employees within the organization
- Easy to launch new products and acceptance is high from consumers
- Can charge higher price for the products produces by organization
- Increase brand value and equity
- Positive relationship with government institution and media
- Increase customer retention
- Reduces cost of advertising
3.b.2 Brand Value
Brand value can be described as the financial monetary value of the brand
3.b.3 Brand Equity
Brand equity refers to a value premium that a company generates from a product with a recognizable
name when compared to a generic equivalent. Companies can create brand equity for their products by
making them memorable, easily recognizable, and superior in quality and reliability. Mass marketing
campaigns also help to create brand equity. (Sep 4, 2020 by Adam Hayes)
3.b.4.How Singer corporate brand helps to increase brand value and brand equity
As Singer ( Sri Lanka ) PLC is a multinational brand and valued 10,136 million in LKR according to
Brand Finance Sri Lanka.Since it is from the beginning Singer has developed its corporate brand name
in a positive state in Sri Lanka.
With positive brand name they have earned during decades in the retail business, they successfully
launched products such as Kitchen and home appliances under singer brand and those products also
become successful and given more revenue to the company.
They have utilized maximum it is positive corporate brand name to introduce product range to Sri
Lankan consumers under singer brand and it helps more for them to reach consumers without more effort
establishing new brands. also products what they produced are accepted by most Sri Lankan consumers
without a doubt.this become a key success factor of Singer.
Singer has accolades with following awards .it could not have been possible if the Singer brand name
was having a negative image on the Sir Lankan consumers’ mind.
 Retail Brand of The Year – Sri Lanka 2020 by Global Bank & Finance Review
 Peoples’ Brand of the Year – SLIM Neilson Peoples Award 2020
 Peoples’ Durable Brand of the Year - SLIM Neilson Peoples Award 2020

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Singer is able to acquire qualified employees towards it is organization because name of Singer in
corporate fraternity is well accepted.there are more potential employees willing to work at singer. If
organization is having educated and professional work force meant they will serve customers well and
satisfaction and retention of customer is become more. also those customer will spread more positive
word of mount about organization and also they do more repeat purchases.
It can positively say that Singer corporate brand image positively impacted on increase of it is brand
value and revenue.
Sometimes downfall of the corporate brand negatively effect on brand equity. As an example if Singer
sells consumer products less in quality, in the long a run it will effect on Singer brand equity as people
do not trust the brand and they will not have a reliability about the brand thereafter whatever the product
brands introduce by singer will not be accepted by consumers as a quality product
Another example can be taken as if Singer do production which expose harmful chemicals and particles
to the environment and there in no proper waste management system. People will criticize and refuse
the brand this kind of a situation singer will kill it brand equity by own. Then people would accept Singer
as socially responsible trustworthy brand.

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3.c.1.Strategic Risk and mitigation strategies to reduce strategic risk
3.c.1.1Strategic Risk Management
Strategic Risk Management is a process for identifying, assessing and managing risks and uncertainties,
affected by internal and external events or scenarios, that could inhibit an organization’s ability to
achieve its strategy and strategic objectives with the ultimate goal of creating and protecting shareholder
and stakeholder value. (Strategic Finance I April 2011 By Mark L. Frigo and Richard J. Anderson)
3.c.1.2What are risk mitigation strategies
Risk mitigation can be defined as taking steps to reduce adverse effects. There are four types of risk
mitigation strategies that hold unique to Business Continuity and Disaster Recovery. When mitigating
risk, it’s important to develop a strategy that closely relates to and matches your company’s profile.
(May 17, 2013 By Michael Herrera)
Figure 3. Risk Mitigation Strategies
3.c.2 Two major risks face by Singer Sri Lanka PLC and mitigation strategies
With the current competitive challenging business environment to Singer Sri Lanka PLC is facing
following risks and in this assignment, further elaborate on two major risks.
 Financial Risk
Under financial risk it needs to talk about the credit risk effect on Singer since in Sri Lanka as they
supply products to Sri Lankan consumers on hire purchase basis.
 Operational Risk
Under operational risk, will discuss about Supply Chain risk due to current pandemic situation

