MGT604 Strategic Management Report 3 Sample
Context:
The assessment of this subject supports students in developing their skills and knowledge in the foundational management topics that include external environmental assessment, problem diagnosis, strategy development, and the consideration of cultural and ethical contexts. Effective strategic management is designed to proactively respond to changes in technology, external environment, and market tastes. A contemporary understanding of the dynamic forces shaping strategic choices is essential for the successful execution and delivery of strategy.
Instructions:
1. Over the duration of the course, you are to monitor news and online sources of opinion to identify three (3) separate strategic influences that together impact on the outcomes of an organisation of your choice. These influential factors may be local, national or international in nature, but they must represent a changing or evolving story. For example, advances in battery technology, stricter emission controls, and a general move towards sustainable energy has resulted in General Motors (and indeed almost all car manufacturers) actively marketing electric or hybrid models for release in coming years. Note this example is not to be used in your submission.
2. You are to discuss how the practice of strategy categorises these strategic influences, and identify the implications for the organisation in question.
3. Drawing upon your understanding of theories, models and frameworks discussed in class, you are to identify a strategic course of action to address these circumstances (by either capitalising on positive influences, or minimising the impact of negative influence) in a way that will result in long-term benefit to the organisation. This should include a statement of the firm’s revised goals as a result of this change in strategy.
Solution
Introduction
Toyota Australia is one of the major car manufacturing companies inside Australia. The company manufactures different luxury and family vehicles as well as sports cars for Australian consumers. For UNI Assignment Help, This company is also much responsible for the Lexus vehicles and their operations inside the Australian market. Right now, the Australian government has targeted to move towards electric and hydrogen-powered vehicles in 2030. This is the reason why every car manufacturer inside Australia has to manufacture electric vehicles. It is also perfect for the environment and reduces the dependency on fossil fuels. Australian automotive market is also capitalizing on more opportunities in this electric vehicle sector.
Aim
This aim of this report is to analyse the different factors influencing Toyota Australia to manufacture electric vehicles for Australian consumers.
Discussion
Strategic Influence Influencing Organization
Toyota Australia is a big car manufacturing company inside the Australian market. This manufacturer is manufacturing gas-powered vehicles; right now, this manufacture is focusing on the electric vehicle market (Electricvehiclecouncil.com.au, 2021). The strategic influences which are driving Toyota to the EV market are listed below;
? Australian government policy on the electric vehicle and removing all the gas-powered vehicles by 2030
AU government also takes necessary steps and reducing environmental impact by carbon emission and AU policies and customer demands are the primary factors, and the competitors in the market and sustainability are the two major external factors that are also influencing. These things are giving the opportunities to enter not only in the electric vehicle segment but also they can invest in hydrogen cell-powered vehicles (Caradvice.com.au, 2021). This will also help the company to get more market shares not only in Australia but also in the other international markets as well. It is very much crucial for the company to manufacture all the vehicles inside the Australian market so that they can avail the subsidy from the Australian government, and the current price is AUD 3000 per car that is manufactured under AUD 69000 (Theguardian.com, 2021). This is a great initiative, and it will also support their infrastructure. It will save millions of dollars in the R&D process
? Removing the carbon emission from the vehicles by 100% and 50% increment in the EV car sales
Right now all the vehicles indie the Australian market are mainly the gas powered cars and they are making emiisons. It is very much important for the car manufacturing companies to make their car more sustainable so that they can’t produce any emissions. Australian government also directs all the company to implement the technologies which help to stop the carbon emission from the vehicle by 100% (arena.gov.au, 2021). It will also increase the electric vehicle sales by 50%.
? New consumer demands and shifting consumers sentiments charging the EV market upwards
Toyota can manufacture high-quality cars powered by battery and hydrogen fuels. It is worth mentioning that battery quality and less manufacturing cost also drive the company to make the cars. Together all this strategic influence is helping the company to make cars and gain the electric vehicle competitive market. As mentioned by Lawania and Biswas (2018), the customer's demands and their sentiments are also changing, and right now, the customers are also focusing on sustainable cars as the price of petrol and diesel are rapidly increasing. Servicing costs of electric-powered vehicles are also very much less, and as there are no mechanical parts, the cost of servicing and repairing is also significantly less. These all things are influencing the customers and Toyota Australia to start the manufacturing of the cars.
Categories of factors and strategic implication
The practice of Strategy Categorization
There are three types of strategies used, and these are business strategy and operational strategy as well as transformational strategy. These three are the main category of the three influences driving Toyota Australia to build electric vehicles inside the Australian market.
