ASSESSMENT 3: Evaluation of business case

Introduction and Summary of case study
This passage tells about Holden which is a foreign-owned car manufacturer wants to exit the car manufacturing in Australia in 2013, but Toyota thinks it will give them pressure on local supplier network and their ability to make cars.
Toyota was founded in 1958, and among 20 years, it expanded to export. In the next 5 years, it merged as the market leader. Although Toyota has a long history of production and broadly business scope with a good business system, to some extent, it is influenced by the external environment which include the customers demand, market structure, adverse currency development and other development. It uses three strategies so as to follow the balanced model. The model is good, but for the constraint from domestic demand, the company uses the export strategy from New Zealand to Thailand. Moreover, customers’ preference to the type of cars changes which is unfortunately counters to Toyota’s; the small scale of production results in high level of cost; the high tariff rates make it difficult export cars, also high exchange rate of exporting are the key adverse environment. These factors make Toyota feel competitive.
In order to operate successfully, Toyota began to counter those developments. It practise improvement in productivity and reduction in cost by adopting both internal and external cost-reduction strategies, such as reduce the production and labour cost, but it failed to get the support from the workers from the aspect of ethical. On the other hand, the closure of Toyota will lead to job losses of employees and supply chain linkages.
Above all, the key issues include the Toyota’s competitors, ethical behaviour, company system and structure and supported policies.
This essay is writing standing at a consultant perspective to analysis whether one of