TOYOTA IN THE BUSINESS WORLD Term Paper Example | Topics and Well Written Essays - 1750 words

TOYOTA IN THE BUSINESS WORLD - Term Paper Example This has become possible through globalization which eliminated the barriers including finance so that the company could open up its way into the world market. Actually, Toyota has managed to achieve the top position in the world market owing to its successful approach of the market development and the accomplishment of the efficient management style. Toyota's first car matched American and European cars, like Dodge but these days Toyota produces its own unparalleled models on the groundwork of new technologies. The multinational giant in the beginning had its strategic functioning oriented on the international markets as the local, Japanese market was not able to physically consume the products produced by the company. According to Volti (2005) Toyota has its manufacturing and assembling plants for cars not only in countries like the US, Australia, South-Eastern Asia, the EU, but it has also entered markets of other countries like China, Argentina, Mexico, and others. Sakichi Toyoda, a productive inventor, instituted the Toyoda Automatic Loom Company. This company was based on his innovative designs. One of the innovative plans was licensed to a British company for 1 million yen with the money going towards the creation of the Toyota Motor Company (http://www.toyoland.com/history.html accessed 9 November 2009). Between the years 1936 and 1943 only 1757 cars were produced out of which 1,404 sedans were produced and 353 phaetons. Actually Toyota had more success in producing their trucks and buses. The Toyota KB, a 4x4 was a two ton truck which was produced in 1941. Its loading capacity was 1.5 tons and it could go up to around 43 mph. (http://cr4.globalspec.com/blogentry/673/December-8-1945-Toyota-Resumes-Production accessed 9 November 2009). The Crown Toyotas' first luxury car was produced in the year 1955. This car was provided with a four cylinder, 1.5-liter engine and had a three-speed column shift. The luxury car was followed by the 1-liter Corona. Only about 700 cars per month were produced in 1955, 11,750 in 1958, and 50,000 per month in 1964(http://www.toyoland. com/history.html accessed 9 November 2009). In the year 1959 Toyota's first plant outside Japan that is in Brazil was instituted. From then on, Toyota observed an attitude of localizing both production and design of its products. The company believed that this would help them to build long-term kinships with local providers and local labor. Toyota has thus established a network of design and R&D facility in North America and Europe (http://www.toyoland. com/history.html accessed 9 November 2009). Market of Toyota To a considerable degree, the international market development of Toyota was achievable due to the development of globalization. This process involves the economic integration of countries, removal of financial obstructions between countries and the support of free trade. The production chain of Toyota has spread all over the world thus proving that Toyota is in fact a global company (http://www.essay-911.com/samples /toyota.htm retrieved 9 November 2009). On the other hand, in the modern years, Toyota has elaborated its existence in the world increasing its business in many countries. Several of these countries are third world countries and include Philippines, Venezuela, Pakistan, India, Thailand, Malaysia, China, Czech Republic, Vietnam, Mexico and Argentina (Volti, 2005). Globalization