Toyota Strategy for International Business Context
Introduction
Before the 1970s, in the kingdom of automobile industry, America is accepted the only magnate without any doubt. Detroit auto standard was highly praised and strictly abided by in the global automobile industry at one time, Ford and General Motors are paragons among them. Toyota cannot even be mentioned in the same breath with them at that time. However, decades of years past, Toyota Motor Corporation is no longer what it was before. Since 2008, Toyota has gradually replaced the position of GE and become the first rank among automobile manufacturer worldwide.
We cannot ignore the unique and high-efficiency business strategy that was adopted by Toyota, as a leading enterprise in the industry, in its fast-developing progress. This text will briefly introduce Toyota Motors Corporation, use PEST method to analyze its international business environments and the impacts on Toyota. Meanwhile, it will provide key capabilities of Toyota which help to overcome its weaknesses and threats analyzed by SWOT analysis and Porter’s Five Forces analysis.
International business environments and impacts on Toyota
Toyota Motor Corporation was established by its founder Kiichiro Toyoda in 1937 with more than 300 staffs and twelve million yen as initial capital. By the end of March 31ST this year, Toyota’s capital was 397.05 billion yen and the number of employees in affiliated companies was totally 325,905. Toyota 's famous subordinate brands include Crown, CORONA, COROLLA. Its luxury automobile brands like Cressida and Lexus have a good reputation in recent years. As of the end of March 2012, Toyota conducts its business worldwide with 50 overseas manufacturing companies in 27 countries and regions. Toyota’s vehicles are sold in more than 160 countries and regions.
Macro environment is the foundation which enterprises rely on to survive. Grasping PEST analysis correctly will have positive impact on enterprises and even lead them to seize accurate strategy to gown
Before the 1970s, in the kingdom of automobile industry, America is accepted the only magnate without any doubt. Detroit auto standard was highly praised and strictly abided by in the global automobile industry at one time, Ford and General Motors are paragons among them. Toyota cannot even be mentioned in the same breath with them at that time. However, decades of years past, Toyota Motor Corporation is no longer what it was before. Since 2008, Toyota has gradually replaced the position of GE and become the first rank among automobile manufacturer worldwide.
We cannot ignore the unique and high-efficiency business strategy that was adopted by Toyota, as a leading enterprise in the industry, in its fast-developing progress. This text will briefly introduce Toyota Motors Corporation, use PEST method to analyze its international business environments and the impacts on Toyota. Meanwhile, it will provide key capabilities of Toyota which help to overcome its weaknesses and threats analyzed by SWOT analysis and Porter’s Five Forces analysis.
International business environments and impacts on Toyota
Toyota Motor Corporation was established by its founder Kiichiro Toyoda in 1937 with more than 300 staffs and twelve million yen as initial capital. By the end of March 31ST this year, Toyota’s capital was 397.05 billion yen and the number of employees in affiliated companies was totally 325,905. Toyota 's famous subordinate brands include Crown, CORONA, COROLLA. Its luxury automobile brands like Cressida and Lexus have a good reputation in recent years. As of the end of March 2012, Toyota conducts its business worldwide with 50 overseas manufacturing companies in 27 countries and regions. Toyota’s vehicles are sold in more than 160 countries and regions.
Macro environment is the foundation which enterprises rely on to survive. Grasping PEST analysis correctly will have positive impact on enterprises and even lead them to seize accurate strategy to gown
References: Hill, C.W.L. 2009, International Business: Competing In the Global Marketplace, 7ed, New York: McGraw-Hill International Kawada Makoto, 2004, Toyota Management System, chuokeizai-sha, inc http://oica.net/wp-content/uploads/world-ranking-2008.pdf OICA , 2010, 2009 PRODUCTION STATISTICS, The International Organization of Motor Vehicle Manufacturers, 2010, viewed 19 Nov, 2012, http://oica.net/category/production-statistics/ Ohno Taiichi , 1988. Toyota Production System - beyond large-scale production Toyota (2012), TOYOTA IN THE WORLD 2012, Toyota Motors Corporation, viewed 19 Nov, 2012 http://www.toyota-global.com/company/profile/overview/in_the_world/pdf/2012/databook_en_2012.pdf Valdes-Dapena, P. 2010, Toyota recalls Lexus GX 460 SUVs, Cnn.com, viewed 19 Nov 2012 http://money.cnn.com/2010/04/19/autos/lexus_gx460_recall/index.htm