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Toyota Motor Company Limited

Extracts from this essay...

Introduction

Toyota Motor Company Limited Term of Reference This report will be focusing on Toyota Motor Company Limited, the world third largest automobile in unit sale and net sale, revealing the following questions: * What are the significant events which have occurred in the automobile industry in the recent years? * How does the event effect the organisation? * What strategies are adopted by Toyota to contribute to the effectiveness of the company? To answer the above questions, the evaluation and critically analyse the business as well as the strategies of Toyota will be examined. Uncovering the stated case study, this report will focus on; the automobile market, Toyota's background and its business, strategies of Toyota in both management and cross-cultural strategies, the recent financial performance of the organisation in domestic and overseas automobile markets, reasons and challenges encouraging Toyota to invest overseas. Company's background Toyota Motor Co. Ltd. (TMC) was first established in 1937 as a separated company from Toyoda Automobile Loomworks, the leading manufacturing of weaving machinery.1 The Toyota Automobile Loomworks was then headed by Sakichi Toyoda, the king of investors. TMC was then founded by Kiichiro Toyoda, Sakichi's son. It has since blossomed into the leader it is today. The giant automaker faced its one and only strike in 1950. This event, however, supplied Toyota an important philosophy, giving it the labour and management system which helped Toyota to gain mutual growth and success in both domestic and overseas markets. Today, this philosophy is very important to the structure of Toyota. Toyota's production system improved in the late 1950s, establishing the 'Toyota Production System.' This system became the major factor in the reduction of inventories and defect in the plants of Toyota and its suppliers. It also underpinned all of Toyota's operations across the world. It launched its first small cars in 1947. The operation outside Japan started in 1959 in Brazil and continued with growing network of foreign plants.

Middle

Progresses have been made to strengthen and provision of economic polices. However, large part of institutionalized capital is likely to play havoc with markets and currencies from time to time. Emerging economies will be particularly vulnerable. Investment is likely to pick up in those nations where Toyota operates that make the most successful and deeply rooted regulatory, legal, finance and corporate reforms Social-Cultural factors According to the management of Toyota "since its establishment, Toyota has been aiming to enrich society through car making ,with the intention of winning the trust and respect of the international community to maintain stable long term growth while striving for harmony with people, society and environment. This hydrous task is summarily a battle with society and culture, the challenge Toyota has taken up with its global vision 2010. Toyota going global combined with changing demographics_ aging societies in advanced economies and growing numbers of young people in emerging ones will require companies as never before to pursue multicultural human resource policies and facilitate the international mobility of their best talent. To improve consumer and social confidence, Toyota has put greater emphasis on transparency regarding information on the product and services, the environmental practices, treatment, workers, support for civic activities and political contributions of their company to enable the customer judge a company's behaviour and its business principles. Technological factors In addition to physical and societal factors faced by Toyota, the company is also faced with competitive and technological factors which affect the smooth running operations of the company. Porter's approach to industry analysis Michel Porter, an authority on competitive strategy, contends that a corporation is most concerned with intensify of competition within its industry. The level of this intensity is determined by basic competitive forces. "The collective strength of these forces", he contends, "determines the ultimate profit potential in the industry, where profit potential in the industry, where profit potential is measured in terms of long run return on investment capital".

Conclusion

** Simple average of monthly highs and lows Footnotes 1 "History." [online] (cited 6 February 2003) Available from <URL://www.toyota.co.jp/IRweb/corp_info/history/main.html> 2 "R&D Locations." [online] (cited 6 February 2003) Available from <URL://www.toyota.com/about/operations/design-rd/locations/index.html> 3 "Automakers" [online] (cited 24 March 2003) Available from <URL://www.autoadvisor.com > 4 "Business Review" [online] (cited 14 March 2003) Available from <URL://www.toyota.co.jp/IRweb/invest_rel/annualreport> 5 "Business Review" [online] (cited 14 March 2003) Available from <URL://www.toyota.co.jp/IRweb/invest_rel/annualreport> 6 "Business Review" [online] (cited 14 March 2003) Available from <URL://www.toyota.co.jp/IRweb/invest_rel/annualreport> 7 "Business Review" [online] (cited 14 March 2003) Available from <URL://www.toyota.co.jp/IRweb/invest_rel/annualreport> 8 "Business Review" [online] (cited 14 March 2003) Available from <URL://www.toyota.co.jp/IRweb/invest_rel/annualreport> 9 "Business Review" [online] (cited 14 March 2003) Available from <URL://www.toyota.co.jp/IRweb/invest_rel/annualreport> 10 "Business Review" [online] (cited 14 March 2003) Available from <URL://www.toyota.co.jp/IRweb/invest_rel/annualreport> 11 "Business Review." [online] (cited 6 February 2003) Available from <URL://www.toyota.jp/IRweb/invest_relreport/annual_report02> 12 "Interview with the President." [online] (cited 6 February 2003) Available from <URL://www.toyota.co.jp/IRweb/invest-Rel/annualreport> 13 "Automotive Operations." [online] (cited 6 February 2003) Available from <URL://www.toyota.co.jp.IRweb/invest_rel/annualreport> 14 "Business Review." [online] (cited 6 February 2003) Available from <URL://www.toyota.jp/IRweb/invest_relreport/annual_report02> 15 Japanese cars in Thailand cost around 400,000 Baht - 500,000 Baht whilst American and European cars price around 650,000 Baht - 1,000,000 Baht (£1 = 68 Baht). 16 "Interview with the President." [online] (cited 6 February 2003) Available from <URL://www.toyota.co.jp/IRweb/invest_rel/annualreport> 17 "Major overseas subsidiaries." [online] (cited 6 February 2003) Available from <URL://www.toyota.co.jp/IRweb/navi_ci_cp.html> 18 "Outline of Toyota." [online] (cited 6 February 2003) Available from <URL://www.toyota.co.jp/navi_ci_cp.html> 19 "Major overseas subsidiaries." [online] (cited 6 February 2003) Available from <URL://www.toyota.co.jp/IRweb/navi_ci_cp.html> 20 "Jobs Offer." [online] (cited 19 March 2003) Available from <URL://www.toyota.astra.co.id/about/jobs.asp> 21 Thais celebrates their National Day and Father Day on His Majesty the King's birthday which is on December 5 of every year. The government encourages all government and private organisations to send representatives to attend the celebrating parade to show royalty to the King. 22 "Civic Community." [online] (cited 12 February 2003) Available from <URL://www.toyota.com/about/community/civic_communication/index> 23 "Interview with the President." [online] (cited 16 March 2003) Available from <www.toyota.co.

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