The first corporate-level strategies that Toyota pursue in is the Related Diversification, Toyota pursue that strategy because they need to make or develop some of the automobile parts outside the core plant, for example as mentioned in the article that Toyota uses the sweet potato used in the Toyota Bio Indonesia to make biodegradable plastics for Toyota cars. The second one that Toyota pursue is the Unrelated Diversification, there are two factors why Toyota pursue in Unrelated Diversification, the first one because since 1986 Toyota already has a New Business Project Committee which seek other business aside from making automobile, the second one is Image factor which means Toyota use it to enrich society while gaining profit from the non-auto business.
The examples of the Unrelated Diversification can be seen in the article that Toyota owns many business that is unrelated with automotive such as Toyota factory in Kasugai which make prefabricated houses, Delphys Inc. which runs in advertising, Toyota Roof Garden which sells greenery for rooftops and so on. The third strategy that Toyota pursue is the International Expansion, Toyota now have plants all over the world which is growing even wider in order to be the largest carmaker in the world as mentioned in the article that they are ready to sweep past General Motor Corp. as the world’s biggest carmaker in the next year or so.
2. In what ways could Toyota use its skills to enter new businesses and industries to create a significant amount of value for the company?
Toyota use the Toyota Production System with the principles of just-in-time delivery and kaizen or continuous improvement. They also uses the anticorrosive paint for the Toyota houses steel which is adopted from automobile production and also Toyota uses components developed for the cars to the houses such as keyless entry system which use radio sensor to lock and unlock the door, shatter resistant glass which is usually used in windshields. From the Toyota efficiency improvement for the non-auto business has resulted, the profit of the non-auto businesses has gained $10.3 billion which is less than 6% of Toyota overall sales of $180 billion.