Strategic Management MMM306

Assessment Case

The company case for the assignment isToyota Motor Corporation.

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.

Assessment Application

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. (Attached Assessment 1 for your reference and help)

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.

Project

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

1. Executive Summary

• Summarise the key findings and strategic recommendations.
• Highlight the prioritised strategies.
  2. 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.
  3. 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

1. Corporate Level Strategies:

• Use Ansoffs Matrix to assess growth strategies.
  
  
  2. 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.
  
  
  3. 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.
  
  
  4. 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.
  
  
  5. 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.
  
  
  6. Reference List
     
     
• Provide a comprehensive reference list for all sources cited in the report, following APA or Australian Harvard referencing style.
  
  
  7. Appendix
     
     
• Include detailed documentation of all applied models (Value Chain, VRIO, etc.).
• Show step-by-step analysis, scoring, and data points with cited references.

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.

Assessment Criteria

Below is the criteria for this assessment:

Similarity:

To avoid unintentional similarity, you are strongly encouraged to check similarity by using an online plagiarism checking tool. The tool will help you obtain an originality report on your assessment drafts before submission.

• Final submissions containing a similarity of20% and above will result in an immediate failurefor the assessment.

Referencing

Deakin uses the APA 7 style guide for referencing. In case you are using the Harvard style of referencing, please ensure that it is consistent throughout the assignment. Learners are not allowed to switch between referencing styles in the same assignment.

https://www.deakin.edu.au/students/studying/study-support/referencing