ASSIGNMENT

STRATEGIC MANAGEMENT CLASS 0322

STUDENT NAME : ADIT ROBINSON

MATRIC NO : TX229683MEH663

Question 2 – 4 For Assignment (Answer 2 of 3)

2. The priority of Toyota’s top management team is to increase shareholder value steadily over the long
term. As the company continues to expand outside Japan, Toyota will increasingly face market risk,
which will vary from country to country. To create a company that can resist fluctuations all over the
world all the time is difficult. Assuming you are the CEO of Toyota, present your ideas based on the
Strategic Management approach to minimize risk of Toyota in the International market. (15 mark)

Answers Question 2:

Toyota has always made cars with a focus on the real world. For any new technology, the basic
stance is always to try to achieve it yourself in an effort to understand the core principles. Toyota
Motor Corporation has become one of the most successful companies in the world today. Toyota is,
arguably, already the best car manufacturer on the planet. For almost 15 years J.D. Power and other
research firms consistently rate Toyota and its luxury line, Lexus, among the top automotive brands
in terms of reliability, initial quality and long-term durability.

In the global world of motoring business which is experiencing very strong competition with other
international branded companies such as Honda, Mitsubishi and many more, therefore Toyota will
increasingly face different market risks from one country to another. To create a company that can
withstand fluctuations around the world all the time is difficult. Therefore, Toyota needs to make
changes in order to increase profits, minimize risks in the international market and stabilize the
market throughout the country.

Toyota's strategic management style is responsible for its success in the global market. Assuming
himself as the CEO of Toyota, I will provide ideas and focus to implement a strategic management
approach aimed at minimizing risk in the international market, my approach Toyota can implement
the following measures to reduce risk in the global market:

1. Market Analysis: We must perform a thorough market analysis before to entering any overseas
market. This analysis should evaluate the strengths and weaknesses of our competitors as well

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 as the culture, customs, laws, and regulations of the local market. This will assist us in
identifying potential hazards and opportunities as well as chances for risk reduction.
2. Market diversification: To lower the risks involved with operating in a single market, Toyota
should spread its customer base. This can be done by growing its footprint in already-existing
markets or by breaking into new ones. Toyota can lessen its reliance on any one market and
lessen the effects of any market-specific hazards by diversifying its customer base. We should
diversify our products and services to reduce the risks connected with a particular market. This
entails extending the scope of our product offering to incorporate not only automobiles but also
additional goods and services like leasing, maintenance, and auto financing. This will lessen our
reliance on a single product, balance our revenue streams, and limit the risk of changes in
consumer preferences or economic situations.
3. Innovation: Toyota should keep up its emphasis on innovation to set itself apart from its rivals.
The creation of novel goods, services, and technologies are just a few examples of how
innovation can manifest itself. Toyota can keep one step ahead of its rivals and lower the
dangers of market saturation and commoditization by putting an emphasis on innovation. We
must keep coming up with new ideas and cutting-edge technologies if we want to remain
competitive on the global market. By doing this, we will be able to stand out from the
competitors, differentiate our goods and services, and reduce the risks brought on by shifting
consumer tastes or technology advancements.
4. Strategic alliances: To lower the risks involved in entering a market, Toyota can form alliances
with other businesses. These collaborations may give Toyota access to new markets,
technology, and knowledge. Strategic alliances can also assist Toyota in lowering the risks
connected to capital-intensive investments in emerging regions. We should think about building
alliances with other businesses operating on the global market. This will enable us to share
risks, utilise resources and knowledge, and reach new markets. We can better understand the
local market and culture by working with local partners, which will enable us to develop products
and services that are tailored to the needs of the area.
5. Risk management and assessment: To detect potential hazards related to doing business
internationally, Toyota should undertake regular risk assessments. Once the risks have been
identified, Toyota should create and put into practise risk management plans to lessen their
impact. This can involve contingency planning, supplier diversity, and currency risk
management.
6. Customer focus: Toyota should keep its eye on the needs and tastes of its customers in the
global market. This can be accomplished by creating goods and services that are focused on
the needs of the consumer and by offering top-notch customer support. Toyota may lessen the
risks of market rejection and brand harm by concentrating on customer demands.
7. Corporate Social Responsibility: To establish a positive brand image and to reduce risks related
to unfavourable press, we should concentrate on corporate social responsibility (CSR) efforts.
This entails fostering diversity and inclusion, helping local communities, and implementing
sustainable corporate practises. A robust CSR programme will assist us in gaining the respect
and credibility of customers, staff members, and stakeholders in the global market.

