Question Instructions READ THE CASE STUDY BELOW AND ANSWER QUESTIONS THAT FOLLOW. Revising Toyota's Image The hearty appetite for fancy German metal has Toyota Motor Co. TM spooked. "Higher-priced sedans are a traditional base of strength for Toyota," says Yasuhiko Fukatsu, managing director for domestic luxury sales. "But BMW and Mercedes-Benz are doing a better job attracting younger buyers. "Toyota also is increasingly worried about a resurgent Nissan Motor Co. (NSANY), which is staging a comeback in the sedan niche. Toyota's answer: Run its rivals off the road. To do so, it is unleashing on Japan dozen-plus new or improved vehicles. Besides updating such midrange standbys as the camry. Toyota is bulking up on eye-candy luxury models, most of which sell for \( \$ 30,000 \) to \( \$ 60,000 \). Among them fully loaded versions of the muscular and decidedly BMW-ish Verossa, the remodeled Lexus ES 300 (known in Japan as the Windom), and a Mercedes-like sedan called the Brevis. Toyota is even debating marketing cars at home under the Lexus badge, which now exists only overseas. Aging customers are a problem for Toyota everywhere, but nowhere more than in Japan. Most of the folks buying such luxury Toyota sedans as the best-selling crown are graying executives who started out with entry-level Toyotas in the 1950 s and 1960s. By contrast, upwardly mobile Japanese wouldn't be caught dead in a crown, a \( \$ 30,000 \) sedan often used as a taxi. Consider Shunsuke Kurita, a 46-year-old interior designer who drives a black 1999 BMW has better resale value than domestic cars," he says. "Toyota sedans have a fuddy-duddy image." Still, why all the fuss? After all, foreign imports account for less than 10 per cent of the Japanese auto market. Well, what worries Toyota is that up-and-coming Japanese drivers will develop the kind of loyalty to their German imports that their parents had to Toyota. Was that to happen? Toyota could lose out on future sales to drivers now in their late thirties and early forties. Required Define the term strategic management. What are key issues facing Toyota and what value can strategic management offer? (15 marks) With reference to the three main levels of strategic management briefly develop some strategies at each level. (15 marks) Discuss in reference to this case the various dimensions of strategic decisions. (10 marks)
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Transcribed Image Text: Instructions READ THE CASE STUDY BELOW AND ANSWER QUESTIONS THAT FOLLOW. Revising Toyota's Image The hearty appetite for fancy German metal has Toyota Motor Co. TM spooked. "Higher-priced sedans are a traditional base of strength for Toyota," says Yasuhiko Fukatsu, managing director for domestic luxury sales. "But BMW and Mercedes-Benz are doing a better job attracting younger buyers. "Toyota also is increasingly worried about a resurgent Nissan Motor Co. (NSANY), which is staging a comeback in the sedan niche. Toyota's answer: Run its rivals off the road. To do so, it is unleashing on Japan dozen-plus new or improved vehicles. Besides updating such midrange standbys as the camry. Toyota is bulking up on eye-candy luxury models, most of which sell for \( \$ 30,000 \) to \( \$ 60,000 \). Among them fully loaded versions of the muscular and decidedly BMW-ish Verossa, the remodeled Lexus ES 300 (known in Japan as the Windom), and a Mercedes-like sedan called the Brevis. Toyota is even debating marketing cars at home under the Lexus badge, which now exists only overseas. Aging customers are a problem for Toyota everywhere, but nowhere more than in Japan. Most of the folks buying such luxury Toyota sedans as the best-selling crown are graying executives who started out with entry-level Toyotas in the 1950 s and 1960s. By contrast, upwardly mobile Japanese wouldn't be caught dead in a crown, a \( \$ 30,000 \) sedan often used as a taxi. Consider Shunsuke Kurita, a 46-year-old interior designer who drives a black 1999 BMW has better resale value than domestic cars," he says. "Toyota sedans have a fuddy-duddy image." Still, why all the fuss? After all, foreign imports account for less than 10 per cent of the Japanese auto market. Well, what worries Toyota is that up-and-coming Japanese drivers will develop the kind of loyalty to their German imports that their parents had to Toyota. Was that to happen? Toyota could lose out on future sales to drivers now in their late thirties and early forties. Required Define the term strategic management. What are key issues facing Toyota and what value can strategic management offer? (15 marks) With reference to the three main levels of strategic management briefly develop some strategies at each level. (15 marks) Discuss in reference to this case the various dimensions of strategic decisions. (10 marks)
More Transcribed Image Text: Instructions READ THE CASE STUDY BELOW AND ANSWER QUESTIONS THAT FOLLOW. Revising Toyota's Image The hearty appetite for fancy German metal has Toyota Motor Co. TM spooked. "Higher-priced sedans are a traditional base of strength for Toyota," says Yasuhiko Fukatsu, managing director for domestic luxury sales. "But BMW and Mercedes-Benz are doing a better job attracting younger buyers. "Toyota also is increasingly worried about a resurgent Nissan Motor Co. (NSANY), which is staging a comeback in the sedan niche. Toyota's answer: Run its rivals off the road. To do so, it is unleashing on Japan dozen-plus new or improved vehicles. Besides updating such midrange standbys as the camry. Toyota is bulking up on eye-candy luxury models, most of which sell for \( \$ 30,000 \) to \( \$ 60,000 \). Among them fully loaded versions of the muscular and decidedly BMW-ish Verossa, the remodeled Lexus ES 300 (known in Japan as the Windom), and a Mercedes-like sedan called the Brevis. Toyota is even debating marketing cars at home under the Lexus badge, which now exists only overseas. Aging customers are a problem for Toyota everywhere, but nowhere more than in Japan. Most of the folks buying such luxury Toyota sedans as the best-selling crown are graying executives who started out with entry-level Toyotas in the 1950 s and 1960s. By contrast, upwardly mobile Japanese wouldn't be caught dead in a crown, a \( \$ 30,000 \) sedan often used as a taxi. Consider Shunsuke Kurita, a 46-year-old interior designer who drives a black 1999 BMW has better resale value than domestic cars," he says. "Toyota sedans have a fuddy-duddy image." Still, why all the fuss? After all, foreign imports account for less than 10 per cent of the Japanese auto market. Well, what worries Toyota is that up-and-coming Japanese drivers will develop the kind of loyalty to their German imports that their parents had to Toyota. Was that to happen? Toyota could lose out on future sales to drivers now in their late thirties and early forties. Required Define the term strategic management. What are key issues facing Toyota and what value can strategic management offer? (15 marks) With reference to the three main levels of strategic management briefly develop some strategies at each level. (15 marks) Discuss in reference to this case the various dimensions of strategic decisions. (10 marks)
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【General guidance】The answer provided below has been developed in a clear step by step manner.Step1/1The term strategic management is the management of an organization's resources to achieve its goals and objectives. Strategic management involves settings objectives, analyzing the competitive environment, analyzing the internal organization, evaluating strategies, and ensuring that management rolls o ... See the full answer