Organisational Audit And Environmental Audit Marketing Essay

Organisational analyze And Environmental Audit Marketing EssayBasic all(prenominal)y, organizational and environmental analyseing techniques ar divided into twain parts, which argon the indispens qualified factor evaluation and external factor evaluation. Organisational inspect is commonly referred to as internal factors evaluation while environmental canvas is referred to as the external factor evaluation. Referring to the case study, Toyota regular army can enhance the monetary performance and lastingness of the community with with(predicate) the implementation of musical arrangemental audit and environmental audit. excessively that, organisational audit and environmental audit is an all-important(prenominal) ingredient in the strategic planning process in order for Toyota ground forces to react better to the changes in the external environment and apply changes to reception to the changes.3.1 ORGANISATIONAL AUDIT match to audit.gov.my, organisational audit is defined as an independent, objective authority and consulting action mechanism designed to add value and improve an organizations operations. It helps an organization achieve its objectives by bringing a systematic, disciplined approached to pass judgment and improve the topiciveness of risk management, control, and governance processes. In other words, organisational audit is referred to as an activity which is created to financial aid an organisation in improving its operations by identifying the strengths and weaknesses of the organisation to achieve its objectives.3.1.1 CUSTOMERSIn another term, customers of Toyota can be described as the buyers or consumers who secured nearly all of the organisations output. Toyota seeks to create loyal customers relationship through pictureing who atomic number 18 their buyers and also the buyers wants and get hold of. They listen to their customers and their product organic evolution is driven by customers feedback. Toyota stres ses on improving lumber, enhancing its efficiency, minimising comprise, and increasing its productivity in order to suel their customers requirements and be the commercialise place leader in the auto pains as they are today. In addition to that, Toyota implemented tonus control in its manufacturing process to produce quality cars. Toyota also produces diverse lines of cars for the different customers. For example, cars, truck, SUVs, and sports cars. The bargaining power of buyers nowadays is moderately high. This is because the buyers nowadays are to a greater extent educated and they switch access to informations. Toyota USA depends on its customers to fail in the championship as these customers represent a large dispense of the organisations revenue. Toyota entrust face the risk of losing its customers to competitors if they are unable to satisfy the customers demands. If the customers are unhappy, they can easily purchase a new car by selling the car that they de clare. Therefore, the customers have low switching cost. This is out-of-pocket to the terra firma that the number of buyers is a few(prenominal) and not large. Besides that, Toyota also has no fatten control over external factors like the prices of oil, steel, rubber, pliant and glass outturn, etc in which the troupe is highly dependent on in its manufacturing process.3.1.2 COMPETITORSToyota is in a strong position compared to other car manufacturers. It has one of the largest mart dish out in the move industriousness in the US market. Toyotas close competitors complicate General Motors and Ford. Toyotas strongest competitor, General Motors has a high percentage of sales issue. match to media.gm.com, the General Motors February 2010 reported sales are 32% sales growth if compared to February 2009. Toyotas sales dropped 9% in February 2010 as it was forced to recall its cars from the US market due to faulty brakes. In the self-propelled industry, the contestation among competitors is truly strong. The rivalry adds as the competitors are very closely balanced. Toyota has to gain market share in the industry by taking it from its competitors. The high rivalry exists between these companies as these companies produce cars, trucks or SUVs. Therefore, the differentiation opportunities are low. just about often, these competitors are compared with one another. The price and quality are among the aspects which are taken into account by buyers when they are making decision in what image of car thay want to purchase. The manufacturers even compare their products with their competitors when they advertise their products. Therefore, to be more(prenominal) advanced, Toyota has to come out with new technologies and differentiation such as an environmentally cars which is the Hybrid cars in order to compete with its competitors.3.2 ENVIRONMENTAL AUDITAccording to David, 2007, environmental audit is to develop a finite list of opportunities that could pul l ahead a firm and threats that should be avoided. The environmental audit is not aimed at developing an exhaustive list of every possible factor that could solve a business rather, it is aimed at identifying disclose variables