MBG771 Strategy Formulation

Deakin Global MBA
MBG771 Strategy Formulation
Cohort 18 (January 2025)

Case Introduction

The following pages contain basic-level company and industry profile data to assist you with your assessment in both Course 1 on Strategy Formulation and Course 2 on Strategic Capabilities.

Note: The information in this document is presented at a basic level only. You are expected to complete significant further research on the organisation, its competitors and the environment to satisfy the requirements of your two assessments.

Topic

The company, category and geographic location for the Assessment 1 and 2 is:

Assessment 1 and 2 Summary

In Assessment 1, you will need to analyse not just the current environment where the nominated organisation operates, but also, the targeted industry or sector within the chosen geographic market stated above. This involves identifying trends, opportunities, and threats for the next 5 years using various theoretical frameworks.

For Assessment 2, you will build on the key insights from Assessment 1. You will apply strategic frameworks to make recommendations for the organisation. These recommendations should focus on leveraging the organisation's strengths to exploit identified opportunities and mitigate risks from threats to address the problem for the organisation.

Important information:

All submitted work must meet Deakin's academic integrity standards. As part of the grading process, your submitted work will be carefully reviewed for:

• Any AI usage, including the use of software designed to improve grammatical writing

• Blocks of text within the submission that has not been appropriately paraphrased and cited using the required intext citation methods (APA, or Australian Harvard) this includes citations for work within the Appendix.

Further, for MBG771, you are required to complete your assessments individually. Therefore, to maintain academic integrity, collaboration in any form is not permitted.

This assessment is at Level 9 of the Australian Qualifications Framework (AQF), equivalent to a Masters Degree. It requires demonstration of:

• An advanced and integrated understanding of a complex body of knowledge.

• Skills that demonstrate abilities to analyse critically, reflect on, and synthesise complex information, problems, concepts, and theories.

• Demonstrate your ability to research, apply theories, interpret, and transmit knowledge, skills, and ideas to a variety of audiences.

• You must be able to apply and demonstrate autonomy, expert judgement, adaptability and responsibility as a learner.

For more information on AQF level 9, refer to the AQF Framework Second Edition, January 2013, pages 59 and 60.

The time required to complete the required reading and tasks depends on your study experience and stage in the program. Typically, you may need 10-15 hours per week. However, if you are early in the Deakin MBA Global program, you may need an additional 5 or more hours per week to improve your research and critical analysis skills.

You must pass MBG771 Strategy Formulation before being eligible to attempt the MBG776 Capstone Unit, as stated in the latest student handbook.

Case Study: Toyota Motor Corporation in detail

Toyota Motor Corporation is a leading global automotive manufacturer headquartered in Japan. Renowned for its innovation in hybrid technology, Toyota introduced the Prius, the worlds first mass-produced hybrid car, revolutionising the automotive industry. With a legacy spanning decades, Toyota remains a market leader in Japan, driven by its commitment to quality, innovation, and sustainability.

Current Challenges

Toyota faces intense competition and growing sustainability pressures in Japans automotive market. Domestic rivals, such as Honda and Nissan, and international entrants like Tesla, are rapidly expanding their EV offerings, challenging Toyota's dominant position. The company must also navigate a complex regulatory environment, with stringent government policies pushing for carbon neutrality by 2050. Consumer demand is shifting towards connected, autonomous, and electrified vehicles, requiring substantial investment in emerging technologies. Furthermore, Toyotas reliance on critical raw materials for battery production exposes it to global supply chain disruptions and cost volatility. These factors necessitate a comprehensive strategy to sustain its competitive edge while addressing operational vulnerabilities.

Future Challenges (5 Years)

Over the next five years, Toyota will encounter numerous challenges as it strives to maintain its leadership in a rapidly transforming industry. Meeting Japans ambitious carbon neutrality targets will require Toyota to accelerate its transition to EVs and invest in sustainable practices. Expanding EV charging infrastructure across the country will be crucial to supporting adoption rates and competing with international players. Additionally, Toyota must address technological advancements in autonomous driving and artificial intelligence, which are becoming key differentiators in the automotive market. Economic fluctuations and rising production costs will test Toyota's ability to remain profitable while adapting to evolving consumer preferences, such as the shift towards Mobility as a Service (MaaS). These challenges highlight the need for robust strategies to future-proof Toyotas operations.

