Preview

International Business: Toyota

Powerful Essays
Open Document
Open Document
3708 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
International Business: Toyota
Company Overview

Company Name
Toyota Motor Corporation

Head Office
Toyota, Aichi, Japan

Established
1933 by Kiichiro Toyoda

Chairman
Fujio Cho

President
Katsuaki Watanabe

Revenue
USD$173 Billion (2005)

Total Number of Employees
285,977 (March 2006)

Subsidiaries
Toyota Financial Services, Daihatsu Motor Co., Ltd., Hino Motors, Ltd., DENSO, Toyota Industries

Industry
Automobile manufacturing, Financial services, Biotechnology

Products
Toyota, Lexus and Scion

Slogan
Toyota Moving Forward (It’s time to Move Forward)

Global position
8th largest organization
2nd largest in automobile industry

Toyota Motor Corporation, a Japanese MNC, or widely known as Toyota markets vehicles to over 170 countries. Toyota’s automotive business, including sales finance, accounts for more than 90% of the company’s total sales. In March 2006, Accountancy Age reported that Toyota (fiscal years ended 31 March) had already sold almost 8 million vehicles worldwide. Diagram below shows Toyota annual global production from 2002 to 2006. Annual sales had been climbing steadily with the latest global sales hitting at 7,974,000 units (Toyota, 2006).

Diagram 1: Toyota’s Annual Vehicle Production. Fiscal years ended March 31. Source: Toyota Financial Highlights

Toyota Motor Corporation operates under the basic principle of ‘kaizen’. The Japanese word ‘Kaizen’ means continuous improvement. In step with kaizen, Toyota Production System (TPS) was established to monitor the continuous improvement Toyota has in mind for their corporate expansion. The essence of Toyota’s production control system is simply focused on to provide the best quality, lowest cost and shortest lead time through the elimination of all non-manufacturing wastes. This is instilled in all aspects of Toyota’s production (Toyota Vision and Philosophy, 2006).

Back in the 1950s, Toyota’s industrial production was substantially below its pre-war peak at only 10,000 trucks.


References: Bodek, N., 2004. Kaikaku: The Power and Magic of Lean. Vancouver: PCS Press. Kaizen, 2005. The principle of ongoing improvement. [online]. The Value Chain, 2006. Strategic Management. [online]. Toyota Up Close, 2006. Quarterly Highlights. [online]. Toyota Production System, 2006. Vision and Philosopy. [Online]. Hohmann, C., 2005. Principle of ongoing improvement. [online]. Kaizen. Just In Time and The Toyota Production System. 2000. [online]. Time, Toyota Production System and Lean Manufacturing. Norman Bodek Interview. 2005. Taiichi Ohno: Pioneers of Lean Manufacturing. [Online]. PCS Press Inc., 2005. Kaizen. [Online]. The Age. 2006. Breaking News: Toyota overtakes Ford in US car sales. Australian Associated Press. [internet]. 4 December Available from: http://www.theage.com.au/news/Business/Toyota-overtakes-Ford-in-US-car-sales/2006/12/04/1165080856648.html Toyota Production System, 2005. South West Manufacturing Advisory Service. (online image). Briefs. 2006. Toyota to boost retail efforts. [online]. Available from: http://www.sinomedia.net/eurobiz/v200608/briefs0608.html [cited on: 14 Dec 2006] Fujimoto, T., 1998 Mainichi Daily News, 2006. Toyota aims to expand grow sales in Asia-Pacific but seeks market opening. [internet]. November 14. Mainichi Daily News, 2006. Toyota says it’s targeting China, India in quest to grab market share. [online] November 13. Tan, P. 2006. UMW Toyota to manufacture cars locally. [online]. Tierney, C., 2006. Cracking China’s car market. The Detroit News. [online]. Dec 5 Available from: http://www.detnews.com/apps/pbcs.dll/article?AID=/20061205/AUTO01/612050383 [cited on: 14 Dec 2006] Toyota, 2006 Xinhua, 2006. China, Japan start forum on energy saving cooperation. [internet] Updated: 29 May 2006. Arnold, W. 2003. The Japanese Automobile Industry in China. [online]. AsiaWeek, 1996. Autocrat. [online]. Masaki, H., 2006. Japan’s auto makers focus on key markets. Asia Times [online] Jun 2. Peterson, P. 2006. How China Can Break Down America’s Wall. [online].
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    Fordism Detailed and Referenced
    • 6914 Words
    • 28 Pages