Business Strategy
The first influence is the Australian government policies and their subsidy. As opined by Furlan Matos Alves et al. (2017), this will help the business to change their whole business strategy, and the government directed that they will remove all the fossil fuel vehicles from the market by the end of 2030 so manufacturing these cars are now not valuable for the company. So, the company should move into the electric car market.
Operational Strategy
The next is the operational strategy, as the customers are now demanding battery-powered cars, so the operational strategy of the company will also change, and right now, the company has to change its sales strategy.
Transformational Strategy
The third one is the transformational strategy, and if Toyota Australia manufactures the electric cars inside the Australian market, they have to change their whole company manufacturing structure. As per the views of Morton et al. (2018), the strategies used to operate and drive the company on the fuel-powered vehicle market need to apply to the electric vehicle market. Toyota has to work more hard as several other companies will give the company a high competition inside this market, so their whole life business will now give them goodwill. They have to maintain their goodwill when they enter the electric vehicle market. As in this market, the customers' sentiments are joined, and some of the customers purchase the carts as it saves the environment (Mynrma.com.au, 2021). If the company failed to deliver the performance, then it will be out of the competition.
Australian Government Subsidy and R&D Technique
Still, there is hope as the Australian government will provide the subsidy to the companies that will manufacture electric vehicle cars. That subsidy will also help the company to build their R&D inside this market and according to the demand and market trends, this department will help to implement the parts inside the vehicle. As suggested by Statharas et al. (2019), the batteries used inside the electric vehicle are now readily available, and several manufacturers are sharing the techniques with other companies. Toyota can also avail the technology and develop their product.
Strategies Course Application
Entering the electric vehicle market inside Australia is very much easy as there are tiny competitors that are now present. Toyota Australia needs to take a different strategic course of application that helps the company.
They are as follows;
Taking The Challenges
The Australian government has announced that at the end of 2030, they will remove all the gas-powered vehicles from the market. It means that right now, companies do not need to focus on fuel-powered vehicle manufacturing, but still, it does not mean that the com-nay will remove all mtehi9r operations from the gas-powered vehicle segment. As said by Leader et al. (2019), secondly right now, this electric-powered vehicle market is still under development, and the piece of technology is a little bit higher than usual.
Environment Regulations and Profitability
Several countries and companies are now deciding the environmental factors, and they are very much dedicated to reducing all the carbon emission impact from the environment. This also becomes one of the customer's emotional points, and in this, the modern companies are business. As coined by Gong et al. (2020), the Australian government has also set a regulatory committee that will be monitoring the carbon emission impacts, and they will also monitor all the company's growth plans. It can be observed that all the automobile manufacturers are now trying to get into the market by 50% at the end of 2025. Sales are the primary challenge, and for Toyota Australia, there are several other key players. On the other hand, as the government gives subsidies, it needs to follow its rules and regulations (Yash et al., 2021). So, they need to implement all the environmental policies when they are going to manufacture the cars, and it is worth mentioning that they need to make products to compete with this market.
Strategic Goals
Toyota Australia has taken an organizational plan with all their goals during the 2020-2030 hybrid and electric vehicle market. In this plan, several things have been considered, and not for this Australian market also for the Australian market. The goals are as follows;
Setting UP Different Plants
Toyota Australian has a massive plan of setting up the manufacturing facility inside the Australian market, and this will also help boost the Australian economy. This plant will also generate employment inside the Australian market. The parent company also has to set the plants inside the different other parts of the world so that if they are facing any difficulties inside the Australian market, then they can import or export the vehicles from India and China as well as the USA region (Lin & Wu, 2021). The company also has the vision to remove the old plants on which they make their gas-powered vehicles.
Developing New Generation Batteries
For the battery-powered vehicles, battery and alternator and the driving motors are the main three parts. The battery is the most essential, and as it fits below the car, then it is very much necessary for the manufacturers to develop good battery quality, and if not, then the car could be failed. So, Toyota has taken the initiative to develop a high-quality battery, and for that, they will develop their new plant and R&D facility inside the Australian market. As suggested by Eckert et al. (2019), it has also been decided by the company to make a good quality battery. The company will make partnerships with other companies that have the latest technologies on the battery.
Setting UP The Charging Stations
Setting up the chagrin stations is crucial, and it consumes a lot of costs as the electric power vehicles are required to charge to go a certain distance. For that, it is the responsibility of the company to set up the charging stations of their customers which support the fast charging facilities, like Tesla in the USA and other car manufacturers. If the company successfully plants, customers can easily purchase the vehicles and charge them from the deserted power stations.
