Toyota Strategic Analysis and Strategy Formulation Research Paper

Toyota Strategic Analysis and Strategy Formulation - Research Paper Example Strategic Management: Toyota Strategic Analysis and Strategy Formulation First, the company’s global vision is to â€Å"lead the way to the future of mobility, enriching lives around the world with the safest and most responsible way of moving people† (Toyota-global.com 2011). Further, this vision is based on the commitment to quality, high innovativeness and respect for the earth. From the company’s vision, it is clear that Toyota seeks to be the industry leader way into the future. The company’s mission statement is â€Å"To sustain profitable growth by providing the best possible customer experience and dealer support†. The mission and vision statements reveal that the company’s current and future are pegged on sustainability, quality and customer satisfaction. The company’s range of guiding principles involve honouring the every nations law to be a true global corporate citizen, respecting customs and cultures around the globe, production of cleans and safe products, outstanding products through technology, fostering individual creativity and teamwork through an appropriately enabling corporate culture, harmonious growth with the global community and healthy cooperation with stakeholders. From these objectives, it can be discerned that Toyota seeks to remain within the law at all times, provide quality and safe products, respecting the environment and the community while balancing this with stakeholder interests. These principles also indicate the time-tested ethical inclination of Toyota; sustainable development and respect for environment and harmony in the company’s work environment. Internally, the company not only seeks to comply with all labor and employment laws and regulations but goes a step further and establishes a culture for its employees based on mutual trust and mutual responsibility (Toyota Motor Corporation 2006, p. 8). The company’s values are integral in attainment of its objectives as it seeks to fulfill its mission and drive towards the established vision. Internal Analysis of Toyota The review of Toyota’s internal resources will follow the format of first establishing the strengths of the company and then the weaknesses. This will then be followed by an analysis of Toyota’s product development and a value chain analysis of Toyota’s operations. Strength: Organisational- The â€Å"Toyota Way† Toyota has successfully implemented their widely recognized â€Å"Toyota Way† strategy in all its global business operations. This strategy is based on operational excellence through a 4-P model; philosophy, process, people and problem solving. Philosophy is anchored on long-term thinking; process on waste elimination; people on respect, growth and chall enge; and problem solving through the concept of continuous improvement. The resultant effect of this strategy is organizational performance excellence due to sustenance of high quality that not only attracts customers but also makes them loyal (Liker 2004, pp. 1-2). The â€Å"Toyota way† is a clear strategic strength since it is tailor-made for the company as evidenced by the fact that most of the other operational excellence strategies pursued by organizations around the world were developed from it, including the popular â€Å"