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Economics Assignment - Coursework Example

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The company selected for the purpose of this report is Toyota Motor Corporation, the Japan-based multinational automaker which is one of the largest and most successful automobile manufacturers in the world. This report shall carry out the microeconomic and macroeconomic…
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Economics Coursework Assignment
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Economics Assignment

Download file to see previous pages... iew the decisions and behavior of individual households and firms in allocating limited resources.First to be considered are the demand drivers of the Toyota sedan.Toyota Motor Corp.s sedans have remained in high demand all over the world owing to the effective quality, design, pricing and reputed brand name of the company. The Camry remains the best-selling car in the United States for 13 out of the past 14 years and has effectively beaten competition from Hyundais Sonata, Kias Optimum and Fords Fusion. One major demand determinant is the price of the product and the prices of its competitor products. Toyota, through its effective lean management policies manages to price its sedans at competitive prices in the world market and through Total Quality Management, enforces high quality and safety standards in its cars that keep the demand high.Another demand driver is the rapidly growing population of the world and the even faster growing middle class as a result of increased income, resulting in rise in demand for normal goods such as cars. For example, in India, the middle class enjoys a 4.9% increase in its annual income.Toyota Etios sedan sales in India are expected to go up by 32% in 2012. Moreover, the changing consumer tastes and preferences also determine the profitability of Toyota sedans.Consumers today demand fuel-efficient and eco-friendly cars accompanied with a more streamlined, comfortable andluxurious design. Toyota has launched sedans that cater to its customers demands. However, the global economic recession of 2008 adversely affected the sales of all automobile companies including Toyota since the depression hit the economies and the pockets of the public(Ball et al. 2012).
Among supply factors, environmental conditions are significant. The 2011 Japan Tsunami wiped off 650 of Toyotas suppliers bringing the car production to a standstill and causing it to lose its sales by 7.8% in the U.S. market. Also, the recent Thai floods have caused parts ...Download file to see next pagesRead More
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