Toyota Strategic Alliances Essay Example | Topics and Well Written Essays - 1250 words

Toyota Strategic Alliances - Essay Example Toyota Strategic Alliances Theories and analytical tools to assess strategic issues Decision makers in organizations are continually showered with various issues that can potentially affect the current performance and actions of their companies. They make constant adjustments in their strategies in order to keep them updated with the needs of the changing environment. Hence, assessment of strategic designs of organizations is critical to their success and performance. In the face of the changing global business environment, decision makers should keep in mind that strategy choices become obsolete within a very short period of time. Past styles of operating might not fit the current challenges posed by the competitive environment of the current business world. It is important to identify the chief issues facing the organization in the current financial year or a period of financial years and select some issues from this multitude to deal with at a particular point of time. Selection o f these issues are made with regard to the current business position of the firm, technological advancement of the firm, its economic conditions, human resource capacity of the firm, social and political contexts in which it operates. This process requires the organizational leaders to sort the issues faced by the firm on the basis of the importance level attached to the issue. There are various tools that organizational decision makers might exploit in order to assess the importance of the issues faced by them. ... Higher focus maintained on sorting and assessing issues demonstrate a better understanding of the issues. Hence, decision makers are better positioned to make the most appropriate response to these problems (Tan, Shen, and Langston, 2012; Jauch, 2010). The major dimensions in the strategic decision making process are top management decision, allocations of company resources for various activities, long term objectives of the firm, future orientation of the firm, multifunctional and multi- business consequences of the decisions and general external environment of the firm. This process is known as â€Å"strategic issue diagnosis (SID)† (Huff and Jenkins, 2002, p. 276). SID is a tool used as the first step to identify the issue and assess its characteristics. Diagnosis outputs cast important impact on the following stages in the decision making process. Strategic issues facing companies in Asia Pacific All business firms, in their heart, aims at a general notion; increasing the profits of the firm. For any decision to make sense in the decision making process of the business, it has to be directly (or indirectly) associated with the act of increasing profits. In any other case, the business does not have any strong reason to make investments in this decision. There are two basic issues that a company might face in its path of long term development. These issues are highly contrasting to one another. One issue pertains to the problem of expanding the business, while the other relates to contracting business. In the Asia-Pacific region, business firms face either of these two issues. In this post financial crisis period, a majority of countries are striving to recover from recessionary pressure. Therefore, there is low level of aggregate demand in the economy.