The objective of the assignment is based on research about the strategic planning of an organization and explains the different planning techniques in order to achieve their corporate goals. This course work also covers the significance of the stakeholder including the internal and external environmental analysis. Organization has certain resources to develop appropriate strategies and implement them to achieve their goals and objectives. The implementation process is important which needs skilled workforce to achieve the target in specific time. The evaluation and monitoring gives the outcome of the strategic plan and also describe the achievement of strategies.
The strategic planning process provides the guidelines for action plans to achieve their corporate goals. The leadership provides a long term mission and certain objectives which gives a vision to employees and customers. The strategic planning needs a situational analysis to formulate a strategy. The environmental scanning including competition, market situation and consumer behaviour enables them to formulate an appropriate strategy for implementation. The organization structure is effectively utilized in order to understand these strategies and implement accordingly. The managers also review and critically evaluate the portfolio and find out some new opportunities and focus on specialized product. The skilled human resource and technology gives the advantage of synergy among the business unit. The team building process is very important to implement the strategy, the execution depends upon the skilled workforce so that to provide the competitive advantages for the organization.
Introduction and Background of the Organization
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Toyota Motor Corporation was founded in 1937. It has successful history of quality and innovation. Toyota Motor Corporation manufactures small size vehicles such as light trucks. Toyota received its first Japan's quality control award in 1980s. Toyota has designed a new hybrid vehicle which is different concept in automobile industry. They also produce variety like small cars, trucks, jeeps, vans etc. Its successful brands are Corolla, Prius, Cruiser, Yaris and Land Cruiser. Toyota Motor Corporation is a Japan based organization operating its business in many countries.
Toyota Motor Corporation is a global organization with a successful history due to its strategic planning process, expectation of strategies and achievement of its objectives. The production based organization has developed their internal processing system and techniques which makes them unique from its competitors. The strategic planning process based on customer's preferences and quality in services with new design and innovative techniques. Organization has developed specialized processing and techniques such as Just in Time (JIT) reducing waste and achieved economies of scale.
The strategic planning is very important for the growth of any organization. The planning process needs market analysis including the other companies in industry, consumer behaviour and current organization situation. Toyota Motor Corporation is example of successful planning and implementation in automobile industry. The skilled human resource has capability to set objective and long term vision and mission. The organization has established their core competencies in the form of technology and human resource to achieve their goals. They have used different techniques and implemented the strategies in an effective manner. The internal analysis provides strength and weakness of the organization and also helps to identify the opportunities in the market.
Mission and Vision gives the right direction to the organization and determined the objectives for employees. The long term mission and vision will facilitate to understand about the organization goals. Mission and vision also determine the organization culture and values within the organization. All employees follow these values in order to maintain the quality in the delivery of services. The mission should cover the long term planning and can not be copied by the other competitors. The uniqueness of the mission and vision will establish the difference in the industry.
Mission Statement of Toyota
To sustain profitable growth by providing the best customer experience and dealer support. To attain and attract customers with high value products and services and the most satisfied experience.
To be the most successful and respected car company in the globe.
The clear objectives of the organization derived from the mission and vision statement of the organization. The leadership has different short term and long term objectives for the growth of the organization. The corporate goals can be divided in small business objectives and communicate to the employees of the organization for better understanding. The communication process is very important to understand the objectives and implement different strategies to achieve the specific objectives. The objective should be realistic and achievable in certain time frame. Toyota Motor Corporation has objectives to improve quality and services in automobile industry. They also improve the manufacturing techniques and processes and enhance their competitive advantages so that they able to achieve their objectives through effective implementation and evaluation.
Always on Time
Marked to Standard
Organization has developed certain core competencies to enhance their resources and make different from the other companies. Core competencies are specialized skilled, abilities, strategies which competitors do not have. Competitors cannot imitate easily and it provides benefits to the end consumer experience. Many organizations have different types of core competencies. The core competencies include technical, customer relationship, product development, culture and human resource management.
Toyota has special competencies such as specific skilled worker, production techniques, customer satisfaction and use of technology. Toyota has established a different processing in manufacturing which give advantages to the organization by reducing waste and it also improve the cost efficiency. Due to latest technology Toyota is able to deliver quality and luxury to its customer in the form of fuel efficient vehicles. The new design is also advantage for Toyota which satisfies the customers.
Planning, Tools and Techniques
There are different techniques for planning process in which different tools can be used depending upon the nature of the industry and resource capabilities the organization has. The common analysis method includes the qualitative techniques by using statistics to analyse the specific subject. The portfolio analysis also helps to evaluate the current position of organization and focus on different products. Toyota Motor Corporation has established specialized manufacturing techniques and improves planning process to reduce time. The have clear objective and describe specific aim and deliver to the all-stakeholder. Different tools can be used in manufacturing including gantt chart, critical path analysis, fish bone diagram and brain storming. The selection of tools depends upon the nature of the assigned job.
