Diversification Strategy

Toyota Company was established in the year 1937. Its main activities are the production of vehicles and sales. With its headquarters based in Japan, Toyota has employed over three hundred thousand employees. Toyota Company belongs to the motor vehicle industry where competition is tight even though Toyota is leading on the number of vehicles being sold on a daily basis. Toyota operates in 51 countries worldwide.

Organizations that strive to be a leader in an industry must look beyond their domestic boundaries and expand into international markets. The Ford Motor Company remains the second largest automotive manufacturer in the United States and fifth largest automotive manufacturer in the world with Toyota leading the way. This essay will address the Ford Motor Company’s strategic approach to compete internationally and identify which resources and capabilities make it attractive to compete internationally. Additionally, the Ford Motor Company’s diversification strategy options will be described. Lastly, we will identify how chosen diversification strategy options would lead to a strategic fit for the Ford

A firm that has recently engaged in diversification is John Deere. The firm not only sells tractors, the also sell, clothes, toys, gun safes, boots, and atv’s. John Deere has not always had success when it comes to diversification. There renewable energy promotion was not a big hit and they eventually fazed it out. The diversification that John Deere has now trying is going global. By 2018 John Deere wants their mid-cycle sells to reach 50 billion, they want to achieve this by having 50% of their growth to be outside of the USA and Canada.

Toyota is a Multinational Corporation began on August 28, 1937 and now operates in over 170 countries and regions around the world with its headquarters in Toyota City, Japan (Toyota Overview, 1995-2016). Toyota is a multinational that operates its business through a number of methods since they are worldwide and has a great demand for their products. The company currently operates in Japan, North America, Europe, Asia, The Caribbean and others. Toyota Multinational Corporation is a part of the Toyota group, one of the largest conglomerates in the world. The methods of international business that Toyota uses are by exporting, importing, mergers and acquisitions, development of foreign subsidiaries and international joint ventures. To date,

Seventy-eight years ago Kiichiro Toyoda has founding Toyota Motor Corporation and the automotive manufacturer has become one of the powerful manufacturer company around the world. In the motor industry, Toyota has make into 100 “Most Admired” list of companies in the world on the Fortune Magazine in 2016 (Szczesny, 2016).

Toyota has a manufacturing facility of the overseas of 50 in 27 countries, and is doing business expansion globally. Moreover, the Toyota car is sold by 160 countries of an overseas. The number of dealer is 8,485 dealers in the world (Expect Japan), and there are more than 270 dealers in Australia. We can buy Toyota’s product everywhere.

Toyota Motor Corporation is one of the Japanese automotive manufacturer that headquartered in Toyota, Aichi, Japan. The history of Toyota began in 1933 with the company being a division of Toyoda Automatic Loom Works devoted to the production of automobile under the direction of Kiichiro Toyoda, the founder’s son. Toyota Motor Corporation have use code of conduct, corporate social responsibility and sustainability policies for their firm daily operations.

Toyota as the world 's third car manufacturing company and the first in Japan has introduced a new era in the vehicles history.

After WW2 Japan was in an economic crisis which continued until 1949 when the company obtained a loan from several banks. In June 1950 the company only produced 300 trucks and management announced layoffs and wage reductions and in response, the union went on strike which last for two months. While the strike did eventually end and layoffs and wage reductions did occur the union stipulated that the president Kiichiro Toyoda must resign. Kiichiro Toyoda resigned from his company and the company then came under the leadership of Taizo Ishida CEO of Toyoda Automatic Loom. In 1950 a separate sales company Toyota Motor Sales Co was established (lasted until 1982). In 1956 the Toyota dealership chain was established. In 1957 the Crown motor vehicle became the first Japanese car to be exported to America thus establishing Toyota’s American division. In 1960s Toyota began to expand with a new research and development facility in Thailand. The first Toyota motor vehicle built outside Japan was in April 1963 in Melbourne. From 1963-1965 Australia was Toyota’s biggest export market. (http://en.wikipedia.org/wuki/History_of_Toyota)

Automobile industry of japan witnessed an awesome accomplishment with the growth of Toyota. It became the biggest maker in the worldwide business. Toyoda kiichiro was hesitant to invest in automobile sector. In the year 1933 the company started its production. In order to have cost efficiency they adopted the mass production technology.

Toyota Motor Corporation is one of the worlds largest vehicle manufactures. It conducts business worldwide and their vehicles are sold in more than 170 countries and regions. Kiichiro Toyoda established Toyota in 1937. Toyota also has other brands including Lexus and Scion. Last year Toyota ranked number 9 on the Global 500 list. Toyota has also been on the Global 500 list for 21 years. Since 2008, when Toyota surpassed American General Motors as the world’s largest automaker, it has remained at the top of the list. In 2014, Toyota had $18.1 billion dollars in profit and a whopping $227 billion dollars in revenue. Toyota has always been a company with a great image. They spend nearly $1 million dollars every hour on research and development. Although the company was founded in Japan, it has created over 365,000 jobs in the U.S. Toyota also ranks as a top 10 company for LGBT employees and top 50 for diversity. On top of supporting diversity and the LGBT community, they have donated $700 million dollars to non-profit organizations.

Diversification is defined as the expansion of the firm across product, geographic, and customer markets. Firms have traditionally relied on this strategy for one of three major goals: growth, risk reduction, and profitability. Commonly sough benefits include scope economies (via shared resources and capabilities across businesses), economies from internalized transactions, and improved access to market information (Grant, 2010). The benefits of scope economies are often referred to as synergies. Other rationales include the firm’s efforts to escape an increasingly unattractive market and to make effective use of surplus cash flows by investing them in more attractive products or services. (Pg 22). Research has shown that by diversifying, businesses can decrease its financial losses which is identified by its higher debt to capitalization ratio.

In 1933 Automobile department set up to manufacture automobile and a proto type engine completed in 1934. The Toyota Precepts established in 1935 the first prototype of models A1 passenger car completed.

In order to be prosperous in the prevalent business environment, every corporate business implements several approaches. Diversification is also one of the approaches that the businesses implement in which they develop their business procedures on an international scale. In this regard, General Electric 's diversification method and its probable strengths, weaknesses, chances, and pressures would be deliberated further.

Toyota Motor Corporation is a well-known Japanese automotive manufacturer which headquartered in Toyota, Aichi, Japan. It was founded by Kiichiro Toyoda in 1937, as a division of his father’s company, Toyoda Automatic Loom Works to create automobiles. Three years earlier, in 1934, while still a department of Toyoda Automatic Loom Works, it created its first product, the Type A engine and until 1936, its first passenger car, the Toyota AA. Toyota Motor Corporation produces vehicles under 5 brands, including the Toyota brand, Hino, Lexus, Ranz, and Daihatsu. In March 2014, this multinational corporation consisted of 338,875 employees worldwide and, as of February 2016, was the 13th-largest company in the