that offer actionable responses. In other words, it means that environmental audit is the process of identifying the key opportunities and threats face by an organisation to develop strategies which could benefit from the opportunities and avoid the impact of threats.3.2.1 economic science FORCESIn developing countries, the automotive industry is one of the main industry that contributes to the economic progress. Automotive industry helps to develop an efficient steel business, plastic industry, rubber industry, glass sector, and many more which is a vital alkali of economic progress. The automotive industry used to be an important industry in the twentieth century, however it has deteriorated due to the economic downturn that results in decline in sales and mesh. Yet, there is a future for the automobile industry as it provides job opportunities to the residents in US. This is due to the fact that automotive industry is the main user computer chips, aluminium, steel, plastics, rubber, glass, etc. Therefore, there is a need for workers in these industries. This situation creates job opportunities for the US citizens in the various industries mentioned above which would then lead to the growth in US economic.3.2.2 expert FORCESNowadays, information technology has a huge impact on businesses all around the world. Many major industries have been affected by the customs duty of internet, including the automobile industry. Most of the buyers will refer or browse through the internet first before making a purchase. Similarly, before purchasing a car, the buyers will go to the auto websites before going for a test drive. Therefore, the use of internet is efficient and lower in cost that offer more market opportunities to Toyota. Besid es that, due to the concern for environmental and global warming issues, Toyota has conducted research to invent alternate discharge vehicles. The company decided to come up with the technology to produce electric cars to fulfil the legislation demand from the political sympathies. The proceeds of electric car is becoming more practical these days. To compete in the market, Toyota has invented the Toyota Prius, a hybrid car that functions with an internal combustion engine.3.3 INDUSTRY ANALYSIS3.3.1 IFE MATRIX ANALYSIS FOR TOYOTATOYOTA-KEY INTERNAL FACTORS anglemilitary ratingWEIGHTED SCORESTRENGTHSFinancial stability0.2541.00 backbreaking brand secernate0.2541.00Environmental friendly cars0.2040.80WEAKNESSES economical downturns0.1520.30Seen as orthogonal importers0.1530.45TOTAL1.003.55According to the IFE hyaloplasm analysis which I have constructed above, the strengths for Toyota which I have identified are fiscal stability, strong brand name, and also environmental friendl y cars. Toyota has a high financial advantage, where in the year 1997, the sales turnover was 131,511 jillion whereas the sales growth recorded was 29.3%. Therefore, I have addicted financial stability a weight of 0.25, a grade of 4, which result in the weighted soft touch of 1.00 as financial stability is one of the important component for the success of a business organisation and Toyota has managed to maintain its financial stability. Next, I have disposed(p) strong brand name a weight of 0.25, a rating of 4, that lead to a weighted cross out of 1.00. This is because a strong brand name will be able to gain customers trust of a product thus creating loyal customers relationship. Toyota is easily known for producing cars that are of high quality as the company implemented total quality management (TQM) and just in prison term (JIT) quality measurements in the its production process. The organisation stresses on delivering quality products and value to its customers. Beside s that, Toyota also manufactures environmentally friendly cars to meet the current legislation demand. delinquent to the concern for environmental issues such as the green house effect and global warming, Toyota has produced hybrid gas electric vehicles as an alternate fuel vehicle. For instance, the Prius model. The hybrid cars are more practical and fuel efficient. Therefore, I have given environmental friendly cars a weight of 0.20, a rating of 4, and a weighted score of 0.80 as the company responds well to the demand for more environmental friendly cars.Meanwhile, the weaknesses which I have identified for Toyota hold economic downturn and where Toyota is seen as immaterial importers. I have given economic downturn a weight of 0.15, a rating of 2, and a weighted score of 0.30. Toyota is a large organisation. Sometimes, being big has its own problems. The world market for cars is in a condition of oversupply. As or so of Toyotas products are marketed in US, it is exposed to t he fluctuating economic condition in the market. As the exchange rate for US is high, there are chances and risks for the company to experience losses during the economic recession. Next, I have given Toyota a weight of 0.15, a rating of 3, and a weighted score of 0.45 where it is seen as foreign importers. As Toyota is a Japanese car manufacturer, it is seen as foreign importers when it operates in the US market. More benefits will be given to a US car manufacturers, for