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Strategy Analysis of Toyota EssayToyota Motor Corporation is a famous Japanese multinational corporation, and is considered the worlds second largest automaker of automobiles, trucks, buses, robots, and providing financial services ( 2007). Its founder is Kiichiro Toyoda, born in 1894, and the son of Sakichi Toyoda, who became popular as the inventor of the automatic loom. Kiichiro inherited the spirit of inquiry and creation from his father, and devoted his entire life to the manufacture of cars. After many years of hard work, Kiichiro eventually succeeded in his completion of the A1 prototype vehicle in 1935, which marked the beginning of the history of the Toyota Motor Corporation ( 2007). The first Type A Engine produced in 1934 was used in the first Model A1 rider car in May 1935 and the G1 truck in August 1935, and led to the production of the Model AA passenger car in 1936. In addition to being famous with its cars, it still participates in the textile business and make s automatic looms that ar now fully computerised, and galvanising sewing machines that are available in disparate parts of the world.It has several factories around the world, which serve to manufacture and assemble vehicles for local markets. The corporations factories are located in countries such as the United States, Australia, Canada, Poland, France, Czech Republic, United Kingdom, Turkey, South Africa, Brazil, Argentina, Venezuela, Mexico, Japan, Indonesia, Pakistan, India, Mexico, Malaysia, Thailand, China, Vietnam, and the Philippines. Despite the many locations of its factories, its headquarters is located in Toyota, Aichi, Japan (2007). It invests a great deal of time and effort in its research into cleaner-burning vehicles, such as promoting a Hybrid Synergy Drive and running a total heat fuel cell in its vehicles (2007).It has significant market shares in positive countries, such as the United States, Europe, Africa and Australia, and has significant markets in Sout h East Asiatic countries. Its brands include the Scion, its division in the United States, Guam and Puerto Rico, and the Lexus, which is Toyotas luxury vehicle brand ( 2007). Aside from producing cars and other types of automobiles, such as SUVs and coasters, Toyota also, participate in mass meeting or racing. The corporations presence in Motorsport can be traced to the early 1970s, when OveAndersson, a Swedish driver, drove for Toyota during the RAC Rally in Great Britain, and in succeeding years, Toyota Team Europe was formed ( 2007). Up to the present, Toyota cars are still being used in a variety of racing events in different countries around the world.These events include the CART in Vancouver, the Le Mans, the Indy Racing League, the NASCAR, and the Toyota F1 Series (2007). As the leader in the industry of automobile manufacture and production, the company adopts a philosophy in terms of its production system, which is named The Toyota Way. The companys philosophy in produc tion involves a list of fourteen principles that are implemented in the company, and serve as guides to the operation of the company. This includes the following principles * Base the companys management decisions on a long-term philosophy, even at the expense of short-run goals * Foster a continuous process flow to sight problems* Utilise pull systems to prevent everyplace-production* Level out the workload of the workforce* Build a culture that stops to fix problems, in order to get quality perfect at the first try* Standardised tasks are the companys foundation for its continuous improvement and the development of the employees* Use visual control to let problems surface* Use reliable and tested engineering, which serves both the people and the companys processes * Train leaders who understand the companys work, live its philosophies, and share it to others * Train and develop a workforce who follow the companys philosophy * Respect the work and responsibilities of partners and suppliers by challenging them and helping them improve * Actually immersing ones self to understand the situation * Slow just sure decision-making through consensus, through considering a variety of options, and to implement decisions effectively and efficiently and, * Becoming a learning business organisation through bearing and continuous improvement ( 2007)With these principles, the company is guided in terms of its operations and production. Through these principles and philosophies, it can become efficient and effective in manufacturing its products, keeping in mind thewelfare of its employees, the image and brand of the company, and the satisfaction of its employees. 2. MACRO ENVIRONTMENT ANALYSIS Suggested model PESTEL model (showed how the environment affect the industry we chosen) reference http//en.wikipedia.org/wiki/PEST_analysisCurrently, Toyota faces a select for accelerated investment, in order to deploy the spick-and-span technologies, for pressing geo-political, economic, environmental and societal reasons. 3.1. PoliticalObservers will see a continuing progression in the ruinous steps which have forced the industry into a socio-politico-economic corner. Whether this is related to flat demand or to the companys creation of an ever-wider range of vehicles that many buyers seem to care little about, there is a problem. The company is likewise linked closely to the policies of governments, the earnings of banks. Little wonder then that so many emerging countries are keen to develop an auto sector or that there is such a political pressure to protect it in the developed countries. Toyota caller-out is currently dominated by little more than a handful of firms, each wielding colossal financial, emotional and political power. The companys overture to dealing with political institutions has not always been brilliant. It tends to be good on technical issues, although it has not always fully presented the longer-term options, in order to make the choices and their implications clear. 3.2. sparingFor much of the developed world, and increasingly for the developing world, Toyota Company is a pillar company in auto mobile business, a flag of economic progress. Without Toyota Company in automotive industry, it is impossible to develop an efficient steel business, a plastic industry or a glass sector other central foundations of economic progress. The Toyota Company has been a core company, a unique economic phenomenon, which has dominated the twentieth century (2007). However, the automobile industry including the Toyota Company now suffers from a series of structural schisms and has become riddled with contradictions and economic discontinuities.For the capital markets and the finance sector, it has lost a lot of its significance, as a result of ever declining lolly and stagnant sales. Theproliferation of products means that it has become hopelessly wasteful of economic resources. While all these and more sound like a very g loomy sagaciousness of such a vast economic phenomenon, the industry is not in the end despondent. A different future is possible for the industry, a highly wanted one.3.3. SocialAs part of the development in automotive industry, the Toyota Company actually affects the society as a whole. It employs millions of people directly, tens of millions indirectly. Its products have transformed society, legal transfer undreamed-of levels of mobility, changing the ways people live and work (2007). The social value of the additional mobility that this industry brings involves the value of the people being able to commute over longer distances easily, among many others. For most of its existence the Toyota Company has been a model of social discipline and control and it is not just that the auto sector offers a pillar of something else.There are, on the other hand, particular social issues to address in many developing countries, often those that are the result of an undertone of spectral f aith. Toyota company has the role to play in helping develop the mobility of such countries and it can be achieved at an acceptable social cost of the country is watchful to learn the necessary lessons from those who have traveled this route before it, and to make the necessary investments.3.4. TechnologicalThe Toyota Company works on a scale so awesome and has an influence so vast that it is often difficult to see. The level and diversity of technologies that it must deploy are increasing, which imposes both new investment burdens and new uncertainties and risks (2007). Roughly a million new cars and trucks are built around the world each week they are easily the most complex products of their miscellanea to be mass-produced in such volumes. The industry uses manufacturing technology that is the cutting edge of science.But still, the potential for developing coordination skills, intellectual capabilities and emotional sensitivities through electronic technologies remain far from fully exploited. There are numerous additional near-term technological opportunities to adapt the company to changing energy availability. The possibilities suggest that automotive technology isunexpectedly robust and provides a powerful defence against energy starvation even if the real price of oil climbs steadily during the next couple of decades.3.5. environmentalOther than the vehicles themselves, and the roads and fuel needed to run them the business is intricately tied to the manufacture of a wide range of components and the extraction of precious rude materials. Indirectly, it brings people road congestion, too many fatalities and a wave of other environmental troubles. The effect to the Toyota Company is that they needed to establish RD centres to take advantage of research infrastructure and human capital, so that they can develop vehicle products locally to satisfy the requirements of the environmental and safety regulations more effectively.