Overall, implementing a strategic management approach that includes market analysis,

diversification, strategic alliances, innovation and CSR initiatives will help Toyota to minimize risk

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 and achieve long-term success in the international market. Toyota can reduce risks in the global
market by using a strategic management approach. Toyota can keep one step ahead of its rivals and
expand its market share by taking a proactive approach to risk management.

4. To be successful in a foreign market, companies must fully understand the foreign environment in
which they plan to operate. By using guidelines on Strategic Management, discuss on how
opportunities and threats applies in the global marketplace. (15 mark)

Answers Question 4:

Companies must perform a thorough examination of the foreign environment in which they aim to
operate in order to succeed in a foreign market. The assessment of the opportunities and dangers
present in the international market should be part of this study. Guidelines for completing this
analysis and creating a strategy to maximise opportunities and reduce threats are provided by
strategic management.

The possibility for growth and expansion in foreign markets is referred to as an opportunity in the
global marketplace. Access to new markets, new clients, and new revenue streams are some of the
major opportunities that businesses may encounter in the global marketplace. Access to cutting-
edge technologies, collaborations with regional businesses, and the capacity to make use of local
know-how and resources are a few further possibilities.

Companies must first undertake a thorough examination of the international market in order to take
advantage of these prospects. An evaluation of the market's size, growth potential, consumer
demands and preferences, rivalry, and regulatory environment should all be part of this analysis.
Companies can create a strategy to enter the market and take advantage of the prospects based on
this information.

The capacity of a corporation to succeed in a foreign market may be adversely affected by a number
of issues known as threats in the global marketplace. Political unpredictability, economic volatility,
cultural disparities, and regulatory obstacles are some of the major concerns that could exist in the
global economy. Additional dangers could come from rivalry with nearby businesses, difficulty setting
up distribution routes, and the have to adjust to regional business customs.

Companies must have a complete plan that addresses the particular difficulties of the international
market in order to mitigate these threats. This strategy should have a plan for overcoming legal
obstacles, forging local alliances, and for adjusting to cultural differences. It should also have a
strategy for handling potential risks and dealing with unforeseen circumstances.

The process of creating and putting into action plans that assist businesses in achieving their goals
over the long term is known as strategic management. Analysis of the external environment,
including opportunities and threats, is one of the most important components of strategic
management. Organizations must be aware of the possibilities and risks in the global marketplace in

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order to create successful strategies that enable them to compete. Here are some recommendations
for how risks and opportunities work in the global economy:

1. Opportunities:

a. Market expansion: Market growth is one opportunity presented by the global market for
businesses looking to grow their clientele and revenue. It is simpler to contact customers
around the world because to developments in communication and transportation
technologies.

b. Access to new resources: Businesses engaged in international trade have access to fresh
sources of talent, technology, and raw materials. They may be able to enhance their goods
and services as a result and obtain a competitive edge.

c. Diversification: Globalization creates chances for product and service diversity. The risk of
reliance on a single product or market can be reduced by organisations creating new
products and services that are customised to many markets.

2. Threats:

a. Global markets are very competitive, with numerous businesses contending for the same
clients and resources. In order to compete and keep their market position, organisations
must create effective strategies.

b. Political unpredictability: In some regions of the world, political unpredictability and volatility
can disrupt corporate operations and impact profitability.

c. Economic uncertainty: While consumer behaviour and the demand for goods and services
can shift as a result of global economic uncertainty, corporate operations may also be
impacted.

Finally, in the global economy, opportunities and dangers are crucial components of strategic
management. For organisations to create successful strategies that enable them to compete
successfully, they must be aware of the possibilities and risks that are there. Organizations can
improve their chances of success in the global marketplace by doing an analysis of the external
environment and creating plans that take opportunities and risks into consideration.

Companies must have a thorough understanding of the foreign environment in which they intend to
operate if they are to succeed in a foreign market. Companies can identify opportunities and dangers
in the global market by applying strategic management standards, and then design a complete
strategy to take advantage of opportunities while limiting threats. Companies can achieve their
company goals and long-term success in overseas markets by using this strategic strategy.

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