Fluent Essays

My chosen company is the Toyota motor Company. Please use all attached resources to complete. Assignment Content     Managers at each level of the organization use a type of SWOT analysis to identify strategies that will best position the company to achieve its mission and goals. The first step in a SWOT analysis is to identify an organization’s strengths and weaknesses that characterize the present state of the company. The next step requires managers to identify potential opportunities and threats in the environment that affect the organization in the present or possibly in the future. When the SWOT analysis is complete, managers begin developing strategies. These strategies should allow the company to attain its goals by taking advantage of opportunities, countering threats, building strengths, and correcting organizational weaknesses.   Use the company and SWOT analysis you selected in Week 1 for this assignment. Congratulations! You’ve been hired as a manager and have been asked to analyze the current status of your new company. Review your company’s SWOT analysis and other available sources to evaluate the strategic needs of the organization within a changing global environment. Use the Wk 2 Apply Worksheet for your evaluation. Note: This type of information is often found in the company’s annual report. MGT/526 v1 Wk 2 – Apply: Organizational Analysis MGT/526 v1 Page 2 of 2 Wk 2 – Apply: Organizational Analysis Instructions Complete the worksheet based on your chosen organization. Use Business Source Complete and your selected company’s website, annual report, and other available sources. Part 1: Organization Information Organization Define your chosen company and its industry. Mission and Vision Identify the mission and vision of the organization. Mission Vision Organizational Initiatives Outline 1-2 major initiative for this organization. What are they currently doing to support these initiatives? Organizational Plans Describe the plans employed by the organization. Determine which types of managers create each type of plan. Type of Plan Description Type of Manager SWOT Analysis There are various factors within the external environment of an organization that impacts its strategy. Analyze the organization’s SWOT analysis. Identify the internal and external factors. Include a link to the SWOT analysis in the Reference section of this worksheet. Internal Factors External Factors Part 2: Evaluation Evaluate if the mission, vision, planning process, and SWOT analysis meets the current needs of the organization. Include the following in your evaluation: · Describe the unmet need, (not limited to product or service, can be new demographic, new mode of delivery, etc.). · Analyze your competitive advantages. · Based upon the SWOT analysis, is there another business that is doing something similar that can be referred to? Provide examples. · If there is not another business, describe how what you’re doing is a unique product or service offering. · Propose a competitive business initiative to address the unmet need. · Create a high-level timeline and operational steps necessary to implement your solution. References Include a link to the SWOT analysis. Copyright 2020 by University of Phoenix. All rights reserved. Copyright 2020 by University of Phoenix. All rights reserved. COMPANY PROFILE Toyota Motor Corporation REFERENCE CODE: 2A89F017-6903-477A-A94B-628576B59972 PUBLICATION DATE: 15 Jun 2021 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED A Progressive Digital Media business http://www.marketlineinfo.com/ Toyota Motor Corporation TABLE OF CONTENTS Toyota Motor Corporation © MarketLine Page 2 TABLE OF CONTENTS Company Overview ........................................................................................................ 3 Key Facts ......................................................................................................................... 3 SWOT Analysis ............................................................................................................... 4 Toyota Motor Corporation Company Overview Toyota Motor Corporation © MarketLine Page 3 Company Overview COMPANY OVERVIEW Toyota Motor Corporation (Toyota or ‘the company’) is one of the leading auto manufacturers in the world. It is engaged in the manufacture and sale of motor vehicles. The company’s products include mid- size, luxury, sports and specialty cars, recreational and sport-utility vehicles, pickup trucks, minivans, trucks and buses. The company also extends its businesses in the fields of housing, financial services, telecommunications and information technology. It operates manufacturing facilities in several cities across North America, Latin America, Europe, Africa, Asia Pacific and Middle East. The company also operates research and development (R&D) facilities in the US, Japan, and China. The company is headquartered in Toyota City, Aichi, Japan. The company reported revenues of (Yen) JPY27,214,594 million for the fiscal year ended March 2021 (FY2021), a decrease of 8.9\% over FY2020. In FY2021, the company’s operating margin was 8.1\%, compared to an operating margin of 8\% in FY2020. In FY2021, the company recorded a net margin of 8.3\%, compared to a net margin of 6.8\% in FY2020. Key Facts KEY FACTS Head Office Toyota Motor Corporation 1, Toyota-cho TOYOTA-SHI Aichi TOYOTA-SHI Aichi JPN Phone 81 565 282121 Fax 81 565 235721 Web Address toyota.jp Revenue / turnover (JPY Mn) 27,214,594.0 Revenue (USD Mn) 256,704.9 Financial Year End March Employees 366,283 Tokyo Stock Exchange Ticker 7203 Toyota Motor Corporation SWOT Analysis Toyota Motor Corporation © MarketLine Page 4 SWOT Analysis SWOT ANALYSIS Toyota Motor Corporation (Toyota or ‘the company’) is one of the leading auto manufacturers in the world. Strong market position and brand image creates value for the company, strong revenue growth and focus on innovation provides competitive advantage strengthened its