Toyota Essay

Criteria 1
Why the profitability of Toyota Australia can not increase even after Ford and Holden’s leave?
This criteria is to help analyze the impact that external environment changes bring to Toyota’s profitability. By using the PESTLE and SWOT analysis, executives and observers could classify the factors into several aspects, more beneficial to recognize the influence. Also, the strengths, weaknesses, opportunities and threats could be listed which show the positive and negative factors to Toyota.
Criteria 2
Why Toyota and other stakeholders in automotive industry fear that Holden’s quit can affect local supplier network heavily?
This criteria is to find the inner relationship between buyers and suppliers in the manufacturing industry.

Its short term strategic objective is to lower the cost to 3800 per vehicle. In order to cut down the cost and expense, lacking of communication with workers and its union, AMWU, Toyota Australia canceled many bonus and allowance for the workers unilaterally, which caused strong protest. The replying strategy seems to be symptomatic and may contains personal judgment and without ethical consideration, the feedback from AMWU indicating that it could not last for a long run. The corporation still needs to seek for a chance to transform and alter its strategy. In this perspective, if Toyota quit manufacturing industry, there is no doubt that a large number of people in this industry will be influenced, not only the labors and employees, but also the component manufacturers. The redundancy and resettlement cost will be a problem. Regardless of these stakeholders, the reputation and future development may be affected. If choosing to stay in Australia, Toyota can carry out its social responsibility and ensure a stable employment to make contribution for the

Abandoning the manufacturing part for Toyota Australia is worth trying because this could avoid suffering losses and concentrate on importing and selling cars, enhancing its characteristic as importer and dealer. Staying in Australia for some time needs Toyota cope with the relation between supply and demand appropriately, and vertical integration could cut the cost by absorbing supplier into its own system, (Lee 2013) which could realizing the self-sufficiency. The structural change could increase the competitive power, helping Toyota get through the hard period and seek chance to