Competitive Landscape

Toyota operates in an increasingly competitive environment within Japans automotive sector. Domestic manufacturers, including Honda and Nissan, are strengthening their positions with innovative EV models. International companies like Tesla and BYD are penetrating the Japanese market, offering cutting-edge technology and advanced battery solutions. Emerging trends, such as collaboration between automakers and technology firms, are reshaping the competitive dynamics. While Toyota enjoys significant brand equity and a strong market presence, it must navigate this landscape by leveraging its hybrid technology leadership and without developing strategic alliances to remain ahead of the curve.

Potential Impact on Strategic Agenda

The challenges and opportunities facing Toyota will significantly influence its strategic agenda over the next decade. As the company adapts to increasing competition and regulatory pressures, its strategic focus must prioritise sustainable innovation and operational resilience. The transition to electric and autonomous vehicles will require substantial investment in research and development, reshaping Toyotas product portfolio and technological capabilities. Building resources to address EV infrastructure and supply chain vulnerabilities will further strengthen Toyotas market position. Additionally, the growing demand for Mobility as a Service (MaaS) necessitates the integration of digital platforms and customer-centric solutions. By addressing these priorities, Toyota can align its strategic agenda with market demands, enhance its competitive edge, and reinforce its commitment to sustainability and technological leadership.

Competencies and Capabilities Impact

Toyotas longstanding strengths, such as its Toyota Production System (TPS) and innovative hybrid technology, provide a strong foundation for competitive advantage. However, as the market evolves, Toyota must enhance its capabilities in EV battery technology, sustainable manufacturing, and digital transformation. Partnerships will play a vital role in building infrastructure and accelerating technology development. Additionally, Toyotas supply chain must become more resilient to address the risks posed by global uncertainties and resource dependencies. Adapting its core competencies to align with emerging market trends and regulatory expectations will be critical for sustaining its leadership position.

Strategic Response

To address these challenges, Toyota must implement a multi-faceted strategic response. Investing heavily in research and development will enable the company to innovate in EV technology, autonomous driving, and artificial intelligence. Collaborative partnerships with governments and private entities are essential for building EV charging infrastructure and advancing sustainability initiatives. Toyota should also expand its MaaS offerings by forming alliances with technology firms to create integrated mobility solutions. Strengthening its marketing efforts to promote sustainable mobility and engaging consumers will further enhance its brand equity. By aligning its strategic priorities with market trends, Toyota can secure its leadership position in the automotive industry while driving progress towards a sustainable future.

** case end **

Assessment 1 Brief

Students must pass this assessment for the course and the overarching Deakin unit.

Overview

Helpful databases:

While undertaking this Unit, you may find the following databases within Deakin Library helpful:

• Passport (also known as Euromonitor Passport; GMID; Global Market Information Database; Passport GMID)

• Statista

• D&B Hoovers

Further, it may be helpful for you to review the target organisations website and media centre, as well as professional and other academic sources/websites such as Bloomberg, Deloitte, PWC, McKinsey, Harvard Business Review, World Economic Forum etc.

Assessment 1: Environmental Analysis and Strategic Assessment

Introduction

You are the newly appointed CEO of the organisation. The Board of Directors has tasked you with conducting a comprehensive analysis of the external environment to identify trends, opportunities, and threats that the organisation will face in the next 5 years. This analysis will form the foundation of your strategic recommendations and is crucial for your confirmation as the permanent CEO.

Requirements

1. Industry and Sector Performance Analysis

• Conduct a detailed analysis of the automotive and sustainable mobility industries in Japan.

• Focus on EV adoption rates, government policies on carbon neutrality, and consumer behaviour shifts.

• Include a prioritisation matrix to identify critical industry trends affecting Toyotas future strategies.

2. Macro-environmental Analysis

• Use PESTEL analysis to explore political, economic, social, technological, environmental, and legal factors impacting Toyota.

• Assess how these factors will influence Toyota operations and strategic positioning.

• Evaluate the potential impact and likelihood of each PESTEL factor. Apply a scoring system to prioritise which factors are most critical for strategic planning. Include the complete prioritisation in the appendix with cited references.

3. Competitor Analysis

• Identify and evaluate a minimum of three direct competitors (e.g., Honda, Nissan, Tesla, etc) and at least two emerging competitors in the sustainable mobility sector.

• Conduct a SWOT analysis for each competitor, highlighting strengths, weaknesses, market strategies, and potential impact on Toyota.

• Compare these analyses against Toyotas position to highlight potential strategic responses. Include all detailed SWOT analyses in the appendix, with source citations.

4. Industry Forces Analysis

• Apply Porters Five Forces model to assess the competitive intensity and attractiveness of the automotive and sustainable mobility industries.

• Discuss the implications for Toyotas strategic decisions.

