Toyota International Corporation

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The reason behind their success is the deployment of strategic planning throughout the years since 1937. They focus on a more efficient human resource by understanding the individuals who possess several unique capabilities. Toyota is head quartered in Japan and operates 75 manufacturing companies in 28 countries around the world (Toyota in the world, 2010). Toyota has set up its market in more than 170 countries with a 320,000-strong workforce. The company was founded by Kiichiro Toyoda by renovating his father automobile manufacturing company Toyota Industries. The company operates its business at its full swing starting from Japan and throughout North America, The Caribbean, Latin America, Europe, Africa, Asia, and Oceania. The annual report of the company shows that even though there is a slight decrease in the production, the company will manage to survive the declining economy with the expected sales turnover. 2. Types of market and legal systems Toyota formulates marketing strategies based on the social, environmental, and economical conditions of each region where the company operates its business. The legal system of the particular country or region is also taken into consideration before implementing marketing policies in the specific country. In 2004, as Gale (n.d.) points out, Toyota in Europe was in a quandary as new environmental friendly vehicles were in high demand when the administration implemented environmental regulations. it was necessary to train the staff with the new technologies of the advanced vehicles. The company integrated the three important elements – marketing, sales, and manufacturing to overcome the problem in Europe. The marketing strategies in China and US were seen successful in 2005 when profits rose up against the worldwide automobile industry trends. When entering into the market of another country, almost all companies are faced with the financial risk of exchange rate variances due to interference of the legal and political systems. The legal proceeding of the foreign markets must be clearly analyzed before investing in that market. Toyota is noted well for its management in the international markets. The company procured a considerable market in the United States by initially bringing inexpensive vehicles. Later on, it widened the markets and expanded its share in the U.S. automobile market. To overcome the market issue of dollar exchange rates, Toyota introduced manufacturing facilities in the United States. 3. Political Risk One of the major political risks that the Toyota motors faced was the backlash against American corporations. It imposes increased parameters on different production levels and on nationalization of its products. This change can influence the operations of the company. The political changes can positively and negatively affect the firm. By the end of 2006, Toyota manufactured 1.5 million cars in North America, but had to import an additional 1.2 million cars (Toyota). While being costly, the high reliance on imports poses political risks in the United States. Managing political risk in the international market is not an easy task. While the political changes contribute direct risks to the firm, the politics also constitutes other external risks. In order to overcome these kinds of possible political risks, Toyota can set up strong relations with various trade organizations. At the same time, the political consultant must make sure that the firm builds up a strong relationship with the governments also. In