Strategy Management

Toyota has a global geographic structure with subsidiaries and plants all over the world. Toyota's external environment relates to major forces outside the organization with potential to influence significantly their products and services. Toyota America will be analysed in terms of the opportunities and problems they are currently facing and their likely contributing factors. Under the general environment we will be discussing the six dimensions: demographics, economic, sociocultural, global, technological and political/legal dimensions respectively.

The current demographic situation in the US is that baby boomers are retiring. This will not directly influence Toyotas sales, but will influence the future buyers and vehicles that will need to be produced. Toyota is currently the most profitable automobile company in the industry. The general industry that Toyota competes is with the big three's and Honda. Right now the U.S. economy is in turmoil. Profitability outlooks are almost out the door. The American public is simply not buying, thus making it tough for Toyota along with their competitors. Threw out the late 40's to the present Toyota's sales have steadily increased. The reason for this increase in sales was the negative reputation that American people had against the Japanese after WWII. This stigma has long been forgotten in the American society, thus accommodate Toyota factories in the US in the late 80's. Presently the Toyota Company is widely accepted by general society of the U.S. Toyota has set up production plants in the U.S., China, France, Mexico, and the Czech Republic. There are little changes in the global environment that Toyota does not combat. Their company supplies trucks, luxury vehicles, cars, and compact cars to fit the ever-changing needs of the global market. Toyota has been able to stay in tune with the changing technological trends. Toyota has kept to its roots by staying with a strong belief in the "Toyota Production System", and the...