instance in the aspect of incentives and benefits of tax. The US government will also prioritise its local car manufacturers first compared to foreign companies. Besides that, the consumers in the US market will prefer to purchase cars from a US based manufacturer, for instance General Motor. Toyota would be the option choice for buyers in this market.3.3.2 EFE MATRIX ANALYSIS FOR TOYOTATOYOTA-KEY EXTERNAL FACTORSWEIGHTRATINGWEIGHTED SCOREOPPORTUNITIESGlobal market untapped0.2541.00 change magnitude demand in Hybr id cars0.2541.00THREATSProduct recalls0.2541.00 change magnitude price of raw materials0.2520.50TOTAL1.003.50Based on the EFE matrix analysis which I have constructed above, the opportunities for Toyota include global market untapped and maturation demand in hybrid cars. I have given Toyota a weight of 0.25, a rating of 4, and a weighted score of 1.00 for the opportunity on global market untapped. Toyota has explored and expand more crisply into new segments of the market. For example, The launch of Aygo model by Toyota is aimed to gain a market share in the youth market. Next, I have given Toyota a weight of 0.25, a rating of 4, and a weighted score of 1.00 for the increased of demand in hybrid cars. Toyota is innovative as it has conducted research and exploitation activity, and with the assistance of advancement in technology, it is the first company that invented the commercial fabricate hybrid gas-electric vehicles that uses gas and electric, for instance the Prius model. With the hike in oil price, the production of hybrid cars by Toyota fits the involve of consumers who are looking for fuel legal transfer vehicles.On the other hand, the threats which I have identified for Toyota are product recalls and increase price of raw materials. I have given Toyota a weight of 0.25, a rating of 4, and a weighted score of 1.00 for product recalls. In year 2010, Toyota was forced to recall its cars from the US market due to faulty brakes. The recall of cars has affected Toyotas image in the consumers minds where its brand name has dropped. This would then result in the decline in Toyotas sales which will lead to the companys loss. Besides that, I have also given Toyota a weight of 0.25, a rating of 2, and a weighted score of 0.50 for the increase price of raw materials. The price of raw materials cannot be controlled by Toyota and it fluctuates from time to time. During economic downturn or recession, the price of raw materials usually increase tremendously. The hike in price would then increase the cost of production for Toyota. However, Toyota has no choice but to contemplate with the price as it need the raw materials to manufacture its cars. Toyota would have to save on its manufacturing and production be while maintaining the quality of its products. This may result in the loss of profits for Toyota.3.4 WHY TOYOTA NEED TO AUDIT ORGANISATIONAL FACTORS ANDENVIRONMENTAL FACTORSToyota need to audit its organisational and environmental factors as it gives various benefits to the organisation. The communication between the line and staff forcefulness of the organisation can be increased. There is also greater employee participation in the decision making process which would improve organisational synergy. In addition to that, Toyota will be able to come up with a few strategic options that is useful to cope and react to changes in the external environment. freshly opportunities and the forecast of demand can be detected through the a udit of organisational and environmental factors. Through the audit of organisational and environmental factors, the information obtained will assist Toyota in the strategic planning process of the organisation. Environmental scanning has a positive impact on Toyota in terms of communication, shared vision, strategic planning and management, and future direction. It improves communication on future plans by key people in the organisation. Environmental scanning is also used to observe the market trends and fashions. The success of an organisation depends on its ability to react to the market trends. Environmental scanning assist Toyota in detecting the changing needs to its customers so that the company can be practical in monitoring, predicting, and responding to market trends. This helps Toyota in planning ahead of its competitors by building competitive strategies.3.5 conclusionAs conclusion, the organizational and environmental auditing techniques serve as tools to review and evaluate the major strengths and weaknesses in the functional areas of a business, and it also provides a base of operations for identifying and evaluating relationships among those areas and provides an understanding of the environment affecting the business operations. In order to understand and manage business risk well, business organisations have to monitor its business environment from time to time to track for changes and adapt to the changes in the environment. Therefore, Toyota USA should conduct the organizational and environmental auditing techniques to develop strategic formula in order to improve its business performance and also react to the changes in its business environment.