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Toyota Motors Internal Business - Research Paper Example

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This discussion presents Toyota Motor Company which 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…
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Toyota Motors Internal Business
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Download file to see previous pages From this paper it is clear that 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.

This study highlights that 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. 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. 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 ...Download file to see next pagesRead More
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