Toyota Case

Topics: Toyota, Toyota Production System, Strategic management Pages: 12 (3910 words) Published: February 21, 2011
This report examines the international expansion of Toyota Motor Corporation, the largest auto manufacturer in the world employing over 300,000 staff in its plants worldwide. A review of the relevant literature done first after which it goes on to explain the major expansions conducted by Toyota. The report moves on to discuss Toyota’s new global business plan strategy by Toyota in order to alleviate conflicts and promote international expansion before moving on to an analysis of the literature review with regard to Toyota’s strategy. Finally, a brief discussion of Toyota’s core competencies have been discussed after which it examines Toyota in the current era. In the end, the appropriate reference is provided.

Table of Contents
Literature review4
Bartlett and Ghoshal (1989) –4
Porter’s Diamond Model (1990)6
Yip’s (1992) Framework8
Toyota’s expansion abroad9
New Global Business Plan11
Bartlett and Ghoshal (1989)13
Porters Diamond Model13
Yip’s 1992 framework14
Core competence15
Toyota at present16

Toyota Motor Corporation, headquartered in Japan is a multinational corporation that employs approximately 320,000 employees at its peak in over 50 manufacturing plants worldwide. Founded in 1937 by the Toyoda family and with the help of current CEO – Katsuaki Watanabe, Toyota was able become the world’s largest automaker in terms of vehicle sales worldwide. In addition to the sales of Toyota vehicles, it also includes the sales of sports utility vehicles under the brand name Lexus. Toyota Motor Corporation also encompasses several subsidiaries such as Daihatsu motor Co. (Daihatsu) and Hino Motors Ltd (Hino). Toyota also increases its revenue through the manufacture of automotive components and accessories. Currently Toyota’s major manufacturing plant include facilities in Japan, US, Canada, France, UK, China, Australia, Brazil, South Africa, Taiwan and India. Toyota Motor Corporation’s global sale in 2007 was 9.018 million vehicles, while General Motors (GM) produced 9.18 million worldwide. Toyota was behind GM in 2007 by only 162,000, however in terms of profitability, Toyota has long beaten GM. The rationale behind Toyota’s booming sales are due to its good image concerning its reliability and ecological technology. Toyota vehicles such as Yaris, Corolla and the gas electric hybrid Prius are big hits within automotive industry because of surging gas prices. Toyota Motor Corporation however, faces many challenges when operating on a global scale. In spite of its commitments to expand internationally, Toyota faces many challenges. In the second quarter of 2004, its revenue fell from ¥ 301.9 billion in its previous year to ¥ 297.4 billion. Toyota presents its financial information in Yen, even though it reports earnings according to the US GAAP, due to its active presence in the global market. Toyota continuous to be an eminent company today, expanding rapidly across different countries, with the support of its strong financial position and low cost high quality products. Currently the Toyota production system also known as Toyota way, comprises of what is known as “lean production system” or “just in time manufacturing system”. This production system has come to be well known around the world, and has been adopted by many companies in Japan, within automotive industries as well as other production activities. Toyota production system has been adopted on the basis continuous improvements, with the purpose of creating the vehicle ordered by customers in the quickest and the most efficient way, so that the product could be delivered to the customer quickly and in its highest quality. Literature review

In order to analyse Toyota’s international expansion strategy, a brief review of literature will be discussed. Bartlett and Ghoshal (1989) – considered a typology incorporated by the dimensions of...
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