Strategic Management: Internal Analysis and SWOT - Admission/Application Essay Example

? Strategic Management: Internal Analysis and SWOT Strategic Management: Internal Analysis and SWOT Two Major Strengths While analyzing the introductory message of the Toyota Company Chairman Fujio Cho, it is obvious that one of the major strengths of the organization lies with the power of its workplace, for he states that the sense of crisis and sense of mission has underpinned this strength (Chairman’s message). Toyota’s top management is always in touch with the workplace by observing day to day operations and suggesting appropriate changes with intent to create a share understanding within the workplace. The increasing profitability seems to be another potential strength of the organization, because it creates a range of opportunities for the company in the world market. From the report of Takahashi (2010), it is clear that the company has achieved a net profit of 112.2 billion yen in its fiscal fourth quarter after a huge net loss of 765.8 billion yen in the same period of the previous year. Two Major Weaknesses In 2010, the Toyota struggled with a series of product quality and safety issues as it affected the firm’s relationship with suppliers and dealers and is found to be one of the major internal weaknesses of the company (President’s message). These issues adversely affected the sales volume of the company which in turn resulted in a profitability decline. It would be very difficult for any organization to regain its good market repute once it loses consumer loyalty. Hence, it is predicted that the identified quality as well as safety issues may adversely impact the company over a long period of time. In addition, ineffective managerial policies also weaken the operational efficiency of the company. For instance, the company was required to pay a $16.4 million civil fine to settle charges by U.S regulators as a result of its thoughtless managerial strategies (Background material). Strength-weakness Analysis The Module 2 reflects that weaker buyer power and improving living standards of people offer potential external opportunities for the Toyota. Using its increasing profit margins, the organization has established quality assurance systems with intent to rebuild the relationship with dealers and suppliers. In addition, the firm effectively used its power of the workplace in delivering immediate response to the Great East Japan Earthquake, which in turn contributed to the market stature of the Toyota. The well integrated application of surpluses and human resources assisted the concern to attain a dramatic rise in profitability during the fiscal fourth quarter in 2010. The background material tells that the company had decided to recall 36,000 2010 Lexus GX 460 sport-utility vehicles quickly with intent to take advantages of vehicles’ rollover potential in certain situations. While evaluating this approach, it seems that the Toyota is planning to change its operations in way that will benefit the company to meet the modern customers’ interests. The company’s latest financial reports show that it could exploit the factor of weaker buyer power even though the firm is currently struggling with quality issues. In Module 2, it has been identified that availability of close substitutes and intensified market competition are the great external threats the company is facing. The Toyota management effectively uses its internal strengths for overcoming these external market threats. In order to survive the threat from substitute product, Toyota gives more emphasis on product innovation that will retain its customers. In addition to the external threats, the identified internal weaknesses of the Toyota will also appear to be a threat to the efforts of the Toyota on capitalizing its strengths to meet the threats and to take advantages of opportunities. Since the quality and safety issues have adversely affected the brand image of the Toyota, the company is really striving to capture market concentration. Under such a condition, the company may not able to effectively survive external market threats like availability of close substitutes and intensified market competition. Ineffective managerial policies may also become a barrier for the Toyota in overcoming the external market threats. In total, Toyota’s internal weaknesses would impede their efforts to take advantages of external market opportunities. Recommendations Evidently, the Toyota’s management is struggling with a series of internal as well as external issues. However, it is not possible for the company to eliminate external market threats because they are out of the organization’s control. In contrast, the company can effectively eliminate its internal weaknesses by the application of effective managerial tools. It is recommendable for the Toyota to give specific focus on R&D process as it may assist the company to minimize the quality and safety issues to a great extent. In addition, the management has to continuously monitor the product quality concerns in order to ensure that organization meets its customer interests effectively and thereby maintains a good brand image. It is advisable for the firm to appoint special quality assurance teams under the leadership of responsible managerial officials. Such a practice will influence the manufacture sector employees to be more careful in production activities. In order to resolve Toyota’s inefficiency in managerial policies, the company has to be more conversant with different managerial tactics and operational strategies. In addition, the company must effectively use its power of workplace to improve the overall productivity and to trim down the total cost of production. It is also advisable for the company to reinvest its improving surpluses to the business so as to attain consistent profitability as well as business sustainability. Evaluation of the Assignment The Module 3 Case Assignment assisted me to understand how an organization can effectively capitalize its strengths to meet the external market threats and to take advantages of external market opportunities. It was also beneficial for me to evaluate an organization in detail by exploring its internal strengths and weaknesses. This Case Assignment points out the fact that the Toyota can overcome the current market difficulties if it brings necessary changes in its operational approaches. This paper was helpful for me to understand the extent to which an organization would work to beat its internal managerial weaknesses. In short, the assignment added to my knowledge of how to handle with a difficult management issue. References Chairman's message, Toyota Annual Report 2011. Retrieved from http://www.toyota-global.com/investors/ir_library/annual/pdf/2011/p07.pdf President's message, Toyota Annual Report 2011. Retrieved from http://www.toyota-global.com/investors/ir_library/annual/pdf/2011/p08.pdf Takahashi, Yoshio. Toyota registers surprise profit. The Wall Street Journal, 2010. Retrieved from http://online.wsj.com/article/SB10001424052748704250104575237492977695362.html Read More