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In Module Nine, you will post your initial response, and then in Module Ten, you will respond to two other learners’ posts. This allows you additional time to make your initial post strong, robust, and well supported.
Today’s world of business is significantly impacted by technological advances. This blurring of boundaries between the physical, digital, and biological world is referred to as the Fourth Industrial Revolution (IR). Advances in artificial intelligence (AI), robotics, the internet of things (IoT), 3D printing, genetic engineering, quantum computing, and other technologies impact the way work gets done, how products are produced, and how companies achieve their objectives. Regardless of the company’s size, age, or industry, advances in technology such as artificial intelligence are making their way into the daily practices of companies, and companies must consider the implications of the Fourth IR when developing strategic plans.
Consider the role these advances can play in your selected company’s strategic planning.
In Module Nine, compose your initial post by addressing the following:
- Provide a brief overview of the company you have chosen for your project; where is it headquartered, and what are the services or products it provides?
- Pick an aspect of the Fourth IR (advances in artificial intelligence, robotics, the internet of things, 3D printing, genetic engineering, quantum computing, or another technology).How could this impact a company’s strategic planning?Specifically, how could this aspect play a role in the strategic planning for your company?Within your company, what are two dangers of this aspect of the Fourth IR?
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Executive Summary
Courtney Roberts
July 14, 2024
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Executive Summary
This strategic planning proposal aims at providing Toyota Motor Corporation with key
directions for sustaining and improving its market position through strategic management. This
proposal seeks to tap into the current developments in the electric vehicle (EV) and self-driving
car markets, enhancing Toyota’s focus on change and efficiency. Therefore, Toyota is in a
competitive and dynamic setting, both at the organizational level and in the external
surroundings. At the organization level, there is a strong manufacturing regime in Toyota in the
form of TPS that uses lean manufacturing and Kaizen in its operations. On the outside, Toyota is
competing against established automotive companies like Volkswagen and GM especially in
electric cars and innovation in the area of autonomous driving. In this environment, many
analyses were performed, such as SWOT and Porter’s Five Forces. These evaluations revealed
the company’s competitive advantages of manufacturing processes and being a well-established
brand and threats from technological advancements and the new entrants into the market.
The scope for growth can be found in Toyota’s current level of market penetration with
EVs and self-driving vehicles. As the global trends indicate towards sustainable and smart
transportation, the enhanced investment in the EV technology and growth in the ability of the
self-driving cars can provide a good opportunity to reap the additional revenue and market share.
These measures are in line with the company’s strategic planning process aimed at making the
car maker free from carbon emissions by 2050 and expanding its portfolio of green automobiles.
The proposal outlines a diversified approach based on the main activities that include
acquisitions, internal development, and strategic alliances. Acquisitions, including Lyft’s
purchase of an autonomous driving unit, offer instant access to new technologies and markets.
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The internal development helps Toyota strengthen and adapt the existing R&D resources to
continue to develop proprietary technologies of its own. Partnerships such as Mazda allow the
cooperation of resource and knowledge with the goal of hastening development in specific fields.
This means that Toyota is continuously innovative in the automotive industry while preventing
the company from being overwhelmed by quick advances in technology.
Key recommendations include:
1. Acquisitions: Concentrate on identifying companies with niche expertise in electric vehicle
batteries, as well as self-driving systems to emerge as the market leader as soon as possible.
2. Internal Development: Optimize on Toyota’s R & D in order to foster on innovation hence
improving solely owned self-driving technologies.
3. Strategic Alliances: Enter into partnership with the tech firms developing the AI and sensing
technologies for enhancing autonomous vehicles/ smart production systems.
Over the next five years, the implementation strategy involves a phased approach:
Year 1 to 2 : Conduct a preliminary evaluation and strategy to determine the potential
acquisitions, research and development objectives, and alloy partnerships. Significant
acquisitions should commence in the second year, with critical R & D programs.
Year 3-4 Framework: Driving more acquisition integration, ramping up research and
development investment, and reinforcing alliance endeavors. Enhance the management of
acquired assets, broaden the range of products sold and intensify cooperation.
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Year 5: Full integration of the new centre into the organizations activities and business model,
development and piloting of new products and services, and a strategic evaluation and planning
to prepare for further development.
When implemented, this strategic planning proposal puts Toyota in the right strategic
outlook to take advantage of emerging opportunities in the unfixed auto environment. Thus, the
main sustainability and innovative priorities, coupled with strategic development, may help
Toyota to stay ahead of the competitors and achieve sustainable growth in the global automotive
industry.
TOYOTA’s External
Environmental
Analysis
Presented By: Courtney Roberts
Toyota Motor
Corporation Overview
❑ Founded in 1937, Toyota Motor Corporation is a
global automotive leader headquartered in Toyota
City, Aichi, Japan.
❑ Toyota produces a diverse range of vehicles, including
passenger cars, trucks, minivans, and SUVs.
❑ The company employs approximately 372,817 people
as of March 31, 2022, and operates across the
Americas, Europe, Africa, Asia Pacific, and the Middle
East.
Existing Entities Partnership with Mazda
.
❑ In 2017, Toyota and Mazda formed a strategic alliance to collaborate on various
initiatives, including the development of electric vehicles and connected-car technology.
❑ This partnership aims to leverage the strengths of both companies to innovate and
enhance their market presence.
Existing Entities – Acquisition of Lyft’s
Autonomous Division
❑ In 2021, Toyota acquired Lyft’s selfdriving technology unit to bolster its
autonomous vehicle development
efforts.
❑ This acquisition is part of Toyota’s
broader strategy to innovate in the
realm of autonomous driving and
enhance its competitive edge.