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Risk Probability to Singer
impact
Medium High High
Low Medium
Supply Chain Risk
High
Credit Risk
Low Low Medium
Table 5. Risk Matrix - Singer
 Supply Chain risk
This has medium probability to happen Singer and impact also medium.due to the current pandemic
situation receiving products and raw materials are constrained but this probability of this will not be for
longer.
 Credit Risk
As Singer is been the retail industry with hire purchase business model there is high risk probability and
negative impact also in a high level. Therefore proper credit management system should be in place for
Singer for long term sustainability.
Figure 4. Risk Radar Singer
Table 6. Risk mitigation strategies
0%
20%
40%
60%
80%
100%
Credit Risk
Liqudity Risk
Market Risk
Operational
Risk

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Risk Type
Risk
Area Effect
Mitigation
Strategy
Actions taken to mitigate the
risk
Operational
Risk
Supply
Chain
Risk
Due to prevailing Covid-19
pandemic situation , there is
always short supply of
products due to non-operation
of overseas factories in foreign
countries
Current government financial
policy, import restriction
happens in order to avoid
rupee depreciation against
USD.
All the above situation create a
short product supply and
company cannot meet the
market demand and expected
sales qty and revenue cannot
be achieved and it badly effect
on sustainability of
organization Reduce
 Conduct monthly review on
sales , purchase forecast and
review inventory level
 Working with multiple
suppliers to reduce product
non availability issue
 Give more focus on location
manufacturing products
 Strengthen the relationship
with suppliers and make sure
continues supply of products
and raw materials for own
manufacturing and
assembling
Financial
Risk
Credit
Risk
In retail business, it always
needs to sell products on
credit and on hire purchases
basis. If customers delay
payments or not settle
payments company’s
operation and cash inflow at a
risk.
Accept
 Proper prior credit
evaluation process and
check the financial status
of the customer before
approve credit
 Use risk adjusted pricing
strategy
 Well trained credit
management team work
on field and manage
credit related sales

Page | 24
Analysis and Decision
Table 1. – SWOT Analysis
Strength
Financial strength - Reported Revenue $ 281.2 Billion
in 2019 fiscal year, Operating Margin 7% , Net Margin
6.2%
Strong distribution network - 170 distributors in more
than 190 countries
Strong Sales network - 280 Dealers / 4700 sales /
service outlets
R&D Facilities - Facilities available Across Japan , USA
, China , Asia-Pacific & Europe Region are having 16
R&D Centers
Business Diversification - Automotive , Financial
Services , Information Technology , E-Commerce
Market Place , Design and Manufacturing Prefabricated
Housing
Strategic Acquisition – Acquired Hino Motors in 1966 ,
Acquired Daihatsu in 1967 -
Strategic Alliances AND JV’S - United Motors &
General Motors , PSA Peugeot Citroen , BMW
Economics of scale – Toyota has 67 Manufacturing
plants across the globe
Brand Value –valued $ 41.5 billion and ranked at 11th
Service & operational excellence –, Kaizen , Genchi
Genbutsu , PDCA , Seikaku + Shinsetsu = Shinrai
Focus CSR for Sustainable growth – Toyota interacts
and connected with all stakeholders on CSR activities
and focus on eco cars and zero emission
Weakness
Product Defects & Failures – Recalled 2.9
Vehicles due to potential defect found in Air
Bags , Recalled 1.67 vehicles due to
malfunction in breaks , Recalled over 110,000
vehicles due to possible safety issue
Labor Issues – Long working house & tough
working condition, labors were faced in serious
accidents, relied on sweatshop labor. This had
affected on Toyota’s reputation.
Low availability of high end product brand –
Toyota has only Lexus brand to cater high end
of the Automobile market where competitor
like Volkswagen has Bugatti , Lamborghini ,
Porsche
Oppertunities
Emerging Market – sales increase brazil ,
Europe regions
Increase Hybrid & Electric Car Sales -
marker grew by 28.3 %
Change in government policies – China &
India relax their foreign direct investment
restrictions
Consumer Behavior Changes – consumers
are interest on new technology like IOT ,
Connected car , driverless cars, hybrid &
electric cars
Supply Spare parts for other automotive
vehicle manufacturers – Toyota has its
subsidiaries which manufactures automotive
parts and they can be focused on supplying
spare parts to other car manufacturers
Threats
Sales Decline – in Japan , North America , Asia ,
Central & South America , Africa & Middle East
regions vehicle sales have been dropped in year 2019
compared with 2018
Political instability and influence negatively effect on
automotive sales – US China Trade War , UK departure
from European Union ( EU )
Covid 19 Pandemic Situation badly affected on
economic activities – this has threaten on sales as well
as the production of vehicles around the world
Average duration of car usage been increase – in
japan this period is 13.2 which will negatively impact
selling new cars
Future challenges on developing electric cars –
penetration of charging stations for electric vehicles are
not meet the expectation
Table 2. Critical success factors and Key Issues
Critical Success Factors
1.Production and Manufacturing facilities –
Toyota has 67 numbers of manufacturing plants
across the globe
2. Invest continuously on R&D – Toyota has 16
R&D sites and invested 9.98 $billion in year 2019
3.Customer oriented manufacturing – Origin of
Toyota is “Customer first” and “Quality First”
4. Workforce Management Principles – Toyota
engage employees in every stage of production ,
sales and service and follow Kaizen , Genchi
Genbutsu , PDCA concepts
5.Technological Innovation –strategic
partnerships with Tesla, BMW , Mazda ,
Microsoft to develop technologically innovative
automotive products
6.Finacial Strength – Shows year on year growth
in terms of all financial aspects
Key Issues
1. Product Recall – this was done due to product
defect but it severely damaged Toyota’s reputation
2. Unavailability of high end product brands –
Toyota has only Lexus to compete high end customer
segment
3. Current Pandemic Situation constrain supply
of spare parts and production –Covid -19 has affected
in many areas and it slowdown the production also
Toyota cannot implement Just in Time spare parts
availability for production

