Toyota Motor Corporation Essay
The global business plan of the Toyota’s Motor Corporation.
What position does Toyota Motors Corporation Occupy among other automobile manufacturers? How did the adaptation of the New Global Business Plan influence the work of the Toyota Corporation? What are the most important characteristics of the vehicles that makes the Toyota Corporation so respected and popular?
Such brands as Toyota, Lexus, Hino and Daihatsu are famous Toyota Motor Corporation’s “sons” selling more than 7 million units a year.
Toyota Motor Corporation Essay
"The car in front is a Toyota"
Introduction. The history of one of the world’s leading automobile manufacturers starts in 1937 with a name Toyota Motor Corporation (TMC) which is now known all over the world. Nowadays Toyota’s vehicles are sold in more than 160 countries. Such brands as Toyota, Lexus, Hino and Daihatsu are famous Toyota Motor Corporation’s “sons” selling more than 7 million units a year. They are highly respected and valued. TMC’s stability in the world economy that is observed today is a result of a hard work and dedication, a result of an extraordinary flexibility and competence. TMC was one of the first companies to realize the importance of “sensitivity” to the needs of the customers and the change in the global environment and successfully adjusted to it.
Toyota’s distinctive competencies. The first real step of this Japanese corporation was the adaptation of its main strategy program – “New Global Business Plan” in 1995. It main priority is advancing globalization and localization. One of the first goals was the increase of import of the Toyota vehicles. For these reason the company has made a tremendous work in expanding the existing plants and building new ones in various territories throughout the world. It is represented by lost of affiliates, 11 subsidiaries and 12 Toyota’s plants in Japan and 45 manufacturing companies all over the world. The speed of meeting the demands of the customers made the company a leader in the sphere of technology and globalization. The term “globalization” does not refer only to Toyota’s spreading, but also the benefits that the functioning of this corporation brings to the world. Besides the quality car-manufacturing Toyota supports the globalization through its diversity strategy, attracting the minorities and giving them career opportunities. This results in the constantly growing number of Toyota’s employees that nowadays is around 300,000.The cooperation of all Toyota Motor Corporation’s branches makes a strong “automobile network” able to meet the demand of any group of customers. Toyota also supports various environmental organizations and was the first to present the fuel-cell vehicle. The corporation is set for the technologies of the future. The company’s activity has really contributed into the distinctive competencies it possesses today. The advancing localization has increased the number of plants making Toyota a giant in car manufacturing and providing its extraordinary success; it especially concerns Toyota’s activity in North America. Toyota Motor Corporations is working on an internationally coordinated production system and is planning to extend all over China, “conquering” the biggest market. Another very important competency to mention is Toyota’s cost structure, which is aimed to reduce parts and materials costs in order to obtain a product with the lowest possible price and a superior quality. It is achieved through Toyota’s "CCC21" (Construction of Cost Competitiveness for the 21st Century) cost-cutting initiative with the result of 30% cuts. The fact that the quality of a vehicle lowers but its design does not suffer from it gives Toyota serious advantages over other car-manufacturers. Toyota’s globalization has even influenced its message strategies, making them very ambitious and attractive for the customer.
Conclusion. Toyota’s success is the result of a strict achievement of every set goal and an outstanding flexibility in reliance to ambitiousness. It has nothing to do with luck. The only luck they had is when they approved the implementation of the New Global Business Plan. Toyota Motor Corporation functions like one solid organism and this can be the reason it is so different from other companies and is so competitively distinctive.