Organizational Evaluation of Toyota Motor Corporation

The world we are living in today is characterized by tight competition among organizations that deal with manufacturing products among other goods and services. To overcome local market competition challenge, organizations are now focusing on the global market with the establishment of strategies that enable companies and organizations to venture into new world markets. The major factor that affects organizational growth in the international market is how the organization manages its internal and external environment. Controlling over and focusing on the internal business environment like employees strength and relation and external environmental factors like global competition are among the strategies employed by multilateral organizations which develops their strategies for growth. Allowing employees’ participation in decision making and the competence of the management team are among the internal environmental factors that enable the direct involvement of organizations (Liker & Convis, 2012).

The company was founded in 1973 to provide automobile products in Japan and across the world. Toyota has recorded an excellent service provision which includes vehicle products for the customers globally. This company has established its bases in most developed countries like the US and Europe. It has also shown greater interest in market enhancement in developing countries like India and China. The company has provided employment to over 30,000 employees all over the world. The automobile industry has been experiencing a high competition in the global market. The industry has a large number of participants. An organization can decide to follow any of these two types of high-level business strategies; Leadership strategic cost Strategy for product differentiation Toyota Motors Company employs a combination of these two strategic forms in different geographic locations to serve different customer’s needs.

The Toyota Motor Company uses cost leadership strategies while it uses product differentiation strategy in other regions. The company has to consider its internal and external business environment to decide on the form of business level strategy to use in a given region or country. SWOT analysis Strength The biggest strength of Toyota Motors Company is in its innovative culture Valuation of the company’s rand has a value of $30 billion Toyota displays an industrial and marketing leader features in its production and sales of automobiles with a strong brand portfolio The company leads in green cars development technology. Weaknesses A challenge occurs when a company tries to recall its vehicles. Some years back, the company was forced to recall a large number of vehicles which came as one of the biggest weakness that the company experienced.

The company has not exhausted the current and emerging automobile economy due to existing tight competition. Threats Among the greatest threat that the Toyota Motors Corporative Company and other players in the automobile industry experiences is a fluctuation of the fuel prices across the world. both developing countries and developed countries are favorable for the company’s growth due to the availability of a ready market for its products. In many countries, the economy indicates an increase in people’s disposable income, creating a need for purchasing expensive and luxury products like cars. The company projects a positive progress in the social factors that influence its operations. Economic factors- the company has recorded positive economic factors over the past years. the economic factor is greatly influenced by the condition of the external market of its products.

Research and development- Other manufacturing companies do not consider research and development as a process. However, Toyota Motors Company considers it as a process whereby the management focuses on ensuring diligent work of the employees to facilitate innovation for new products (Ward, Liker, Christiano, & Sobek II, 2013). Marketing, sales, and distribution- this is a business process that is considered important in Toyota Company. This company establishes a large network of dealers across the world. The company focuses on the principle of total quality management and learn management which optimizes product sales and distribution. The training also ensures that all the employees within the company are aware of ethical guidelines and policies that run the company. Conclusion Throughout the discussion, it is clear that the internal and external environment of Toyota Motors Corporation Company greatly influences its performance.