the Toyota Motor corporation and potential effect of globalization on business, solutions for Toyota sustainable development. While, the PEST analysis tool will apply for Toyota's business situation analysing to explain how Toyota influence by political, social, economic, and technological.
The multinational enterprise (MNE).
A multinational corporation (MNC), sometimes called a transnational corporation(TNC). Is a company that has headquarters in home country but manages production in other counties.
In the past two decade, the multi-national corperation (MNCs) plays a role of monopoly, they were able to get business advantages from host country by using the colonial power. In other word, they can get concessions from host countries by using home government's influence (Ohmae, 1995). Whereas, since the rapid growth in world trade and investment, this colonial power no longer existed. Instead, the world market becomes to more competitive. Most importantly, the rising of global practice and thinking between companies and countries has made business interests and orientations more necessary than ever (Abbas, J. 2000).
Background on Toyota
Since the rapid development of global integration the automobile industry becomes one of the world's most important economic sectors by revenue. Toyota is one of representative multinational enterprise in the world. It’s established in 1937 by Sakichi Toyoda, till present day Toyota was conducts both domestic and global marketing with 52 oversea manufacturing companies in 27 countries. Toyota market and sold the vehicles approximate 7 million in more than 170 countries every year, worldwide employees is 320.808 (Annual report, 2009). As a market leader Toyota holding 15 per cent market share among all the other automobile brands (Business week, 2009).The key success element of Toyota is commitment to designing, engineering and build cars to every target market area. Due to this reason Toyota faced great impact from globalization; the impact can be both negative and positive and differs by context such as new markets, cheaper location for investment, multi-choice of suppliers for raw material and services, and cheaper labor cost. However it can also carry the negative parts. First, the world automobile market is change in economic conditions affecting, and highly competitive environments in which Toyota operates. Second the market highly volatile. Last the global auto crisis was seriously hit down Toyota's market profit.