Business strategies Essay Example | Topics and Well Written Essays - 2750 words

Business strategies - Essay Example The aspect of employing diversification strategy is viewed as one of the effective as well as proficient business tactics, which assists the organisations to grow considerably in future. The word ‘diversification’ is typically linked with a specific transformation especially in the features relating with the aspect of product line or the business market of a business organisation. The major objective of implementing the facet of diversification strategy is to introduce new product in the business market along with attaining significant market share (Ansoff, n.d.). As a matter of fact, Toyota is always recognised as an innovative business organisation especially in the automobile industry. The aspect of innovation has been observed in the production system of the organisation along with the cost factor while taking the quality of its valuable products into greater heights. In this context, the main strategic reasons of Toyota in order to choose the aspect of diversificati on strategy include effectively complying with the business market demands and maintaining the technology in relation to environment friendly aspect which is constantly becoming a core principle of its several products. Furthermore, the other significant reasons behind Toyota pursuing the idea of diversification strategy broadly include viewing a better opportunity for synergy, increased rate of market competition in automobile industry and ultimately expanding its production facilities around the business world (Scribd Inc., 2012). Additionally, the different reasons behind Toyota pursuing the diversification strategy across its broad business operating regions can greatly be understood by focusing upon the targets that are made individually towards its the employees, business partners, shareholders, local community or global society and ultimately the customers. From the viewpoint of the staff, Toyota mainly prioritises diversification strategy in order to generate safer as well a s healthy working situation that would ultimately assist the organisation to make successful and effective growth in future. In terms of the business partners, Toyota strives for executing diversification strategy with the intention of establishing along with developing advantageous business relationship especially with the distributors or dealers and the suppliers. From the outlook of the shareholders, Toyota believes that the adequate execution of diversification strategy might ensure sustainable growth along with making strong and stable base for making business. With regard to the global society and local communities, Toyota realises the necessity of diversification strategy in order to respect the business culture along with the customs belonging to every country and contributing towards communal development. Moreover, with the intention of minimising congestion along with traffic accidents, the organisation i.e. Toyota deeply focuses upon the execution of diversification strat egies in relation to the global society or local community. Finally, from the perspective of the ultimate customers, Toyota seeks for delivering reliable and safe