Toyota Americas Best Car Company

Moving forward; Get the feeling

Company portfolio
Founded by Kiichiro Toyoda in 1937

Leading auto manufactures in the world.

11th largest company in the world by revenue. Currently third largest automobile manufacturer by production behind GM and Volkswagen.

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In July 2012,the reached 200-million milestone.

Toyota motors group include Scion, Lexus, Daihatsu and Hino. Toyota motors has worldwide presence.
Mainly engaged in the automobile business and financial business.

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The company operates through three business segments.
Automobile - design, manufacture and sale of products(cars, sedan, minivans, SUV ,spare parts ,accessories etc. Finance - sale of the Company's products, as well as the leasing of vehicles and equipment. Others - design, manufacture and sale of housings, as well as the information and communication business.

SWOT Analysis
Internal factors

Strengths
1.Innovative culture 2.Brand reputation valued at $30 billion

Weaknesses
1.Criticism due to large recalls

2.Weak presence in the emerging markets

3.Over work pressure 4.Japanese car manufacturer seen as a foreign importer 5.Immense competition from world class competitors

3.Industry leader in production and sales

4.Strong brand portfolio

5.The leader in green or hybrid cars development.

SWOT Analysis cont.

Internal factors cont.

Strengths
6. World class R&D and engineering capabilities 7.Highly diversified product portfolio 8.Over 310,000 employees

Weaknesses 6.Lesser grip in European market as compared to other car manufactures

SWOT Analysis Cont.

External factors

Opportunity
1.Positive attitude towards green vehicles 2.Increasing fuel prices 3.Changing customer need

Threats
1.Fluctuating fuel prices 2.Rising raw material prices 3.Intense competition 4.Appreciating Yen exchange rates 5.New entrants in the same segment with better features and lower price

4.Growth through acquisitions

5.Worldwide distribution and servicing network to increase market penetration.

SWOT Analysis Cont.

External factors

Opportunity
6.Continued global expansion especially in the emerging markets (China ,India and Russia)

Threats
6.Rising energy prices(fuel costs) and the costs of maintaining cars. 7.People lowering car uses #a.Businesses using teleconferencing #b.government encouraging alternative forms of transport cycling and incentives to use public transport.

Q&A
1.what evidence can you identify, in this case, of Toyotas being an open system? 2.what evidence of centralization or decentralisation can you find in this case? 3.from the standpoint of Toyotas culture, what does the story of the failed Toyopet Crown Symbolically say to both new and longterm employees?

Q & A cont.
4.Which approach, mechanistic or organic, would be better for a company like Toyota that designs, manufactures, and sells technically sophisticated products such as cars and trucks? Explain.