The company Toyota Motor Corporation is driven by a vision to be “a model organization”. In pursuit to this ideal Toyota Motor is guided by the principles of Innovation, Quality, Integrity and Simplicity. Toyota Motor is a limited liability and a joint stock company under the Commercial Code and continues under the Corporation Act. Toyota commenced operations in1933 as the automobile division of Toyota Industries Corporation. The company is headquartered in Toyota City, Aichi and the company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota Industries Corporation.
Toyota Corporation remains alert, agile and capable of reshaping the dimensions with globalised customer-driven markets. Toyota Motors Corporation is led by a dynamic and visionary executive team that sets the pace for success through collaborative strategic decision making and by empowering employees at every level to excel both personally and professionally. The company believes that employees are the company’s future; consequently the company invests in employees today by providing continuous training and by creating opportunities for growth and excellence within the organization.
Toyota's management philosophy has evolved from the company's origins and has been reflected in the terms "Lean Manufacturing" and Just in Time Production”. This is instrumental in developing managerial values and business methods and they are known collectively as the Toyota Way. Toyota Motor is located in several manufacturing facilities and they are Argentina, Australia, Belgium, Brazil, Canada, France, Indonesia, Japan, Trinidad, Mexico, Philippines, Portugal, Russian Federation, Thailand, Turkey, United Kingdom, and United States and other various countries.
What is Globalization really? Globalization reflects a widespread perception that the world is rapidly being molded into a shared social space by economic and technological forces. Those developments in one region of the world can have profound consequences for the life chances of individuals and communities on the other side of the globe. It is also extraordinary that despite a vast and expanding literature, there is no comprehensive theory of globalization, nor even a systematic analysis of its primary features.
Every day you hear it on the news and you read it in the papers and in almost every instance the word globalization seems to have a different meaning. The question becomes, should globalization be accepted as the norm and is the region to small to shape, influence and define the outcome or is it destined, because of its peculiarities, to be followers accepting what is given and not seeking to find innovative ways to survive in what the academics are describing as the new globalized world?
Whilst some people argue that the move towards globalization is an exploitation of smaller economies by the richer countries in the world and the intrusion of Western culture and practices on non-Western societies, creating a forced interdependence on the global market, there is this one brutal fact we must face we live in a globalized world, no individual nor country is immune and inevitably we must adapt.
Adelman’s synopsis of the tenets of globalization explicitly describes the influences and characteristics of the concept as it is manifested throughout various factors of the environment which include economic, social, political, technological, cultural, financial and ecological. Evidence appears overwhelming in support that the world today is more ‘globalized’ some scholars argue however, that the world was more integrated before, that more interconnectedness and interdependence existed in the past. Although globalization has touched almost every person and locale in today’s world, the trend has spread unevenly.
It is most concentrated among propertied and professional classes, in the North (industrialized nations), in towns (urban areas), and among younger generations. Globalization has not displaced deeper social structures in relation to production (capitalism), governance (the state and bureaucratic more generally), community (the notion and communitarians more generally), and knowledge (rationalism). But, globalization has prompted important changes to certain attributes of capital, the state, the nation, and modern rationality.
Contemporary globalization has had some important positive consequences with respect to cultural regeneration, communications, decentralization of power, economic efficiency, and the range of available products. But state government policies (pro-market) toward globalization have had many negative consequences in regard to increased ecological degradation, persistent poverty, worsened working conditions, various cultural violence, widened arbitrary inequalities, and deepened democratic deficits. As such, globalization has become identified with a number of trends, most of which may have developed since World War II.
These include greater international movement of commodities, money, information, and people; and the development of technology, organizations, legal systems, and infrastructures to allow this movement. The actual existence of some of these trends is debated. Advantages & Disadvantages of Globalization that affect Toyota Motor Corporation Some advantages of Globalization: Increased free trade between nations Increased liquidity of capital allowing investors in developed nations to invest in developing nations Corporations have greater flexibility to operate across borders Global mass media ties the world greater.