    Fordism Detailed and Referenced

    Womack, J., Jones, D. and Roos, D. (1990) The Machine That Changed the World New York: Macmillan. (Prescriptive and atheoretical account of the Toyota production system and its application across all sectors of industry).…

    • 6914 Words
    • 28 Pages
    Powerful Essays
    Read More
  • Best Essays

    Operations Improvement Plan
    • 1643 Words
    • 7 Pages

    Operations Improvement Plan

    Toyota is one of the leading manufacturers of vehicles in the United States and across the globe. Toyota is ranked #55 in Forbes, World’s Biggest Public Companies, and capturing sales of 202.8 billion and a market cap of 137.8 billion as of March 2011 (Forbes.com, 2011).” Founded in 1937 in Japan, Toyota now employs 320,590 with operations all over the world (Forbes.com, 2011). “Recognizing a growing market in the United States, in 1957 Toyota established its first sales, marketing and distribution subsidiary in the U.S. called Toyota Motor Sales Inc. (Gretto, M., Schotter, A., & Teagarden, M. 2009, p.2).” Over the years Toyota has manufactured and sold vehicles all over the world and is a leader in innovation and technology. However, in recent years Toyota has faced many setbacks that have consumers concerned about their safety and have Toyota looking for a way to get back their credibility.…

    • 1643 Words
    • 7 Pages
    Best Essays
    Read More
  • Better Essays

    Mngt2001 Final Essay - Toyota Business Strategy
    • 1977 Words
    • 8 Pages

    Mngt2001 Final Essay - Toyota Business Strategy

    This report contains a strategic profile of Toyota, containing a strategic analysis of the company.…

    • 1977 Words
    • 8 Pages
    Better Essays
    Read More
  • Better Essays

    Channel and Pricing Strategies
    • 1213 Words
    • 5 Pages

    Channel and Pricing Strategies

    Team C chose Japan as its international market because of its increase in production, sales, and exports. Japan has been supportive of Toyota products, selling over millions of units within the past year. The reason for this increase is because of the availability of cars that Toyota offers, providing superior gas mileage and a compact structure. For example, cumulative sales in Japan of its hybrid vehicles have sold more than half of the units produces globally, which marks more than one million vehicles sold (Toyota News Releases, 2010). In July alone, Toyota has seen a major increase in the production, sales, and exports on an average of 14.1% (Toyota News Releases, 2010). The sales in Japan are at its 12th consecutive month of increase with Lexus-vehicle sales at 37.1%, and the share market at…

    • 1213 Words
    • 5 Pages
    Better Essays
    Read More
  • Powerful Essays

    Creating Sustainable Competitive Advantage: the Toyota Philosophy and Its Effects
    • 1190 Words
    • 5 Pages

    Creating Sustainable Competitive Advantage: the Toyota Philosophy and Its Effects

    Although many other Asian automobile manufactures have earned a reputation for building high-quality cars, they have been unable to overcome Toyota's advantages in human resource management, supplier networks and distribution systems in the highly competitive US market.…

    • 1190 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Late Mover Advantage
    • 374 Words
    • 2 Pages

    Late Mover Advantage

    But Toyota’s strategy of “Late Entry” in China back-fired, the largest growing auto market in the world. Toyota entered China in 2002 through a JV.…

    • 374 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Toyota Operations Improvement Plan
    • 2274 Words
    • 10 Pages

    Toyota Operations Improvement Plan

    As Toyota established itself in the US automotive industry, other players watched in admiration as Toyota plants around the world boasted consistent production of higher quality cars, fewer worker-hours, lower inventory, and fewer defects than any other competitor (Duvall, 2008). Many credited Toyota’s continued success and its ability to roll a new Camry, Avalon, or Solara off of the assembly line every 55 seconds to its application of its core competency, the Toyota Production System (TPS) (Duvall, 2008). Among the various characteristics of this system that made it a success were concepts such as just in time production, real time defect monitoring and correction, waste reduction, and other process knowledge that offered Toyota a sustainable competitive advantage. Toyota’s unrelenting approach in manufacturing was eventually recognized simply as “The Toyota Way”.…

