Toyota Motor Corporation is the world product quality leader in the automotive industry.. In the first quarter of 2008, Toyota sold 2.41 million vehicles in the worldwide and that data makes Toyota took General Motors' position to suit the young leader of global sales in the automotive industry (U.S news, 2008). In 2009, Toyota's global production jumped 22% from 2008 (McCurry, 2009).Toyota in Europe is also a great mess. Since 1990, Toyota has placed over 7 billion euro, and currently delivers about 80,000 employees throughout Europe. Its operations in Europe are supported by a network of 31 national marketing and sales companies in 56 states with a total of 3,000 sales outlets and 9 manufacturing plants. In 2008, Toyota sold 1,112,021 vehicles in Europe (Toyota, 2008).Toyota owns 2 manufacturing plants in the UK, respectively located at Burnaston in Derbyshire and Deeside in North Wales, while Toyota has placed over 1.85 billion pounds and currently holds approximately 4,000 employees in the UK (Toyota, 2009).Strategic analysis of Toyota:It is a comprehensive way to analyses Toyota's macro business environment background by using PESTEL framework.Toyota as a global carmaker, is strongly affected by the vary politics in different countries. Referable to the fact of oil shortage, some states such as U.S have to rely on foreign oil to meet their requirements; therefore, the energy saving politics issued by governments may pass to consumers turning their demands to Toyota's oil saving products such as plug-in hybrid (Berthiaume et al, 2007). However, some hostile governments have interfered Toyota's operations with the political threat in order to benefit its local car industry; Venezuela President Hugo Chavez announced that the government would take over Toyota's local assembly plant if Toyota does not agree with transferring its new technologies to local car manufacturers and producing more vehicles designed for Venezuela's rural areas (Molinski and shirouzu, 2009).Referable to the realities of global financial crisis, Toyota has to narrow its reach of commercial enterprise and concentrate on its core business; for example, Toyota has confirmed that withdrawal leaves from formula one racing competition and change state to concentrate on its vehicle producing (BBC, 2009). On the other hand, with the global economic recovery, Toyota will keep increasing its output to global markets; Toyota aims of 7.5 million outputs in 2010 (Economic Times, 2009). And certain countries' economic growth provides Toyota, chances to develop products in new markets; for example, Toyota has purposed to occupy more than 10% of India's car market by 2015 (Dhara and Kitamura, 2010). Summation, the global oil price changing may increase consumers' desirability of Toyota's plug-in hybrid vehicles.Social-ethnic elements are able to affect Toyota in a certain level. In addition to product quality leader, Toyota has accomplished a full company image, though many social movement activities in different countries; for example, Toyota has been working with Kirloskar Group on a rural drinking water project in Karnataka (a country in the southerly region of India) (Business Standard News, 2006). This procedure not only worked a large societal problem for local government, but also earned respect and cooperation from the local citizenry for the company, also built a good company reputation.Toyota's success cannot be distinguished from modern science and technology; the new technologies strongly influence Toyota's future development. Such as "lithium-ion battery" technology, has been practiced by Toyota in a new generation of plug-in Prius. Toyota will only produce 600 units in the first half of 2010 as a new product test program (Wilkins, 2009). Yet, another fact is that Toyota has recalled 15.2 million vehicles in 2009 due to technical errors like uncontrollable acceleration (Symes, 2010). Using technologies in the wrong way may damage the Toyota's reputation and losing its reliability.Referable to the realities of global warming, Toyota is required in concerned with producing vehicles that increase the fuel efficiency and reduce discharges. Toyota has certain achievement in the environmental field through research and develop hybrid vehicles such as gas-electric Prius (Nascar, 2004).Toyota not only has many directly controlled suppliers, but also call for suppliers from outside in different marketplaces. Thither is a strong supplier competition threat faced by Toyota. The evidence proves that Toyota on US market comes from top of supplier working relation in 2009 as surpassed by Honda, and followed by Nissan, Ford etc (Ortolani, 2009). (Form 1)The following table shows how automakers fared in the Supplier Working Relations Index prepared by consulting firm Planning Perspectives Inc.

