Strategic Planning Proposal Summary
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Strategic Planning Proposal Summary
Dwight Dunn
Southern New Hampshire University
MBA 540: Organizational Strategy in A Global Environment
Roberta Brod
November 19, 2023
Strategic Planning Proposal Summary
With the consistently changing world of the technology in the automotive industry, the company needs to find ways to grow our revenue and market share. This can be accomplished by
conducting several analyses: Internal, External, and Buy-Build-Ally. The purpose of doing this is
to determine the current environment of the company and develop a plan to ultimately increase profits. The following will show the state of the company and a plan to grow the business, with goals of developing All-electric Vehicles, Achieving Carbon Neutrality, and gaining a ten percent
market share. (TOYOTA MOTOR CORPORATION, n.d. –a)
Internal Analysis
Currently Toyota is one of the world leaders in manufacturing of Cars, Trucks and SUVs. The current brands we sell to dealerships and directly to customers is Toyota, Lexus, Daihatsu, and Hino. (Mergent, n.d.) This is accomplished by also having a financial services division that provides loan and leasing options. As a company, we are one of the leading manufactures of Hybrid Vehicles but struggle to earn all-electric market share. (Ewing & Dooley, 2023) We have recently acquired Renovo Motors through Woven Planet Holdings. (Roberts, 2021) This acquisition will allow us to make the better programable vehicles, as it is a proven software. With
our partnerships with Subaru and Suzuki will have gain market share in other markets and in development of our own all-electric vehicles. External Analysis
Our quality, manufacturing, brand, global presence, and technology gives us a competitive advantage over our competitors such as Honda and Nissan. (Burman, 2023) In order for use to keep this advantage we will need to know Porter’s Five forces. Our competitors are a very high force as they are constantly innovating their products and we must match their
intensity. (Ferguson, 2023) Buyers more than ever have access to more information to make informed purchasing decisions causing them to be a high force. Suppliers have a very low force as there is a high availability of components needed for production. (Ferguson, 2023) Although substitutes like public transportation, bikes, and motorcycles are available they pose a low force, as they do not have the convince and availability as automobiles do. There is little to no concern for new entrants, as the massive cost and established competition is a major barrier.
Buy-Build-Ally
To achieve our goals, we will need to either buy, build, or ally with other companies. We should look to buy either another EV automaker that is already established to gain market share, or a company that has developed the batteries needed to power EV. Also, we should build a new research and development facility dedicated to the development and testing of EVs. Finally, we need to ally with companies such as google, apple, and amazon to ensure our technologies integrate to create a seamless experience for end-users.
Timeline
In the first year we need to break ground on the new facility and start negotiations for purchase of the existing company. In the second year we will see the completion of the new facility, purchase of the company, and begin talks with allies. Year three, new prototypes will be developed and built along with contracts signed with allies. Year for will be used for testing of prototypes and continued collaboration with allies. Finally, by the end of year five we will be introducing new products to market.
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Can you guys help me with this? Thank you!
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* Five Generic Competitive Strategies:
+ Broad Low-Cost Strategy
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+ Focused Low-Cost Strategy
+ Focused Differentiation Strategy
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* Ethical Universalism
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Add references.
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Buyer Power
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Threat of substitute products or services
Threat of new entrants
Rivalry among existing competitors
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