• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Why did Derbyshire and Flintshire prove to be such an attractive proposition for Toyota?

Extracts from this document...


Why did Derbyshire and Flintshire prove to be such an attractive proposition? Toyota Motor Manufacturing (UK) Ltd. - "Derbyshire were offering a site of almost 600 acres at Burnaston - about 7miles from Derby city centre - on a relatively flat and easy to develop piece of land. The site chosen for engine production was the right size and shape on a well prepared industrial park 7 miles from Chester. Both locations offered good transportation links to all parts of the UK and Europe. We were made aware of the availability of a large skilled and flexible workforce close with strong roots in engineering and manufacturing and a first class environment in which to live and work. The local authorities also showed great enthusiasm and willingness to assist. The sites not only provided and effective infrastructure to enable us to operate i.e. electricity, gas, water, telephones but also business and personnel support services to help the Company and its people to integrate into the local communities." When choosing a location the firm ultimately looks at cost, (least-cost site). This concept is the idea of choosing a location that allows a firm to minimise its costs and hence its selling price. All the factors they will examine directly or indirectly will be linked to this factor. ...read more.


Also the further away from London the cheaper the land cost. As you can see where the Toyota plant is located far enough away to benefit from reduced wages, land costs, transport etc. but to still have adequate links with transport hubs, airports stations, and ports. In their Derbyshire location Toyota invested �1.15 billion and acquired a 580 acre plot, adequate to reach production levels of 282,215 vehicles. The concept here is economies of scale, Derby offered this amount of land and Toyota have been able to reach production levels high enough to create a low unit cost. Distances of airports from Derby by road Miles Time (hrs/mins) Nottingham East Midlands Airport 10 0.15 Birmingham Airport 44 1.00 Manchester Airport 75 1.30 From Derby to Ports by road Miles Time (hrs/mins) Boston, Lincolnshire 72 1.20 Goole Docks, East Yorkshire 72 1.20 Mersyside, Garston Docks 85 1.40 Port of Hull, Kingston Upon Hull 94 1.45 Immingham, Lincolnshire 95 1.45 Fleetwood Docks, Lancs 121 2.20 Bristol, Avonmouth Docks 134 2.25 Southhampoton, Town Quay 172 3.20 Felixstowe Docks, Suffolk 175 3.15 Dover, Kent 215 3.50 Toyota is a Japanese firm and hence it will be very important to have Japan accessible for personnel reasons. Senior management will need to be able to stay connected with the plant to keep the firm focused. ...read more.


For example the labour skills with the skills necessary for this particular industry, this reduces training costs. Specialist training facilities, so that travel is reduced for training needed. Infrastructure that is directed towards that particular industry for example specialist transport facilities (heavy load lorries for metals needed for car manufacturing). Customer base locally, means you are close to the customers, especially important for design to give the customer what they want (the Yaris was designed specifically for the British consumer for their specifications and was very successful). The reputation of the area also means customer trust however in the Toyota case the brand name is far more valuable. However this can also be a negative point - external diseconomies of scale. Congestion of lorries can mean pollution hence poorer quality of life and more time consumer travel for example what the London area is suffering from - solved through expensive congestion charging. Derby attracted Toyota not just because of the statistics showing infrastructure, available land and skills but because of the enthusiasm of the council. There is a lot of information and contact numbers available on their website, which was also advertising grants and general help for businesses this suggests they were willing to accomidate Toyota in return for the jobs and wealth brought to the area, I think this would have been a hugely deciding factor for Toyota to locate to Derbyshire over other UK locations. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Structures, Objectives & External Influences section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Structures, Objectives & External Influences essays

  1. Businesses choose the location for their business for many different reasons. Depending on the ...

    To provide a charitable service: Charities don't have an aim to make a profit because they don't earn from the charity. To be environmentally friendly: Companies who deal with harmful substances tand to make an aim to help the environment.

  2. Peacocks - case study

    The fish will be then sold on for processing at the secondary stage. The secondary sector deals with manufacturing, processing, construction, and assembly. This relates to manufacturers of consumer and industrial goods. A paper mill, a carpet factory, and a house builder are all found in this sector.

  1. Free essay

    Environment influences on Manchester Airport

    Climate Change Manchester Airport are also aware of the affects they have on climate change, and have stated that they will continue to reduce emissions of Carbon Dioxide, (CO2). And have set an aim of being carbon neutral for energy use and fuel by 2015.

  2. Business unit 2

    The ticket would also be expensive if only a few people go, as Thorpe Park offer cheaper tickets if lots are ordered at the same time. The main problem with this event is the price it cost per student, which is unlikely that we would get a good result.

  1. Theories of the Firm

    Marris' model is dynamic in the sense that it incorporates growth. Like Baumol's model, it assumes that managers will act to maximise their utilities rather than profits, but in contrast to Baumol, it assumes that this will be achieved through growth rather than sales.

  2. I have chosen to base my assignment on the following two businesses: Sole trader- ...

    Mr Turner decided to sell his business to Errol and also gave him a period of 2 years to pay up the money for the tools and equipment. Errol started up his business by getting some capital from his family, a small loan and a loan from the prince's trust to pay of to Mr Turner.

  1. Sustainability in the Automotive Industry

    examples include ensuring that goods are sourced from an 'environmentally friendly' supplier, reducing and recycling waste and any waste that cannot be recycled ensuring that this is disposed of in the correct way, purchasing the latest technology to ensure that emissions are at a minimum etc.

  2. Applied Business. Investigating a business Preston Manor High School

    In Secondary research, the researchers have the necessary data available. The data are made available through other publications or reports, like newspaper or annual reports of companies. If the researcher is doing secondary research, there is no need to start from scratch; they can use the data or information done by other organizations or publications.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work