Organisational Strategic Choice - Toyota

Course Name : BA (HONS) TopUp Module Name : Strategic Management Module Code : BM60 Assignment No! : C"00#

Assignment : Organisational Strategic St rategic Choice of TOYOTA TOYOTA

Su$mitted $% : Sa&edul 'slam C% ' No! * #+,+,,6,

Su$mitted to : r! Sei- Samim Hasnain Su$mission ate : + t .une #0+,

Table of Contents +!0 A$stract!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! A$stract!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!/ / #!0 'ntroduction!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 'ntroduction!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!, !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!, /!0 S"OT Anal%sis!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Anal%sis!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!, !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!, ,!0 eeloping Business Coice!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Coice!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1 !!!!!!!!!!!!!!!!!!!!!!!!1 ,!+ Business 2ocus!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 2ocus!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!1 1 ,!# Corporate Coice!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!6 ,!/ 3roduct deelopment!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! deelopment!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!6 !!!!!!!!!!!!!!!!!!!!!!!!!6 ,!, Mar-et 3enetration!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3enetration!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! ,!1 'nternational ' nternational Coice!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Coice!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 1!0 4aluation o5 Strategic Coices: SA2e Criteria Criteria!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!! 1!+ Mar-et 3enetration!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3enetration!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!7 !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!7 1!# 3roduct eelopment!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! eelopment!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!7 !!!!!!!!!!!!!!!!!!!!!!!!!!7 1!/ Cost leadersip!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! leadersip!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!+0 !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!+0 6!0 Strateg% Selection!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Selection!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!+0 !!!!!!!!!!!+0 !0 Sta-eolders e8pectations:!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! e8pectations:!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! ++ !0 Conclusions and 9ecommendations!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!+# 7!0 9e5erences!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 9e5erences!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!+/ +/

1.0 Abstract Tee purpo T purpose se o5 tis tis paper paper is to anal% anal%e e te $us $usine iness ss enir enironm onmen entt o5 To%ota o%ota mo moto tor  r  corporation corporation and identi5ies identi5ies strategic coices aaila$le to te compan% and teir impacts to te organiation! organiation! Te paper anal%ed internal and e8ternal enironment enironment o5 TMC using S"OT 5rame;or-! 't ten ealuated $usiness strategies used $% To%ota at $usiness< corporate leel and international leel! Te 5indings identi5ied strong $rand reputation and innoatie culture as To%ota=s -e% strengts ;ile large num$er o5 recalls and ;ea-   presence in emerging mar-ets as To To%ota=s %ota=s ;ea-nesses! Opportunities include emerging mar-ets and positie attitudes to;ards green cars ;ile sti55 competition and rising cost o5 ra; materials as ma&or treats! 't 5urter reealed tat te use o5 di55erentiation and cost leadersip at $usiness leel< mar-et penetration and product deelopment strategies at corporate leel and e8porting< licensing and ac>uisition strategies at international leel! Te report suggested te use mar-et deelopment strateg% to mitigate intense competition in automo$ile industr% and meets mar-et demands!

2.0 Introduction Tis paper anal%es anal%es te $usiness enironment o5 To To%ota %ota motor corporation and identi5ies identi5ies strategic strategic coices aaila$le aaila$le to te compan% and teir impacts to te organiation! organiation! 'nternal S;ot anal%sis identi5ied strengts and ;ea-nesses o5 To%ota ;ile e8ternal S;ot anal%sis identi5ied identi5ied opportunities and treat in e8ternal $usiness enironment enironment (Henr%< (Henr%< #00)! Te  paper recommends appropriate strategies to elp To To%ota %ota meet e8pectation o5 -e% sta-eol sta-eolders ders and attain attain compan% compan% goals goals and o$&ecti o$&ecties! es! To%ota o%ota Motor Motor Corpora Corporatio tion n is engaged in design< manu5acture< manu5acture< assem$l% and sale o5 automo$iles automo$iles and related auto parts and accessories! Te compan% ;as 5ounded in +7// and is ead>uartered in Aici< Aici< .apan and as gro;n to $ecome one o5 te success5ul and reputa$le automo$ile 5irms in a glo$al motor industr%! 't currentl% emplo%s oer //< 1 5ull time emplo%ees (To%ota Motor  Corporation< #0+/)!

