Toyota: Analyzing the Non Controllable Economic Environment of an International Operating Company
International Economic Environment
Toyota Motor Corporation
Group paper
Analysing the non-controllable economic environment of an international operating company
Date of publication: 16-02-2012
Group 16
Lennart Bayer
Rick Cobussen
Yixing Gai
Marieke Martens
Table of Contents
Business cycle sensitivity 4 Figures from Toyota 4 Quotations from the annual reports (2005-2011) 5 Actual figures of aggregated demand 5 Gross Domestic Product 6 Consumption 7 Consumer confidence 9 Overall Market Demand 10
Exchange rate sensitivity 11
Cost of production sensitivity 16 Wage development compared to turnover growth 16 Wage development compared to price increase. 16 Wage development and wage per unit 17 How important are commodity prices? 17
Monetary Policy 20 Investments 20
Fiscal policy 22 Governmental expenses 22
International Trade 23 Export-Import 23
Conclusion 26
References 27
Update: Bank of Japan stimulus to boost growth
The Bank of Japan (BOJ) has made a surprise move to boost growth as the country 's economy continues to struggle. The central bank has announced it is to expand its asset purchase program by 10tn yen ($130bn; £83bn). The move comes just a day after data showed that Japan 's economy shrank by more-than-expected 2.3% in the last three months of 2011. The BOJ also left rates unchanged at between zero and 0.1%. The central bank said it will use the extra funds to purchase Japanese government bonds. "The Bank will pursue powerful monetary easing by conducting its virtually zero interest rate policy and by implementing the Asset Purchase Program mainly through the purchase of financial assets," the bank said. 'Risky assets '
The announcement was greeted positively by the markets with the Japanese currency falling by as much as 0.4% to 77.96 yen against the US Dollar. The yen has been near record highs recently which has
Toyota Motor Corporation
Group paper
Analysing the non-controllable economic environment of an international operating company
Date of publication: 16-02-2012
Group 16
Lennart Bayer
Rick Cobussen
Yixing Gai
Marieke Martens
Table of Contents
Business cycle sensitivity 4 Figures from Toyota 4 Quotations from the annual reports (2005-2011) 5 Actual figures of aggregated demand 5 Gross Domestic Product 6 Consumption 7 Consumer confidence 9 Overall Market Demand 10
Exchange rate sensitivity 11
Cost of production sensitivity 16 Wage development compared to turnover growth 16 Wage development compared to price increase. 16 Wage development and wage per unit 17 How important are commodity prices? 17
Monetary Policy 20 Investments 20
Fiscal policy 22 Governmental expenses 22
International Trade 23 Export-Import 23
Conclusion 26
References 27
Update: Bank of Japan stimulus to boost growth
The Bank of Japan (BOJ) has made a surprise move to boost growth as the country 's economy continues to struggle. The central bank has announced it is to expand its asset purchase program by 10tn yen ($130bn; £83bn). The move comes just a day after data showed that Japan 's economy shrank by more-than-expected 2.3% in the last three months of 2011. The BOJ also left rates unchanged at between zero and 0.1%. The central bank said it will use the extra funds to purchase Japanese government bonds. "The Bank will pursue powerful monetary easing by conducting its virtually zero interest rate policy and by implementing the Asset Purchase Program mainly through the purchase of financial assets," the bank said. 'Risky assets '
The announcement was greeted positively by the markets with the Japanese currency falling by as much as 0.4% to 77.96 yen against the US Dollar. The yen has been near record highs recently which has
References: Annual Report 2011. (n.d.). Toyota Global Investors. Retrieved February 7, 2012, from www.toyotauk.com/main/download/pdf/2011%20TMC%20Annual%20Report.pdf Budget Europa Databank User Session Time Out. (n.d.). World Databank. Retrieved February 8, 2012, from http://databank.worldbank.org/ddp/home.do?Step=3&id=4 ECB: Key interest rates EU budget 2008. (n.d.). European commision. Retrieved February 7, 2012, from ec.europa.eu/budget/library/biblio/publications/2008/fin_report/fin_report_08_en.pdf European Union - GDP - per capita (PPP) - Historical Data Graphs per Year Fed Funds Rate - Rate, Definition & Historical Graph. (n.d.). MoneyCafe.com® -- The Independent Financial Portal. Retrieved February 16, 2012, from http://www.moneycafe.com/library/fedfundsrate.htm Financial Statement 2011 Japan - GDP - per capita (PPP) - Historical Data Graphs per Year. (n.d.). Index Mundi - Country Facts. Retrieved February 7, 2012, from http://www.indexmundi.com/g/g.aspx?c=ja&v=67 Rekenkamer World Interest Rates. (n.d.). Forexmotion - the exchange rates forex market. Retrieved February 16, 2012, from http://www.forexmotion.com/index.php/en/exchange-rates.html -----------------------