Answer To: Internal Environment Analysis - firm’sresources (tangible, intangible, Human Resource) -...
David answered on Dec 22 2021
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Toyota’s Internal Environment Analysis
Richard et al. (2001), marketing orientation is a culture in which firms attempt to build
superior products and value for consumers by majorly focusing on consumer’s needs and
their long term growth. Resources of Toyota basically fall under three major categories
including tangible, intangible and human resources. However, tangible resources further
comprises of financial assets and physical assets of the organization. Among intangible assets
it includes culture, technology, patents, reputation of the brand in the market. And lastly
among human resources the motivation, required skill sets, organizational culture,
collaboration, research & development and communication.
The organization operated mainly three business units. The Automobile segment is
occupied in the manufacture, design and sale of products, including minivans, sedans, sport-
utility vehicles, 2BOX cars and trucks, also the related accessories and parts. The Finance
department is involves itself in the terms of financial services which are related to the sales of
Toyota’s products, along with the leasing of equipment and vehicles. The others unit is
involved in the manufacture, design and sale of housings, along with the communication and
information business. As of March 31, 2012, the Toyota had around 212 associated
companies and 507 subsidiaries.
Tangible Resources
Tangible resources are defined as the physical entities of an organization including money,
land, plants, buildings, inventory and equipment.
Plant: The fine engineering of Toyota’s products are done at the plant which is responsible
for development, design and research & development and the manufacturing activities.
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Financial: The net revenue of Toyota by the end of year 2012 is 18.584 billion yen which is
bit lower when compared to the year 2011. The operating income in this situation is also
reduced when compared to the year 2011 and hence the adverse affects can be seen on ROE
which has also shown a slight decline in the latest year when compared to last year.
The sales figures shown by the vehicles has shown a slight inclination in the latest
year and the number of units sold in the year 2012 is 7,352 thousand units which is slightly
above 7,308 thousand units of 2011. The sales of vehicles in different regions in the latest
year is topped by Japan(28.2%) followed by North America(25.5.%) and Asia(18.0%).
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Financial Performance (Consolidated of last 5 years)
Financial results for Toyota for the latest financial year reveals revenues and profits
bit down from the previous financial year but a strong recovery can be seen due to the ill
effects of tsunami and earthquake in Japan. From the previous financial year the net revenues
declined by 2.2% while net income dropped more. However, consolidates sales of the
products were slightly up from the previous year. Also Toyota expects to continue the
recovery and lead strong results by the end of March 2013 (Liam Lever, 2012).
Intangible Resources
Intangible resources are defined as the identifiable non monetary resources which cannot be
touched, seen or measured physically. The intangible assets of an organization include the
copyright, trade secrets, patents and trademarks.
Goodwill: If any organization acquires the assets above the price of book value, it must be
carrying goodwill. Goodwill reflects the difference between the price paid by any
organization and the book value of the resources.
Brand Value: Michael et al. (2002), organizations must focus on getting the most from
existing brand name by managing and organizing brands and its inter relationship within the
existing product portfolio. Brand architecture is a way by which firm organizes, manages, and
markets their products and brands. However, it must align and support business objectives
http://www.romania-insider.com/author/liam.lever/
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and strategies. Toyota is one of the largest...