3.0 SWOT Analysis Strengths •

Weaknesses

Strong Strong $rand $rand reputat reputation ion alued alued

•

@arge num$er o5 product recalls

?/0 Billion

•

"ea-

•

'nnoatie culture

•

Strong $rand port5olio

•

@eader in deeloping green cars

•

'ndustr% leader in production and

sales Opportunities •

pre presenc sencee

in

emerging

mar-ets

Threats

3ositie attitudes to;ards green

•

2luctuations in prices o5 5uel

cars

•

9ising cost o5 ra; materials

•

Ac>uisitions 5or $usiness gro;t

•

4merging mar-ets

•

Canging needs o5 customers

•

•

 Ne; la;s on car$on emissions Appreci Appreciatin ating g en against against ma&or  ma&or  currencies

•

•

'ncrease industr% competition  Natural disasters

2igure : S"OT anal%sis o5 To%ota To%ota Source : To%otaglo$al!com< #0+,

4.0 Develoin! "usiness C#oice  4.1 Business Focus Focus Bo;men Bo;men (+77) strateg% cloc- positions $usiness entit% $ased on alue and pricing o5 its  product and serices! Te position o5 To To%ota %ota Motor Corporation on te cloc- is H%$rid ;ic com$ines cost leadersip and di55erentiation strategies! i55erentiation is used to  proide >ualit% products troug innoation to enance perceied alue in te minds o5  customers! Tis as allo;ed te compan% to deelop car models tat are uni>ue in te mind o5 customers using resources tat promote >ualit%< customers= responsieness and innoation!

2igure: Bo;man=s Strategic Cloc- Anal%sis  Source: (Bo;man< 2aul-ner< +77)

Cost leadersip strateg% in To%ota as increased its mar-et sare $% o55ering eicles at a55orda$le price to cost sensitie customers! To%ota produces eicles at lo; cost and can reduce reduce price price to gain gain marmar-et et sare sare 5rom 5rom compet competito itors! rs! T Tee call calleng engee o5 maint maintai ainin ning g  pro5ita$ilit% and an d returns $% o55ering lo;est lo ;est price in te mar-et as $een addressed addresse d $% ig asset turnoer troug reduced per unit cost o5 production in mass production< innoation

and e55ectie strateg% (To%ota Motor Corporation< #0+/)! To%ota uses standardiation strateg% in te design o5 car ;it 5e; cases o5 during te design o5 cars to reduce  production runs as aderse e55ects on pro5ita$ilit% o5 To To%ota! %ota! Te compan% also ma8imies te use o5 resources and operates strictl% on te polic% o5 lo; cost o5   production (To%ota Motor Corporation< #0+/)!

 4.2 Corporate Choice Anso55 Matri8 is an important tool ;ic used to anal%e te strateg% o5 a compan% to deelop its $usiness enlargement enlargement (Meldrum and Mconald< #00)! Also Anso55 matri8 identi identi5ie 5iess 5our 5our t%pes t%pes o5 corpor corporat atee strat strategi egies es name namel% l% mar-e mar-ett penet penetrat ratio ion< n< mar-e mar-ett deelopment< product deelopment and diersi5ication! To%ota adopts mar-et penetration and product deelopment strategies! 't o;eer empasies product deelopment strateg% ;ere ne; car models are deeloped 5or e8isting mar-et!

2igure: Anso55 Matri8 Source: Meldrum  Mconald< #00

 4.3 Product development  development  'ntense competition in automo$ile mar-et re>uires car manu5acturers to -eep pace ;it latest deelopments! deelopments! To%o o%ota ta is igl% innoatie innoatie and spends colossal amounts o5 mone% on 9! 9! 2or instance< instance< in #00 te compan% compan% spent ?<77, million million represe representin nting g ,!,  percent o5 its sales reenue ma-ing To To%ota %ota te ;orld=s $iggest spender in 9 in #00 (Beura< #007)! TMC launced te 3rius model recentl% and is e8pected to discoer more

ground$rea-ing ground$rea-ing tecnolog% (D3Update!ne (D3Update!net< t< #007)! TMC is deeloping deeloping Camr% H%$rid 5ueled $% natural gas to counter in response to te anising 5ossil 5uel and as recentl% introduc introduced ed +0 ne; %$rid car mod models! els! 't launced launced ur$an electri electricc commut commuter er $atter% $atter% electric car and as a ;ide range o5 small cars tat continues to enlarge enlarge its nice mar-et! mar-et! TMC considers tecnolog% as te 5uture o5 automo$ile industr%!

