Corporate Communications & PR - Toyota Motors Company - Assignment Example

University> By PRS 305 Corporate Communications & PR 1. Examine and critique an aspect of the company’s performance with regards to fulfilling the needs within society. The automobile industry is one of the most growing and developing industries across the world. It has become one of the most significant economic drivers in several nations that have invested in it, the American automobile being the finest example. Research reveals that there is an increase in the demand for automobiles whereby it is not only considered as luxury. However, these automobiles are mainly required for the purpose of commuting making it easier for people to arrive at the workplace and so forth. Toyota Motors Company is one of the most innovative manufacturers of automobile products. Over the years, it has become one of the most trusted companies since it took innovation in building their products to the next level. It is imperative to note that TMC is a multinational automobile manufacturer headquartered in Toyota, Aichi, Japan. One of the most notable aspects of the company’s performance with regards to fulfilling the needs of the society is that it has factories in almost all parts of the globe. The primary objective of these factories is to manufacture vehicles meant for the local markets. As a result, this has led to the ease of access to these products by the local consumers. These factories are located in places such as Canada, France, Australia, Brazil, China, South Africa, Portugal and several other countries. However, one of the most significant critiques concerning these factories is competition. Due to the several assembly factories across the globe, TMC should be in a position to be the leaders in the global markets. The current research reveals that TMC is still not very competitive as such. Therefore, there is a substantial need to consider other strategies for ensuring that the company performance is substantially enhanced. Jothi and Kalaivani assert that “In the fiscal year ending in March 2013, the consolidated operating income of Toyota resulted in 1 trillion 320.8 billion yen” (Jothi & Kalaivani, 2015pp.33). Thus, strategies such as innovative product development and better marketing techniques can be influential in improving the performance of the company. 2. Analyze the company’s current corporate image. Lowery argues that “Toyota launched a re-branding campaign in May 2006, to portray itself as an “American car company” in the eyes of the American consumer” (Lowery, 2007 pp.4). It is imperative to note that re-branding is a technique that is applied by a company with the objective of changing its public image. Some of the main reasons for re-branding include scandals, mergers or slump in sales. Toyota Company initiated its re-branding with the primary objective of outshining its main competitor General Motors as the number one American car manufacturer. As well, the rebranding was aimed at ensuring that the company plays a vital role in the growth and development of the American economy. However, the guest towards achieving this was full of challenges that must be overcome. One of the greatest challenges was to gain the American market which was dominated by the local car manufacturers such as General Motors, Ford, and Chrysler. As well, they had to convince the consumers that the profits gained in the sales of these products are not only invested in Japanese economy but also the American economy. According to Lowery “Re-branding is used when a company is attempting to redefine and change the consumer’s perception of the corporation” (Lowery, 2007 pp.11). Thus, the Toyota Motors Corporation was launched in 2006 with various objectives. Among the most notable objectives of this re-branding campaign was to maintain the overall Japanese traditions and culture in the Toyota brand. As well, it was aimed at ensuring that they remain as a Japanese company in the eyes of global consumers while branding themselves as an ‘American Company’ in the US. To achieve this, TMC opened several new manufacturing plants across the United States of America. In addition to the above, they opened numerous research and development centers strategically located in the regions that were dominated by the local car manufacturers. Lowery asserts that “Currently, Toyota operates 14 manufacturing plants in North America and 2005, employed 38,340 people in North America” (Lowery, 2007 pp.21). Over the years, the company has provided several more additional job opportunities in the United States of America and several other places in the world. As a result of this, the corporate image of the company has been substantially enhanced (Liker, 2004). On the other hand, TMC provides more that eighty thousand employment opportunities in the United States through those who service and sell Toyota products leading to approximately in $2.6 billion compensation. 3. Highlight both areas of achievement and those requiring improvements. Do not focus only the positive or negative aspects. Several strengths have enabled TMC to be a successful company in the world. First of all, strong market position and brand recognition are the most notable strength of the company. TMC has invested heavily in developing several manufacturing and assembling plants across the globe. Nkomo asserts that “The company's market share for Toyota and Lexus brands, (excluding mini-vehicles) in Japan was 45.5% in FY2012” (Nkomo, 2005 pp.5). As well, the company has substantial market share in America, Europe, Asia, and Chinese markets. The strong market position enables the company to expand its global markets as well as gain a competitive advantage leading to increased sales. Secondly, the company has a strong focus on research and development. Several objectives aimed at in these research and development programs. Some of the most significant include enhancing functionality, quality, safety, and environmental friendliness of the products manufactured. These R&D efforts have enabled the company to come up with innovative products in both local and global markets. Furthermore, there are some imperative weaknesses that the company has exhibited. One of these weaknesses is the product recalling which Nkomo asserts that “it could affect the brand image and overall sales of the company” (Nkomo, 2005 pp.6). One of the most notable instances occurred in 2011 when TMC recalled 111, 000 models of Toyota Lexus brands vehicles. The main reason for this was the destruction of the elements of the substrate that could potentially lead to the closure of the hybrid system. Later in that year, about 181, 000 vehicles in Japan was recalled primarily due to abnormal noise and oil leakages attributed to rear wheel differential and slack bolts. In addition to the above, poor allocation of