operations, whereas trade receivables remains a cause for concern. Growth electronic vehicles, launch of new products and growth initiatives are likely to offer growth opportunities to the company. However, stringent environmental regulations affect business performance, intense competition from large players impacts market share and margins and rapid technological changes could affect its operations. Strength Strong market position and brand image creates value for the company Improving profitability Focus on innovation provides competitive advantage Weakness Trade receivables Opportunity Growth Initiatives Growth Electronic vehicles Launch of New Products Threat Stringent environmental regulations affect business performance Intense competition from large players impacts market share and margins Rapid Technological Changes Strength Strong market position and brand image creates value for the company Toyota has a strong market position in different geographies across the world. The companys domestic market share for Toyota and Lexus brands, (excluding mini-vehicles) was 48.8\% in FY2020. Similarly, Toyota has a market share of 13.5\% in North America, 13.8\% market share in Asia (excluding China), and 5.3\% market share in Europe. In addition, the company holds a significant market share in South and Central America, Oceania, Africa, and the Middle East regions. Such strong market position allows the company to gain competitive advantage and expand into international markets. In addition, Toyota holds a portfolio of wide range of strong brands in the automotive industry. The company is present in all the segments of automotive markets, including passenger vehicles, sports utility vehicles (SUVs), buses and trucks, spare parts and financing and leasing. Its brands include Lexus, Prius, Innova, Corolla, Etios, Camry, Sequoia, 4Runner, Scion tC, Highlander, Fortuner, Land Cruiser, Vellfire, Sienna, Hilux, and other brands. These brands are among the strongest, most desirable premium brands in the world. Thus, the companys strong market position supports the company in delivering sustainable business results which in turn creates value for the company. Toyota Motor Corporation SWOT Analysis Toyota Motor Corporation © MarketLine Page 5 Improving profitability Though the company’s revenue declined in FY2020 over that in the last fiscal, its profitability improved. Improving profitability increases the company’s ability to provide higher returns to its shareholders, enabling it to gain their confidence. The company’s operating margin increased from 7\% in FY2019 to 8.1\% in FY2020. Strong operating performance indicates the company’s efficiency in cost management. The company’s net profit margin increased from 6.2\% in FY2019 to 6.9\% in FY2020. Focus on innovation provides competitive advantage Toyota has a strong focus on innovation helps company to expand its product portfolio and improve the functionality, quality, safety, and environmental compatibility of its products. Toyotas research activities operates through Toyota and Toyota Central Research and Development Laboratories, Inc. in Japan, which works closely with Daihatsu Motor Co., Ltd., Hino Motors, Ltd., Toyota Auto Body Co., Ltd., Toyota Motor East Japan, Inc., and many other Toyota group companies. It aims to develop leading-edge technology and product development in areas such as energy, the environment, information technology, telecommunications and materials and reduce accidents and other impact on the environment. The company focus on improvements in hybrid technologies, including in functions and cost, and contributions to the environment through advancements; internal combustion engine fuel economy technology as well as improvement in technology in connection with more stringent emission standards; development of advanced safety technology designed to promote driving and vehicle safety; development of EVs, FCVs and other alternative fuel vehicles; automated driving technologies and connected car technologies. The company has research facilities across Japan, the US, China, Asia Pacific, and Europe regions. In FY2020, the company incurred JPY1,110,369 million on research activities. Weakness Trade receivables Increasing receivables could adversely affect the company’s cash flows. The company has reported increase in its trade receivables. The company’s trade receivables stood at JPY9,269,964 million in FY2020, and JPY9,020,505 million in FY2019. The company maintains a substantial amount of current assets in the form of receivables. In the FY2020, the company’s trade and other receivables accounted for 48.8\% of its current assets. Such increasing accounts receivable reflects inefficient credit management by the company. In the backdrop of recovering economic slowdown, the probability of defaults by any of creditors increased, could impact the overall financial position of the company. Opportunity Growth Initiatives The company could benefit from taking various initiatives, which may drive the company’s growth prospects in the future. In November 2020, Toyota Motor signed an agreement with KDDI Corp to jointly develop connected car technology. This agreement helps the company to strengthen its relationship with Toyota Motor Corporation SWOT Analysis Toyota Motor Corporation © MarketLine Page 6 KDDI Corp. In October 2020, Toyota Motor Corporation Australia (TMCA) entered into a partnership with Telstra and KDDI to bring LTE connectivity to TMCA vehicles. This partnership helps the company to provide new safety and security services designed for its customers. Growth Electronic vehicles Being one of the leading auto manufacturers in the world, the growth in electric vehicles (EV) sales could benefit Toyota’s operations. According to the Edison Electric Institute and Institute for Electric Innovation, annual EV sales in the US is expected to reach 3.5 million vehicles by 2030, accounting more than 20\% of annual vehicle sales by 