TOYOTA STRATEGIC MANAGEMENT

Toyota Strategic Management

Toyota Strategic Management

Introduction

Toyota's headquarters are located in Toyota, Aichi, Japan. The company was founded in 1933 by Kiichiro Toyoda as an offshoot of Toyoda Automatic Loom Company (Wikipedia, 2007). In the Fortune Global 500, Toyota Motor is the 8th largest company in the world. Toyota has been consistently gaining market share in the United States.Toyota merged its operations and its manufacturing operations in 2006.

This was to achieve efficiency and reduce the overhead administration. Toyota's move is to assure that the two functions are under common leadership as it moves to implement an integrated version of its product development system in its North American Market. Their suppliers will generally have an easier time implementing the Toyota product. This nine-page paper will focus on Toyota and how its managers and leaders are maintaining a healthy organizational culture within their business.

Background

Toyota is the second largest car manufacturer and seller in the world today. In Europe it has long been a marginal player as compared to its other endeavors in markets within US, Asia and Latin America. Over the last few years Toyota's market share has increased in Europe even though the European market has several strong regional competitors. Toyota's vision is to capture 5% of the Old World's roadway by 2005.

Toyota has a challenge in establishing itself. Toyota must try and establish itself as a brand within Europe, specifically, a brand that caters to both the needs of the European market and consumer but, also makes Europe a part of the new motoring world. To successfully do this Toyota Motor Europe (TME) needs to do an extensive review of the current and future market, keeping stride with the various market segments in the region.

Another important factor that TME would have to pay specific attention to is the socioeconomic factors prevalent in Europe currently. A combination of extensive market research and the flawless creation of a new Toyota brand would take it beyond its ambition of achieving 5% growth in market share.

Situation Analysis

Toyota had first started exporting to Europe in the early 1960's beginning with countries like Malta, Cyprus and Denmark. The European market was protected and import restrictions were imposed as early as 1975. The situation had no t changed much over the years. In 1993 the EU limited imports of Japanese vehicles and also imposed a 10% duty on all imported vehicles. These restrictions on imports would be removed in 1999 which would pave the way for unrealized potential within the European market for Toyota. In order to capitalize upon this opportunity, Toyota must establish and analyze its current business position.

External analysis:'Business organisations differ in many ways, but they also have a common feature for example transformation of inputs into outputs. This transformation process takes place against a background of external influences which affect the firm and its activities. They are complex, volatile and interactive, but cannot be ignored in any meaningful analysis.' (Business in its environment page 3)A combination of strategic models and frameworks will ...