Page | 25
Table 3. PESTEEL Analysis
Factor Driver Impact O/T Rating
Political
Trade dispute between USA
& China
Slowdown the Manufacturing and sales /
Increase cost of production & increase
manufacturing cost / weaken the
confidence of investments in markets
T H
UK Departure from EU Restrict Technology transfer T H
Economic
Covid - 19 Pandemic
Conflict in Supply chain,Production Job
losses
T H
China & India relaxed
restriction
Increase manufacturing in those countries
to reduce the cost of production
O H
Social
Consumer interest IOT, Connected Car , Driverless Cars O M
Consumers lifestyle changes
Due to Covid-19 pandemic situation
people have started work from home
T H
Technological
Prominence for technological
innovation and evolution
IOT , AI , Robotic , Driverless Cars ,
Connected Cars
O H
Improve Augmented Reality
on E-Commerce
Better customer experience O M
Environmental
Maintain healthier air quality
and zero Co2 emission
Demand increases for hybrid and electric
cars
O H
Recycling Nickel used in
hybrid vehicles and batteries
Improve reputation of Toyota in terms of
CSR
O M
Ethical
Follow environment friendly
production process to protect
the environment
Sustainable development of economy and
society through manufacturing
O H
Legal
Stricter pollution laws
Large Fines, spend more on lower-
emissions technology. alternative fuel
options
T H
Brexit transition
Impact UK, EU and global auto markets,
investor confidence
T H
Table 4. Strategic capabilities
Unique
Resources (
Current )
Brand Value , Global sales
& distribution network ,
loyal customer base , R & D
Facilities , Skilled
employees more that
370,000
Core
Competency
( Current )
Pioneer in Hybrid
technology , invested more
on AI , Robotics , IOT
.performance due to Kaizen
, PDCA , Genchi Genbutsu
, Strategic Acquisitions &
partnerships
New
Competency
Next generation advance
driving support ,
communication linked next
generation vehicles ,
driverless cars , car sharing ,
car connected technologies ,
Table 5. Stakeholder Mapping
Interest
Low High
Power
Low
Minimal Effort
Community
Competitors
Media
Keep Interested
Suppliers
Vendors
High
Keep Informed
Government
Key Players
Customers
,Employees
Shareholders
Table 6.Ansoff Matrix
Products
Existing New
Market
Existing
Market
Penetration
Brazil , Europe
Product Development
Automated Car , Connected
Car , AI , Advance Driving
Support Technologies
New
Market
Development
USA
Diversification
Banking Industry

