Module 2: Strategic Management: External Analysis

[Writer's Name]

[Name of the Institution]

Module 2: Strategic Management: External Analysis

Introduction

The pace of technology has transformed the world into the ground of battleship. The twenty first century not only saw a boom in the information technology but also made the companies expand their operations on a global scale. The trend of globalization has changed the environment of the automobile industry. Competitive markets are emerging with contemporary rivals in the field, and it has raised the need of the strategic review for major global players of the automobile industry.

Toyota is a global organization with strong internal position. Its guiding principles led it to achieve the milestone of innovation and creativity in the field. It has a broad database of customers around the world based on strong brand image and equity. It is known for the environmental friendly and quality products. This assignment aims to undergo the external analysis of Toyota Motors by highlighting the available opportunities that Toyota can grab on, and the threats it might face in the external environment. Being the global player, what strategic decisions might hurt its progress or might take to move with the consistent lead in the industry are also discussed.

Discussion

Auto industry is particularly affected by the major shift in the world businesses and investments from the national level to international level. Major portion of automobile sales is comprised of the fleet sales and seasonally adjusted annual rate of sales (www.investopedia.com). With heavily reliance on consumer trends and preferences, the largest source of revenue for automobile industry is the consumer sales. The global survey report shows that the automotive industry is continuously facing environmental challenges due to the urbanization growth and the shift in customer behavior that demands for radical new approaches to future mobility (www.kpmg.com).

Toyota Motor Corporation (TMC) is a multi- national automaker with headquarters in Japan. It is the largest automobile manufacturer of the world by sales and production. It has more than 320, 808 employees across the globe with major emphasis on financial and automobile business (Anonymous, 2011).

With the global vision to lead the industry in the future, it aims to continue working with innovative designs and product that win the heart of its customers. It believes in the strength of talented minds and their passion to work and always look for a better way around to achieve company objectives (www.toyota-global.com).

When it comes to perform on the global scale, it has its own limitations and advantages. When the macro environment provides a company with varied opportunities to progress and move ahead, it also poses serious concerns for the company management to look for in the shape of the potential competitors and the uncontrollable factors of the external environment (www.toyota-global.com).

Threats in the External Environment

When a company operates in the global setting, it is posed with challenges to cope with and opportunities to grab. The automobile industry is faced with many challenges including the government pressures for sustainable revenue, increased level of competition for capital and labor, the enforcement strategies adopted ...