Analysis of the Factors that Have Led to the Growth of Toyota over the Years (Essay Sample)

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Multinational corporations(Toyota).
Existence of multinational corporations in United States is because of more mobility of capital than labor. Such firms establish subsidiaries in countries with cheap labor and raw materials. This and other factors imply that multinational corporations are viewed from different perspectives ranging from structure, strategy, ownership and management style (Wettstein 112).
Toyota is multinational company that deals with automobile manufacturing and it has its headquarters in Japan. In the U.S, Toyota has supplier firms like Ala, calif and Fremont where it makes its engines and it has invested in advertisement through the use of billboards in a bid to create awareness about their growing presence around the U.S. Toyota automobile sales in U.S have been on the rise at this time when its competitors like Ford are faced with risks of closure. In Kentucky, Toyota has played an important role in boosting its economic performance and creation of employment.
The automotive industry in which Toyota operates is affected by both internal and external factors. In this regard, analysis of factors affecting the industry is analyzed on the basis of operations at Toyota. This is through exploration of opportunities available at Toyota, the threats affecting its operations, the actions taken by the executive management of Toyota to deal with environmental eventualities and the recommendations that can help the company thrive through all the problems it faces.
Toyota is a company in the automobile industry that specializes in the manufacture of a diverse range of cars across the globe. Toyota is an innovative leader in the industry with a favorable management philosophy and a number one operator in a mass market hybrid. Just as many other industries in America, the car maker contributes to the global economic performance because of the revenue that is generated from it.
Toyota operates in a complex and challenging industry and the company needs to take into considerations the automotive environment of United States of America before considering development and implementation of successful strategies. There are several opportunities available to Toyota. Such opportunities are continued new investment opportunities in the US and in China. The new investments lead to increase in profits in Toyota; this is against the trend in the automobile industry. The company is targeting urban youth market which is a very competitive segment of the automobile market. Through the introduction of models aimed at attracting customers from this segment of the market, it is ready to venture into the market segment with branding difficulties.
The company has the correct mix of products for its clients. The company segments the market, positions their products and services properly and target the market depending on the needs and quality needed in the different country clients. The number of units made by Toyota has also been on the increase making it the second in the industry. The positioning is complemented by the diversified product range, targeted marketing, and commitment to quality and leaning type of manufacturing strategy.
The company makes customized cars for both private and commercial customers. This becomes possible after a thorough marketing strategy that aims at identifying and satisfying the customer needs. Manufacturing approaches at Toyota make it a household name that also contributes towards maximization of profits.
The production systems at Toyota are standardized with standardized procedures that control the steps of manufacturing an automobile. Standardization is an opportunity because it enables set up of the best work sequence for manufacture and assembling processes. Efficiency of the sequence used in Toyota prevents unnecessary motion, prevents wastage of effort, maintains quality, assures safety and prevents damage. This ensures that the productivity of each worker in the U.S market segment is maximized.
The company’s commitment to world class quality which is impinged on the entire manufacturing philosophy creates valuable opportunities for the company and for the Americans. The role of team members in the production process also ensures that the quality is guaranteed. The team members at Toyota is kept involved by the management through encouragement of an active role of team members in quality control, utilization of employee ideas and striving for constant improvement.
The company’s commitment to the environment is their way of life because it goes beyond the operations. Its enhanced efforts towards a green environment have led to more awareness about the same. Also, Toyota provides its manufacturing family of vehicles with the crucial tools which are important in conserving the environment. Its involvement in extensive programs aimed at conserving the environment such as social media activation has led to increased environmental awareness across the United States. The car maker has been at the forefront in saving enough fuel with the main aim of conservation. Also, its innovative hybrid system of technology used in manufacturing is important boosting the levels of expertise and increasing innovative approaches in the manufacturing sector of United States.
Toyota, like any other multinational corporation, operates with the sole purpose of making profits. It is a source of wider capital distribution, employment and technological advancements. In this regard, its operation in United States serves to increase employment level, income level and investment level of the economy of United States. Its use of hybrid technology in the manufacture of its cars leads to the transfer of latest technology besides management techniques that are consistent to advancements in technology (Cohen 197).
Toyota has led to increased competition in the car industry in USA; it has curbed monopolies and has broken protectionalism which is important in improving the overall quality of output. Its operations in the United States also help in improving the balance of payment of the country because USA as the host country can limit its imports and increase its exports of the Toyota products. The growth and development of Toyota in United States of America helps in increasing the level of economic and industrial development.
Foreign direct investment is an important aspect of globalization that is undertaken by multinational corporations. The foreign direct investment by Toyota in USA affects the country’s exchange rates, taxes, trade protection and provision of crucial information (Slemrod 29). This serve to be very beneficial to the host nation which in this case is USA in that its operation attracts taxes thereby contributing to the revenue. Also it improves the foreign exchange of United States of America in comparison to other competing nations.
The use of technical advances creates opportunities for Toyota in the sense that it helps designers create and modify different specifications at a faster rate and this ensures and improves quality design. The emphasis of Toyota to quality is seen in their pre-product...