Page | 26
Table 7. Stakeholder Analysis
Type Stakeholder Focus Interest
Internal
Management
Profit , Market Share , Brand value , Social wellbeing , Ranking
in the Automobile industry H
Customers (
B2B , B2C Problem solving , innovative products , fuel efficiency , H
Employees Carrier development , empowering , rewards , bonuses H
Shareholders Return on investment , shareholder value H
Connected
Suppliers Continues order supplying H
Distributors
& Dealers Continues product availability , innovation , training H
External
Government Tax , obey government rules and regulations H
Community Economic growth and sustainability , protect environment H
Media Ethical behavior and clear communication H
Competitors Product portfolio, new products arrival H
Table 8. Porter’s five forces
Force Driver Implication Impact
Threat of new
enternts
Barriers to Entry There is no much legal barriers to enter M
Capital
Requirement significantly high capital require to establish a firm L
Economics of Scale
New competitors are comparatively incapable of
beat existing suppliers in terms of economics of
scale L
Sales & distribution
network
time consuming for new supplier to establish sales
& distribution network globally L
Treat of
Subsitudes
Alternative
Transport Methods
use of other transport methods such as train , motor
cycle , buses , planes H
Bargaining
power of
customers
Brand Loyalty Customers are more loyal towards the brand H
Purchasing Power
due to current Covid - 19 pandemic situation
globally more job cuts H
Bargaining
power of
suppliers
Dominated by a few
supplier
raw materials concertation due to production issues
raised due to deploying employees with Covid 19 H
Suppliers brand
reputation
Suppliers brand reputation can further strengthen
Toyota brand name M
Indutry
Riverly
Decline Industry
Growth Global car market contracted by 4% H
New Normal Usage of cars are reduced (Work from Home) H
Table 9. Customer Needs Analysis
Evidence Capability Impact
Changing consumers
expectation
Investment on AI , Robotics H M
Driverless cars , connected cars H M
Environmental
Sustainability
Demand for Eco Cars H H
Recycling harmful material for humans H M
Zero Emission Standard M M
Energy preservation M M
Consumer behavior
changes due to Covid-
19 Pandemic
Usage of cars may increase M H
demand for smaller cars H M
E commerce , contactless service L H
Safety Concerns of
Consumers
Recalled products defects / failures L H
Advance driving support technology H M

Page | 27
Table 10. Competitor Analysis
Automotive products
Automotive
Brands
Other Product
and services
Key Strength
Volkswagen
AG
10.4 ( 2019 )
$269.90
302,554
Passenger Cars , Luxury
Sedan , SUV , Busses ,
Coaches , Heavy Trucks
, Marine & Industrial
Engine
Audi , Bugatti ,
Volkswagen ,
Skoda ,
Lamborghini ,
Seat , Bentley ,
Porsche &
Ducati
Financing ,
Leasing , Banking
& Insurance ,
Fleet Management
Largest Car Maker in
Europe
Daimler
AG
3.4 ( 2018 )
$191.80
298,683
Cars , Trucks , Vans &
Busses
Mercedes -
Benz / Daimler
Automotive
Service &
Financial Services
8500 sales centers in 19
countries
BMW
2.49 ( 2018 )
$98.40
134,682
Engines/ Vehicles /
Motor Bicycle
BMW , MINI ,
Rolls - Royce
Financial Services
Production & assembly
Facilities in 14
Countries / Global Sales
Network more than 140
counties
Ford
5.98 ( 2018 )
$160.30
199,000
Cars , Crossovers , SUV
, Trucks , Vans ,
Hybrids Commercial
Trucks , Fleet Vehicles ,
Vehicle Accessories ,
Ford , Lincoln
After Sales
Service Parts
Nissan 1.34
( 2018 )
$100.50
138,893
Passenger Vehicle ,
Minivans , Wagons ,
Commercial Vehicles ,
Trucks , Zero Emission
Vehicles , SUV
Nissan , Infiniti
, Datsun ,
Heritage
Sales Finance &
Leasing Services
Honda
5.3 ( 2019 )
$146.70
215,638
Automobiles ,
Motorcycles , Power
products , Snow
throwers , Lawnmowers
, Aircraft & Jet Engine
Honda
Joint ventures in
robotics & advance
technologies
Volvo
$26.70
43,000
Cars , SUV , Wagons &
Sedans , Concept Cars ,
Volvo
2300 Dealers in more
than 100 countries
Hyundai
4.42 ( 2019 )
$83.50
120,000
Hyundai
Table 11. Value Chain
infrastructure Global network 170 distributers , 280 dealers , 4,700 sales / service outlets
IT AI , Advance driving support systems , IOT Technology , blockchain technology ,
HR Continues Training & Development , investing in workforce ergonomics
Procurement JIT , negative impact on supply chain due to Covid -19 ,
Inbound Logistics JIT process ,
Operations Kaizen, PDCA , Genchi Genbutsu , Lean Manufacturing , JIT
Outbound Logictics intelligent transport system
Marketing & Sales Strong Brand value , Loyal customer base , , Sponsorship Strategies
After Sales Service worldwide service outlets / emerging market ( car usage increase ) , weak in CRM

