Strategic management deals with the major emergent initiatives of general managers on behalf of company owners. It involves utilization of resources to enhance the way organizations perform in the external environments. It is a level of managerial activity that deals with setting goals and formulating organization tactics of achieving the organization goals (Dess, Gregory and Eisner 121). It is clear that for an organization to have proper strategic management all external and internal quantitative and qualitative data is through extensive analysis.
Toyota Mission Statement Strategic Goals
It articulates that Toyota must have accurate, timely information flow and means to analyze and communicate this information to relevant decision makers. Relevant strategic inputs derived from analyses of the internal and external environments are necessary for effective strategy formulation and implementation.
Toyota Board of Governors Roles
The board of directors primary responsibility is to protect the shareholders assets, select, evaluate and approve appropriate compensation for the company's chief executive officer. It is also mandated with evaluating the attractiveness dividends pay, recommend stock splits, oversee share repurchase programs, approve the company's financial statements and recommend or strongly discourage acquisitions and mergers with other companies.
Most Urgent Governance Issues Impacting Company’s Board and How to Manage Them
Multinational companies such as Toyota have been adversely affected by the economic downturn. It is clear they are struggling to remain competitive as their boards continue pondering ways to evaluate the impact of the enacted to regulate their operation domestically and internationally.
Toyota’s Major philanthropic initiative and how it is managed
Toyota’s major philanthropy has being paying taxes so that the government can help the less fortunate in the society through programs such as Medicaid and public housing.
Toyota’s competitive advantage and core competency
Toyota pioneered the concept of diversification. This core competence enhanced its competitive advantage over its rivals by creating superior customer values that enabled it to develop strengths relative to the competition.
Components of Porter’s Value Chain Model as They Apply to Toyota’s CEO
This debunked through the Porter’s five force model application to the company’s chief executive officer whose role is to strengthen Toyota’s profit goals (Stead and Starik 78). These goals include:
- Profitable markets that yield high returns will attract new firms.
- The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives.
- The bargaining power of customers is also described as the market of outputs:
- The bargaining power of suppliers for most industries, the intensity of competitive rivalry is the major determinant of the competitiveness.
Toyota’s Current Business and Corporate Strategies
Toyota continues to sell specialized products to customers with similar needs in a vertical market. Its corporate executives conduct market researches that analyze its competition. This enables to can make realistic plans for the future including what vertical and horizontal markets to target (Hill and Jones 108).
Understanding Current Strength and Weaknesses
By understanding potential weaknesses managers develop corporate strategy that minimizes threats. The strategy includes plans for improving performance in critical areas for long-term growth. By understanding company strengths managers create a strategy that capitalizes on these assets. This is because it makes sure the company gets the most profitable horizontal and vertical market integration (Hitt, Ireland, Duane and Hoskisson, 123).
Urgent Decision Making to Maintain Competitive Sustainability
By closely monitoring market trends business professionals define a corporate strategy that allows the business to develop innovative solutions to customer problems, forecast sales accurately, ship reliable products and provide cost-effective support (Sadler 87).