Toyota Motors Internal Business - Research Paper Example

 Toyota Motor Company is a multinational organization with its parental headquarters in Japan. Toyota has invested in several countries including US and China. The company deals with a wide range of vehicles targeting different market segments. The company targets private customers and individual organizations. In identifying and satisfying its customers, the company uses marketing techniques such as promotions and advertisements. Toyota is a household name in many countries today competing with such companies as Mercedes, Nissan, and Mitsubishi among many others. Toyota Motor Company supplies its cars to the U.S., East Africa and Japan, but faces intense competition it is endeavor to expand its market to countries such as China. The market system is a system that allows individuals and firms to make their own decisions about who gets what and the means used to get it (Harrison & Dye, 2007). While the market system deals with individual decisions, the government deals with collective decisions. In the United States, the market system and the government make decisions concerning the economy. The U.S. economy is made up of individual people, social institutions and business and labor organizations. The United States constitution is the basis of the United States’ legal system. The U.S. legal system gives the freedom to own private property. The law gives U.S. citizens a right to own property and use it in the lawful manner they choose. The market system affects the distribution and sales of Toyota vehicles because the decision of using them is made by people and organizations that may want the products. The U.S. government does not control the individual buying and using the vehicle. Therefore, it is the duty of the Toyota Motor Company to convince its customers of the benefits of using the products as opposed to other related products. It is the duty of Toyota Motor Company to offer the vehicles that the customers might need at prices that they are willing to pay and which it can afford to sell. The Motor Company price will determine who will be able to purchase the products. Political risks in a country may be instituted by the political decisions in regard to the expected outcome and value of any given economic action. Macroeconomic and socials policies are the key effects of political risks. In the U.S., political risk can be caused by government participation in private enterprise. A financial crisis may also be the possible source for a political risk in a country. For instance, in 2009 investors in the US were concerned about political risk after the government played a great and controversial role in private enterprise due to the economic problems that were experienced at the time (Graybow, 2009). Toyota Motor company’s products are luxuries and not basic needs. Therefore, in case of a political risk the demand for its products will reduce. To avoid losses in situations of political risks the company should consider broadening its markets. When one market is affected by the problem, it can utilize time on other markets as it waits for the affected country to revert to stability. The Toyota management should ensure that it does not rely on one market. In case there is a political risk in one country its sales and other operations will not be paralyzed when it adopts this strategy. Preparing strategies in advance will make the company more prepared to tackle political risks in the future. Toyota motors code of conduct includes observing local laws, respecting societal norms and company ethics, engaging in fair corporate activities and complying with the expectations of its stakeholders. In raising individual awareness of compliance, Toyota promotes initiatives through corporate ethics committee and other internal organizations. They always check activities to enhance compliance with their codes. The Toyota code of conduct describes the values to be observed by the people of the global Toyota organization. The codes are aimed at creating a harmonious environment, observing the social norms, ensuring the proper way of asset management, confidentiality matters and insider trading. Stakeholders of Toyota Motor Company include the customers, employees, business partners, shareholders and the global society. The company has the responsibility of satisfying its stakeholders. It is usually difficult for a company to manage this in different countries due to the existence of cultural diversity. Countries have different legal and market systems and therefore it is necessary for a company to do thorough research about the country before investing in it. Countries operating internationally must be ready to adhere to the demands of the different legal and economic systems within which they operate. Toyota has involved itself in various social activities in the countries that it has invested in. The activities include educating and inspiring the youths in the world, environmental conservation, and building areas where impoverished communities live. For instance, it contributed $ 1 million to build a local community centre in Kentucky (Karan 2001, p. 85). Toyota has programs for technical education in each of the 47 countries within which it operates. One of its programs for technical operation includes its joint venture with ALJ in promoting vocational training (Ibrahim, 2008 p. 75). In guiding and monitoring its investment in the future, the company should put in place a management team that is comfortable with reasonable risk taking. The management should be in a position to study markets, be updated on the changing economic status of the countries they have invested in, and prepare possible solutions in case of any possible problems that may arise. With these advance preparations, the company will not suffer in case of any incidents. It is necessary for the company to work together with its shareholders so as to gain their support during the difficult times. In conclusion, the success of a company depends on its research, management, programs, shareholders and target market. For a company to capture a huge market, it should consider its marketing technique and how to meet the needs of different markets. As it keeps profit making in mind, it should also consider its price in relation to competing products’ prices. Customer satisfaction and product quality are the key achievements of various companies. Therefore, for Toyota to move from its second position in the world to the first position, it should put these factors into consideration. One main factor to consider is customer satisfaction. References Chen C. (2004). Asian management systems: Chinese, Japanese and Korean styles of business. New York. Cengage Learning EMEA. Graybow. M. (2009). Political risk is becoming a growing concern for investors in the United States as the government plays a larger and more controversial role in private enterprise because of the financial crisis. Retrieved from http://www.reuters.com/article/2009/05/07/us-usa-business-risks-analysis-idUSTRE5467YJ20090507 Harrison. B. C & Dye. T. R. (2007). Power and Society: An Introduction to the Social Sciences. Boston: Cengage Learning. Ibrahim.B. (2008). From charity to social change: trends in Arab philanthropy. New York: American Univ in Cairo Press. Karan. P. (2001). Japan in the blue grass. Kentucky: University Press of Kentucky Read More