Toyota Motor Corporation|
MGMT 307 Group Project|
Description of Business
Toyota Motor Corporation (TMC) is one of the leading automobile manufacturers in the world. The company has its head office located in Aichi Japan. The company’s business activities include motor vehicle production and sales. The multinational company has manufacturing and assembly plants located all over the world; in North America, Latin America, Asia, Africa, Oceania and Europe. By June 2010, the company had about 320,590 employees located in the company’s branches all over the world. The company was founded in 1937 by Sakichi Toyoda. The company continues with its traditional philosophies that were introduced by the founders of the company. These are providing quality products where quality starts with the customer. The company continues to put customers’ needs in high regard as seen in the slogan, “Rewarded with a smile by exceeding your expectations”. In March 2011, Toyota Motor Corporation launched a new vision that would ensure Toyota to remain the leading company in the industry through quality products, innovation, and through environmentally friendly conditions (Toyota Motor Corporation, 2011). Toyota’s quality assurance is based on the Total Quality Management (TQM) activity. Under TQM, all employees, regardless of where they are located, are taught how to be independent, motivated, and how to apply the philosophies of “Customer First”, “Continuous Improvement”, and “Total Participation” to improve products and services (TMC, 2011). Kaizen (improvement) is applied in all functions of the organization: in human resources, in production, in sustainability, in improving internal processes, and in improving quality in order to meet customer satisfaction. Kaizen is also applied in creating mutual trust relationships with all TMC’s stakeholders. External Environment
Business external environment are those external factors, events and conditions outside the business that may influence operations and activities of the business. These may be cultural issues, politics, government policies and natural environment. These are some of the factors that have affected and may still affect Toyota Motor Corporation. A recent example of a natural environment is the effects of the recent earthquake in Japan. The earthquake interfered with the country’s infrastructure. This will cause delays in the transport of the ordered vehicles from the country as well as possible disruptions in the supply chain. Competition in the motor industry has continued to grow in the last few years. There are more firms coming up in the automotive industry. In addition to this there are rapid changes in automotive technology. This is also influenced by the changing demands by the consumers. Consumer needs keep changing at a high rate. Other factors that may affect the production process will include government policies. A change in taxes in any of the country will affect Toyota’s performance. As such companies in the automotive industry must keep changing the technologically in order to remain competitive. Economic trends may affect Toyotas business performance. The performance of the economy affects consumer’s purchasing power and spending patterns. An example is the recent financial crisis which contributed to Toyota’s negative performance and losses in the year 2009. (There were other factors that contributed to this loss, mainly the vehicle recalls). Changes in foreign currency exchange rates also directly affect Toyota sales or production where the vehicle parts have to be exported or imported.
Toyota’s corporate goal is to “enhance its corporate value by maintaining its position as a market leader in the automotive industry and by continuing its growth through global operations and through products reflecting Toyota’s advanced technology that target the local demand in each market (SEC, p. 9).” In order to achieve its corporate...