Swot Analysis of ToyotaEssay Preview: Swot Analysis of ToyotaReport this essayTOYOTA – Keeping Up With the ChallengeIntroduction:SWOT analysis refers to the approach utilized by firms or companies to evaluate the Strengths, Weaknesses, Opportunities, and Threats engaged in a project or in a business enterprise. It involves denoting the objective of the enterprise and ascertaining the internal and external factors that are positive and negative to achieve that objective (Humphrey, 1968). It is rather essential for a business enterprise or a project to incorporate the SWOT analysis into its strategic planning techniques.
Additionally, the Internal Analysis of strengths and weaknesses focuses on internal factors that give an enterprise certain advantages and disadvantages in meeting the needs of its target market. Strengths refer to core competencies that give the firm an advantage in meeting the needs of its target markets, hence market oriented since strengths are only meaningful when they aid the business address customer needs. Weaknesses refer to any limitations a company faces in developing or implementing a strategy, hence customer perspective because customers often perceive weaknesses that a company cannot see (My Strategic Plan, 2010).
The thesis of this paper will be to establish how well Toyota, a multinational automaker, maneuvers in order to capitalize on its strengths to meet threats and how it takes advantage of opportunities to surmount its weaknesses. Besides, the paper will address the internal factors that render Toyota certain merits and demerits in tackling the needs of its target market. In addition, a critical assessment on the major strengths and weaknesses facing Toyota and how they aid and abet the company in maximizing on opportunities and mitigating threats will be reviewed.
Internal Analysis:Toyota is a multinational automaker with its headquarters in Toyota City, Aichi, Japan. Toyota also provides financial services thorough its Toyota Financial Services division and also builds robots. According to a Toyota Internal Document (Liker, 2004) titled “The Total Way 2001”, conduct guidelines and expression of values for all the employees of Toyota were instituted. These guidelines were based on the principles of Challenge, Improvement (Kaizen), Go and See (Genchi Genbutsu), Respect and Teamwork. Within 8 years since the dissemination of these principles, Toyota became the largest automobile maker for the year 2008 and assumed the titled of the most profitable automobile maker along with increased sales globally.
The Toyota internal document describes how Toyota has established a “very high level of efficiency” and the work performed in each level of managerial development. However, it adds: “…in a series of projects, Toyota uses a variety of sources of inputs to ensure that it continues to be efficient, while also providing value for the shareholders and shareholders. In doing so, Toyota consistently delivers on its promises to shareholders. However it is unclear whether the work produced by Toyota can be considered as just a few or as a significant contribution to a company’s bottom line …. Therefore, we may consider this type of review to be only partially objective, and not a valid basis for evaluating the level of results of Toyota’s management,” the original document stated.
In July 2007, Toyota submitted an internal document to its Board to demonstrate that the company has provided it with information to assist with its internal management and management of the company’s results of capital expenditures, capital expenditures, and other performance measures. The document, which Toyota submitted to the board only in July 2009, stated that: “The management team of Toyota Corporation, its employees and shareholders are generally prepared to contribute and take the necessary actions to enhance the quality of all the product development in Toyota Toyota Corporation, its employees and shareholders.”,
Toyota has used various methods to avoid conflict of interest with this internal document since at least 2001, however, Toyota is still required by the International Organization for Standardization (ISO/IEC-13) for an annual audit. In 2009, Toyota submitted documents to its Board of Directors that stated that there were discrepancies between the management practices of Toyota, the Company’s foreign subsidiaries and its foreign shareholders. In the process, Toyota has made an effort to ensure that such inconsistencies do not arise. Thus, these documents have been attached to Toyota’s internal document.
Toyota has in the past been identified by some as a “revenue loser” based on its decision to stop growing and move to new technologies, although this is not the case today. The original document concluded:
In 2004, Toyota entered into a settlement with an Asian National Bank (ANB) in order to “fix, amend and bring all the issues the ANB has made with Toyota in the years since the inception of Toyota.” One item of this agreement was Toyota’s failure to bring in an independent accounting authority that had an independent monitor who should take into account its responsibility for the performance of its business. In 2009, Toyota also entered into an agreement with an international consulting consultancy to conduct a comprehensive review into every issue Toyota has with the ANB. The final document revealed:
The 2007 internal Toyota internal document, based on the principles of Challenge, stated: “The Toyota management team performs its responsibilities directly, on a basis of good results, based on a comprehensive accounting model. In addition, the Toyota management team is prepared to contribute in the amount required to increase the production output of the company by the sum of the various revenue sources;
The Toyota internal document describes how Toyota has established a “very high level of efficiency” and the work performed in each level of managerial development. However, it adds: “…in a series of projects, Toyota uses a variety of sources of inputs to ensure that it continues to be efficient, while also providing value for the shareholders and shareholders. In doing so, Toyota consistently delivers on its promises to shareholders. However it is unclear whether the work produced by Toyota can be considered as just a few or as a significant contribution to a company’s bottom line …. Therefore, we may consider this type of review to be only partially objective, and not a valid basis for evaluating the level of results of Toyota’s management,” the original document stated.
In July 2007, Toyota submitted an internal document to its Board to demonstrate that the company has provided it with information to assist with its internal management and management of the company’s results of capital expenditures, capital expenditures, and other performance measures. The document, which Toyota submitted to the board only in July 2009, stated that: “The management team of Toyota Corporation, its employees and shareholders are generally prepared to contribute and take the necessary actions to enhance the quality of all the product development in Toyota Toyota Corporation, its employees and shareholders.”,
Toyota has used various methods to avoid conflict of interest with this internal document since at least 2001, however, Toyota is still required by the International Organization for Standardization (ISO/IEC-13) for an annual audit. In 2009, Toyota submitted documents to its Board of Directors that stated that there were discrepancies between the management practices of Toyota, the Company’s foreign subsidiaries and its foreign shareholders. In the process, Toyota has made an effort to ensure that such inconsistencies do not arise. Thus, these documents have been attached to Toyota’s internal document.
Toyota has in the past been identified by some as a “revenue loser” based on its decision to stop growing and move to new technologies, although this is not the case today. The original document concluded:
In 2004, Toyota entered into a settlement with an Asian National Bank (ANB) in order to “fix, amend and bring all the issues the ANB has made with Toyota in the years since the inception of Toyota.” One item of this agreement was Toyota’s failure to bring in an independent accounting authority that had an independent monitor who should take into account its responsibility for the performance of its business. In 2009, Toyota also entered into an agreement with an international consulting consultancy to conduct a comprehensive review into every issue Toyota has with the ANB. The final document revealed:
The 2007 internal Toyota internal document, based on the principles of Challenge, stated: “The Toyota management team performs its responsibilities directly, on a basis of good results, based on a comprehensive accounting model. In addition, the Toyota management team is prepared to contribute in the amount required to increase the production output of the company by the sum of the various revenue sources;
The resource-based view of Toyotas Annual Report (Toyota Company online library, 2009) illustrates that as a multinational automobile maker, Toyota has a competitive advantage in accessing regional and international markets effectively and efficiently. This in turn equips the company with a vast market portfolio hence economies of scale are optimized. In addition, the diversification of the products that Toyota manufactures endows the automobile maker with the propensity to satiate various segments of its consumers.
Whilst the above constitute as some of the advantages of enjoyed by Toyota, the expansion of Toyota globally gives rise to a vulnerability that is apparent in the wake of global catastrophes such as the global financial crisis witnessed in 2008. Besides, Toyotas colossal investments in the expansion and diversification impinge heavily on the financial position of the company since such ventures impel the company to