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Toyota's social, ethicak and legal implications
Business model of Toyota company
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Is Toyota Motor Corporation worthy of my investment dollars? This company, which has grown steadily since 1926 with a humble beginning as Toyoda Automatic Loom Works, Ltd., has evolved into what is today Toyota Motor Corporation, one of the largest automobile manufacturers in the world. Toyota has demonstrated sound ethical behavior and social responsibility, and is a strong competitor in the global marketplace. Its Board of Directors is composed of seventy competent individuals who have a vast array of knowledge and experience in the automobile industry. The corporation avails itself of the many opportunities to increase business via the internet. It has shown strength through adversity and continues to grow. Despite the misconception that it is a “foreign” car company, Toyota provides hundreds of thousands of jobs for American workers. Its associates are content; enjoy a substantial benefits package and are offered opportunities to advance within the organization. Toyota’s mission statement and goal of providing “the most satisfying ownership experience in America” (Toyota) drives the company toward continuous improvement. For this reason, Toyota’s marketing; production, distribution strategies, and channels are effective in building brand equity. It utilizes a variety of marketing communication tools and pricing strategies to effectively increase sales; and the company’s three year financial performance indicates that it is in a strong financial position. Accordingly, based on the aggregate of my research, I would definitely invest in this company.
Toyota Motor Corporation demonstrates a high degree of ethical and social responsibility. Not only is Toyota one of the first auto manufacturers to offer hybrid technolo...
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Toyota- focused differentiation, medium pricing, breadth of product line is low. Company is known for quality products, and nice styling.
While the automotive industry is touted as a success story of industrialisation, and the early days of automated assembly brought mobility to millions of people and fast-forwarded our society in ways we had never previously imagined possible, since the beginning, the automotive industry has been rife with ethical challenges. Some of these have been very public ones, typically involving labour practices, worker safety and issues of product safety over cost. However, there is another ethical challenge in the arena, and it is not small. It is the issue of environmental impact. Building cars takes a considerable toll on the environment, while the product itself generates so much waste that environmentalists now measure carbon output of other disputed industries in terms of how
We have determined that their business model is an Integrated Low Cost – Differentiated Strategy. It involves finding the lowest operational cost along with a unique niche or strategy that separates them from the competition. Toyota’s new statement “Moving Forward”, reflects their plans and expectations for the future. This includes the known and the unknown factors that a business must face. In 2000, Toyota launched a new cost effective strategy called CCC21 (Construction of Cost Competitiveness for the 21st century), for Low Cost operational expenses. With this aspect Toyota plans to advance such initiatives globally, based on its policy of purchasing the world’s best parts at the lowest cost with the shortest lead times.
Toyota Motor Corporation is a Japan based company, whose headquarters are located in Aichi Prefecture. The company was founded by Kiichiri Toyoda in 1937. Currently the company’s CEO is Akio Toyoda. Toyota is basically into cars and it is one of the top players in the world in this industry. Toyota also owns two other brands namely Lexus and Scion, which gives the company a lot of advantage over it’s other competitors. Toyota manufactures sedans, saloons, suvs, muvs, pick-up trucks and buses. During the year 2013 Toyota had approximately 333,498 employees, who were working globally. In March 2013, Toyota was ranked as the thirteenth biggest organization globally in terms of its revenue. In the following table we can see the financial report of Toyota Motor Corporation in the year 2013-
(5) Liker, Jeffrey K. The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer. New York: McGraw-Hill, 2004. Print.