Page | 28
Table 12. Customer Analysis
B2C Market B2B Market
Mass Segment Medium Segment Premium Segment
Commercial
Transport
Solutions ,
Service
Support ,
Leasing
Facility ,
Advisory
Service
Product
Auto
Affordable ,
Fuel Efficient ,
Family Use
Mid-range of hybrid ,
electric & fuel cars ,
Value for money
Luxury , Sport types ,
More comfortable ,
Advance Features
Geographic
Brands
Daihatsu , Vitz
, Wego , Belta
Prius , Hilux , CHR ,
Camry Lexus , Prado , Sahara
Monthly
Income > $ 2000 $ 2000 - 5000 < $ 5000
Geo Profile
18 - 30 Rural /
Semi Urban
25- 40 Semi Urban /
Urban 40+ Urban
Cross
Selling
Products
Car
Accessories Prefabricated Housing Luxury Boat Houses
Physograp
hic
Life Style
Usage, Fuel
Efficiency,
Durability,
Affordability
Comfortability, Safety
,
Attention , Social Class ,
Comfortability , VIP
Service , Innovation
Value
Added
Service
Leasing &
credit cards ,
Car sharing ,
Kinto
Leasing & Insurance
VIP After Sales Service ,
Automated & Connected
Car Technologies , AI ,
Premium Car Rental
Services
Position
Segment
Together we
develop Together we advance Just feel it right Together we
achieve
Current Safe and Satisfied Mobility to all
New Innovation & Sustainability through mobility for better a tomorrow
Table 13. Strategic Intent
Current Toyota will lead the way to the future mobility , enriching lives around the world with the safest
and most responsible ways of moving people .through our commitment to quality , constant
innovation and respect for the planet , we aim to exceed expectations and be rewarded with a smile
.we will meet our challenging goals by engaging the talent and passion of people , who believe there
is always a better way
Future Seeking harmony between people , society and global environment , and sustainable development
of society through manufacturing
Current Create vehicles that are popular with consumers
Future Superior environment, safety , and quality performance without sacrificing driving performance or
other aspect of the intrinsic appeal of cars , at an affordable price
Current Challenge , continues improvement , respect , teamwork ,
Future Innovation , Safety , environment sustainability
Current Rewarded with a smile by exceeding your expectation
Future Mobility through innovation and sustainability
Current Produce Product with quality and best sales and service
Future Focus more on innovation and societal sustainability while maintain existing strategies
Table 14. Triple bottom line
Profit Year on year revenue , shareholder equity , return on equity , total assets , liquid assets growth
People Workforce productivity improvement through Kaizen , Genchi Genbutsu , PDCA
Planet
Zero carbon emission , Green Energy , Recycling nickel metal , investment on electric vehicle
charging station

