Strategic Management Project

A Strategic Plan For Toyota Motors

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3 February 2008 1 . Executive Summary

Toyota needs to continuously investment in research and development to make the company vehicles attuned with the latest technology . Doing this will capitalize Toyota 's strong philosophy which on kaizen and kaikaku as a basis for greater and sustained long term health . The same strategy will protect the company from industry threat of moderately high bargaining power of buyers . This strategy must be supported by another strategy

by launching products continuously to stimulate market demand as it has done with Corolla in Japan and which now the company market globally . This strategy will allow the company make the most from its strength of speed and capacity in production This will also enable the company to capitalize on its strengths coming from profitable operation , generally good liquidity and very good solvency (Brigham and Houston , 2002

The other strategy that must be done is to form a joint venture or strategic alliance with its suppliers . Using this strategy takes advantage of low bargaining power of suppliers that could supply numerous parts supplied by cutting lead time to enable product delivery ahead of competitors and will neutralize the threat of moderately high bargaining power due to the large number of said buyers that are scattered all over the world . Switching power of buyers is lessened in effect

The next proposed strategy is for Toyota to make more customized cars for local demands . This strategy will solidify the proposed second strategy of continuous product launch for market demand stimulation and will also allow the company to use its vast financial resources and financial strength that would maintain its global standing despite varying needs and cultures of its customer across the globe . The same will neutralized the industry threat of strong rivalry in the industry

The said strategies are consistent with chosen generic strategy of differentiation and are supported by bases extracted using the SWOT analysis model . These strategies could be implemented using the 7-S framework and there seems to be no difficulty of doing the same as the company is not new with the said strategies . Implementation is therefore believed to attain the company 's objectives , which are translations of its goals . The attainment of these goals in effect fulfils the company 's mission and vision

2 . Company Background

The organization chosen for preparation of strategic plan is Toyota Motors of Japan . The company , although located in Japan , is a global company and conducts its business in the automotive industry . In addition the company is also engaged in finance and other industry related to it main products in the automotive industry . Its products in car manufacturing industry include passenger cars , minivans , trucks and the related parts and accessories . It finance services is basically into financing dealers and their customers . It presently operates in more than 170 countries with primary markets in Japan , North America , Europe and Asia (Toyota , 2008

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