Memo (Business Risk About Toyota) – Coursework Example
Toyota Motors Autoville Consultants 19 February Addressing Risks in Toyota Business Risks in Toyota The Risks Toyota could be experiencing financial risks resulting from a drop in vehicle sales or lack of market for already manufactured vehicles leading to huge losses in capital investments. Indeed, recession or other forms of global pecuniary meltdown could be the main cause of the crisis (Einstein). Additionally, the company could be in a precarious position due to changes in taste and preferences of consumers thus the need to engage in consistent innovations. Threats from competitors pose risks since Toyota might need to tackle counterfeit or similar products by other motor vehicle industry competitors (Einstein).
As a means of minimizing the financial risks, I recommend that Toyota should develop strategies that curb financial losses by planning aptly. The company should conduct a thorough market research before venturing to any manufacturing processes thus addressing possible financial catastrophes. They should monitor their deals on a habitual basis thus preventing any catastrophic happening such as counterfeit products. Toyota should diversify their investments in manufacturing and increase the scope of their target market thus satisfying consumers. The company should put measures in place to control and monitor their quality standards thus satisfying consumers (Einstein).
The client should understand risks with the intention of seeking proper legal redress when seeking justice in cases of a dispute. This promotes decent business practices ensuring mutual benefit of parties involved in motor vehicle business. Toyota Management will plan for future strategic decisions and facilitate the implementation of a contingency plan to encounter any challenges that may arise once the auditors appropriately forecast pertinent. A sense of security from auditor’s perception facilitates sustainability of operations in the industry.
Einstein, Paul. “Damaged’ Toyota struggling to reverse course. MSN. 2011. Web. 19th February