2009 Automaker 2009 2008Rank Score Score

1. Honda 349 3592. Toyota 339 3673. Nissan 268 2534. Ford 232 1915. GM 183 1636. Chrysler 162 161Figure 1: Supplier Working Relations Index (http://www.bloomberg.com/apps/news?pid=20601130&sid=aUUU8Mjf6ej0)Recommendation for future development:In terms of the five forces analysis above, Toyota will keep facing a fierce competition in the industry. Consequently there is no trend that Toyota becomes a monopoly company in the automotive industry due to the constant price war and expensive marketing battles even it is leader at the moment. So, dealing with existing market with existing product (Market penetration) may not effectively beat competitors who are able to design and produce cars on a similar price and quality level. Plus, in terms of car markets, the existing products may not fully meet consumers' demands such as more environmentally friendly vehicles.However, product development may be a good option as Toyota already has huge existing markets like America and Europe and earned considerable reputation. Despite there are growing competition, but competition also can be kind of power to promote Toyota's innovation and development on new product. Also, keep developing hybrid product and maintain its leading position is important because hybrid vehicles are particular attractive to oil shortage countries with developed economy. Furthermore, Toyota underpinned by its strong competence and resource therefore doesn't lack of new strategic capabilities and risk management skills.While, market development may suitable for poor countries such as Venezuela, dealing new but poor markets with existing products can not only avoid transferring its newest technologies to outside, but also find new consumers therefore increase output and sales.Proper related diversification maintains Toyota able to control its suppliers and developing a wide range of complementary to present business. But excessive diversification with bad economic environment may cause resource wasting, such as fail running on formula one. Diversification must surrounding Toyota's core business therefore benefits the company as a whole.

Vehicle Production, Sales and Exports By RegionProduction by regionRegion2003200420052006200720082009201020112012

North America1,278.41,444.01,535.11,519.31,636.91,404.81,189.11,404.01,206.11,720.6

Latin America58.180.4138.5177.9183.1194.8181.5204.3195.1242.8

Europe466.1582.5638.1808.8806.5688.3507.3461.7460.3461.4

Africa93.3108.8121.1143.8145.7179.2102.8123.4150.8151.7

Asia548.4717.01,029.21,137.71,387.31,590.01,501.42,027.42,062.82,565.7

Oceania113.6109.9109.2111.6148.9141.496.8119.493.7101.4

Overseas total2,558.03,042.73,571.23,899.04,308.64,198.43,579.04,340.44,168.85,243.6

Japan3,520.33,680.93,789.64,194.24,226.14,012.12,792.23,282.82,760.03,492.9

Worldwide total6,078.36,723.77,360.98,093.28,534.78,210.56,371.37,623.36,928.88,736.5

(1 unit = 1,000 vehicles)Note: Regional classifications are those of the Japan Automobile Manufacturers Association, Inc. The number of vehicles produced includes the Toyota and Lexus brands. As a result of rounding, the numbers do not necessarily add up to the total shown here.Sales by regionRegion2003200420052006200720082009201020112012

North America2,031.32,230.32,436.12,738.32,822.22,441.81,975.41,935.51,806.92,274.6

Latin America162.1214.9270.5339.4379.4370.2293.6342.1333.5406.6

Europe851.5946.9995.21,124.11,238.61,119.5886.0785.8801.9817.7

Africa160.6206.7227.2265.7313.5288.1201.4197.6211.9243.0

Asia682.4846.31,062.91,106.71,329.61,438.61,533.91,895.91,998.22,340.5

Oceania215.1232.8236.9250.3275.9277.7231.2249.6215.9258.8

Middle East251.4270.9325.3404.8482.7590.1482.5554.6527.5683.9

Overseas total4,354.54,948.85,554.16,229.36,841.96,526.15,604.05,961.15,895.97,025.1

Japan1,715.91,758.81,713.11,692.31,587.31,470.01,375.51,566.11,201.01,692.2

Worldwide total6,070.46,707.67,267.37,921.68,429.37,996.16,979.67,527.37,096.98,717.3

(1 unit = 1,000 vehicles)Note: Regional classifications are those of the Japan Automobile Manufacturers Association, Inc. The number of vehicles produced includes the Toyota and Lexus brands. As a result of rounding, the numbers do not necessarily add up to the total shown here.Exports from Japan by regionRegion2003200420052006200720082009201020112012

North America782.8813.5939.61,344.71,244.11,124.2574.0628.2494.7704.6

Latin America71.595.6120.2148.9178.9146.461.3106.995.6116.4

Europe424.6419.0360.7375.1441.5420.3230.4293.7343.0311.9

Africa58.292.0107.2130.0147.0148.767.572.454.764.9

Asia154.7156.2129.8112.3151.2169.1127.1184.0183.0205.4

Oceania154.1164.6159.2171.6175.2184.2144.4165.8146.3174.3

Middle East182.6202.1226.5246.7328.3393.4240.0288.6247.7363.6

Total1,836.01,951.72,043.22,529.32,666.12,586.31,444.71,745.01,568.91,945.7

(1 unit = 1,000 vehicles)Note: Regional classifications are those of the Japan Automobile Manufacturers Association, Inc. The number of vehicles produced includes the Toyota and Lexus brands. Excludes KD sets. The total includes other regions. As a result of rounding, the numbers do not necessarily add up to the total shown here.