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Internal Analysis and SWOT

How well does Toyota capitalize on its strengths to meet threats and to take advantage of opportunities? To what extent will their weaknesses impede these efforts?

ii) Based on your analysis and findings, what would you recommend to the executives of Toyota corporation? Why? Please explain your reasoning.

Then explain how these strengths and weaknesses will either help or hinder the company in dealing with the opportunities and threats you identified in Module Two.

The following article may be useful to answer the questions:

Takahashi, Y. (2010). Toyota registers surprise profit; Auto maker forecasts 48% growth in fiscal-year earnings as it bounces back from recall-related concerns. Wall Street Journal, p. 23.. Retrieved August, 2011, from http://proquest.umi.com/pqdweb?index=0&did=2030691841&SrchMode=1&sid=1&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1313452595&clientId=29440

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Step 1
The threats to Toyota were the prospect of loss of reputation and sales because of the product recalls. The weakness that Toyota had was that it had incurred large losses in making the recalls. However, Toyota had developed strengths. It had a large production capacity and a formidable reputation in the developing countries. When the demand for cars in Asia zoomed, Toyota used its strength of good reputation and manufacturing ability to capture the markets in Asia. In North America, the weak economy was an opportunity. Toyota was able to offer special discounts to increase its sales in North America. An important threat that Toyota faces in Japan is a decline in demand for its cars because the government may withdraw incentives to encourage the purchase of fuel-efficient cars or the scrapping of old cars. Toyota will use sales promotion to keep ...

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