Greater ease and speed of transportation for goods to people Increases in environmental protection in developed nations Some Disadvantages: Increased flow of skilled and non-skilled jobs from developed to developing nations as corporations seek out the cheapest labor Threat that control of world media by a handful of corporations will limit cultural expressions Greater risk of diseases being transported unintentionally between nations Spread of a materialistic lifestyle and attitude that sees consumption as the part to prosperity International bodies like the World Trade Organization infringe on national and individual sovereignty
Benefits of Globalization for Toyota Motor Corporation Increased Competition - One of the most visible positive effects of globalization is the improved quality of products due to global competition. Customer service and the 'customer is the king' approaches to production have led to improved quality of products and services. As the domestic companies have to fight out foreign competition, they are compelled to raise their standards and customer satisfaction levels in order to survive in the market. Besides, when a global brand enters a new country, it comes in riding on some goodwill, which it has to live up to.
This creates competition in the market and a 'survival of the fittest' situation. Employment - With globalization, employment in Toyota Motor is one of the positive and negative effects of globalization, depending on the point of view you wishes to see it from. It has given an opportunity to invest in the emerging markets and tap up the talent which is available there. With developing countries, there is often a lack of capital which hinders the growth within domestic companies and hence, employment.
In such cases, due to global nature of the businesses, people of developing countries too can obtain gainful employment opportunities. But some developed countries have lost jobs on account of this movement of jobs to the developing world. Investment and Capital Flows - One of the most visible positive effects of globalization is the flow of foreign capital. With Toyota Motor there is an abundance of foreign investment, and thus pushes up the reserve of foreign exchange available in for the company and its subsidiaries.
This is also one of the positive effects of globalization in US and other developed countries as developing countries give them a good investment proposition. Foreign Trade - While discussing the positive effects of globalization, how can I leave out the impact of foreign trade on an economy. Comparative advantage has always been a factor even in the old times. While trade originated in the times of early kingdoms, it has been institutionalized due to globalization. Previously, people had to resort to unfair means and destruction of kingdoms and countries to get what they wanted.
Today, it is done in a more humane way, with mutual understanding. People, who operate in uncivilized ways, now have to face the World Trade Organization (WTO) and other world organizations that have been established with a view to control and regulate the trade activities of the countries. Spread of Technical Know How - While it is generally assumed that all the innovations happen in the Western world, due to globalization, the know-how also comes into developing countries due to globalization.
Without globalization, the knowledge of new inventions would remain cooped up in the countries that came up with them and no one else would benefit. But due to improved political ties, there is a flow of information both ways. And this point - the spread of know-how, can also be expanded to include economic and political knowledge, which too has spread far and wide. Spread of Culture - The positive effects of globalization on culture are many! Not all good practices were born in one civilization. The world that we live in today is a result of several cultures coming together.
People of one culture, if receptive, tend to see the flaws in their culture and pick up the culture which is more correct or in tune with the times. The Toyota Corporation has become larger as they welcomed people of other civilizations and backgrounds and created a whole new culture of their own. Different languages and customs have spread all due to globalization. They too have moved from one country to another, leaving an impression on a culture which has adopted them. Impacts on Toyota Corporation The impacts can be linked to various globalization points, both internal and external changes in the system.
Externally, there have been changes in the labor market, which have resulted in calls for more knowledge and skilled workers, and workers with deeper understandings of languages, cultures and business methods all over the world to run a smoother transition to keep up with the rapidly changing globalization. The three factors that can cause consumer demand that vary substantially from year to year in different geographic markets and in individual categories of automobile. The main factors are: Social, political and economic conditions.
Introduction of new vehicles and technologies and Cost incurred by customers of purchasing and operating automobiles The worldwide automotive industry is affected significantly by government regulations aimed by reducing harmful effects on the environment, enhancing vehicle safety and improving fuel economy. Many governments impose tariffs and other trade barriers and price exchange controls as a means of creating jobs. Manufacturers seek to achieve globalization by localizing the design and manufacture of automobiles and their components in the markets.
By expanding production capabilities, automotive manufactures are able to reduce their exposure to fluctuations in foreign exchange rates as well as trade restrictions and tariffs. Toyota believes that it the industry it has the resources, strategies and technologies in place to compete effectively in the industry as an independent company. Toyota’s ability to compete in the global automotive industry will depend in part on Toyota’s successful implementation of ts strategy.
Strategies for Toyota Corporation
Toyota’s corporate goal is to maintain its position as a market leader in the automobile industry and to continue its growth, while enhancing profitability and to do so Toyota must improve its technology, production and marketing. Toyota’s aims are to increase sales by offering a full product lineup, including models directed at specific markets. Key initiatives are essential for increasing competiveness in the global automotive market and to improve profitability and growth. Toyota is known for being a long term leader in automotive research and development.
