Founded inthe firm is now a global force in the automobile industry. This generic strategy represents the overall approach Toyota uses to compete in the global market. On the other hand, the intensive growth strategies define the types of actions that Toyota uses to ensure continued growth. Toyota is effective in the simultaneous implementation of its generic strategy and intensive growth strategies.
A prescriptive approach to strategic management outlines how strategies should be developed, while a descriptive approach focuses on how strategies should be put into practice. These schools differ over whether strategies are developed through an analytic process in which all threats and opportunities are accounted for, or are more like general guiding principles to be applied.
Business culturethe skills and competencies of employees, and organizational structure are important factors that influence how an organization can achieve its stated objectives.
Inflexible companies may find it difficult to succeed in a changing business environment.
Creating a barrier between the development of strategies and their implementation can make it difficult for managers to determine whether objectives were efficiently met. An organization may have several employees devoted to strategy rather than relying on the chief executive officer CEO for guidance.
Because of this reality, organization leaders focus on learning from past strategies and examining the environment at large.
The collective knowledge is then used to develop future strategies and to guide the behavior of employees to ensure that the entire organization is moving forward. For these reasons, effective strategic management requires both an inward and outward perspective.
Strategic Management in Practice Making companies able to compete is the purpose of strategic management. To that end, putting strategic management plans into practice is the most important aspect of the planning itself.
Plans in practice involve identifying benchmarks, realigning resources — financial and human — and putting leadership resources in place to oversee the creation, sale, and deployment of products and services.
Strategic management extends to internal and external communication practices as well as tracking to ensure that the company meets goals as defined in its strategic management plan. For example, a for-profit technical college wishes to increase enrollment of new students and graduation of enrolled students over the next three years.
The purpose is to make the college known as the best buy for a student's money among five for-profit technical colleges in the region, with a goal of increasing revenue. In this case, strategic management means ensuring that the school has funds to create high-tech classrooms and hire the most qualified instructors.
The college also invests in marketing and recruitment and implements student retention strategies.Introduction Inception of Toyota – Founded by Kiichiro Toyoda, Japanese businessman in 3rd positioned in automotive company in the current market Competitors of Toyota - General Motors and Ford in United States and Honda in Japan.
Sale of Vehicle by unit- million units Net Income earned in - Yen billion. Toyota Kirloskar Motor Private Limited is a subsidiary of Toyota Motor Corporation of Japan, for the manufacture and sales of Toyota cars in India.
The company Toyota Kirloskar Motor Private Limited (TKMPL) according to its mission statement aims to play a major role in the development of the automotive industry and the.
Total Quality Management is a management approach that originated in the s and has steadily become more popular since the early s. Total Quality is a description of the culture, attitude and organization of a company that strives to provide customers . Toyota uses numerous tools such as the Plan-Do-Check-Act model, the eight-step Toyota Business Practices process, the A3 reporting system, and the widely known ask-why-five-times routine.
Strategy tools. This section covers the essential and the most popular business strategy tools used by companies to implement their strategic plans and achieve a sustained competitive advantage.
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Total Quality Management would not be what it is today without Toyota Motors. Renowned for its lean production system, Toyota Motors is the tenth most important company in the world according to Fortune Global and one of the only companies on the list to directly address TQM.