PLANNING FOR TOYOTA MOTOR CORPORATION

Toyota became the most popular automobile manufacturer in 2008 and has maintained the production of over ten million motor vehicles yearly since 2012. The organization not only produces the automobiles but also the spare parts that can be used to repair and make the motor vehicles of interest. The organization was well established through researches that were done on the moto companies that were already doing well by the first half of the twentieth century like the Ford Motor Company. The company currently prides itself on having over six hundred subsidiary company that have a common goal of ensuring that they become the biggest suppliers of automobiles across the world. The first car model that was to established by the company was the Model AA sedan and was pioneered by the founder of the company.

The organization has managed to produce more than two hundred million automobiles. The organization began to expand its markets between the 1960s and 1970s by exporting a larger number of motor vehicles to various parts of the world (Corporation, 2017). The organization has managed to be one of the major companies that have led to the strengthening of the Japan economy through exports. The exports help in lowering the carbon footprint of the exporting country and this helps in the strengthening of the economy. The organization partnered with the general motor company in 1984 and this gave it space to manufacture its automobiles in the United States. Thence, it is difficult, get into the market, and become superior to Toyota Company within a short period.

Toyota is able to maintain the lead in the production of the automobiles because of three major reasons namely, the brand image, rapid innovation techniques, and the global supply chain. Toyota also has good flow of raw materials. I also have a well-established ways through which it gets its raw materials. The organization can easily change its suppliers depending on the prices offered by the suppliers. Understanding the environment through which a given product is distributed is a very important factor to consider. Toyota Corporation checks on the economic status of the target market and produces vehicles in relation to the financial capabilities of the targeted customers. Toyota majorly focuses on the middle class individuals and this helps in containing the bargaining power of their target market.

The organization offers affordable and weather friendly products than most of its competitors and this makes the organization more preferred (Sölvell, 2015 p. Most of the customers have no choice in comparison with other producers of similar products and this give Toyota an upper hand. The organization is highly secretive in the transmission of the companies strategies to the personnel involved. The secrecy of within the organization might not give room for ideas by those who are lower in the ranks. The hierarchical problems arise when there are wrangles on who should be at the top positions after the current leadership systems have retired. Service Despite being the major producer of the automobiles, Toyota Company has major threats to its brand and the available markets.

The organization needs Most of the Toyota competitors like the Honda are quite creative and try to satisfy the available markets as first as they can by making goods at lower prices. The analysis of Toyota external environment includes the determination of the political, economic, social, technological, environmental, and legal factors that affect its operations. Toyota Company prides itself on having almost half a million employees and has the responsibility of ensuring that it monitors its environment to ensure that it provides the necessary services to the employees. Political factors Political instabilities that occur from one region to another might affect the income of the company. For instance, the company had to halt its production of motor vehicles after the Second World War following the great losses that it suffered during that time (Corporation, 2017).

The organization had to ensure that it gets time to pick up the losses and come up with better strategies that would help it survive. The rapid growth of the economy of the United States presents a wider market for them. Furthermore, a faster growth of the United States economy would mean that the dollar would be stronger than the yen (Corporation, 2017). The increase in the economy of the developing countries would mean that Toyota would have a bigger market to supply. The organization products are not affordable to every individual in the population. Only the individuals who have the adequate amount of money can comfortably get the products. A wider market would mean that only a few groups of individuals would be able to afford the automobiles that are produced by Toyota.

A wide company gap lowers the number the customers that Toyota targets (Sölvell, 2015 p. The increase in individual’s interests to ensure that the environment is safe and secure is a major factor that is useful for the success of the company. The company produces hybrid-powered vehicles and the electric vehicles to take the place of the vehicles that consume fuel that pollute the environment. The company depends on the various interventions that are made by the environmental organizations to ensure that there is a clean environment for every species. The organization would have is likely to be a victim of fraudulent activities that might make the company incur serious losses. Environmental factors The organization needs to understand the possible environmental changes that might affect its operations.

Climatic changes might be useful to the organization if it encourages the use of private means of transport. The climatic changes that involve rains and cold might make individuals prefer private means of transport to the public means to prevent them from waiting for the busses for long periods (Debnath 2015, p. Most of the automobiles provided by the Toyota competitors consume fuel. Toyota Company is one of the companies that has taken the initiative to ensure that it provides safer products to its customers. Conclusion In summary, the competitive position of Toyota Company is defined by the internal and external analysis of the organization. The internal analysis involves the porter’s value chain analysis while the external analysis includes PESTLE. Internally, Toyota Company has enough resources to help the organization invest in any business idea that strikes.