For over fifty years, Toyota has established over 50 bases in 26 different countries and regions. Their automobiles have found their way into over 170 countries across the entire globe. In addition, Toyota has design and R&D bases in nine locations overseas, with this they prove that they have achieved consistent globalization as well as localization. The most important part in any Toyota base is the quality assurance. They don’t stamp their product with “Made in the USA” or “Made in Japan”, but instead opt for one label for all: “Made by TOYOTA.” This shows that the product is made in the “Toyota Way.” To achieve this, the company minimized support that comes from Japan to let each of their foreign locations become self-reliant. For example, a Toyota plant recently began production in Texas has made maximum use of its sibling’s experience in Kentucky which has been cultivated over the past 20 years. Toyota believes that in order to reach their goals is through educating people. Multiple Global Production Centers have been built within Motomachi Plant in Toyota City, in United States, the United Kingdom, and Thailand to carry our corresponding activities in the Asia-Pacific, European, and North American regions. To promote the “Toyota Way”, the Toyota Institute established an internal human resources development organization in North America, Europe, Asia, Africa and Oceania. As you can see the pros of the globalization of Toyota are endless. This company alone has created millions of jobs across the world. Winners are not only the workers, but also the buyers, without globalization Toyota automobiles would only be available in Japan. Many people, including me, see globalization of this kind as a beneficial and advantageous result. Toyota companies have not only created jobs for thousands if not millions of people, but their
Toyota’s uses both differentiation and low cost as generic strategies to try and gain a competitive advantage over their competitors in the automotive industry. The market scope that Toyota uses is a broad one that encompasses nearly every type of customer that is in the market to purchase an automobile. Toyota is able to target such a large market because they have something for everyone. Toyota has four wheel drive trucks and SUVs for the outdoor types or those who live in areas that face severe weather conditions, hybrid models like the Prius for the eco-friendly customers that are interested in saving the environment, along with the standard cars for general, everyday use. Additionally, Toyota provides vehicles for all price ranges.
As the industry styles indicate, the clientele still have a concrete reliance on the second-hand car market. Bearing in mind the fact that the economy still suffers a blow, the second hand auto industry takes a vital part of the vehicle demand. Toyota has decreased the price gap between the second hand cars and its personal automobiles due to its capacity to slash costs more competently than its competitors; consequently, compared to its competitors, the substitution with the second hand cars is less of a threat for
"Jidoka - Manufacturing High-quality Products." Toyota Global Site. Toyota Motor Corporation, n.d. Web. 21 May 2014
Toyota has adopted an expansion strategy aimed at increasing the company’s market share through sustainable growth. This will be done based on the delivery of high quality, and safe cars, at an affordable price. As the company seeks to expand to new markets, focus will be on maintaining an organizational culture that allows optimum efficiency in the ever dynamic global market.
Toyota issues in automotive industry resulted from a lack of moral and ethical obligations to loyal customers. In fact, people encounter ethics at one time or another. A business expectation is to act in manner upholding society values. According to authors Trevino and Nelson, (2004) states, “a set of moral principals or values, or the principals, norm, and standards of conduct governing a group or individual.” On the other hand, three ethical criteria determined in this discussion like obligation, moral ideas, and consequences which this article highlights an ethical dilemma with automobiles makers.
Toyota Motor Corporation is one of the largest automakers in the world. At its annual conference in Tokyo on May 8, 2008, the company announced that activities through March 2008 generated a sales figure of $252.7 billion, a new record for the company. However, the company is lowering expectations for the coming year due to a stronger yen, a slowing American economy, and the rising cost of raw materials (Rowley, 2008). If Toyota is to continue increasing its revenue, it must examine its business practice and determine on a course of action to maximize its profit.
Toyota Motor Corporation is a very successful automobile manufacturer that is recognized globally. They have continued to obtain and retain a competitive advantage over their counterparts, despite recalls over many years. Regardless of recalls, Toyota has been quick to rectify their shortcomings and continue to lead within the automotive industry with their innovative measures. In this essay, I will discuss key internal factors for Toyota. Within those factors will include Toyota’s core competencies, which are what they do really well in comparison to their competition, three of their strength’s, which will include their posture within the automobile market and their heavy focus on research and development, and two of their
Besser, T. L. (1996). Team Toyota: Transplanting the Toyota Culture to the Camry Plant in Kentucky. SUNY Press.
The nonmanufacturing companies can learn and apply from Toyota’s philosophy and practices as listed below: