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International Business: Toyota

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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].
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