Toyota: External Analysis of the Automotive Industry

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Toyota External Analysis of the Automotive Industry Figure 1 - Toyota eQ EV (Edelstein, 2012) Introduction Strategic planning is one of the most crucial activities in any organization because it determines the company's operational course. Strategic goals will determine the company's tactile objectives while pursing various opportunities. These can be developed by a variety of means and there are complex models which have been developed to assist decision makers in applying appropriate techniques in building a strategy. This analysis will look at the company's performance over the course of the last few years and then develop a SWOT matrix to make recommendations. Background The Toyota Motor Corporation (TMC) is in an interesting position. The company has a long history of innovative quality solutions and manufacturing dominance. The company invented the foundation for the Total Quality Management (TQM) method of production. However, Toyota has been subject to a lot of negative publicity for quality concerns in the last few years. Furthermore, the number of defects has resulted in a large number of vehicles having to be recalled for repairs. One of the quality issues was a defective throttle control system that in some cases caused the cars to idle, turn off during operation, or even accelerate uncontrollably (Toyota, 2012). Another involved 7.43 million vehicles worldwide sold under the Toyota and Scion brands was the largest safety-related service
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