Toyota - Global Environment Forum - Research Paper Example

Global Environmental Forum – Toyota Australia of affiliation Global Environmental Forum – Toyota Australia Known to be one of the largest motor vehicle manufacturers in the world, Toyota has established itself as the most successful automobile company in the world indisputably. This success has been contributed to by Toyotas global presence in many countries, on such country is Australia. Toyota has been in Australia since 1958, being that Australia was Toyotas first export ground (Toyota 2011).

There are factors that Toyota can take advantage of to do successful business in Australia. The nation Australia has experienced stability for long both politically and economically, making it a favourable environment for business. This is supported by its accountable financial practices, transparent government and open policies. Australia has a legal system that consists of both common laws and statutes. Equality before the law is highly upheld as both domestic and foreigner business stand the same chances before the law.

The countries property protection enjoys a higher ranking as it comes in second in Asia. Another advantage it has is in its time zone. It lies 10 hours ahead of GMT. It stands right in the middle of business closing hour in America and opening hour in Europe. This time zone advantage simply allows for a flow of business though out nonstop (Sydney Australia/ New South Wales Government 2012). The tax system in Australia is favourable as business income tax is at 30%. This comes with no capital flow restrictions, capital repatriation, transfers or royalties profit remittances, and other trade-related payments.

Major business cities such as Sydney do offer business costs that are competitive. This provision is lower than what is provided in other cities around the world such as Seoul, Tokyo, Hong Kong, London, Paris and Singapore (Sydney Australia/ New South Wales Government 2012). There also exists government subsidies for regional business, subsidies such as reduced power bill, reformed railway freights, reduced port charges, and a streamlined land use planning process and approvals. The major cities also have transport and communication systems that are world class.

These are supplemented by support services for business and superior commercial property at affordable prices as compared to other regional cities (Sydney Australia/ New South Wales Government 2012). Australia has a state-of-the-art telecommunication system that consists of fibre optic, microwave, wireless and satellite systems, with fibre optic being the dominant technology. Other favourable factors include multilingual and well educated workforce among others (Sydney Australia/ New South Wales Government 2012).

A few factors though may become a hindrance for Toyota when doing business in Australia; one such is the process of obtaining construction permits. Companies are required to go through 11 procedures that take up to 112 days to complete. The export and import process is termed as bureaucratic in Australia as a company has to goes through procedures that take up to 6 days for import and eight days for export. The other process that is quite time consuming is acquiring electricity which takes up to 75 days.

These three procedures that seem to take longer than they should are the top challenges Toyota has to face when doing business in Australia (TMF group 2013).Toyota can employ a few strategies to enable them jump into business as soon as possible. One of them is taking up the processes of acquiring permits simultaneously as possible, as this will help reduce the total time taken to acquire such documents. The strategy would be to employ Australian natives that can be able to deal with such processes.

ReferencesSydney Australia/ New South Wales Government (2012). Doing Business In Sydney: Why Business Choose Sydney.. Retrieved June 16, 2014 from http://www.sydneyaustralia.com/en/doing-business-in-sydney/business-environment TMF Group (2013). Top 10 challenges of doing business in Australia. Retrieved June 16, 2014 from http://www.tmf-group.com/en/media-centre/resources/top-challenges/apac/australiaToyota (2011). The company: History. Retrieved June 16, 2014 from http://www.toyota.com.au/toyota/company/history