Toyota Executive Summary and Strategy Assessment

1477 WordsNov 10, 20146 Pages
Date: October 25th, 2014 Memo to: Toyota Motor Corporation Subject: Executive Strategy & Assessment Executive Summary: Situation Since created Toyota Motor Corporation has focused on innovation and efficiency within its production or manufacturing facilities, and has built its success around this core competency. Recently however many of their competitors have adopted similar practices and have been able to narrow this gap significantly. For this reason these competitors are posing much more of a threat and Toyota may need to change or adjust its current strategy to deal with this problem. These competitors are also investing heavily in the emerging markets Toyota is currently trying to capitalize on. Recommendations…show more content…
For example as I have mentioned they are no longer the leader in manufacturing productivity, and the gap between the major competitors has shrunk considerably. This means it is much harder for Toyota to separate themselves based on this and they may need to shift their focus elsewhere. Toyota should additionally make these new emerging markets a priority in their strategy, and not spend as much time trying to grow in the markets they already dominate, such as the US and Japan. Performance Assessment From the early 2000’s till April 2009 Toyota performed very well and eventually became the largest automobile company in the world. In 2002 they had the lowest number of defects and the lowest manufacturing time per car, showing their dominance. Early 2009 the industry was hit by the financial crisis and their US sales dropped by 42%. The demand for their product as cause their sales to drop 17% in China, the market they were trying to take advantage of at this time. After recovering from this time they regained their rank as the largest firm in 2012, but many firms have been growing fast and are posing a large threat. For example GM, Ford, Volkswagen and Hyundai. External Analysis The external environment plays a large role in Toyota’s operations and success. For example political factors that involve various
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