International Business Management Essay

620 Words Nov 5th, 2012 3 Pages
Q3: If you were Mr. Shuhei, how would you categorize your problems and solutions? What was as short-term and what was a long-term problem?

Standing as Mr. shuhei’s point of view, I would like to concentrate on the overall manufacture framework, which was how Toyota was running its oversea business in the historical strategy chosen and market response in the following fiscal year. Toyota has two main largest oversea markets, North America and Europe.

At first, I want to focus on comparing the two main oversea markets. For the North America, Toyota had more than 60% of entire sales were manufactured locally. Unlike North America, over 75% of the overall sales in Europe are imported from Japan, which can be treated as the long-term
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Q4: What measure would you recommend Toyota Europe take to resolve the continuing operating losses?

In my opinion, I would like to present three different ideas which can be considered as the good strategies to reduce and eliminate the continuing operating losses in European market.
First of all, Toyota should consider how to use different financial instruments to offset and reduce the continuing operating losses result from unpredictable currency exchange rate, such as take position into different forward or future contract to hedge the potential risk which might be happened in the operation process.
Secondly, the manufacturing localization must be allocated to the essential problem that Toyota required to deal with. It will require Toyota to set up a perfect plan which including choose location depends on various environmental analysis, and need to prepare a feasible coping mechanism aiming at possible occurrence of all kinds of potential problems.
Thirdly, According to the chart presented in the case, it is easy to find that the main possible reason for this continued losses in operating process is result from the unstable currency exchange rate and strength of pound against the euro, while the company wants to choose that manufacturing based country that must be sure is a member of EMU(European Monetary Union) because of United
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