Internal analysis is very useful to analyse the present situation of the organization. Management can analyse the financial position of the organization, strength, resource capabilities and related issues which will help in the strategy development. An appropriate strategy based on a logical internal analysis which also describes the weakness of the organization as well. The main focus of the analysis is to identify the opportunities to expand the business and achieve their objectives. The use of technology is helpful in analysing the current position of the organization. The customer analysis, implementation of strategies and achievement of objectives also support the internal analysis.
This analysis is used for both internal and external analysis in order to get the strength and weaknesses of the organization. This also describes the opportunities and threats to explore new avenues for the business growth. Strength is the unique characters of the organization which provide strength and stability in the growth of the organization. The weaknesses are drawback for the organization which can be harmful and can damage the productivity of the organization. The effective planning and strategies can help the organization to tackle the weaknesses and drawback. The external analysis includes the opportunities and threat for the organization in the market. The opportunities can be explore to expand the business and take care of competitors' threat. Toyota's business strategy has established strength and captures the opportunities in the market through their resource generation and overcome weaknesses and threats in the market.
External environment also describes different factors which can influence the growth of the organization. These factors include analysis of political condition, economic stability, technological support and socio economic condition of the customer and legal aspect of the business. The commonly used method is PESTEL Analysis which can analyse all these factors which will make effective business strategy. The leadership role has a great significance to analyse both internal and external analysis and formulate a business strategy and prepare workforce for implementation which is essential part to achieve their corporate goals. The Toyota has stable financial position and advantage of technological advancement in their processing. The management of has ability to analyse international economy and re-evaluate their strategies in order to enhance their profit and reduce expenses. This external analysis creates lot of opportunities and strategic management gives them a continuous improvement in the strategic decision through planning. The political stability of the country like Japan also has positive impact on business of the Toyota and provides stability to the organization. Due to the stable political economic condition management can focus and establish a long term strategies which gives sustainability to the organization.
Formulation of Strategies
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The business strategy means set objectives to achieve the desired business goals. The organization has long term business planning reflecting its business strategy. The business strategy is concern with resource, availability and the improved financial conditions. Strategies are concerned with the scope of business activities such as production of vehicle in case of Toyota. There are different categories, strategies including general strategies and competitive strategies. The prime objective of the organization is to increase the profit margin by achieving the objectives and utilize their resources. The competitive strategies are also important and concern with better resources compare to rivals. The organization has focused on differentiating products and may charge the high price due to its services and quality. Besides product differentiation economies of scale will also provide the competitive edge.
Formulation of strategies is important for leadership after internal and external analysis. There are different strategies within the organization to perform different function to achieve their corporate goals. The top management has several alternatives and focus on one strategy depending on the business situation. The environmental scanning shows the performance of the organization and enables them to formulate a future strategy. Within organization every department has its own strategy align with the corporate strategy to achieve the organization goals. The objectives of management are to create differentiation and focus on the core competencies of the organization and utilize in an effective way. The information and related data about customers, market can help to formulate the future strategy. There are different types of strategies such as;
Human resource has significant role in the growth of the organization so every business strategy in an organization should focus on human resource development. The HR strategies based on the employee's satisfaction through comfortable and pleasant work environment, competitive reward, benefits system and their career growth. The human resource development is essential to get the competitive advantage in industry. The training and development of employees is also the objective of human resource strategy. A well planned HR strategy helps the organization to hire well professional and trained workforce.
Marketing strategy has great importance in the overall business strategy due to interaction with the customer. Customers are important for growth of the organization. Marketing strategies moves around the quality and services and relationship building with the customers to satisfy them and maintain the sustainability. The long term relationship with the customers will increase the market share and enhances the number of loyal customers. The marketing strategies also focus on the integrated market communication to give proper information to the customers and inspire them for purchase action.
Product quality is directly linked with the innovative design and expertise in production. The manufacturing industry has focus on the production industry in order to enhance the quality and reduce the cost through the economies of scale. Toyota Motors Corporation is an example of production strategy and achieves the excellence due to its skilled labour and technology. The have improved the processing, reduce wastes and enhance productivity due to their production philosophy. They have evolved the continuous improvement processing and control the cost of the product.
Porter's Five Forces Analysis
Different business theories and models can applied but the Porter's five forces model is used to analyse the industry. The most influential and analytical model can access the nature of the competition and different forces applied on the industry. This analysis provides the different forces applied on the industry and organization can plan their action accordingly. There are five forces that determine industry alternatives. These are as under;
The threat of new competitors
Bargaining power of buyers
Bargaining power of suppliers
Threat of substitute
Degree of rivalry
This model can applied on the organization of Toyota. The threat of new entrance is less due to the huge investment and structure in the industry. The new entrant needs to invest huge capital to meet the industry requirements. They have difficulty to reduce the cost. Threat of substitute can affect some brands of Toyota due to fewer prices. The bargaining power of supplies has significance impact due to the raw material cost which directly links the organization profitability. There are limited suppliers to fulfil the requirement of the industry. The main issue is to maintain the quality in a low price. The recent economic recession has reduced the purchasing power of the buyers. The Toyota Corporation has faced a great competition with Ford, Honda etc.