2030 in the country and the number of EV on the US roads is expected to reach 18.7 million in 2030. Automobile manufacturing companies are developing more EV models on customer demand, including both battery-powered electric vehicles and plug-in hybrid electric vehicles. In October 2020, Toyota Motors subsidiary, Toyota Motor North America along with Hino Trucks have announced to develop a Class 8 fuel cell electric truck for the North American market. In the same month, Toyota Motors joint venture with Panasonic announced to produce lithium ion batteries for hybrid cars in western Japan. This joint venture helps the company to capture growing global electric vehicle market. In August 2020, Toyota Motor along with Mazda Motor announced to invest US$2.3 billion in a new joint venture factory in Alabama, the US. This joint venture helps the company to enter into North American market. In August 2020, Toyota Motor announced its plans to build US$1.2 billion worth electric car factory in Tianjin, China. Launch of New Products The launch of new products would help the company expand its product portfolio and improve financial performance. In November 2020, Toyota Motor announced the launch of the Toyota GR Yaris in Europe. In the same month, Toyota Motor announced its plans to launch its new Lexus UX300e in Thailand. In June 2020, Toyota announced launched RAV4 plug-in hybrid electric vehicle through dealerships in Japan. In April 2020, the company announced its plans to release its new model, Harrier in Japan. In March 2020, the company introduced a new paint atomizer, utilized in the vehicle body painting process. In the same month, the company launched the Toyota Yaris in Pakistan. In the same month, Toyota Kirloskar Motor launched MPV Vellfire in India. In February 2020, the company launched a car rental business for tourists in China. Threat Stringent environmental regulations affect business performance The automobile industry worldwide is influenced by a broad spectrum of regulations governing the emission levels of exhaust fumes, carbon dioxide/fuel economy guidelines, noise level limitations, recycling-related restrictions and safety standards. These regulations have become increasingly stringent. The Air Pollution Control Law of Japan and the Road Vehicle Law and the Law Concerning Special Measures for Total Emission Reduction of Nitrogen Oxides from Automobiles in Specified Areas regulate vehicle emissions in Japan. Similarly, in the US, the federal Clean Air Act directs the Environmental Protection Agency (EPA) to establish and enforce air quality standards, including emission control standards on passenger vehicles, light trucks, and heavy-duty vehicles. In 2007, EPA regulations that Toyota Motor Corporation SWOT Analysis Toyota Motor Corporation © MarketLine Page 7 restrict emissions from passenger vehicles and light trucks operating at cold temperatures became effective. The new emissions standards that further restrict emissions from heavy-duty vehicles operating at cold temperatures are expected to be phased in from 2012 to 2015. Furthermore, these emission regulations are periodically updated. For instance, in 2010, the EPA and the federal National Highway Traffic Safety Administration (NHTSA) issued a joint final rule to reduce the emission of greenhouse gases from passenger vehicles, light-duty trucks and medium-duty passenger vehicles for model years 2012 through 2016. In addition, in 2011, the EPA and the NHTSA issued a joint proposed rule to further reduce greenhouse gas emissions and improve fuel economy for passenger vehicles, light-duty trucks and medium-duty passenger vehicles for model years 2017 through 2025. The emission standards adopted across various regions can result in additional costs for product development, testing and manufacturing operations of Toyota, which could affect the companys operating margins, financial position, and business performance. Thus, any significant change in the regulation structure in any of the countries where Toyota operates could have a serious impact on its business operations. Intense competition from large players impacts market share and margins The worldwide automotive market is highly competitive. Toyota faces strong competition from automotive manufacturers in its various markets. The competition among various auto players is likely to intensify in light of continuing globalization and consolidation in the worldwide automotive industry. The factors impacting competition include product quality and features, the amount of time required for innovation and development, pricing, reliability, safety, fuel economy, customer service and financing terms. Toyota competes primarily with global players such as Nissan, Ford, Hyundai, Honda, Volkswagen, General Motors, Maruti Suzuki, Mitsubishi, PSA, and Renault, among others. Thus, increased competition may lead to lower vehicle unit sales and large inventory, which could result in downward pricing pressure, thus impacting the financial condition and results of operations of the company. Rapid Technological Changes The technology market, in which, the company participates is subject to rapid technological changes. The introduction of products using new technologies, or the adoption of new industry standards can make existing products, or products under development, obsolete or unmarketable. In this scenario, to compete effectively, the company must continuously innovate and introduce new products that gain market acceptance. Unless the company understands the customers’, requirements and adapts the emerging technologies in the market, and introduces new products and solutions, its business could be affected. Copyright of Toyota Motor Corporation SWOT Analysis is the property of MarketLine, a Progressive Digital Media business and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holders express written permission. However, users may print, download, or email articles for individual use.