• Score each force based on its impact on Toyota in Japan. Use a prioritisation matrix to identify the most significant forces for strategic decision-making. Document the analysis and scoring in the appendix, with cited references.

Deliverable

• A written report of not more than 2,500 words summarising your findings and analyses. The word count excludes the reference list and appendix.

• Include an executive summary, detailed sections for each analysis, and a conclusion highlighting the key opportunities and threats.

• An appendix containing all applied models (PESTEL, Porters Five Forces, SWOT, etc.), showing how you arrived at the priorities for focus. Include source citations for all referenced information.

• Use Harvard referencing style for all sources cited in your report.

Example Sections for the Report

Executive Summary

• Summarise the key findings from each analysis.

• Highlight the prioritised trends, opportunities, and threats.

Industry and Sector Performance Analysis

• Detail the findings and significance of key industry trends.

• Include a prioritisation matrix in the appendix to show the most critical trends.

Macro-environmental Analysis

• Present the PESTEL analysis, emphasising the most impactful factors.

• Provide a scoring table in the appendix to justify the prioritisation.

Competitor Analysis

• Discuss the strengths and weaknesses of key competitors.

• Include detailed SWOT analyses in the appendix for transparency.

Industry Forces Analysis

• Summarise the results of Porters Five Forces analysis.

• Provide a prioritisation matrix and scoring details in the appendix.

Conclusion

• Identify the top opportunities and threats based on the prioritisation process.

• Justify why these issues should be the focus of Toyotas strategic planning.

Reference List

• Provide a comprehensive reference list following APA or Australian Harvard referencing style for all sources cited in your report (including the Appendix).

Appendix

• Include detailed in-text citations and documentation/explanation of all applied models.

• Provide step-by-step analysis, scoring, and data points.

• Cite all references for the information used in the analyses.

Guidance for Completing the Assessment

• Application of Frameworks: Students must accurately apply all specified frameworks (e.g., PESTEL, Porters Five Forces, SWOT, etc.) to achieve a pass. The thorough and precise use of tools is essential for an accurate and comprehensive analysis.

• Additional Frameworks: Students may include additional frameworks if they are relevant and justified. Well-explained use of such frameworks will be positively considered.

• Evidence-Based Analysis: Support all analyses and recommendations with credible data and referenced sources. Ensure your work is evidence-based, with precise citations using the APA or Harvard referencing style.

• Professional Presentation: Ensure the report is professionally presented and logically structured, free of typos and grammatical errors. This includes adhering to all formatting and referencing guidelines.

• Appendix Requirements: The appendix must contain detailed documentation of all applied models, including step-by-step analyses, scoring, and data points. This transparency is crucial for validating your conclusions and recommendations.

Adhering to these guidelines will ensure that your assessment meets the high standards expected at Level 9 of the AQF and demonstrates advanced strategic management capabilities.

Assessment 2 Brief

Students must pass this assessment for the course and the overarching Deakin unit.

Overview

Assessment 2: Strategic Recommendations and Capability Development

Introduction

Building on the insights from Assessment 1, students will develop strategic recommendations that enable Toyota to leverage its hybrid and EV capabilities to address identified challenges and opportunities in the Japanese market. Recommendations should align with Toyotas corporate vision of achieving carbon neutrality and sustainable growth.

Requirements:

1. Overview of External Environmental Conditions

• Provide a concise summary of the key findings from your analysis in Assessment 1.

• Highlight the critical trends, opportunities, and threats facing Toyota in Japan in the automotive and sustainable mobility industries.

2. Internal Environmental Conditions

• Analyse Toyotas internal environment, focusing on its strategic and dynamic capabilities.

• Use the Value Chain framework to evaluate Toyotas primary and support activities for value creation and cost efficiency.

• Conduct a VRIO analysis to assess Toyotas resources and competencies for competitive advantage as it relates to the automotive and sustainable mobility industries .

• Apply the Resource-Based View (RBV) to identify Toyotas distinctive capabilities.

3. Business and Corporate-Level Strategies

• Evaluate Toyotas current business-level and corporate-level strategies.

• Corporate-Level Strategies: Assess growth strategies using Ansoffs Matrix.

• Business-Level Strategies: Apply and evaluate the product portfolio with the BCG Matrix and Porters Generic Strategies to evaluate Toyotas competitive approach. Further, use the Strategic Clock to analyse competitive positioning in detail.

• Identify areas where these strategies can be improved to address Toyotas external and internal challenges better.

4. Organisational Design and Strategy Implementation

• Analyse Toyotas organisational design and how it supports its strategies.

• Apply the McKinsey 7S Framework to evaluate the alignment between Toyotas strategy and organisational structure.