 4.4 Market Penetration Penetration TMC is using mar-et penetration strateg% in gro;ing and emerging mar-ets o5 Cina< 'ndia< Sout A5rica and Brail ;ere it is not ;ell esta$lised! To%ota is esta$lised $rand name in te automotie mar-ets< and te ris- o5 penetrating into e8isting mar-et as no signi5 signi5ic icant ant $arri $arrier er (3lu (3lun-e n-ett tt 9esea 9esearc rc @td< @td< #00 #007)! 7)! T Tee ige igest st range range o5 To%ota= %ota=ss automo$ile ;ic e8ists in eer% mar-et segment 5acilitates penetration o5 TMC in e8isti e8isting ng mar-e mar-ets ts ;it ;it ne; produ product cts! s! T Tee comp compan% an% is in goo good d pos posit ition ion to penet penetrat ratee emerging mar-ets ;it current range o5 car models especiall% 5uel e55icient small cars mar-et aimed at %oung people!

 4.5 International Choice 48porting strateg% is used to sell te products o5 To%ota to glo$al mar-ets! Ho;eer< To%ota o%ota as ;oll ;oll% % o;ned o;ned manu5 manu5act acturi uring ng plant plantss in Cin Cina< a< T Tai aila land nd and 'ndone 'ndonesi siaa  producing products 5or te countries and surrounding nations! Ac>uisition o5 Car  companies in recent past as allo;ed it to gro; its glo$al $usiness! 't intends to ac>uire additional additional 5irms particularl% in emerging mar-ets to enance access to ne; mar-ets< gain ne; s-ills and assets (Medeiros< #00)!

$.0 %valuation of Strate!ic C#oices& SA'e Criteria 'n a compan% strategic management is responsi$le to implement strategic coices ;ic  puses te compan% to;ard acieing its targeted ta rgeted position in te mar-et mar-e t (@% ( @%nc< nc< #0+#)! uring te anal%sis o5 strategic coice< te strategies ;ill $e assessed $% 5ocusing te% could old top position o5 To%ota in te mar-et!

4aluat 4aluating ing strateg strategic ic options options entails entails ascerta ascertainin ining g teir teir suita$i suita$ilit% lit%<< accepta accepta$ili $ilit% t% and 5easi$ilit% 5easi$ilit%!! Suita$le strategies sould $e a$le to addresses te mission o5 To%ota< o%ota< utilies opportunities and mitigates treats to te compan%! Te mission o5 TMC is to $e te leader in te ;a% o5 5uture mo$ilit%< mo$ilit%< enric te lies o5 people in te ;orld ;it te sa5e and most responsi$le ;a%s o5 moing people! Accepta$ilit% is ealuated against te interest o5 arious sta-eolders in te automo$ile industr% and TMC! Strategies sould addre address ss te needs needs o5 custom customers ers<< sup suppl plie iers< rs< sare sareol olde ders< rs< $u% $u%er ers< s< te commu communit nit% %< goernment and so 5ort in terms o5 returns< ris-s o5 5ailure and ;or-ing conditions 5or  emplo emplo%e %ees! es! 2easi 2easi$i $ili lit% t% is asses assesse sed d on aail aaila$l a$lee resour resource cess suc suc as capit capital al<< time< time< tecnolog%< ;or-5orce< access to mar-et and e8pertise needed to implement te proposed strategies!

