International Business Management Essay

This new focus, and the ongoing financial crisis led to the need to restructure the financial side of the organisation. This was achieved mainly through downsizing in a number of product areas and a series of redundancy procedures. As the case does not explain in detail the actual redundancy procedures, it is difficult to make critical assumptions of the firm. The availability of additional resources, coupled with the need for a newer set of skills and scarce financial resources appears to be a justification for the course of action taken by the company.

Toyota has always been one of the largest automobile manufacturers in the world since its inception in 1937. It was Sakichi Toyoda’s personality traits that Toyota remains as the most admired company in the world. Sakichi Toyoda possessed a risk taking personality, because of which the current Toyota, which we see today has made its birth. Toyota’s legendary business model, management principles and business philosophy changed the way in which business in done by automobile industry. Concepts like “Just in Time” production, Genchi genbutsu (go and see to understand) made Toyota different from its competitors.

Despite of these good things, Ford Motor faced a loss due to some wrong decisions taken by the management regarding their business strategy. The decision of centralizing the management made them think narrowly which results in too much Americanization and ignorance of local market in the rest of the world.

The biggest threat for the company can be the currency fluctuation, that means not stability in their profits , so as a result of fluctuation there can be the rising of interest rates and an increase of the company’s income.

The product that Toyota was introducing to the consumer was not ground breaking and did not set itself apart from any other product on the market, not only did it not set itself apart it was producing vehicles that closely resembled the competition. Toyota was losing their competitive edge of reliability because other companies were able to replicate their efficient production and reliability and have the same success they Toyota previously held. The customer base for Toyota was not growing and more of a following due to loyalty to their past performance. The company had also lost its innovative edge and with this was losing its market share. I see due to Toyota’s lack of initiative by not moving more manufacturing to the US and innovation as an opportunity to enter the small car market that was previously dominated by the Japanese manufactures. With all this said Toyota still had a great reputation for producing a very reliable product, with this reputation Toyota could be one change away from becoming a major player

Today, Toyota is the world's third largest manufacturer of automobiles in terms of both unit sales and net sales. It is also the largest Japanese automotive manufacturer, producing more than 5.5 million vehicles per year, equivalent to one every six seconds. See Appendix 1 for a list of its guiding principles. Appendix 2 depicts excerpts from the company’s 2000 annual report showing their main goals for that year. The company has 12 manufacturing plants in Japan and approximately 54 manufacturing companies in 27 countries throughout the world. These plants produce vehicles and components under the Lexus and Toyota brand names and employ about one quarter of a million people worldwide. In total Toyota vehicles are marketed and sold in more than 160 countries and regions with the automotive business, including sales and finance of the vehicles, accounting for more than 90% of the company's total sales. Appendix 3 shows worldwide sales and appendix 4 shows the models produced in North American Toyota plants. North Americanization of Toyota Since the late 1980’s Toyota had made several moves that showed their commitment to what management called the North Americanization of the company. The idea was to increase car sales in the lucrative North American market by also introducing manufacturing plants that produced parts and assembled whole vehicles for

Which is cost difference determines the patterns of international trade. Absolute advantage is trade benefits when each country is at least cost producer of one of the goods being traded. In the 1800s, David Ricardo developed the theory of comparative advantage to measure gains from trades. This theory is based on comparative advantage and it states each nation should specialize in production of those goods for which its relatively more efficient with a lower opportunity cost.

Toyota is a leading company, and for over 70 years. It has been expanding business all over the world and

Baker Adhesives (Baker) has just made its first foray into international sales and must come to grips with the impact of exchange-rate changes on the profitability of a past order. The company must also formulate a strategy for dealing with exchange-rate risks for future orders. The case is intended as an introduction to exchange-rate risk and the management of that risk. Upon receipt of payment from a past order, the firm realizes that exchange-rate movements have reduced the value of the sale. A follow-on order provides the context for exploring possible mechanisms for managing that risk. In particular, sufficient direction and information is provided to examine both a forward

In this essay, I will address why it is in The Group’s main interest to support the Tax Director’s decision about restructuring the company and re-incorporating The Group’s headquarters from US Inc. to the newly incorporated UK PLC, which would be the new holding company. As a result, the distribution functions of European subsidiaries would be centralized in the newly incorporated company based in Switzerland (SWISSCO.) Through identifying and considering all the variables, I will evaluate the restructuring of the company. My conclusion is supported by a number of variables and only applies if all the variables mentioned are

A large concern of the organization is long-term cost savings and developing a better marketing strategy. The cost of using various vehicles, increased gas prices caused by the economic downturn, and maintenance of these vehicles will produce a long-term debt versus

Toyota’s information and decision making would be highly scrutinized for their insensitive and their expectations on their overseas market. Toyota’s home office was in Japan,

The case study ‘The Exchange Rate and Auto Parts Manufactures’ shows two companies which are suppliers to the US automobile company DaimerCrhrysler, and that companies based outside of the US. As the consequence of the importing machines from the United States, companies faced difficulties based on the exchange rate fluctuations.

main strategy for the North American market is to aim for higher sales, while raising the proportion of locally produced automobiles. Toyota Motor Corp have reached a stage where investments made over the last several years to expand production capacity are beginning to show returns and improved profitability can be expected. Toyota’s goal is to bolster local production through additional investment, and contribute to the regional economy by expanding its operations. At present, our production capacity in North America is approximately 1.25 million units (including our joint venture with GM). However, Toyota Motor Corp plan to boost this to 1.45 million units during 2003.

Toyota Australia is standing at the crossroads, and it is considering to stay in the Australian market and capture opportunities from the market changes, or to exit from Australia to minimise its losses. This essay will