Fahad Nawaz Ghumman Maqsood Ahmad Ahmad Nawaz Cheema Shahwar Azeem

Strategic Audit

Introduction
Toyota Motor Corporation

Founded 1937 Founder Kiichiro Toyoda Headquarters Toyota City, Japan; Industry Automotive, Robotics Financial services and Biotechnology Products Economy/mainstream/luxury vehicles Revenue USD $203.26 billion (2009) Employees 316,121

CEO: Katsuaki Watanabe

Toyota will continue to innovate relentlessly to insure further growth

Vision
Toyota aims to achieve long-term, stable growth in harmony with the environment, the global economy, the local communities and its stakeholders.

Mission
Toyota seeks to create more prosperous society through automotive manufacturing.

PESTLE Analysis

Political
Governmental incentives tax credits/usage The Price of gasoline increase the attractiveness of vehicle options

Technological
Plug in Hybrid Electrical Vehicles Battery Technology Improvement

Economical
Reliability in Technology Economic Instability

Environmental
Pollution Prevention Compliance with Legislation Continuous Improvement

Socio-Culture
Global-Warming increased the awareness of going green

Legal
Governmental initiatives to encourage low emission / high fuel economy will serve as attractors for Plug In Hybrid customers.

Industry analysis
1. Market & Customer Analysis: Targeting Generations Geographical Targeting

Competitive analysis:
GM FORD CHRYSLER HONDA NISSAN

Competitive Landscape for PHEVs

Traditional hybrids: Toyota, Honda, Ford Other potential manufacturers of PHEVs: GM and Honda Manufacturers of other alternative energy vehicles: Tesla, BMW, Mercedes

Market Structure Analysis

Market Orientation of the Firm

Objective setting Our objectives are set with a predominantly internal & external focus Planning and budgeting Our plans comprise largely numerical budgets Sales Forecasting Toyota does a good job of forecasting sales volume

Market Orientation
Information systems Toyota is always looking to improve efficiencies and cut costs by employing IT solutions. Attitude toward customer service Toyota strives for the best customer experience

Product Life Cycle

TOYOTA SUPPLY CHAIN

PARTS/ SERVICE CENTERS DEALER CUSTOMER

OVERSEAS NETWORK (EXIM) COMPONENTS SUPPLIER GROUP

DISTRIBUTOR WAREHOUSE ASSEMBLY PLANT RAW MATERIAL SUPPLIERS

INTEGRATED SCM
RAW MATERIAL SUPPLIERS INTERNATIONAL COLLABORATION END CUSTOMER

1ST & 2ND TIRE SUPPLIERS

DEALER

MANUFACTURING PLANTS

WAREHOUSE

Porter s Five Forces

Threat Of New Entrants
The threat of new entrants is very low It takes an incredible amount of capital to manufacture the automobiles Access to distribution channels

 Bargaining Power Of Suppliers

The bargaining power of suppliers is very low There are so many suppliers to this industry

 Bargaining Power Of Buyers

The bargaining power of buyers is moderately high The buyers do not have the ability to integrate backwards into the industry

 Threat Of Substitute Products

There are not many substitute products for automobiles

Substitutes products all depend on the geographic location of the consumer

 Rivalry Among Competitors

Rivalry among the competitors is very strong lack of differentiation opportunities

Opportunities
World s largest automaker in the world Toyota has doubled its market share in Europe in the past four years to 5.1 percent Toyota is considering the idea of introducing a beefy three-quarter-ton pickup truck

Threats
Hyundai motor company Hyundai usually has thirty more horsepower in their vehicles Technology increases in cars today is a major driving force in the automobile industry

7-S Framework
Shared beliefs and values Strategy Structure Systems Staff Skills Style

Firm s Resources
Financial resources Revenue: $203.26 billion (2009) Assets: $275.9 billion
Revenues growth rate is 8% Assets growth rate is 8.2%

Physical resources
Factories all over the world
Asia Europe America Australia

Sale of vehicles
Toyota sells its vehicles in more than 140 countries
34% in 31% in 13% in 22% in Japan America Europe other regions

competitors
General motors Honda Ford Nissan Hyundai

Strategic approach
Product-market strategy
Product development

Business level strategy

Cost leadership Differentiation

Value Chain Analysis

Create Competitive Advantage Built & Add Value Primary Activities Support Activities

Value Chain Analysis

Core competence of Toyota

Brand Management Supply Chain Management JIT Inventory System Product Development

Strengths
TQM Decentralized Structure Bottom-Up Approach Employees are empowered Good Relationship with Employees

Weaknesses
Company Traits Less Dividend Paying as compare its Competitor Difference b/w National & Business Culture

Recommendations
Remove Cultural Differences Improve Communication Develop Synergy b/w Resources Review Suggestion Programs