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Toyota & Providence Medical - Business Level Strategy

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Chapter Assignment Business Level Strategy

1. Toyota’s business level strategy is that of overall cost leadership. 2. Toyota has been experiencing problems with its accelerators sticking on its vehicles, causing the cars to speed out of control, as well as issues with the overall quality of its vehicles. 3. The three major interrelated reasons that caused Toyota’s problems are its hyper focus on cutting costs, which led to poor quality, its rapid growth strategy, and its corporate strategy from that of its founders.

1. Toyota has used several strategies to solve its recent dilemmas. These strategies include introducing the Lexus LFA to present a more aggressive sportier brand image of Lexus vehicles, building multiple plants in the USA to produce Toyota vehicles to reduce lead time and import issues, shrinking its board of directors by half, having the CEO meet with his top five advisers every Tuesday morning in an informal manner to make decisions on the spot, as well as beginning to emphasize the design of high quality interiors. 2. I believe that shrinking the board of directors and building manufacturing plants within the United States will ensure Toyota’s future success since these decisions will enable better communication between US executives and their Japanese counterparts as well as enable much faster delivery of vehicles to the US market.

1. Providence Medical Center’s business level strategy is that of differentiation. 2. PMC cuts costs by allowing dying patents hospice care over extended hospital stays, offering financial training courses to hospital doctors, having a board to scrutinize purchases of medical equipment as well as limiting malpractice suits by having an independent panel that investigates and publishes its findings. 3. PMC differentiates itself from its competitors by its single stay ward, which allows for a patient to have equipment brought to them throughout their different stages of care required. PMC also differentiates itself by standardizing its practices whenever possible, as well as by having scorecards for staff to give suggestions and ideas to top members of the hospital.

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