Strategic choices

Suitability

Acceptability

Feasibility

Mar-et 3enetration

H i g

Moderate

Hi g

3roduct deelopment

H i g

Hi g

Hi g

Mar-et deelopment

Moderate

Moderate

@o;

iersi5ication

@o;

@o;

@o;

Cost leadersip

Hi g

Hi g

Hi g

i55erentiation

Hi g

Moderate

Moderate

2ocused di55erentiation

@o;

@o;

@o;

2igure : SA2e Criteria o5 To%ota (.onson and Scoles< #00#)

5.1 Market Penetration Suitabilit Suitability: y: Tis is suita$le in gro;ing and emerging mar-ets! Automo$ile mar-et is

;ellesta$lised and use o5 penetration is appropriate in te gro;ing target mar-et o5  4astern 4urope< Asia< @atin America and A5rica! 2urtermore< To%ota is suc a ;ell esta$lised $rand in te car mar-et and tis signi5icantl% reduces $arriers to penetrate tese mar-ets (Medeiros< #00)!

Acceptability: Mar-et penetration strateg% targeting customers o5 rial compan% li-e DM

is not accept accepta$ a$le le $ecaus $ecausee it ma% ma% induc inducee reta retalia liati tion on ence ence reten retenti tion on strat strateg% eg% is te te  pre5erred option! 'mplementing mar-et penetration inoles cost o5 improing product and serice >ualit% $ac-ed $% mar-eting promotion! Tis strateg% sould $e accepted in To%ota onl% i5 te ris- inoled is less tat pa% o55 oter;ise it could lead to loss o5  sareolders losing alue and o5 possi$le loss o5 &o$s due to te 5ailed enture and lost reenues!

Feasibility: Te strateg% is 5easi$le $ecause TMC as te largest range o5 automo$iles

and alread% e8ists in eer% segment o5 car mar-et ence ig potential penetration penetration on te mar-et! Tis means tat TMC is in good position to penetrate e8isting mar-ets< especiall% targeting cost sensitie customers and %oung people ;it 5uel e55icient cars!

5.2 Product Development  Suitability: Tis strateg% is suita$le o;ing to te intense competition in automo$ile

mar-et re>uiring car manu5acturers to -eep pace ;it te latest deelopments! To%ota spends uge mone% in 9 to deelop ne; products re>uired in te mar-et! Secondl%< te strateg% is suita$le due to anising natural 5uel ence te need inest in deeloping 5uel e55icient< electric and %$rid cars 5ueled $% natural gas (Beura< #007)!

Acceptability: eeloping ne; products is accepta$le due to rising prices o5 5uel< rising

demand 5or enironmental protection and toug economic times tat prompts customers cut te costs o5 motoring and use eicles ;it minimal air pollution! Managers and sare sareol older derss ;ill ;ill accept accept tis tis strat strateg% eg% to enan enance ce $rand $rand imag imagee o5 To%ota o%ota $% $eing $eing enironm enironmenta entall% ll% responsi responsi$le! $le! 2urterm 2urtermore< ore< mos mostt goernm goernments ents are encourag encouraging ing use o5  %$rid and electric eicles and tis ;ill increase sales o5 To%ota Cars and generate iger returns needed $% sta-eolders!

Feasibility: TMC ie;s tecnological deelopment as te 5uture o5 te compan% and

moto mo torr indu indust str% r%!! T Tee com compan% pan% is e8pe e8pect cted ed to disc disco oer er see seera rall grou ground nd$ $re reaa-in ing g tecnologies a5ter 3rius model to remain competitie in te mar-et! 3roduct deelopment is 5easi$le gien te tecnolog% and te e8pertise o5 To%ota=s ;or- 5orce! 't as made rapid progress in product deelopment and is certainl% 5easi$le to gro; in automo$ile mar-et (Medeiros< #00)!

5.3 Cost leadership Suitability: Cost leadersip suits organiational mission o5 leading te ;a% in mo$ilit%

 $% proiding pro iding a55orda$le cars to te ;orld population! 't ;ill aid te compan% to penetrate into te leading automo$ile mar-et o5 Cina $% proiding ceaper cars tan competitors!

leadersip sall $e accepta$ accepta$le le to sareol sareolders ders and price sensiti sensitie e Acceptable: Cost leadersip customers customers to increase pro5it margin margin and a55orda$le a55orda$le cars respectiel% respectiel%!! 't ;ill $e em$raced em$raced  $% sareolders to mitigate rising competition and ig cost o5 metals used as ra; material in car manu5acturing!