Toyota has followed the international standards of production processes. The organization culture based on knowledge skills and value orientation among the team members. The human resource and technology are the key elements for the organization. The Toyota Company follow the social responsibilities in order to maintain the ethical values in the automobile industry. Toyota has maintained corporate and social responsibilities as a part of their organization culture. Toyota shares the same values with stakeholder including customers, employees, shareholder, business partners and society as well. They also follow the innovative models in which eco-friendly fuel efficient system has been introduced.
Toyota offers high quality products with innovative models to its customers. They maintain the differentiation in the products to satisfy the customer's needs, want and demand. Due to its quality it has maintained the relationship with the customers. They loyal customers is asset for the organization and brand ambassador for Toyota.
The culture of organization involves technology so that mostly employees are skilled and highly technical in nature. They focus on the training and give appropriate knowledge to maintain the quality. The human resource provides the competitive advantages with the help of knowledge skills and competencies to enhance productivity. Human resource management deals with the recruiting, training, assessing, developing and rewarding the employees. They also provide strong leadership and culture and ensure compliance in all business function related to human resource.
The current financial position of Toyota is stable but there are lot of challenges in future. As a global business there are lot of threats due to some economic instability and strong competition therefore, Toyota Motors has to develop new innovative models and vehicles, reduce the cost and expand their business through product and market expansion. The future strategy should be based on the customer's centric approach as shown in the previous history and another supportive strategy would be the stable financial position in the industry.
Implementation of Strategies
The strategic formulation tasks depend upon the execution through skilled staff and efficient work with the help of technology. The implementation needs skilled human resource in order to achieve the business objectives. The overall business strategy will be implemented in every department of the organization to maintain the integrated process of sharing and collaboration among the team. The different department perform their functions including HR, Marketing, Production and Information System. In addition to the developing functional policies, the implementation phase involve identifying the required resource and putting into the place for necessary organization change. The strategic implementation needs strong control to meet the desire results, the effective communication with employees and organizational culture will determine the implementation of policies. Effective control will depend upon the accountability and transparency in the system. The role of leadership is to maintain the implementation of roles and policies in order to maintain the transparent system. The good governance provides advantage to maintain the effective control during the implementation of the strategies.
The competent leadership of Toyota has ability to formulate a competitive strategy and execution through skilled human resource to achieve the organization goals. Organizations have different types of goals the leadership has set priorities and communicated to all staff. Every department including production, marketing, finance and human resource contributes in the achievement of business strategies. The overall organizational achievements can be analysed with the financial stability, customer's satisfaction and harmony among the internal culture of the organization.
Evaluation of Achievement
Every organization set their objective. The role of the manager is to perform different management functions to evaluate of the performance of the team members according to the parameters given by the frim. In case of Toyota Motors it has well define criteria to evaluate the achievements of every person against their performance. The human resource management also facilitate in order to evaluate the employees achievements. Another aspect is the financial evaluation and critically analyse the profit and expenses of the organization. There are different financial tools used by Toyota to evaluate the financial stability, market share and growth in the industry. The evaluation of performance also provides opportunity to improve the internal system in the organization.
The dynamic organization has different business unit strategy. Every business unit is responsible for their achievement and growth so that the departmental head and different operational managers perform their responsibilities to monitor the different strategies. During monitoring the manger's knowledge, information and competencies plays a vital role in order to maintain the quality of particular tasks.
Every business strategy needs critical environmental scanning including internal and external environments. The role of leadership is to provide a long term vision to his employees and set competitive business strategy for implementation.
Human Resource plays vital role in the strategic planning, implementation and monitoring to achieve the company goals. The management has utilized their resources in order to achieve the business objectives with the help of employees and the latest technology.
The manager performs key function in the organization like formation of strategy, decision making process and develops staff to enhance the performance of tam. However, the effective control can facilitate people to implement the strategy to achieve desired results.
There are different types of resources in organization involve in the strategic planning and developing business strategy for growth of the firm. The organization has long term mission, vision and values and determines the internal organization culture which provides better understanding for the employees to perform their responsibility. The organization achievements will depends upon the strategies and their effective implementation with the help of new innovative technology and skilled staff. Business strategy delivers integration among different teams to perform different jobs in order to achieve overall business objectives. Critical analysis of customers and market situation identify many opportunities and match with the strength of the organization to achieve business goals. The formulation of strategy is also very important for the portfolio analysis to identify the focus on profitable product. The customer orientation is also a part of strategy use to plan quality product and services to satisfy customer needs. Business strategies need a competent human resource for effective implementation and control to achieve their targets within minimum period of time. The competitive analysis provides a clear picture about the market and customers and develop own strategy as per needs of the customers. Business strategy should have long term planning and must provide competitive advantages maintain the sustainability.