Strategic Management of Toyota Case Study Example | Topics and Well Written Essays - 1250 words

Strategic Management of Toyota - Case Study Example The information for this paper will be retrieved from internet databases, online libraries, newspapers, journals, and books. This will ensure that the information is succinct and relates to the strategies of Toyota and all the aspects of strategic management that are in the firm. The key concerns will be the environmental scanning, strategy formulation, levels of strategies, the production levels strategy and the latest developments in strategic management. Environmental scanning is one of the most significant components of the strategic plan of any company. This is because a business does not exist in a vacuum and will often suffer from the effects of its environment. A company like Toyota has set shop in parts of the world and continues with its strategy of expanding so as to provide the whole world with the safest and most responsible means of transport. For this company environmental scanning is one of the most significant environmental global analysis. It involves activities in environmental monitoring, forecast, and assessment. The global environment includes that macro environment, which is made up of industries, markets, companies, clients and competitors. There is also the micro level's environment, which is made up of customers, suppliers, and competitors. In the environmental scanning, the firm mainly concentrates on the macro environment as the microenvironment is best dealt with at the industry or business level analysis. Environmental scanning refers to the study and interpretation of the political, economic, social, technological developments, legal issues and other tends in the business world that are likely to affect the company’s operations. The primary factors, which the firm needs to consider in the environmental scanning are events, expectations, and trends of the different groups that have an interest in the firm’s operations. These issues are mostly the forerunners in a company’s trend break. A trend break, in this ca se, refers to a shift in the value people lay on the business or technological innovation that paradigms a change. A firm like Toyota needs to constantly analyze its business environment so as to keep up with the trends and changes in the market. Trends seem to reoccur and change often, whereas issues in the business environment may either be temporary or permanent (Freeman 2010). The execution of s strategy in any organization goes through three phases, these are diagnosis, formulation and implementation stages. For Toyota strategic management is a continuous process to develop and revise the future-based strategies that allow the organization to continue being in the lead in the car production industry in the world for many years to come. The strategy allows the firm to achieve both its short term and long term objectives.