International Business- Toyota

Topics: Toyota, Toyota Prius, General Motors Pages: 9 (3032 words) Published: December 20, 2010
INTERNATIONAL BUSINESS
2010

STUDENT NAME: KAPIL TAK
STUDENT CODE: 10096078
UNIT: INTERNATIONAL BUSINESS
UNIT CODE: INB 5607
LECTURER: MR. MAINA KIMATO
ASSIGNMENT: HOW TOYOTA BEAT GENERAL MOTORS TO BECOME THE LARGEST AUTOMOBILE MANUFACTURE IN THE WORLD AND THE CHALLENGES TOYOTA WILL FACE DUE TO THE ECONOMICAL AND FINANCIAL CRISIS. WORD COUNT: 2495

Table of Contents
1. TOYOTA HISTORY3
2. TOYOTA SUCCESS4
2.1 TOYOTAS CORPORATE CULTURE4
2.2 TOYOTA PRODUCTION SYSTEM5
2.3 SUPPLIER RELATIONSHIP6
2.4 STRATEGIC ALLIANCE7
2.5 SUPERIOR TECHNOLOGY AND QUALITY7
2.6 RE-ENGINEERING8
2.7 STRATEGIES AND CULTURE8
3. CHALLENGES FOR TOYOTA IN THE ECONOMIC AND FINANCIAL CRISIS.10
4. CONCLUSION10
5.0 REFERENCES11

1. TOYOTA HISTORY
Toyota Motor Corporation was founded by Kiichiro Toyoda in 1937. Kiichiro traveled to the United States where he visited a number of automobile production plants and when he returned to Japan, he produced his first prototype vehicle. General Motors and Ford were already operating their assembly plants in Japan, but this did not stop Toyoda to do what he wanted. (Abilla, 2007) Toyoda wanted to develop engines that were highly fuel efficient because of the few natural resources Japan had. In the year 1939 the company established a research center to gather findings on battery powered vehicles. The following year they opened Toyoda works which was founded for the production of both machine tools and auto parts. (Abilla, 2007) Since American Manufactures such as General Motors were concentrating their efforts on medium sized and larger cars, Toyota’s executives thought it was a better idea to deal with small cars to avoid head on confrontation with the big rivals. In 1950 Toyota invested in modern production facilities which increased their efficiency almost immediately. In the year 1980 Toyota was the second larger automobile producer after General Motors. (Abilla, 2007) Besides being in the car industry, they also own Division Toyota Financial Services which plays a crucial role in financial sector and also gives loans and financial assistance to people in need of capital. However Toyota Motors limited also made huge losses of about 5 billion dollars due to internal issues. However this has not tarnished the image of Toyota and it was still in huge demand and consumers were and are still crazy about their cars. (Biswas, 2009)

2. TOYOTA SUCCESS
Toyota has outdone General Motors and replaced them as the world’s largest automobile maker. There are various factors that have enable Toyota to be the leader. They achieved competitive advantage through their corporate philosophy known as the Toyota Production system which depends on human resource policy that demands employee creativity and loyalty as well as their highly efficient network of suppliers and components manufacturers. The Following are various factors that helped Toyota reach the number one spot. 2.1 TOYOTAS CORPORATE CULTURE

One of the reasons why Toyota has succeeded in the global marketplace is because of its corporate philosophy (the rules and attitude that governs the use of its resources.) High productivity helped Toyota Penetrate the world car market and establish a worldwide presence. The company’s approach to both product development and distribution is very consumer friendly and market driven. Toyotas philosophy ensures that the employees are empowered so that they can be creative, seek to continuously improve, and be innovative by encouraging participation among them. This closeness and empowerment has led to the employees of Toyota being very loyal. It is obvious a work place with high morale and job satisfaction is more likely to produce reliable, high quality products at affordable prices, and that is the environment Toyota has managed to create all over the world in all their plants. According to Shimizu (2009), Toyota has succeeded also because it creates contradictions and paradoxes in...

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