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ANALYSIS AND EVALUATION OF EXTERNAL AND INTERNAL ENVIRONMENTS OF TOYOTA - Essay Example

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As per Liker and Hoseus (2007) it was the most profitable auto manufacturer with about $ 11 billion in 2006. It grew manifold however, the financial crisis hit the firm and it recorded a loss of $ 4.4 billion in 2009…
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ANALYSIS AND EVALUATION OF EXTERNAL AND INTERNAL ENVIRONMENTS OF TOYOTA

8 million cars were recalled globally which has put the firm in a financial crisis. Moreover, Liker and Hoseus (2007) add that sine the brand’s reliability is now in question especially in the US; it is bound to face many financial challenges even though it is financially more table than rivals Ford and General Motors. Morgan (2010) adds that rrecently Toyota’s shares have fallen 17% since January 2010 which means that the firm is losing its customers due to such episodes. However, being one of the largest in the world, the firm can handle such financial crisis, however, with the economy downturns, and the malfunctions in their models have aggravated the problem and have added to their financial difficulties. Kotelnikov (2010) adds that they plan to alleviate the losses with their innovativeness and attracting new customers with their attractive new models, however, the recall has damaged their reputation and they have the customer trust which in turn has affected their financial position. Their financial position has been affected in the US and Europe though its repercussions will be felt r global sales as the consumers lose their trust in the brand.
As per Liker and Hoseus (2007) Toyota is working globally and thus has operations in various parts of the world that include for both manufacturing and assembling lines in Japan Canada, Indonesia, Canada, Poland, South Africa , Turkey, UK, US Brazil France, India, Pakistan, Malaysia etc . They are manufacturing and assembling their different brands across the markets as per the needs of the markets.
However, Morgan (2010) explains that Toyota has been known for using it’s just in time inventory which has made their production process much more efficient. Due to strong relations with its supplier Kim and Smith (2001, pp. 211-222) add that Toyota has been able to keep ... Read More
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