Toyota Company in China Case Study Essay Example | Topics and Well Written Essays - 4750 words

Toyota Company in China Case Study - Essay Example As argued out by Griffin (2011), Strategic planning can be viewed as an integral action of management. Predictions are part of the fundamentals of strategic planning and are perceived as a scientifically premeditated speculation that possesses both uncontrollable as well as controllable elements. Controllable factors are easily predicted as opposed to uncontrollable factors that demands suitable provisions (Patnaik 2012, p. 27). Simerson (2011) contends that strategic planning offers the highly needed direction as well as focus. It permits an industry to establish what is significant and to apprehend what every firm factor ought to add to the individual team as well as to the success of the firm. Besides, Henry (2008) points out that strategic planning enables new firms to make critical decisions regarding the market in which it functions, value addition to customers or clients, exceptional abilities, skills as well as knowledge its workers must possess. This paper will attempt to ex plore the corporate strategies employed by Toyota Company to strengthen its presence in Chinese market. 2. Strategies 2.1 Market Entry Strategy This paper will use the Porters five forces model as well as SWOT analysis in assessing the market entry strategy employed by Toyota Company to enter the Chinese market. Hill and Jones (2007) affirm that once the boundary of an organisation has been established, strategic planning managers are faced with the task of analysing competitive forces with the organisational climate to establish threats and opportunities. The Porter’s five forces model sheds more light on the five integral forces that shapes competition within an organisation. It also examines the degree of rivalry among firms, the bargaining strength of suppliers, as well as the... This paper will use the Porters five forces model as well as SWOT analysis in assessing the market entry strategy employed by Toyota Company to enter the Chinese market. Hill and Jones (2007) affirm that once the boundary of an organisation has been established, strategic planning managers are faced with the task of analysing competitive forces with the organisational climate to establish threats and opportunities. The Porter’s five forces model sheds more light on the five integral forces that shapes competition within an organisation. It also examines the degree of rivalry among firms, the bargaining strength of suppliers, as well as the proximity of the alternatives to the firm’s product as well as the bargaining strength of customers or buyers. This model stipulates that the higher the degree of strength of each of the five forces, the less the capacity of the identified firms to hike prices and rip maximum returns. In this model, a strong competitive force can be p erceived as threat. This is attributed to the fact that stronger competitive forces suppress returns. On the other hand, weak competitive forces can be perceived as opportunity. This is because weak forces enable a firm to make bigger profits (Patnaik 2012). According to Dyck and Neubert (2008), the strength of the five forces can undergo histrionic transformation via time as the firm situations are altered. The core task of strategic planning managers is to acknowledge how the critical five forces results.