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EXECUTIVE SUMMARY

The Toyota Motor Company has undergone


crisis and issues before it becomes the
most popular auto mobile manufacturing
company in the world. It has been known
to make organizational changes every so
often to give the company the competitive
edge in the market.
STATEMENT OF THE PROBLEM
DECREASE IN SALES DUE TO SUDDEN
UNINTENDED ACCELERATION.
CAUSES OF THE PROBLEM
Increased Competition
Globalization
Changes in Consumer Demands
Resource Shortage
Change in Technology
TOYOTA SWOT ANALYSIS
STRENGHTS
Strong focus on research and development (R&D)
The most valuable automotive brand in the world
Toyota Production System
Competence in hybrid vehicle production
WEAKNESSES
Lack of competence in autonomous vehicles
Negative publicity due to large vehicle recalls
Poor brand portfolio
OPPORTUNITIES
Fuel prices are expected to rise in the near future
Demand for autonomous vehicles
Timing and frequency of new model releases

THREATS
The automotive industry is subject to various
governmental regulations
Increasing competition in the worldwide automotive
market
Toyota may be adversely affected by natural disasters
DECISION CRITERIA AND
ALTERNATIVE SOLUTIONS
1. Initiative to produce more "green
cars"
Advantages

Customers will be given the option of a simple


change in engine to turn their cars eco-
friendly.
This will prove to be a wise decision for the
company as the government has also been
emphasizing on green cars.
Introduction of a new and different product
will help the company win back their customers
confidence in their brand name.
Enhance Toyotas contribution to the
environment.

Disadvantages
Much more expensive
Maintenance is difficult
Less Power
2. Toyota can operate with very low
inventory levels by using just-in-time
production.

Advantages
Production runs remain short
Reduces costs by eliminating warehouse storage needs
Companies spend less money on raw materials

Disadvantage
Disruptions in the supply chain
3. Application of new strategy
Toyota should setup a small team to research and
design the fixes for the issue. Team should include
engineers, who have helped previously in deigning
various models at Toyota and the suppliers. Suppliers
should work closely with the team so that they are
aware of the processes to follow while deigning
autoparts. The company should ensure exhaustive test
for the fixes before releasing it to consumer market.
Advantage
It helps the Toyota overcome the recall crisis,
restore its brand image and recover losses
Disadvantage
It can be costly
Employees cannot be easily adjust with their new
workforce
RECOMMENDED SOLUTION, IMPLEMENTATION AND
JUSTIFICATION

Detailed Plan of Action


Resetting of Business Strategy
Efficient and Effective Utilization of Existing
Resources
Constant Innovation

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