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Strategic ManagementToyota Motor Corporation (TMC) Strategic AuditLordt Becklines Texas A&M University Commerce1 Running Head:TOYOTA MOTOR CORPORATION (TMC) STRATEGIC AUDIT 2017
ABSTRACTToyota has had many external issues to handle with devising and executing her strategy. The market has many automotive dealerships, allowing the competition level at a very extensive rate. They must assess what their competitors are doing to attract buyers and match or top their deals with the Toyotaline of automobiles. So far, they have been able to do this successfully. They are currently the leading car manufacturer in the world based on the sales and production volume. Several factors have risen as car buyers have become more demanding about the safety features offered, miles per gallon the car can hold, and more detail-oriented aspects like the color, leather in the interior, or if it has a ten-disk CD player. The car companies have had to continuously enhance the features offered in their models, while trying to keep the prices as low as possible to attract buyers. Toyota has been known for having several cars on the “Top Safety Picks” list, until recently due to the large number of recalls in the United States and Europe. However, Toyota offers the widest variety of cars with the best gas mileage available. It has been their strategy to offer cars that are affordable for first-time buyers, all the way up to the buyers that are looking for a more luxurious model. This is where their ownership in Lexus comes in. They have prospered for many years since they have been so versatilewith their products.Currently, Toyota, along with several other car companies is experiencing down-turns in their margin. The automotive industry relies on whether buyers can purchase cars. Since the falling of the economy in several countries, this has been hurt who can afford to buy cars. Toyota has decided to offer asix year no interest financing. This will severely decrease their income.At the same time, Toyota has internal factors that have helped, as well as hurt them as an organization. They can form relationships with suppliers that decrease costs due to the large size of the company. The most pressing issue has been the recent recall. Toyota did not immediately address the issue to the public and the CEO chose to have a hands-off approach in this apology. On the other hand, Toyota appears to have extensive level of loyal customers that stand by the brand and its value of the customers’ opinions and safety that needs to be tweaked in some vehicles. They are still the third largest automotive maker but have been hurt by the recession, like many of their competitors. It is projected that as the economy begins to raise again, so will Toyota’s profits. However, they cannot change some people’s minds about the way the recall has affected their reputation. They need to take every measure to kick-start a new brand-image for the people that have doubt in their company.