    • 2274 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Report of Toyota Prius Sales Forecast
    • 8611 Words
    • 35 Pages

    Report of Toyota Prius Sales Forecast

    Toyota Motor, the world's largest automotive manufacturer (overtaking GM in 2008), designs and manufactures a diverse product line-up that includes subcompacts to luxury and sports vehicles, as well as SUVs, trucks, minivans, and buses. Its vehicles are produced either with combustion or hybrid engines, as with the Prius. Toyota's subsidiaries also manufacture vehicles: Daihatsu Motor produces mini-vehicles, while Hino Motors produces trucks and buses. Additionally, Toyota makes automotive parts for its own use and for sale to others. Popular models include the Camry, Corolla, Land Cruiser, and luxury Lexus line, as well as the Tundra truck. Asia generates almost 40% of sales.…

    • 8611 Words
    • 35 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Toyota Bussiness Analisis
    • 3123 Words
    • 13 Pages

    Toyota Bussiness Analisis

    Toyota Motors is one of the leading automobile manufacturers in the world, is engaged in the manufacture and sale of motor vehicles. The company also participates in the financing of sales and other businesses. Toyota sells its vehicles in more than 170 countries and regions worldwide. The main markets are Japan, North America, Europe and Asia. It is headquartered in Toyota City, Japan and employs 320,590 people.…

    • 3123 Words
    • 13 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Vcm-Toyota
    • 2137 Words
    • 9 Pages

    Vcm-Toyota

    Over the last 30 years, Toyota Motor Corporation has become one of the top three global car companies, alongside General Motors (US) and Ford (US). Its rise centres on twin strategies related to operations and marketing. This case study concentrates mainly on its operations successes but also touches briefly on marketing, since the two areas are interlinked. The Toyota operations strategies have been copied around the world, though rarely with the same success.…

    • 2137 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Toyota Production System
    • 1774 Words
    • 8 Pages

    Toyota Production System

    From national to global  The forces of democracy, trade deregulation or free trade area, and technology changed - Increased competition…

    • 1774 Words
    • 8 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Process Identification
    • 1547 Words
    • 7 Pages

    Process Identification

    Toyota realized that there was a great growth opportunity in the United States; therefore, they set up their first sales operations inside the U.S. in the late 50’s. As the company contended with strong trade regulations and other difficulties to imports imposed by the U.S. government, they decided to pursue setting up manufacturing plants and sales and engineer divisions within the U.S.…

    • 1547 Words
    • 7 Pages
    Better Essays
    Read More
  • Powerful Essays

    Automotive Industry and Toyota
    • 4820 Words
    • 20 Pages

    Automotive Industry and Toyota

    The term paper consists the information about automobile market, Toyota 's background and its business, strategies of Toyota in both management and cross-cultural strategies, the recent financial performance of the organization in domestic and overseas automobile markets, reasons and challenges encouraging Toyota to invest overseas.…

    • 4820 Words
    • 20 Pages
    Powerful Essays
    Read More
  • Best Essays

    Toyota V.S Ford
    • 4767 Words
    • 20 Pages

    Toyota V.S Ford

    Toyota stepped into the national spotlight in the 1980’s when people started to realize that there was something different about their vehicle. What stood out most was the…

    • 4767 Words
    • 20 Pages
    Best Essays
    Read More
  • Powerful Essays

    Toyota Motor Corporation
    • 2777 Words
    • 12 Pages

    Toyota Motor Corporation

    Toyota Motor Corporationis the largest Japanese automobile manufacturer as well as one of the largest automobile companies in the world. It was initially established in 1933 as a part of the Toyoda Automatic Loom Works, Ltd. Later in 1937, it was named as the Toyota Motor Co. Ltd. Toyota established many related companies or business units, some of which are Toyota Machines Work Ltd. and Toyota Auto Body Ltd. In 1982 such business units were incorporated and the company was known as Toyota Motor Corporation.…

    • 2777 Words
    • 12 Pages
    Powerful Essays
    Read More

Related Topics