Internationalisation of Toyota.

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.

• Sharing of risk and ability to combine the local in-depth knowledge with a foreign partner with know-how in technology or process

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

Toyota Motors Company is multinational Japanese vehicle producer, an enterprise that has it 's headquartered at Toyota, Aichi. Toyota Motors are the biggest world 's producer of the autos about the statistics of 2013 by the quantity of vehicles. Toyota was additionally the greatest maker of the autos in 2012 and has been the initial a car producer that delivered ten million vehicles for each year. It is likewise recorded the most significant assembling organization in Japan of the market capitalization and income. The engines business delivers its vehicles

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.

After a self-satisfied period, American auto manufacturers encountered formidable competition from the Japanese (the most intense competitor, holding a combined U.S market share of approximately 25%) & German manufacturers. American market share was lost to these foreign brands as a result of better gas mileage, attractive design features & affordability provided by these foreign entities. Consequently, U.S car sales struggled in the European market while these foreign auto makers established production facilities & or expanded their already existing facilities (the Japanese manufacturers) in the U.S. Japanese manufacturers have instituted innovative productions by modifying U.S. manufacturing models, adapting & utilizing technology. Even so, the U.S. have merged with & established strategic commercial partnerships with other

Toyota is one of the leading manufacturers of vehicles in the United States and across the globe. Toyota is ranked #55 in Forbes, World’s Biggest Public Companies, and capturing sales of 202.8 billion and a market cap of 137.8 billion as of March 2011

The oil crises of the same period did not help improve the situation by shifting consumer preferences towards the more reliable and economical Japanese alternatives. GM responded not via their traditional method of acquisition, but rather by creating alliances with Isuzu, Suzuki and Toyota (Bordenave and Lung, 2002).

Just as there are pros to joint ventures, there are also cons. The cons to entering into a joint venture are flexibility, technology transferred, employees, and loyalty to the U.S. partners (Hall, 1984).

Toyota is a Japanese automotive manufacturer and was founded by Kichiro Toyoda in Aichi, Japan. Toyota has been listed as one of the largest auto producers ever since 1937. Toyota is well-known for its high technology and quality in producing their products. Toyota Company has been seen to keep on evolving and entering distinct national market to maintain its competencies as a high end automotive manufacturer.

Toyota Motor Corporation is a Japanese multinational automotive manufacturer headquartered in Toyota, Aichi, Japan. Toyota is known as the second-largest automotive manufacturer in world, behind German Volkswagen Group in 2016. Toyota adopted JIT in the Toyota Production System (TPS) as a means of eliminating the wastes in all aspects of production.

Authors state that the objectives of an international joint venture are: to gain access to foreign markets, to allow R&D cooperation to develop new products or to solve supply chain problems. The joint ventures have as advantage: greater gaining potential as opposed to royalties, greater control over production and marketing, better feedback from consumers, and more experience in international marketing.

It has both advantages and disadvantages. Joint ventures provide a means to spread large capital needs over a number of parties; most important projects are possible only if a partnership exists. This spreading of the initial investment spreads the risk between the business colleagues. It takes time and effort to build the trustworthy relationship and partnership with another business can be challenging. Problems are likely to arise if there is instability in a level of knowledge or resources brought into the project by the different partners. Also, different cultures and management methods lead to low co-operation and integration. It is highly important to re-evaluate the business strategy before committing to a joint

Another mode of entry is joint ventures. A joint venture is a mode of entry into a foreign market in which a firm is owned jointly by two or more independent firms. This are usually made in new markets where access is difficult or there are unknown parameters such us political status, economic conditions, culture etc. Joint ventures often consist of two or more partners sharing the same project. They can have different formats based on what is shared. This involves the degree of sharing, the number of partners, the type of project and the degree of ownership. For instance, the typical joint venture is a 50/50 ownership (eg Fuji and Xerox). Each side will provide a group of managers that will have an equal share in the decision-making, running and controlling of the business. Sharing also entails technology, resources and raw materials. However, there are cases in which firms have signed a venture involving a larger share of ownership and therefore exercising more effective control.

There are many reasons to consider jumping into a joint venture with another small business, including: