Company Problem Essay Example | Topics and Well Written Essays - 1750 words

Company Problem - Essay Example sales targets for the current year (2008) owing to the continuous fall in the sales of its trucks and SUVs which form a significant part of its revenues. The fall in its automobile segment is also largely due to the growing environmental concerns, likely impact of global warming, and the resultant shift in customer preferences towards environmental friendly and fuel efficient cars. All these factors together have led to formation of several alternatives that could help the company address these critical issues and retain its competitive positioning in the industry as well as continue its rapid progress towards attaining its future targets that of a 15% share in the global automobile industry. The alternatives discussed above are developed keeping in mind the company’s strengths and weakness and its ability to tackle the present situation through its range of products and strategic planning abilities. The Toyota Motor Corporation is one of the largest automobile manufacturers in the world. Founded in 1926, by Sakichi Toyoda as a modest automatic looms manufacturing company, Toyota has grown to be a multi million dollar organization and a world leader in automobile manufacturing. The company through its substantial diversification, expansion and R&D efforts has managed to capture significant market shares, and aims to capture 15 %1 of the global market by the year 2015. However, the company currently has been facing certain setbacks due to several factors such as the rising fuel prices, environmental concerns such as global warming, weakening of the yen, as well as threats from low cost car manufacturers from developing nations such as India and China. These factors could pose serious threats to the company’s advancement towards growth and prosperity. To combat such external forces, the company has initiated efforts at creating environmental awareness through encouraging an d driving the sales of its hybrid car – The Prius, as well as by initiating and