Toyota focuses on promotion of environment sound technologies, product safety and information technologies and is focusing its initiatives. Having leadership and technologies was the introduction of the Prius to the Japanese market in 1997; it’s a hybrid car that runs on gasoline and electric power. Toyota also promotes the development of advanced technologies through alliances with other major manufacturers. Research shows that Toyota Corporation made an alliance with Exxon Mobile Corporation for the development of fuel with future power sources.
Volkswagen also joined alliances with Toyota Corporation as navigation technologies. In the year 2006, Toyota entered an alliance with Isuzu Motors to generate synergies in production of diesel engines. Toyota plans to improve operating efficiencies by continuing to pursue aggressive cost reduction programs. Some of those cost reduction plans are to improve product development and standardize electronic structure and infrastructure. Also, continuing collaborative research in projects to help optimize use of capital.
Some of Toyota’s major markets are Japan, North America, Europe and Asia. The Japan market continues to be the most important market for Toyota automotive products. Toyota produces automobiles through more than fifty (50) manufacturing companies in twenty-six (26) countries. Some manufacturing plants in Japan, United States, Canada, United Kingdom, France, Turkey, China, Taiwan, South Africa, Australia, Argentina and Brazil. In recent years Toyota increased its production capacity outside Japan, this would then increase in overseas production capacity.
Toyota have several regulations and standards, water and air pollution the noise regulation and the vibration control and the recycling of the end if life vehicles. A major concern to Toyota is the market risk in foreign currency exchange rates, interest rates and certain commodity and equity prices. Toyota faces strong competition from automobile manufacturers, having competition is likely to further intensify globalization in the automobile industry. Some factors affecting the competition are product quality and features innovation, pricing, reliability, safety, fuel economy and customer service.
Having increased competition may lead to lower vehicle sales and increased inventory, which may result in a further downward price pressure and this, may affect Toyota. Toyota’s ability to maintain its competitiveness will be fundamental to its future success in existing in new markets. Economic conditions in major markets are particularly important as demand may also be affected factors directly impacting automobile pricing and cost of purchasing and operating automobiles. The worldwide automotive industries have various laws and governmental regulations, especially for vehicle safety and environmental matters.
Other risks include political and economic instability, natural calamities, fuel shortages, interruption in transportation systems and labor strikes. Toyota maintains an overall risk strategy to ease fluctuations in interest rates and currency exchange rates. As a result of Toyota’s business plan to further localize its global operations, the number of Toyota’s employees in different countries has generally been growing over the last several years. Although, the global trends that cost Toyota more money, the increase in oil and gas prices also has an unseen effect.
As much as all countries complain about the increase in these prices, it is something that cannot be solved and for which we will continue to pay higher prices. Gas and oils is a major necessity for all, it is everything used and needed in the economy. Toyota Corporation are seeing changes occurring rapidly in the global environment, these pressure competition and the accelerated awareness of consumers for goods and services occurs as the populace becomes more educated on the choices, bargaining power and consumerism.
This means that competing with the existing would market; the products must be of the best quality and also improve the lifestyle. Already the economy recognizes an important initiative for the effectiveness of the Caricom Single Market and Economy (CSME) to withstand the forces of globalization is the establishment of Regional Standards to equip the region and ensure a high quality of products and services to compete effectively on the world market.
Conclusion
The continuous global trends are unseeingly affecting all businesses throughout the economy. These global trends cause a constant need to accommodate, which is applying more costs and frustration to all business. The global affects that people are unaware of are what is slowly bringing down businesses in this economy. Along with tending to the extra costs incurred from globalization, businesses still have to focus on fulfilling customers expectations in order to improve satisfaction and increase future business.
Outsourcing opens doors for many businesses to gain access in a foreign market, but not all businesses can handle and maintain activity in these roughing economies. Toyota’s global strategic car types are successfully created to meet the global fashion. It meets all requirements of a modern car production. Toyota has been steadily boosting sales in recent years at a pace that can overtake General Motors as the world’s Number One (1) auto maker in vehicle sales. Once the company sets goals, it manages to exceed the targets.
