BA230 Marketing Management Case Analysis Evaluation Case No.

/Title: Case #1 Toyota

Date: 1 March 2013 Weight 5% 5% Grade Remarks

Particulars Situation Analysis 1. Sufficient presentation of the relevant issues of the company's past strategy and structure as these affect it in the present 2. Sufficient presentation of the relevant issues of the companys current competitive situation: environment -- economic conditions and trends, cultural and social values and trends, political and legal issues, industry, firm, marketing strategy analysis Problem Identification 3. Appropriate identification and phrasing of the case problem(s) primary, secondary problems with brief support discussion on the evidence and effects of the problems; identification of corresponding case analysts objectives with Key Result Areas External Environment 4. Sufficient identification and ranking of relevant societal forces affecting the industry, as well as environmental opportunities and threats facing the company and its task environment Internal Organizational Environment 5. Sufficient identification of the most important strengths and weakness of the company at the time of the case to include among others its corporate level strategy (corporate structure, corporate culture) and business level strategy (corporate resources: marketing, finance, R&D, operations, human resources, information systems) Strategic Factors Analysis 4. Sufficient and logical analysis of strategic factors classifying the issues identified in items 4 and 5 into a Strengths, Weaknesses, Opportunities, Threats analysis; analysis of Critical Success Factors(CSFs) Alternatives Presentation 5. Development of sound, appropriate mutually exclusive marketing strategic/tactical alternatives 6. Construction of rational scenario for each alternative, with relevant, exhaustive discussion of advantages and disadvantages against the CSFs and how these alternatives provide potentials to achieve KRAs, and thus, facilitate solution to the problem(s) identified Recommendation 7. Sound and thorough discussion of the alternative selected and recommended, justifying recommendation with the CSFs and KRAs Implementation, Evaluation and Control 8. Development of thorough and exhaustive programs to implement and support the recommended alternative, replete with the relevant what, why, who,

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how, how much (relevant financial computations), when, where 9. Identification of relevant types of evaluation and control mechanisms to ensure the implementation success of recommendation Fnal Grade General Comments

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University of the Philippines Cebu Business Management Cluster

Case # 1 Toyota

In partial fulfillment of the requirements in BA 230 Marketing Management Third Trimester SY 2012- 2013

Submitted to

Mary Gretchen F. Chaves 1 March 2013

Group # 3 Alforque, Grace Pua, Pearl Versoza, Sheila Marie G.

I.

SITUATION ANALYSIS

II. PROBLEM IDENTIFICATION Toyotas problems on quality led to massive product recalls. This problem has seriously damaged Toyotas safety reputation and commitment to quality. With this crisis on the companys reputation, Toyota has to seriously find a way to manage the following concerns to redeem the brands image: How to resolve the companys quality issues and ensure this problem How to assure the public that Toyota is committed to its brand How to repair the damage this crisis has caused the companys image

will not happen again promise of quality vehicles

III. EXTERNAL ENVIRONMENT IV. INTERNAL ORGANIZATIONAL ENVIRONMENT V. STRATEGIC FACTORS ANALYSIS Strengths Toyota banks on its strong brand image of quality and reliability Global organization, with a strong international position in 170 countries worldwide. Strong brand image environmental friendly (greener) vehicles Industry leader in manufacturing and production. Pioneers Lean Manufacturing and Just In Time production Integrating assembly plants around the world into a single giant network. This enables them to build a wide variety of models more inexpensively. Biggest market share holder in the automotive industry.

Weaknesses

Toyota produces most of its cars in US and Japan whereas competitors may be more strategically located worldwide to take advantage of global efficiency gains.

Massive recall due to product defects has caused a major damage with Toyotas brand image Toyota seems to have abandoned one of its core competencies quality. Toyota is suffering from trying to get too big, too fast.

Opportunities

The growing public demand for cars that are more fuel efficient, have greater performance and less impact on the environment Increasing demand for affordable, high quality, reliable vehicles

Threats Competitors such as General Motors, Ford and Chrysler are taking advantage of this crisis to capture Toyotas slipping market share Increasing doubt and distrust in the minds of the consumers towards Toyota

Critical Success Factors The Toyota Production System The Toyota Production System, or TPS, is the company's renowned production model. One of the overriding goals of TPS is the elimination of waste. Its goal was to provide best quality, lowest cost, and shortest lead time through the elimination of waste. This production system is comprised of two factors, just-in-time and jidoka.

Extensive Research & Development Toyota has been in the forefront of the automobile industry in the development of new automobile features that addresses the current and even future needs of consumers. Toyota was the first to release a mass-produced hybrid car, the Prius. In fact, TOYOTA spent more on research and development (R&D) than any other company in the world in 2011, according to "Global Innovation 1,000".

VI. ALTERNATIVES PRESENTATION Alternative #1 Pull out from the American Market and focus operations and marketing efforts in countries where they have a strong foothold. Advantages Disadvantages Pulling enormous as to it will give out from PR a

Toyota will save time

and win resources back a from market fails trying to appease and where they have made product and quality huge, almost

America will be an disaster for Toyota negative impression consumers that the company is not capable of handling a crisis like this Toyota will lose out potential sales on the very big American market

irreparable damage on their brand image Toyota will be able to focus their efforts on markets have history and where a of selling they long quality, built

producing

reliable automobiles

Alternative #2 Face the problem at hand, employ excellent crisis

Advantages

Disadvantages With recall, the massive will

This will give a signal to

the public that Toyota is

Toyota

management strategies, and bank on very good marketing strategies to manage brand image and public perception.

responsible enough to take ownership of the problem and come up with the best resolution. Depending on Toyotas management steps assurance quality), show what the they to of this of this crisis (including taking ensure and product is an improvement

definitely financial losses.

be

exposing itself to big The public response to this strategy is uncertain. The public may accept or may not Toyotas

apology or actions With the uncertainty of public perception, there is a possibility that Toyota may not be able to recover in terms of sales and image repair in the American market

opportunity for them to consumers are and as a

company their values, principles, ethics. Afterall, it is during times of crisis when we see the real value of a firm or company.

Potential loss of sales is

lesser than if they entirely pulled out from the American market.

VII. RECOMMENDATION VIII. IMPLEMENTATION, EVALUATION AND CONTROL