resources as compared to peers is another notable challenge to the company (Fan & Geddes, 2013). The company competitors such as Honda and Nissan Motor have a greater return on equity and return on assets as compared to TMC. Despite all these weaknesses, some opportunities can be maximized by the company to achieve success. One of the most significant opportunities is the growing global automotive global automotive industry. This rapid growth presents an opportunity to TMC that can be explored to increase the number of customers as well as the company profitability. As well, the company is poised to benefit from the growing partnership with BMW (Coman & Ronen, 2009pp.5576). Some of the most significant parts that both companies agreed to develop together include the architecture and components of the future sports cars, power-train electrification, and joint research and development. In the long run, such collaborations will result in cost savings and synergies leading to the increased saving of the operational costs. Thus, it is imperative to note that such partnership can be influential in enhancing the overall performance of the company. 4 Examine and discuss the impacts and implications of the company’s action on society and stakeholders. It is imperative to note that TMC respects the culture and customs of every country and region that has substantially contributed to the social and economic development through various corporates activities in the community. First of all, it is worth noting that TMC has engaged in various non-automotive projects aimed at enhancing the society and various other stakeholders. One of these projects provided by the company is housing. The company offers a variety of accommodation and related services primarily aimed at meeting the customer demands. The members of the society, as well as the company stakeholders such as employees and managers substantially, benefit from these programs (Ihlen & Roper, 2014pp.44). Secondly, has initiated the e-Toyota business whereby technology and related strategies are used to conduct business. It is profound to note that in this age technological advancements are rapid and rampant. Thus, this has led to an increase of customers especially those conversant with technology trends. Biotechnology and Afforestation are other actions that the company has invested heavily. They are aiming at conserving the environment and using this for economic growth and development. TMC as well is providing various financial services such as vehicle loans and leasing in different parts of the world. For instance, the vehicle loans have enabled various people to own vehicles of their choice as they pay for them as time goes by. It is also worth noting that the company has featured into the Marine business. They have developed boats that are safe, eco-friendly, and comfortable. As a result of these eco-friendly products, pollution of the environment has been substantially reduced. The Company Sustainability Report 2015 indicates that “The automotive market is experiencing fierce competition globally amid ongoing changes such as the development of information and communications technologies in addition to responses to government policies around the world to increase use of eco cars, and initiatives to strengthen the development of safety technologies” (Fan & Geddes, 2013pp104). This is a clear indication that the company is incorporating various mechanisms with the objective of outshining the competitors in the global markets. As well, they are aiming at meeting the policies and standards set by the government and other relevant authorities (Nunes &Bennett, 2010pp.405). 5. Provide you’re on – balance recommendations & conclusions about the company’s performance in society. In conclusion, there are some key recommendations that I can make concerning Toyota Motors Corporation. Firstly, there is a substantial need that they emphasis on innovation and creativity. It is clear that the company is facing several competitors in both local and global markets. Innovation is one of the strategies that can be maximized to gain a competitive advantage in the global markets. For instance, they need to focus more on developing innovative products as well as using innovative strategies to achieve success. On the other hand, the research revealed that the company has substantially succeeded mainly due to their intense research and development. In that regard, they need to invest more in developing more research centers across the world. These R&D centers should be instrumental in coming up with quality, innovative, high performance, and reliable products. This will go an extra mile in improving the performance of the company in the global markets. Finally, the company needs to focus on eradicating or finding amicable solutions to its weaknesses. One of the most significant noted shortcomings associated with the company is the recalling of some models after release. This can lead to the tarnishing of the company’s corporate image leading to lose of customers and public trust in the global markets. Thus, it is profound that the firm ensures that all the models manufactured are well tested to minimize faults and the associated implications. On the other hand, the company should ensure that resources are allocated appropriately as compared to peers such as Honda Company and Nissan Company. This will go an extra mile in improving the quality of the products released and hence enhancing the performance of the company in both domestic and global markets. References Coman, A. and Ronen, B., 2009. Focused SWOT: Diagnosing Critical Strengths and Weaknesses. International Journal of Production Research, 47(20), Pp.5677-5689. Ihlen, Ø. And Roper, J., 2014. Corporate Reports On Sustainability And Sustainable Development: ‘We Have Arrived’. Sustainable Development, 22(1), Pp.42-51. Jothi, K. and Kalaivani, P., 2015. A Study on Financial Performance of Honda and Toyota Automobile Company A Comparative Analysis. Journal of Progressive Research in Social Sciences, 2(1), pp.33-35. Lowery, K. 2007. A Re-Branding Campaign: Toyota’s Quest to be viewed as an American Company. The Faculty of The Public Communication Graduate Program School of Communication American University Washington, D.C. Fan, D., Geddes, D. And Flory, F., 2013. The Toyota Recall Crisis: Media Impact on Toyota's Corporate Brand Reputation. Corporate Reputation Review, 16(2), Pp.99-117. Liker, J. K. 2004. The Toyota Way: 14 Management Principles From The World’s Greatest Manufacturer New York: McGraw-Hill. Nunes, B. And Bennett, D., 2010. Green Operations Initiatives In The Automotive Industry: An Environmental Reports Analysis And Benchmarking Study. Benchmarking: An International Journal, 17(3), Pp.396-420. Nkomo, T. (2005). Analysis of Toyota Motor Corporation, New York: McGraw-Hill. Read More