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Dynamics of Strategy - Essay Example

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A critical assessment of the strategic resource capabilities of the organisation has been carried out in this report. This paper has also taken into account strengths,…
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Dynamics of Strategy
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Dynamics of Strategy

Download file to see previous pages... The implementation of the same has also been discussed in alignment with the chosen strategic option. The conclusion summarises the points discussed and provides some enriching revelation.
Toyota Motor Corporation, based in Japan, is one of the world’s leading automobile manufacturers. Having started in the year 1937, the company has extended its operation to include 170 countries world wide. Some of the leading brands of this company are Toyota, Lexus, Scion and a part of Daihatsu brands. TMC’s consolidated total revenue for the period 2009-2010, has increased to 18.5 trillion yen. The net earnings amount has increased to 1.25 trillion yen to 1.59 trillion yen after some revised profit activities. Toyota overtook Chrysler and Ford in global sales and outshone General Motors in the year 2008 (Hoovers, 2010).
This section deals with the external environmental factors that impact the automobile industry. It is very much important to asses the environmental factors as this helps the organisation to fix its strategies in alignment with the external environmental factors.
Government laws pertaining to environment and safety are significant for the operation of automobile industry. Toyota is a multinational organisation with its operations spread across the world. There can be trade barriers and fare restrictions in many countries. Such deciding political factors need to be taken care of to ensure a smooth run in the automobile industry.
There are some emergent markets in India and China where the buying power of the customers have enhanced since the last few years. Companies must tap these markets to fetch the advantage. The recent financial downturn has adversely affected the consumer spending worldwide. This has put the automobile industry in difficult situation. The fuel prices have increased due to inflation as well as due to fuel squeeze in certain parts. This has in turn adversely affected the automobile sales.
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