Conclusion
Thus it can be concluded that Toyota Australia has all the mission, vision, and goals to enter the electric power vehicle market. The main aim of this report is to analyse the different factors that are influencing Toyota Australia to manufacture electric vehicles for Australian consumers. As per the views of Gai et al. (2020), after discussing all the critical points which need to be understood by the company before entering the electric vehicle market. Also, these strategic goals, which are forcing the company to make their entry and make the vehicles for the Australian market, have been included in the report. Environmental factors and government policies, as well as customer demands and their emotional influences, are also boosting the Australian electric vehicle market.
Recommendation
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Table 1: Recommendation for Toyota Australia
References
Arena.gov.au (2021), Australian Electric Vehicle Market Study https://arena.gov.au/assets/2018/06/australian-ev-market-study-report.pdf
Caradvice.com.au (2021), Toyota unveils first electric car and it's coming to Australia, https://www.caradvice.com.au/945291/toyota-unveils-first-electric-car-and-its-coming-to-australia/
Eckert, J. J., Silva Ludmila Corre?a de Alkmin e, Costa, E. dos S., Santiciolli, F. M., Corre?a Fernanda Cristina, & Dedini, F. G. (2019). Optimization of electric propulsion system for a hybridized vehicle. Mechanics Based Design of Structures and Machines, 47(2), 175–200. https://doi.org/10.1080/15397734.2018.1520129
Electricvehiclecouncil.com.au (2021), Priorities for Electric Vehicles in Australia, https://electricvehiclecouncil.com.au/about-ev/evs-available/
Furlan Matos Alves, M. W., Lopes de Sousa Jabbour, A. B., Kannan, D., & Chiappetta Jabbour, C. J. (2017). Contingency theory, climate change, and low-carbon operations management. Supply Chain Management: An International Journal, 22(3), 223–236. https://doi.org/10.1108/SCM-09-2016-0311
Gai, Y., Minet, L., Posen, I. D., Smargiassi, A., Tétreault Louis-François, & Hatzopoulou, M. (2020). Health and climate benefits of electric vehicle deployment in the greater Toronto and hamilton area. Environmental Pollution: Part A, 265. https://doi.org/10.1016/j.envpol.2020.114983
Gong, J., Wang, Y., Zhao, A., & Zhao, Z. (2020). Optimal sizing of portable modular batteries for electric vehicles. Journal of Cleaner Production, 277. https://doi.org/10.1016/j.jclepro.2020.123868
Lawania, K., & Biswas, W. K. (2018). Application of life cycle assessment approach to deliver low carbon houses at regional level in western Australia. The International Journal of Life Cycle Assessment, 23(2), 204–224. https://doi.org/10.1007/s11367-017-1314-y
Leader, A., Gaustad, G., & Babbitt, C. (2019). The effect of critical material prices on the competitiveness of clean energy technologies. Materials for Renewable and Sustainable Energy, 8(2), 1–17. https://doi.org/10.1007/s40243-019-0146-z
Lin, B., & Wu, W. (2021). The impact of electric vehicle penetration: a recursive dynamic cge analysis of china. Energy Economics, 94. https://doi.org/10.1016/j.eneco.2020.105086
Morton, C., Anable, J., Yeboah, G., & Cottrill, C. (2018). The spatial pattern of demand in the early market for electric vehicles: evidence from the united kingdom. Journal of Transport Geography, 72, 119–130. https://doi.org/10.1016/j.jtrangeo.2018.08.020
Statharas, S., Moysoglou, Y., Siskos, P., Zazias, G., & Capros, P. (2019). Factors influencing electric vehicle penetration in the eu by 2030: a model-based policy assessment. Energies, 12(14). https://doi.org/10.3390/en12142739
Theguardian.com (2021), Australian governments ‘shooting themselves in the foot’ with EV policies, https://www.theguardian.com/environment/2021/may/30/electric-vehicle-vacuum-leads-to-confusion-between-states-and-territories
Yash, K., Carlos Marchante Ferna?ndez, Lluc, C. C., Bhavya, S. K., Daniel, K., Christian, G., Llui?s Trilla, Alberto Go?mez-Nu?n?ez, & Hans-Georg, S. (2021). End of electric vehicle batteries: reuse vs. recycle, 14(2217), 2217–2217. https://doi.org/10.3390/en14082217
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