7-2 MILESTONE THREE BUY-BUILD-ALLY ANALYSIS

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XXXX XXXXXX Southern New Hampshire University MBA-540: Org Strategy in Global Env Dr. Robert W. Robertson December 27, 2022 Toyota Motor Corporation Buy, Build, or Ally Analysis

INTRODUCTION  Review the Buy-Build-Ally analysis for Toyota Motor Corporation  Recommend an implementation strategy for Toyota Motor Corporation. o Buy o Build o Ally  Review a 5-Year Timeline for projected growth.

IMPLEMENTATION STRATEGY BUY? BUILD? OR ALLY? Buy: To acquire or take ownership of another business in the same manufacturing industry. Build: To build up the resources the company already possesses to strengthen internal processes and establish a competitive advantage in the marketplace. Ally: Access the activity or input from another firm, using exclusive partnership with that firm (Dyer et al., Ch. 8, P. D-135).

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IMPLEMENTATION STRATEGY ALLY

IMPLEMENTATION STRATEGY TOYOTA / SUZUKI / DAIHATSU PURPOSE To collaborate and develop advanced technologies that will accelerate the electrification of commercial vehicles. • Research and Development • Adaption to a carbon-neutral environment • Expand Kei Minicar line • Develop new technologies for commercial vehicles (trucks) • Promote efficiency and low-cost logistics systems. • Advanced safety technology (Naguma, 2021)

SKILLS: Skilled labor pool between three corporations. FACILITIES: New facility for Research and Development and planning zone for Zero emission operations and maintenance facility. PRODUCTS: Kei Minicar and commercial fleet vehicle line. EV battery, wireless power transfer (WPT). SERVICES: Electrical infrastructure, vehicle parking and charging, parts storage, vehicle charging operations. (Stout, 2020)

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TIMELINE OF EVENTS YEAR 1 – Establish alliance with Suzuki and Daihatsu. Develop plan to build a new R&D facility with the capabilities of incorporating Zero emissions operations and maintenance facility. Hire a strategy team that encompasses all three corporations that can hire top talent to begin operations at new R&D facility in Hamamatsu, Japan. R&D Strategy team design one new Kei Minicar and one new fleet truck. Develop EV battery for new models. YEAR 2 – Begin building new R&D facility in Hamamatsu, Japan. Put strategy team in action to organize day to day operations at new facility. Design Electrical Vehicle area, Wireless power transfer area. Research and development team strategy over new Kei minicar and new fleet vehicle. Start prototype designs for new Kei Minicar and Truck. Prototype designs for EV battery and WPT units. Build parts storage facility and design vehicle parking and charging stations. YEAR 3 – Begin operations in Hamamatsu, Japan. Establish R&D operations, begin implementation of the electrical battery, wireless power transfer units. Start new Kei Minicar and Truck prototype production. Test car and truck prototypes and review for modification. Testing on Wireless Power Transfer (WPT) prototype units. Build vehicle parking and charging stations at new facility. YEAR 4 – Complete build on prototype Kei Minicar and Truck for test driving and design changes. Test new WPT units on current model of car and truck. Test out all new charging in new parking locations. Test EV battery in new vehicles. YEAR 5 – Begin production of the Kei Minicar. Continue working on Truck design and perfect changes. Test drive current model with WPT unit for Research and Development opportunities for all three companies. Utilize new parking locations and charging stations for current models and Kei Minicar production.

REFERENCES Dyer, J. H., Godfrey, P. C., Jensen, R. J., Bryce, D. J., Uhl-Bien, M., & Piccolo, R. F. (2020). Organizational Strategy in a Global Environment for Southern New Hampshire University . Wiley Global Education US. https://wileyplus.vitalsource.com/books/9781119802396 Nagumo, J. (2021). Suzuki and Daihatsu to invest in Toyota EV Alliance . Nikkei Asia. https://asia.nikkei.com/Business/Automobiles/Suzuki-and-Daihatsu-to-invest-in-Toyota-EV-alliance Stout, T. (2020). Experts talk: Wireless power transfer and electric vehicle applications with Thomas Stout . HDR. https://www.hdrinc.com/insights/experts-talk-wireless-power-transfer-and-electric-vehicle-applications-thomas-stout Toyota and Suzuki enter into Capital Alliance Agreement: Corporate: Global Newsroom . (2019). Toyota Motor Corporation Official Global Website. https://global.toyota/en/newsroom/corporate/29375884.html

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