1. Strategic Audit Laura Beatty Terry Bridges Susannah Fletcher Emily Moss

2. Agenda Industry Overview Background of Toyota  Current Issues/Recalls  Business Model  Financial Analysis Recommendations Implementation Process Questions & Comments

3. Automotive Industry Industry OverviewToyota BackgroundRecommendationsImplementation Porter’s Five Forces  Threat of new entrants High start-up cost  Power of Suppliers Susceptibility to large automakers  Buyer Power Cheaper Alternatives  Availability of Substitutes Choice of transportation  Competition Price Deals, Rebates, Warranties “Going Green”

4. Current Recalls Industry OverviewToyota BackgroundRecommendationsImplementation Floor Mat Pedal Entrapment Sticking Acclerator Pedal Anti-Lock Brake System Vehicle Stability Control System Date of RecallSeptember 29, 2009January 21, 2010February 8, 2010April 19, 2010 Toyota 2007-2010 CamryCertain 2009-2010 RAV4*2010 Prius 2005-2010 AvalonCertain 2009-2010 Corolla* 2004-2009 Prius2009-2010 Matrix 2005-2010 TacomaCertain 2007-2010 Camry* 2007-2010 TundraCertain 2010 Highlander* 2008-2010 Highlander2007-2010 Tundra 2009-2010 Corolla2008-2010 Sequoia 2009-2010 Venza 2009-2010 Matrix Lexus 2006-2010 IS 2502010 GX 460 2006-2010 IS 350 2007-2010 ES 350 *Highlander hybrids and Camry hybrids are not involved in this recall. Further, Camry, RAV 4, Corolla and Highlander vehicles with VINs that begin with “J” are not involved.

5. Business Model Industry OverviewToyota BackgroundRecommendationsImplementation Operations Markets Toyota’s Global Strategy Mission Statement “To attract and attain customers with high-valued products and services and the most satisfying ownership experience in America.” Competitive Advantage

6. Financial Analysis Industry OverviewToyota BackgroundRecommendationsImplementation Toyota Honda General Motors Daimler Chrysler Ford S&P 500

7. Hire PR Company DB Media Strategies, Inc. Industry OverviewToyota BackgroundRecommendationsImplementation Areas to Address:  Humble apology  Combat inaccurate information  Project message to larger audience Cost:  Minimum of $5,000 per month  Dependent on company’s budget and needs Specialization Areas:  Media Training  Media Management  Speech, Editorial, & Presentation Training  Public Relations  Strategic Communications  Crisis Communication 4 Main Attributes:  Straight Talk  Honesty  Collaboration  Provide good work at good price

8. Incentive Program Industry OverviewToyota BackgroundRecommendationsImplementation Extend Warranty o Basic 60 month/60,000 miles o Powertrain 60 month/100,000 miles Free cleaning & detailing o Unified effort among all dealers o More satisfaction Cash rebate o More incentive to stay o Show customers they care

9. Industry OverviewToyota BackgroundRecommendationsImplementation Timeline & Cost TimeAction: PRAction: IncentivesCost Month 1 Hire PR company Select appropriate workshops and programs Draw up plans for extended warranty Plan for cleaning Plan for cash rebates Min. $5,000.00/mo Workshops $6,000.00- $10,000.00 Month 3 Evaluate results Implement additional workshops/programs if needed Advertise all new incentives on Toyota’s website Send out letters to all recalled vehicle owners <$0.50 per letter Month 6 Reevaluate Implement warranty to all recalled vehicles Start rebates for all recalled Toyota owners Start washing and detailing 0% financing for 60 months plus $1,000.00 cash back per recalled vehicle (must be current and original owner) $8.00 per vehicle Month 9 Continue contact Evaluate customer reactions Monitor blogs, press, consumer reports, & ratings 1 Year Continue contact Make necessary changes

10. Questions & Comments

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