Executive Summary: This report provides a detailed company description of the giant automaker Toyota Motor Corporation (TMC), along with an in depth analysis and evaluation of their logistics, marketing, human resource management and international strategy. What is currently being questioned is the allowance of TMC to cross our borders and begin operations within our country. After reviewing all evidence found for and against allowing TMC to enter our nation, it was made clear that TMC provides many opportunities for economic growth and ultimately a higher standard of living. It is strongly recommended that Toyota Motor Company and all their business and operation activities be permitted and granted access to our country.
Company Description: Toyota Motor Corporation (TMC) is a multinational automaker based out of Japan. Founded in 1937 by Kiichiro Toyoda, TMC has become the world largest automobile company reclaiming its title at the end of 2012, surpassing once again General Motors. Selling 9.75 million vehicles worldwide and obtaining revenues of $178.4 billion in the company experienced an net revenue increase of 26% in 2012 compared to the previous fiscal year. It is expected that in 2013, revenues will continue to increase to an impressive $226.5 billion (Mississippi Business Journal 2013).
TMC headquarters are located at 1 Toyota-Cho, Toyota City, Aichi Prefecture 471-8571, Japan and employs over 325,000 (consolidated) worldwide (Toyota Motor Corporation Global). The companies main ventures are the production and sales of motor vehicles with its main brands including Toyota, Lexus and recently added, Scion. Spanning every continent, Toyota undergo operations worldwide totaling 170 countries.
At the turn of the 21st century TMC obtained the title as the largest automaker in the world. In years following, including the 2008 financial crisis, it continued to battle for this top spot with its North American based rivals GM but in recent years was able to stay strong and take a big leap ahead (The Wall Street Journal) 2013. It has also sparked global attention for being the first to mass produce hybrid (gas-electric) vehicles such as their “Prius” model, selling over 1.7 million (Auto123 2009), and truly pushing change in the automotive industry to become a more environmentally friendly and eco-friendly industry worldwide.
Company International Strategy: Toyota's success in both the Japanese and international auto market is mainly due to its core values and constant desire to make a higher quality product. The company base their attitude on a single word: “kaizen”, which means “continuous improvement”. This attitude relates and is based from Japanese ideologies that no product is so good that there is no room for improvement. ”Kaizen” is an integrative strategy, which means a cross-functional strategy that appoints the gradual improvement, management and continuous business activities and the parameters of quality, productivity and competitiveness, with direct involvement of all staff.
The need to compete with international competitors like GM and Ford forced Toyota to look for greater cost economies. The desired cost economics was achieved at the end of the 20th century when TMC strategically chose to reduce its 20 vehicle platforms down to 10. Building a wide range of models from few platforms allowed the company to dramatically allow increase the supply and availability along with the consistently of parts, supplies and finished products(Hara 2004).
Regarding the global problem of pollutant emissions, Toyota spends over $8 billion annually in research and development (USA Today 2009). Exploring simultaneously a variety of solutions for designing less polluting vehicles, Toyota has committed to develop hybrid systems as a basic factor in manufacturing clean technology cars, combining different sources of power. It has made significant progress in designing engines that use alternative energy...
Please join StudyMode to read the full document