International Business Strategy of Toyota - 3721 Words

A Brief Understanding of IBS †Ã¢â‚¬ A Case Study of Toyota A Brief Understanding of International Business Strategy --A Case Study of Toyota by Peter LIU, peterliu@acculine†mfg.com MSc International Business P14B45 International Business Strategy Lecturer: Dr Yee Kwan Tang Sponsored by 10 May 2010 Acculine Precision Manufacturing Company Tel: 0086-574-28887315, Fax: 0086-574-28875303, Web: www.acculine-mfg.com, email: info@acculine-mfg.com A Brief Understanding of IBS --A Case Study of Toyota Page 1 / 12 Content Introduction ........................................................................................................................... 2 Basic Concept of International†¦show more content†¦In order to deal with these two opposing ends, four international business strategies have been worked out, empirically and/or theoretically, namely global standardization strategy, localization strategy, transnational strategy, international strategy. Global standardization strategy focuses on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, leaning effect, and location economies. The strategy applies best when there are strong pressures for cost reductions and minimal demands for local responsiveness, mainly where products that service universal needs prevail. A localization strategy practitioner increases profitability by customizing the firm’s goods or services so they provide a good match to tests and preferences in different national markets. Localization is most appropriate where consumer tastes and preferences differ substantially across nations and cost pressures are not too intense. Conversely, a transnational strategy is aiming to simultaneously achieve low costs through location economies, economies of scale, and learning effects; differentiate their products offering across geographic markets to account for local differences; and foster a multidirectional flow of skills between different subsidiaries in the firm’s global network of operations. Finally, many enterprises pursue an international strategy, taking products first produced for their domesticShow MoreRelatedToyota Business Model Analysis989 Words   |  4 Pages TOYOTA BUSINESS MODEL ANALYSIS INTRODUCTION Ambitious enterprises, in order to achieve and maintain profitability, no doubt, will have to expand overseas business. In order to gain additional market share, sales, and profits, numerous companies proved that foreign markets are never a flat plain field and full of traps, it is not just an adventure. Adventurers have to confront cross-border management coordination, unions, and local consumer’s preferences over products and services, local governmentRead MoreThe Business Strategy Of Toyota1318 Words   |  6 Pagesconsumer satisfaction. The other strategy of Toyota is Jikoda under which the company uses a quality control process with principles such as correcting and fixing the immediate condition, detecting abnormalities and stopping it immediately and lastly, investigating the root reasons for problems and installing the countermeasure quickly. The other business strategy is Kanban. It is also the important tool of Just in time system. It includes signals used by Toyota to replenish the products and materialsRead MoreEssay on Toyota Global Domestic Marketing1331 Words   |  6 PagesGlobal and Domestic Marketing Toyota Motor Corporation conducts both domestic and global marketing with 51 overseas manufacturing companies in 26 countries and regions. Toyota’s vehicles are sold in more than 170 countries and regions (Toyota, 2010). This paper will identify the environmental factors that affect global and domestic marketing decisions and address how they relate to the marketing decisions by analyzing the influence of global economic interdependence and the effect of tradeRead MoreEnvironmental Factors Affecting Globalization1321 Words   |  6 Pagesdetermine within the domestic market (Business, para. 1). Operating in a global market means that the organization has begun to offer their goods and services worldwide to expand the market and increase sales. Globalization presents a huge opportunity for success for many organizations. Domestic and global marketing helps to promote the organizations success and continue the expansion of the business by redesigning marketing plan to f it certain aspects. Toyota Corporation is an organization affectedRead MoreEnviromental Factors1015 Words   |  5 Pagesfor corporate Toyota is very important in order to increase revenue sales by focusing on both purchasing vehicle parts and materials from specific countries and as well as in increasing market share in each region in where they do business. Toyota must also consider the targeting of specific groups and classes of people within a country because those groups may be dependent on the success of Toyota. The effect of trade practices and agreements play a major role in Toyota’s strategies and operationsRead MoreSituational Analysis Essay1442 Words   |  6 PagesAnalysis Karmarie Maldonado, Thomas Granvang, Thomasina Campbell, and Kanesha Madison STR/GM 581: International Strategic Planning and Implementation January 30, 2012 Jill M. Hagist The situational analysis is one of the four elements in a strategic management process and is an important step in the success of a business. This paper will present a background history of Toyota and provide the company’s mission and vision statement and values. The paper will provide the environmentalRead MoreMini Case Paper #1-Building â€Å"World Car†950 Words   |  4 PagesMini case paper #1-Building â€Å"world car† 1. Discuss the strategies implemented by Toyota and Honda to achieve greater efficiency in car production. One of the major strategies implemented by Toyota and Honda to achieve greater efficiency in car production is pursuing the continuous improvement and using â€Å"lean† production system in order to eliminate waste in the organization. Toyota and Honda show a strong emphasis on total product quality not only at the expense of lead time but alsoRead MoreMarket Segmentation for Companies1430 Words   |  6 Pagespay attention segmenting their products and entering a new market.Because of that, the company takes into consideration the all process of the market segmentation such as target marketing, segmenting consumer markets, segmenting business markets, segmenting international markets, brand value relations with customer value , benefits and disadvantages of segmentation. SEGMENTATION AND CONSUMER SATISFACTION Customers are the center point of all marketing processes because marketing focuses onRead MoreAnalysis for Toyota Essay1659 Words   |  7 PagesContent 1. Introduction 2 2. Ownership advantages 3 2.1 Toyota Production System (TPS) and Just-In-Time (JIT) management 3 2.2 Resource – based view: core competencies of Toyota 4 3. Internalization advantages 6 4. Location advantages 7 4. Conclusion 8 References 9 Appendix 10 1. Introduction As the leading auto manufacturing company, Toyota is not only the symbol of Japan, but also the one of the best business models for MNCs expansion overseas. Since the company was establishedRead MoreThe Fundamental Elements Of Toyota Company1641 Words   |  7 PagesExecutive Summary The article delves on the three fundamental elements of Toyota Company. These include its supply chain management, inventory management and operation management. In each item, it discusses the faced by each and provides appropriate measures that should be employed to make such process a success in the company s operations. A company that is using the three elements appropriately makes its operations easy alongside improving its chances profit making. Therefore, such items are significant