Page | 29
Table 15. Scenario Planning
Description Best Case Worse Case
Industry
Growth
Global car market
contracted by 4% in
2019
Car sales increases in Brazil &
Europe regions
Car Sales market were weaker in
Japan , USA , Russia & China
Eco vehicle
growth
This market grew by
28.3% in 2017 to 2018
Best solutions for zero emission
and Eco Cars
Infrastructures have not been
developed
Economic
Growth
Economic Impact on
Automobile
production and sales
Reductions interest rate 0.25%
0% a and also opportunity for
production inside USA
imposes more tariffs and
discourage exports to US and low
profits
Table 17. Culture analysis (Schein 2010)
Artifacts
Toyota way & Toyota code of conduct
Rich heritage and culture
Strategic partnerships and affiliation for success
Positive reaction of mistakes
Values
Kaizen , Genchi Genbutsu , PDCA
teamwork , rewarding employees )
work towards social sustainability
Healthy working environment
open & fair communication
Basic
Assumptions
enhance economics of scale
Customer first quality first
Better service in accordance
Continues invest on R & D
Quality performance without sacrificing driving
performance
Affordable cars for every segments
Table 16 . Ratio Analysis
Sales (
Units )
Million
U$S
Revenue
( Billion
U$S )
Share
Growth (
Billion
U$S )
Cash
Dividend
Per
Share (
U$S )
Total
Assets (
Billion
U$S)
Liquid
Assets (
Billion
U$S )
Investme
nt in
R&D
Sharehol
der
Equity
Return
on
Equity
Return
on Assets
Year 2010 7.24 180.2 1.34 0.42 288.8 44.3 6.9 98.67 2.1% 0.7%
Year 2019 8.7 281.2
6.13 (
2016) 2.09 494.8 89.9 9.98 184.28 9.8% 3.7%
Growth 20% 56% 357% 398% 71% 103% 45% 87% 367% 429%
Table 18. Harvard and Seth model
Evidance Imapct
H M L
Inputs X
Fuel Efficiency
Engine Capacity & Performance X
Safety Features X
Overall Appearance X
Behavioral determinants
Disposable income X
Product Upgradation X
Driving Performance X
Perceptual reaction
Brand Name X
Social Status X
Country of Origin X
Product Authenticity X
Inhibitors
Value for money X
After Sales X
Value added service X
Spare Parts availability X
Processing determinants
Brand Recognition X
Social Class X
Previous Experience X
Sales & Marketing X
Outputs
Actual Purchase X
No Purchase X
Future Purchase X
Table 19. Cultural Web
Stories Started in 1937,1947 established as
Automobile parts manufacturer &
launched its first small car 1966
acquired Hino motors, 1967 Daihatsu
Symbols Originated in Japan. Expanded the 67
manufacturing bases 6 R&D Centers ,
leading automobile brand ranked at
number 11th
Power
structures
strategic decisions are made by the
top management
Organisational
structure
Centralized operation , globally
connected communication
Control
systems
follows Kaizen , Genchi Genbutsu ,
PDCA , JIT , Lean Manufacturing
rituals and
routines
Continues training respect people ,
teamwork , sustainability
The Paradigm Reliable mobility solution provider

Page | 30
References
Annual Report 2019 -2020 | Singer Sri Lanka PLC ( 31st
March 2020 ). Available at :
https://www.singerslfiles.com/downloads/singer-annual-reports/singer_annual_report_2019_2020.pdf
. (Accessed 20/10/2020).
Singer Brand Excellence awards | Biz – Adaderana.lk | Available at :
http://bizenglish.adaderana.lk/singer-peoples-no-1-brand-of-the-year-for-14th-consecutive-year-also-
wins-consumer-durables-brand-of-the-year/ (Accessed 18/10/2020)
Corporate branding | December 17, 2019 by Hitesh Bhasin | Available at :
https://www.marketing91.com/corporate-branding/ . (Accessed 22/10/2020)
Brand Equity | Sep 4, 2020 by Adam Hayes | Available at :
https://www.investopedia.com/terms/b/brandequity.asp . (Accessed 03/10/2020)
Strategic Finance I April 2011 By Mark L. Frigo and Richard J. Anderson
Risk mitigation strategies | May 17, 2013 By Michael Herrera | Available at :
https://www.mha-it.com/2013/05/17/four-types-of-risk-mitigation/ (Accessed 09/10/2020)

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