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MGT510 Total Quality Management

Published : 30-Sep,2021  |  Views : 10


Introduce internal analysis Conduct an internal environment analysis for the organisation. You should identify, differentiate and evaluate the key resources, capabilities and core competencies of the organisation (or SBU) that are most likely to provide sustainable competitive advantage. Identify strengths and weaknesses Conclude based on the internal analysis.


This journal post is reflecting the internal analysis of Toyota Company. It will also provide key resources and capabilities of the company that will help them in attaining competitive advantage. With this, it will also identify the strength and weaknesses of the Toyota Company.

In the world, Toyota is known as the largest automaker by volume. It is an auto industry of Japan and was established in the year of 1937 (Parker, 2016). The name of the company comes from the founder’s family name i.e. Kiichiro Toyoda. Headquarter of Toyota Company is in the city of Toyota, Aichi Prefecture. Toyota Company produces approx. 10 million vehicles every year. Automobiles, engines, commercial vehicles, and Luxury vehicles are the different variety of vehicles that Toyota Company provides.

Key resources of Toyota

The key resources of Toyota Company are its Human resource and Technology. Toyota believes that its human resource is the key asset of the company, therefore, they are moving towards the development of their employees as they are the key part of manufacturing. Toyota has planned personnel training for its employees to provide knowledge and skill development.

Toyota is known for its innovations and advancement of technologies. Toyota has identified a wide range of strategies of advanced technology, as well as the development of traditional hybrid vehicles, vehicles of fuel cell hybrid, plug-in hybrid vehicles, and battery electric vehicles.

Capabilities of Toyota

The strategic capabilities of Toyota Company is their delivery chain. The organization and model of a delivery chain is distinctly a broad matter, linking to inter-dependencies between explore and growth, promotion and production tasks, creating important courses of deliveries and technological, economic and market information.

Core competencies of Toyota

Toyota’s core competence is its capability to manufacture automobiles of best quality at affordable prices, thus offering customers a value for money. The core competence of Toyota's quality can be credited to its practices of innovative production. The aspect of product quality of Toyota has transformed the vehicles in the past and approx. all the companies of vehicle or automobile had to give their best to improve the quality of their products. It gives Toyota cost leadership in the market (Nkomo, 2017).

Internal Analysis of Toyota

Strength- The key strength of the Toyota Company is that it has a strong position internationally. Presently, Toyota is the largest manufacturer of automobiles in terms of production and sales. Further, The Company has a good brand image in the market of providing good quality at reasonable prices (Jurevicius, 2016).

Weaknesses- The organizational structure of Toyota Company is very rigid which affect the communication process and hampers the productivity and efficiency of the company (Ferguson, 2017).


In the conclusion, it can be said that Toyota Company is the largest manufacturer of vehicles with quality and affordable prices. The company has good brand image in the market. Along with that, it has some weaknesses such as the organizational structure of Toyota Company is very rigid which affect their productivity.


Ferguson, E., (2017). Toyota’s SWOT Analysis & Recommendations. Retrieved from:

Jurevicius, O., (2016). SWOT analysis of Toyota. Retrieved from:

Parker, J., (2016). Overview: All You Need to Know about Toyota Motor Corporation. Retrieved from:

Nkomo, T., (2017). Analysis of Toyota Motor Corporation. Retrieved from:

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