Lexus a luxury car brand, part of the Toyota group, will have multiple factors that affect its
strategy in regard to different stages of the business cycle. These factors will heavily deter-
mine how, if and why Lexus would alter its strategy.
The growth of Lexus in the future, relies on economic growth. Lexus plans to expand the
production and sales of the Lexus models. If Lexus is able to sell more cars, the assump-
tion is that they would be open to increase their production capacity and hire more skilled
employees and generate more profit. By generating an increased profit, Lexus would be
able to invest in new opportunities, such as their development in electric cars which would
keep them ahead of their competition and give them a competitive edge, which would in
the future open its doors to new customers.
In a period of recession, Lexus needs to ensure, it can safeguard the company and de-
crease the amount of loss it could potentially have. Taking precautionary methods such as,
decreasing overheads and production and slightly increase prices, could help the company
continue to profit during a period of recession. Lexus however were not severely affected
by the 2008 -2009 recession, thus giving reason to believe that Lexus would not be af-
fected if there was another recession in the near future. The Japanese government has
implemented some ideas for strategies to help prevent the consequences of a recession
such as;
● Ageing Population: With the heavy increase of the ageing population, the Japanese
government could introduce, wages based on productivity, as this will allow the el-
derly to find jobs based on experience, and receive pay for the amount of work they
do.
● Female Participation: Most women start working when finished with schooling and
university, however majority leave work after having a child to look after the baby.
Lexus could introduce a nursery for the employees of the employees working at
Lexus, to help support the employees of Lexus.
Different factors, impact a business greatly in terms of altering procedures and strategies.
Political factors significantly affect how a business runs and how it operates and the possi-
bility to alter some strategies in order to promote growth.
2018, has been a worry sum time for investors as they believe that they are heading for a
recession. Following the annual report provided by Toyota it shows that in 2017 they had
strategy in regard to different stages of the business cycle. These factors will heavily deter-
mine how, if and why Lexus would alter its strategy.
The growth of Lexus in the future, relies on economic growth. Lexus plans to expand the
production and sales of the Lexus models. If Lexus is able to sell more cars, the assump-
tion is that they would be open to increase their production capacity and hire more skilled
employees and generate more profit. By generating an increased profit, Lexus would be
able to invest in new opportunities, such as their development in electric cars which would
keep them ahead of their competition and give them a competitive edge, which would in
the future open its doors to new customers.
In a period of recession, Lexus needs to ensure, it can safeguard the company and de-
crease the amount of loss it could potentially have. Taking precautionary methods such as,
decreasing overheads and production and slightly increase prices, could help the company
continue to profit during a period of recession. Lexus however were not severely affected
by the 2008 -2009 recession, thus giving reason to believe that Lexus would not be af-
fected if there was another recession in the near future. The Japanese government has
implemented some ideas for strategies to help prevent the consequences of a recession
such as;
● Ageing Population: With the heavy increase of the ageing population, the Japanese
government could introduce, wages based on productivity, as this will allow the el-
derly to find jobs based on experience, and receive pay for the amount of work they
do.
● Female Participation: Most women start working when finished with schooling and
university, however majority leave work after having a child to look after the baby.
Lexus could introduce a nursery for the employees of the employees working at
Lexus, to help support the employees of Lexus.
Different factors, impact a business greatly in terms of altering procedures and strategies.
Political factors significantly affect how a business runs and how it operates and the possi-
bility to alter some strategies in order to promote growth.
2018, has been a worry sum time for investors as they believe that they are heading for a
recession. Following the annual report provided by Toyota it shows that in 2017 they had
