5. Internal Environmental Analysis for Toyota Motor Corporation
5.1. The Resources Types:
Like other types of business corporations, Toyota also relies on four different organizational resources. These are: financial resources, human resources, informational resources, and physical resources. Financial resources are the money invested by the company's shareholders and the profits left after paying off liabilities. These resources enable the company to run its day-to-day operations, run marketing campaigns, and make strategic investments to keep it innovative and competitive in all aspects. Secondly, the human resources are the intellectual capital that plays a major role in enhancing organizational productivity and achieving strategic objectives in an effective and efficient way (Toyota Motor Corporation, 2013). Informational resources include all types of information, data, and reports which are helpful for the internal stakeholders (employees) and external stakeholders (investors, supply chain members, business associates, and customers). Lastly, the physical resources include manufacturing plants, machineries, equipments, buildings, research centers, and products of the company.
5.2. The Company's Capabilities:
Toyota Motor Corporation is best known for its world-class automobiles that provide the real value for the customers' money. Its highly advanced manufacturing plants, high-tech business processes, Total Quality Management and Just in Time (JIT) practices, and operational efficiency are the strongest capabilities which contribute towards its success and competitiveness in the industry (Toyota Motor Corporation, 2013). With the help of these core competencies and capabilities, Toyota is able to design and develop the most innovative, modern, fuel-efficient, and reliable automobiles (Young, 2013). Today, it is one of the most successful companies that have built their image through performance and efficiency (Motton, 2013).
Conclusion
Toyota Motor Corporation is exposed to highly stiff competition and strong environmental forces that impact its performance in the industry in one way or another. It takes advantage from its manufacturing capabilities and operational excellence to beat the competitive forces and encounter the negative impacts from environmental forces. By utilizing its resources and capabilities, Toyota can avail attractive opportunities from the market, mitigate environmental threats, and overcome its weaknesses in order to strengthen itself in both operational and financial terms (Kotler, 2008). The threats from top industry rivals, substitutes, and new entrants can be mitigated by focusing on Total Quality Management, innovation, R&D, and service efficiency.
Recommendations
Keeping in view the current corporate and business-level strategies, capabilities, core competencies, and resources of Toyota Motor Corporation, it can be recommended that it should give more emphasis on expanding its business operations in the emerging markets of the world. Global expansion projects will strengthen its position against the top rivals like General Motors and Volkswagen which are currently...
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