Common Assessment: Toyota Motor and Total Company - Research Paper Example

Toyota Motor and Total Common Assessment: Toyota Motor and Total Company Introduction Toyota Motor Company has for a long time beenrecognized as a leader in the motor industry, especially in terms of automobile production. It has grown to a big multinational company from where it began and spread to different countries and markets. On the other hand, Total is well known for its exploration in refining, transportation, and supply of gas, oil, and related petroleum products. Even though Toyota exists in a different industry, some of its major endeavors can be compared to Total, which is an oil company from a totally different industry. The two companies cannot be substitutes of each other, but their operations can be compared in terms of legal, social, and economic settings. Given the fact that such factors like management structure, operational, and financial factors exist in both companies, their ways of carrying out these activities can be compared. Above all, the most vital part remains that Toyota Company relies on Total for its products for survival, such as petroleum and lubricants. Overview of Toyota motors The Toyota Motor Company is one of the biggest vehicle manufacturers in the whole world. Till now, it has sold approximately more than 8.8 million of its diverse makes and facsimiles of vehicles in 5 different regions around the world. Kiichiro Toyoda found the company in 1937 and made Toyota Aichi in Japan its headquarters. It is an international leader in motor vehicle technology and advancement. The firm also makes industrial equipment, buses, trucks, buses, and forklifts. A major fault of Toyotas information systems is the language obstruction that the Japanese-based firms have with its global workers and clients. Distribution and use of information across language obstructions on the global scene poses an important problem to use the information systems efficiently. Toyota mostly uses the English language globally but their firm is basically based in Japan and hence, Japanese is still a vital part of the sharing of information (Haller, 2007). Toyota Material Handling USA" (2004) states that Toyota has generated new prospects by developing their Conveyance Systems. It is working internationally with partners and states to improve the comfort of transportation. To achieve this, it is seeking to study current transportation systems by the use of their clients as well as information from other firms. Pursuing these developments to transportation systems is an important opportunity for Toyota, as they can rise their customer base and the fulfilment of current consumers. The use of information systems and interactions could be a key to aid Toyota have realization in refining Transportation Systems (Reynolds & Ralph, 2006). One of the intimidations for the improvement of Toyotas information systems comprises; struggle for information distribution between firms. To advance their information systems, it needs to incorporate and share ideas with other firms, for instance, Ford and Honda. In a viable market, firms are less probable to share information and research with entrants. This poses a direct fault to Toyota as the improvement of systems like their Transportation System inventiveness relies on the sharing of international information over the use of networks and information systems databanks. Overview of Total Oil Company It is the world’s fourth leading publicly-traded incorporated oil and gas firm, with branches in more than one hundred and thirty states globally. It crosses all the features of the petroleum industry, comprising upstream processes, LNG, oil and gas survey, growth and production, downstream processes, purifying, publicizing, transaction and transportation of crude oil as well as petroleum goods.   It engages in all the phases of the petroleum industry, including upstream activities and downstream activities. It also yields base chemicals - petrochemicals and fertilizers - and specialty chemicals used in the industrial and consumer markets - rubber treating, adhesives, resins and electroplating. In totaling, it has benefits in the coal excavating and power generation divisions (Acs & Audretsch, 1988). Total is also a world-class chemicals manufacturer, that is, the manufacture of base chemicals including petrochemicals and fertilizers, specialties such as rubber treating, adhesives, resins, and electroplating. It has interests in the coal-mining and power production sectors. In addition, it is aiding in securing the future of energy by the means of its commitment to develop renewable energies, for instance photovoltaic power, solar, wind, and other substitute fuels. The firm is structured into three business categories that supply lubricants to glass bottle companies, specialty lubricants to a comprehensive variety of industries, including food processing and metalworking, and lubricants to the marine industry. The markets are assisted by both distribution and direct transactions channels. Legal, social and economic environment for Toyota Company The major social value of the company is to aim at improving comfort in transportation, which will facilitate the working and daily activities of the people. Major essential values of Toyota include: Safety in its products, to be a leader in innovation of comfortable traveling carriages, and comfort in transportation. By doing and aiming to achieve this, it has to comply with all applicable laws and regulations of the countries in which they operate (Liker & Hoseus, 2007). Legal, social and economic environment for total Company The main aim of total is to enable people access energy at all times that is at a subsidized cost. Its core values includes: Ethics in the working place, Safety in the products produced, and corporate and social responsibility to the consumers. By aiming to achieve these, it complies with all appropriate laws and regulations