The organization majors on the production of products that are environmentally friendly making its products to be the most preferred in the market. The organization needs to understand that the costs incurred in running various strategies in the foreign countries might differ ad it is their responsibility to choose the methodologies that can effectively work for them. The transaction in which the business is likely to get involved in is likely to define the type of business strategies that the business would employees across the borders (Otani & Yamada, 2017 p. Toyota Company prefers having retail outlets in various regions across the globe to ensure that their products are made readily available to every population that feels that they need to have to possess the products.

Competition In establishing the multinational corporations, organizations aim at ensuring that they get the competitive advantage when offering similar services to the foreign countries. The organizations need to have a more complex system to enable them to be able to take care of the rest of their branches all over the foreign land. Organizations need to consider having the best methods that ensure that their activities run smoothly and efficiently. The informal coordination mechanisms entail the ways of communication within departments that are in Toyota Company. The organization needs to be able to outline the procedures that the various departments need to consider to ensure that all the activities that are run by the organizations are run smoothly (Emeraldinsight. com, 2017). The organizations can benchmark with one another to determine the necessary steps that they need to take into consideration to ensure that all their activities are done according to the outlined rules.

The managers are able to identify the employees with positive psychology and give them the leadership positions to be able to give the best to the company. Informal socialization between employees and managers provide leaders with the opportunity to know the needs of the employees and find the most appropriate ways to solve them. The performance of employees tends to be raised in organizations that ensure that they address their roles individually. The formal ways of coordination include departmentalization and centralization and decentralization of decision-making. Departmentalization involves sectioning of the organization into segments that can be working in making well. It is important to ensure that the activities that are run by the organization are done equally across all the areas of interest (Plenert and Plenert, 2018, p.

It is important to ensure that the various groups of individuals get the instructions from the people whom they can approach and talk to. Most of the organizational heads may not find the time to monitor the activities of every employee (Bloomfield, 2017 p. However, the departmental heads can comfortably interact with their subjects through the informal approaches (Bloomfield, 2017 p. The department can assign duties to specific employees depending on how they understand the abilities of the employees (Asiedu, 2016, p. The organization has greatly invested in technology to ensure that they have an appropriate marketing technique. The organization ensures that it provides unique products to outdo their competitors who offer similar products. The organization also ensures that its products are friendly to the environment (Shenkar, Luo and Chi, 2014.

, p. The organization ensures that its organization has hybrid-powered engines to help reduce the emissions that their products might have to their environment. Conclusion Trading across borders might be one of the most challenging concepts that an organization might find on their way to prosperity. Before trading across borders, Toyota Company needs to ensure that it involves in activities that are less time consuming. The organization also needs to consider the capital that it would have to incur on the goods and services it provides. Trading across borders that would require many, resources to work need to be considered last. The organization needs to focus on investments that would not have great effects to its cash flow. Toyota Company’s major strength is the ability to innovate new products that are likely to be satisfactory to a wide range of customers.

Furthermore, the organization has sufficient capital to ensure that its activities run smoothly and can easily adapt and run new ideas. The organization can also deduce new innovations and get the patency rights that allow it to maintain the ownership of the original idea for a relatively long period (Plenert and Plenert, 2018, p. Toyota’s major weakness that might hinder it from maintaining the position might be the lead systems as the decisions from the Toyota City surpass the decisions in other branches. Centralization of power by the organization might be quite harmful to its overall growth if the initial instructions were wrong. The SWOT analysis techniques help in the determination of the potential opportunities and threats that an organization might face in their operations.

It is important that an organization utilize the opportunities that present and minimize their threats. Toyota Company still has the opportunity to adjust their management across borders and be able to provide solutions that might face various departments that are run within the organization (Krishnaswamy, 2017, p. Technology has made Toyota perform its best in innovation. The organization should consider exploiting the opportunity effectively to be the leading automobiles producer. Routledge. Corporation, T. Annual Financial Report | Toyota Industries Corporation. [online] Toyota-industries. com. [online] Available at: https://www. emeraldinsight. com/doi/abs/10. 1108/CR-06-2013-0059 [Accessed 5 Sep. Ieeexplore. and Kumar, P. , 2015, August. Financial analysis and comparison of compact electric and gasoline cars. In Management of Engineering and Technology (PICMET), 2015 Portland International Conference on (pp.