Situational Analysis Essay

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Team A - Situational Analysis Karmarie Maldonado, Thomas Granvang, Thomasina Campbell, and Kanesha Madison STR/GM 581: International Strategic Planning and Implementation January 30, 2012 Jill M. Hagist The situational analysis is one of the four elements in a strategic management process and is an important step in the success of a business. This paper will present a background history of Toyota and provide the company’s mission and vision statement and values. The paper will provide the environmental forces that affect the company and the potential for global expansion. An assessment of the automobile industry structure using Porters five forces. In addition, a SWOT analysis will be conducted to understand the…show more content…
Organizations need to incorporate the SWOT analysis into its strategic planning techniques (Barney 2007). Toyota expressed conduct guidelines and expression of values for all the employees of Toyota. These guidelines were based on the principles of Challenge, Improvement, Respect, and Teamwork. Within eight since the dissemination of these principles, Toyota became the largest automobile maker for the year 2008 and assumed the titled of the most profitable automobile maker along with increased sales globally (Liker, 2004). The resource-based view of Toyota’s Annual Report (Toyota Company online library, 2009) illustrates as a multinational automobile maker, Toyota has a competitive advantage in accessing regional and international markets effectively. This equips the company with a vast market portfolio to optimize the economies of scale. In addition, the diversification of the products Toyota manufactures endows the automobile maker with the propensity to satiate various segments of its consumers. SWOT Analysis The SWOT analysis examines Toyota’s organizational structure and will provide a summary of strengths, weaknesses, opportunities, and threats. Strengths Toyota Motor Corporation continues to be innovative with the product lines. For example, the Camry this model was reinvented for 2012 and still maintained its number one position in sales for the tenth year in a row. The creation of the new
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