Five-Year Strategic Goals
❑ Achieve carbon neutrality by 2050, with significant progress made by 2029.
❑ Increase market share in electric and hybrid vehicle segments.
❑ Expand global production capacity and enhance supply chain resilience.
Competitors
❑ Main Competitors: Volkswagen Group and General
Motors (GM).
❑ Volkswagen competes with Toyota through its diverse
brand portfolio and strong presence in electric vehicles.
❑ GM challenges Toyota with its innovation in autonomous
driving technology and electric vehicle development.
Competitive
Advantage
Unique
Competitive
Skill Sets
❑Renowned for its lean manufacturing
system, also known as the Toyota
Production System (TPS).
❑Strong emphasis on continuous
improvement (Kaizen) and quality
management.
Advantage – Unique
Skill Sets
❑ Renowned for its lean manufacturing
system, also known as the Toyota
Production System (TPS).
❑ Strong emphasis on continuous
improvement (Kaizen) and quality
management.
Competitive
Advantage – Product
Range
❑ Extensive portfolio includes cars,
trucks, SUVs, hybrids, and electric
vehicles.
❑ Popular models such as the Corolla,
Camry, and Prius cater to a wide
customer base.
Competitive Advantage
– Strategic Location
❑ Production facilities and
research centers located across
key regions globally.
❑ Strong market presence in
North America, Europe, and
Asia.
Competitive Advantage – Core Values
❑ Commitment to sustainability, quality,
and customer satisfaction.
❑ Strong corporate culture emphasizing
respect for people and continuous
improvement.
Porter’s Five Forces – Threat of New
Entrants
❑ High barriers to entry due to significant capital
investment and technological expertise required.
❑ Strong brand loyalty and established market presence
of existing players.
Porter’s Five Forces Bargaining Power of
Suppliers
❑ Toyota’s scale and strategic partnerships reduce
supplier power.
❑ However, specialized components and raw material
availability can give some suppliers leverage.
Area of Opportunity – Electric
Vehicle Expansion
❑ Increasing investment in electric vehicle (EV) technology
to capitalize on the growing market demand.
❑ Expanding EV model range and improving battery
technology to enhance market share.
Area of Opportunity Autonomous Vehicle
Technology
❑Investing in R&D for autonomous
driving systems to stay ahead in the
innovation curve.
❑Collaborating with tech companies to
enhance AI and sensor technologies.
Implementation Strategy for Toyota: Buy,
Build, or Ally?
❑ Buy: Acquire companies with strengths in
EVs, autonomous driving, or sustainable
manufacturing.
❑ Build: Leverage internal resources to
develop new technologies in these areas.
❑ Ally: Partner with other companies to share
expertise and risks.
❑ Combine: Use a mix of buying, building, and
allying for a strategic advantage.
Buy Strategy
❑ Target companies with complementary technology. This could be EV battery makers,
autonomous driving specialists, or other firms that strengthen Toyota’s offerings.
❑ Focus on quicker market entry and technology leadership. Acquisitions can fast-track
Toyota’s entry into new markets or secure a lead in key technologies.
❑ Prioritize targets aligned with strategic goals. Acquisitions should support Toyota’s
vision for sustainability, efficiency, and future mobility.
❑ Secure a steady supply chain and reduce reliance on external vendors. Buying key
component makers can ensure quality and control over production.
Ally Strategy
❑ Strategic Partnerships and Alliances
❑ Benefits of Collaborations
❑ Example: Partnership with Tech Firms for AI Development
Build Strategy
❑ Leverage existing R&D to develop
proprietary autonomous driving
technology.
❑ Maintain control over critical processes
and intellectual property.
❑ Enhance product offerings with cuttingedge autonomous driving systems.
❑ Improve safety features and provide
unique value to customers.
❑ Align with Toyota’s vision of mobility
and sustainability.
Timeline: Year 1-2
Year 1: Initial Assessments and Planning
❑ Identify Acquisition Targets
❑ Establish R&D Goals
❑ Form Strategic Alliances
Year 2: Initial Implementations
❑ Start Acquisitions
❑ Launch Key R&D Projects
❑ Formalize Alliances and Joint Ventures
Timeline: Year 3-4
Year 3: Expansion and Integration
❑ Integrate Acquired Companies
❑ Scale R&D Efforts
❑ Strengthen Alliance Activities
Year 4: Optimization and Scaling
❑ Optimize Acquired Assets
❑ Expand Product Lines
❑ Deepen Collaborative Efforts
Timeline:
Year 5 and
Beyond
Year 5: Full Deployment and
Review
❑ Achieve Full Operational
Integration
❑ Launch New Products and
Services
❑ Conduct Strategic Review
and Future Planning
References
Handoyo, S., Suharman, H., Ghani, E. K., & Soedarsono, S. (2023). A business strategy, operational efficiency, ownership structure,
and manufacturing performance: The moderating role of market uncertainty and competition intensity and its implication on open
innovation. Journal of Open Innovation, 9(2), 100039. https://doi.org/10.1016/j.joitmc.2023.100039
Gupta, O., & Mohan, N. (2023, August 18). Using the resource-based view strategy for a competitive advantage. Resources Library.
https://www.saviom.com/blog/using-the-resource-based-view-strategy-for-competitive-
advantage/#:~:text=The%20resource%2Dbased%20strategy%20helps,that%20capitalize%20on%20these%20resources.
Toyota Motor Corp Company Profile – Overview. (n.d.). GlobalData. https://www.globaldata.com/company-profile/toyota-motorcorp/
Tpadmin. (2021, April 14). Toyota and Mazda enter Business and Capital alliance – Toyota USA Newsroom. Toyota USA Newsroom.