Feasibility: 't is 5easi$le gien te leel o5 tecnolog% in To%ota Motor Corporation!

To%ota as rapid progress in tecnolog% and is certainl% 5easi$le to realie cost leadersip  position in automo$ile automo$il e industr% (Medeiros< #00)!

(.0 Strate!y Selection 3roduct eelopment and cost leadersip are suita$le< accepta$le and 5easi$le in To%ota Motor Corporation (.onson< Scoles<  "ittington< "ittington< #00)! 3roduct deelopment deelopment is te  $est strateg% to $e pursued purs ued $% To To%ota %ota to deelop ne; models 5or e8isting e8is ting mar-et! Tis is  $ecause To To%ota %ota as proed its ;ort in innoation inno ation and e8ists in eer% eer % mar-et segment o5  o 5  automo$ile mar-et and can easil% deelop its $rand and ne; cars $ased on mar-et demand! Current consumers are increasingl% $ecoming conscious a$out enironmental  protection ;ic re>uires re>u ires 5irms 5ir ms in automo$ile sector to t o deelop enironmentall% 5riendl% cars and ne; 5uel e55icient tecnologies! Second< te rising cost o5 li5e and rising 5uel  prices demand customers to reduce motoring costs using 5uele55icient eicles! Cost leadersip leadersip is recommended recommended $usiness leel strateg% to mitigate mitigate te rising competition competition and

increase mar-et sare in emerging mar-ets ;ere To%ota as minimal presence! Cost leadersip ;ill allo; To%ota to o55er >ualit% cars at a55orda$le price to price sensitie customers in emerging mar-ets and increase its mar-et sare!

).0 Sta*e#olders e+ectations& Sta-eolders are tose person< group o5 people or organiation ;o are inoled ;it organiation and ma% possi$l% implement signi5icant autorit% also in5luence more tan te strateg% (.onson and Scoles< #00#)! Sta-eolder e8pectations are 5ollo;ing Stakeholders O;ner 4mplo%ees Customers Creditors Suppliers Communit% Doernment

Primar mary epectation Secondary epectation 2inancial return Added alue 3a% Satis5action and training Suppl% good and serices Eualit% Credit ;ortiness 3a%ment on time 3a%ment @ong term relationsip Sa5et% and securit% Contri$ution o5 >ualit% Compliance 'mproed competitieness 2igure : Sta-eolders e8pectation

Source : .onson and Scoles< #00#

,.0 Conclusions and -ecoendations 't is eident tat To%ota Motor Corporation is one o5 te leading automo$ile companies in te ;orld toda%! Te compan% as a strong $rand name in te glo$al mar-et ;it US< Canada< 4urope and .apan accounting 5or most o5 its mar-et sare! Automo$ile industr%

is d%namic and innoatie culture as ena$led To%ota to deelop cars tat meet te mar-e mar-et! t! S;ot S;ot anal% anal%si siss identi identi5ie 5ied d strong strong $rand $rand reputa reputati tion< on< $rand $rand port5 port5ol olio< io< indust industr% r% leadersip and innoatie culture as To%ota=s -e% strengts ;ile large num$er o5 recalls and ;ea- presence in emerging mar-ets as To%ota=s ;ea-nesses! Opportunities include canging canging custome customerr needs< needs< ac>uisit ac>uisition ion o5 oter oter 5irms 5irms emergi emerging ng mar-ets mar-ets and positie positie attitudes to;ards green cars ;ile sti55 competition< natural disasters< te ris- o5 e8cange rate and rising cost o5 ra; materials as ma&or treats! Te use o5 product deelopment and cost leadersip strateg% is recommended to ena$le To%ota produce automo$iles tat meets te needs o5 te mar-et and complies ;it enironmental re>uirements and e8pand its mar-et sare in emerging mar-ets!

/.0 -eferences +! Anso55< Anso55< A! A! ' and Ste;art Ste;art<< .! M! (+76)! (+76)! Strategie Strategiess 5or a Tecno Tecnolog% log%Base Based d Business! Business!  Harvard Business Business Review, ,1(+)< +/

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