of the nations in which they operate. Management structure of Toyota Company The Chairman of the Board of the company is Fujio Cho. The Board has 30 members, who are entitled to decision making about an issue that can affect the company’s production style. It has 10 Corporate Auditors who are in charge of keeping audit of the company’s monetary state. Management structure of total company The CEO of the company is Christophe de Margeria. The Board has 15 members, who solemnly decides for the company. It has 12 independent directors who coordinate with the CEO in decision making of the issues affecting the company (Acs & Audretsch, 2008). Operational and finance issues of Toyota company By 2005, it had US$56 Million in its financial base. It is the biggest industrial basis of emissions of volatile organic compounds. The burning of fossil fuels yield greenhouse gases Operational and finance issues of total company It aims to use more than US$ 1 Billion in promoting eco-friendly awareness. Earthquakes in Japan are the greatest environmental challenges in the growth and expansion of Toyota. Impacts of Potential Change Factors and Analysis of Strategic Intent of Toyota Company Qualified, technical experts will be needed to operate the new machinery, thus increasing efficiency. Substitute sources of energy like solar, wind, and green energy has reduced the marketing of oil energy Impacts of Potential Change Factors and Analysis of Strategic Intent of total company The state delivers tax inducements to inspire people to purchase cars. This will increase the Total company income in Japan. It composes of thirty percent of the whole Toyota sales. China remains a worry in the marketing of the company products. Future Performance Projections of total company Its main future projection is to: increase market and customer attention, increase profitability growth, and uphold capital management discipline. Future Performance Projections of Toyota Company The future performance projection of Total include: fresh ways of production development and Performance focus. Challenges facing Toyota Motors Company The negative Japanese: Japan’s economy agonized in 2011 due to natural disasters- earthquakes and a tsunami. To aid in lifting the automobile market, the state delivered tax inducements to inspire people to purchase cars. Japanese customers hurried to buy new automobiles before the subsidies terminated in September. The automobile manufacturers predicts its Japanese sales to drop as low as 20% the following year. Sales capacities in Japan account for thirty percent of Toyota’s entire sales capacities (Takeuchi, 2008). China remains a worry: Sales of Japanese automakers have agonized due to an anti-Japanese reaction in China. As an outcome, Korean and German automobiles manufacturers profited at the cost of Japanese automobiles in that zone. Sales numbers depicted advancement in November, and it was observed that it was getting back to normal in the subsequent two to three months. It had previously targeted sales of one million automobiles in China, but then it had lowered its potentials to be no more than eight thousand. It faced competition that other motor vehicle manufacturers gave, that is, the production of models of cars that are of similar kind. This has totally reduced the general profit earned annually (www.toyotaforklift.com). Challenges facing Total oil company In the globe of energy, an unsettling tendency has arose over the past limited years. The worlds leading oil companies are spending great amounts of money on new oil and gas plans each year, yet their production remains to deteriorate or drop (Main, Bruce & Buck, 1996). Firms and individuals have opted for other forms of energy like solar energy that has completely reduced the market capability of oil hence affecting the total outcomes. Another major encounter the Total oil company is of let facing increased charges for services in all areas, that is, procurement, facilities, drilling, engineering, and construction. Higher goods prices have also compelled the industry activity to a higher point that surpasses the industry’s capability to respond. The area in specific, which has a higher activity is in drilling get-ups. Fresh get-ups will be accessible for onshore areas and deep water areas in the upcoming years. But it doesn’t elucidate the issue totally – qualified, technical experts will be needed to operate the new machinery, which can also stand as a restraint, that is, they are not easy to get and as the industry tries larger, more multifaceted plans, the costs to entirely commit to and complete those plans will be reasonably high. On the other hand, what can’t be assured of is what oil and gas cost and what the revenue stream will be when the time arises. Conclusion The two companies contrasted are examples of the leading companies in their sectors in that, Toyota in automobile and total in oil production. Even though the companies have great progression, in their selling power, we see them encountering some factors that tends to pull down their rate of production. This calls for new strategic management methods that should be adopted by these companies so as to realize their goals of being the leading and proficient companies of the world. Through such impacts, the company tends to improve its management system which will automatically improve the production potential. References Acs, Z. J., & Audretsch, D. (2008). Innovation in large and small firms: an empirical analysis. New York NY: McGraw Hill. "Automobile industry." (2007). Microsoft Encarta Online. Retrieved April 29, 2007, from http://encarta.msn.com/encyclopedia_761563934_4/Automobile_Industry.html. Haller, T. (2007). Fossil Fuels, Oil Companies, and Indigenous Peoples: Strategies of Multinational Oil Companies, States, and Ethnic Minorities: Impact on Environment, Livelihoods, and Cultural Change. LIT Verlag Münste. 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