• Assess the levels of centralisation or decentralisation in Toyotas operations and their appropriateness for its strategic direction in the automotive and sustainable mobility industries.

• Discuss recent or potential structural changes and their impact on strategy implementation.

5. Strategic Recommendations

• Develop actionable strategic recommendations to enhance Toyotas competitive advantage.

• Address the capabilities and competencies aligned with the prioritised areas identified in Assessment 1.

• Provide detailed action plans for implementing these strategies, including timelines and measurable outcomes.

• Use frameworks like the Balanced Scorecard to align recommendations across financial, customer, internal process, and learning perspectives.

• Incorporate Blue Ocean Strategy to identify new market opportunities and untapped value spaces.

• Highlight opportunities for digital transformation and enhanced customer experience through innovative technologies.

Example Sections for the Report

Executive Summary

• Summarise the key findings and strategic recommendations.

• Highlight the prioritised strategies.

Overview of External Environmental Conditions

• Briefly summarise key findings from Assessment 1.

• Highlight critical trends, opportunities, and threats using frameworks such as SWOT, PESTEL, and Porters Five Forces.

Internal Environmental Conditions

• Value Chain Analysis: Identify your nominated organisations primary and support activities, focusing on value creation and cost efficiency.

• VRIO Analysis: Evaluate resources and capabilities for competitive advantage.

• Resource-Based View (RBV): Analyse resources and competencies to understand its distinctive capabilities.

Business and Corporate-Level Strategies

• Corporate Level Strategies:

• Use Ansoffs Matrix to assess growth strategies.

• Business Level Strategies:

• Evaluate the portfolio of product lines using the BCG Matrix.

• Apply Porters Generic Strategies to evaluate your nominated organisations competitive strategy.

• Apply the Strategic Clock to analyse their competitive positioning in more detail.

• Assess the effectiveness of these strategies and identify areas for improvement.

Organisational Design and Strategy Implementation

• McKinsey 7S Framework: Analyse how organisational design aligns with its strategy.

• Centralisation vs Decentralisation: Assess the appropriateness of the organisational design.

• Change Management Models: Examine recent structural changes and their implementation effectiveness.

Strategic Recommendations

• Balanced Scorecard: Develop recommendations focusing on financial, customer, and internal business processes and learning and growth perspectives.

• Blue Ocean Strategy: Identify new market spaces for innovation.

• Digital Transformation Frameworks: Provide action plans for enhancing digital capabilities.

• Customer Experience Frameworks: Enhance customer experience by mapping and improving key touchpoints.

Conclusion and Strategic Action Plan

• Summarise the strategic action plans to deliver the recommendations.

• Justify the prioritisation of these strategies and their expected impact on the organisations competitive advantage.

Reference List

• Provide a comprehensive reference list for all sources cited in the report, following APA or Australian Harvard referencing style.

Appendix

• Include detailed documentation of all applied models (Value Chain, VRIO, etc.).

• Show step-by-step analysis, scoring, and data points with cited references.

Guidance for completing the Assessment

• Start Early: Begin with a review of Assessment 1 to identify key insights and gaps.

• Conduct Additional Research: Use the recommended databases to gather more data and validate your analysis.

• Apply Frameworks Thoroughly: Ensure each framework is applied accurately and relevantly to the organisations context.

• Focus on Clarity and Coherence: Present your findings and recommendations clearly, ensuring logical flow and coherence.

• Follow Referencing Guidelines: Adhere to APA or Australian Harvard referencing style meticulously to avoid penalties.

Deliverable

• A written report of not more than 2,500 words presenting your strategic recommendations.

• Include an executive summary, detailed sections for each requirement, and a conclusion with a strategic action plan.

• An appendix containing all applied models (value chain, capability analysis, etc.), showing how you arrived at the priorities for focus, with cited references for the information used in your analysis.

• Use Harvard referencing for all sources cited.

Evaluation Criteria

• Depth of Analysis: Thoroughness and accuracy of your analysis.

• Strategic Insight: Quality, and originality of your strategic recommendations.

• Evidence-Based Approach: Use data and strategic management tools to support your analysis and recommendations.

• Professional Presentation: Clarity, coherence, and professionalism in the presentation of your report.

• Adherence to Harvard referencing style is mandatory.

Resources

• Deakin Library Databases

• Academic books, scholarly articles, and industry reports

• Relevant case studies, videos, and readings provided through course materials

By completing these assessments effectively, you will demonstrate your ability to apply strategic management concepts and frameworks, conduct thorough environmental analyses, and formulate actionable strategic recommendations and an action plan for a leading global organisation.