This table shows that, the yen has been strong when translation with US dollars.
According to Toyota's annual financial statement, which clearly present a financial situation of Japanese yen are affected by translation risk and foreign currency transaction risk. The fluctuation of foreign currency change rates may affect the price of Toyota's products in worldwide market and use foreign currencies to purchases materials. Since 2009, Japan central bank to show sign of Japanese yen will further appreciates against U.S. dollars. It can cause adverse effect to Toyota's reported operating results and financial condition. Because Japanese yen is rapidly, consistently appreciates against other foreign currencies that will force Toyota to markup the price of all the export products. But the rapid increase value of Japanese yen can have favorable effect on material purchased, but it only inside of Japan. For Toyota oversea operations still suffered with high raw materials, and gasoline, due to the profit margins was fallen, when translated from dollars back to yen.
The impact of consumer preferences on Toyota
(Source: Annual Repot, 2006)
This table illustrate that, Toyota has build different product line across the China to fulfill local market demand.
The consumer preferences are one of the most important factors shaping international production for Toyota. The trend of distinct national preferences is spread every corner of the world. The homogeneity of preferences lead to Toyota's product reduces the benefits of manufactory in China, because of complicated relationship between car design and differences in consumer preferences as a typical example, the Ford promote new car "Mondeo" to the worldwide but the sales was not good as they expected, because Ford neglected focus localizing production.
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In particular, after the second oil crisis, Toyota was enhance the production aims to provide an effective and creative production design to gain more market share in China (i.e., Toyota's Corolla produce by global platform and modified for different region to match consumer's needs). But Toyota has ignored the preferences are not yet homogeneous across all of China, even in the target region, there are have several differences local tastes of demand. In contrast, the Honda's Accord is also use the global platform but modified the car's exterior body to different specific market area, thus, Honda has completely different automobile production line for each target market, i.e., the difference platforms between Japan, Thailand and China. Due to this reason Toyota fall into extremely passive position compare to other competitors.
The Impact of United States Financial Crisis on Toyota .
The United States financial crisis of 2007 has considered being the worst economic crisis since the 1930's great depression. The main factor trigger of the financial crisis was the United States real estate bubble was busted, caused property price tied by the value of securities, then the price of house was decline straightly, not only America this financial tsunami has wave to the entire world. Which contributed consumer lost approximate hundreds of billions of U.S. Dollar, several key businesses have failed, and the stock markets have fallen significantly. Obviously, the financial crisis has been hit down United States economy heavily; even the bailout of banks by national government has measured. But the financial markets haven’t showed the sign of recovery.
As biggest auto-maker in north America "Toyota" was faced an unprecedented situation by the financial recession. The adverse results are largely, the vehicle sale hardest hit in northern America and Europe market with drop in sales of 673 thousand vehicles() especially, the sales of Toyota's luxury division Lexus was drop significantly.
Moreover, increase price of crude oil and iron and steel raw material impact Toyota's operation, this fiscal year was drop 68 percent of benefits compare with previous fiscal year and according to Toyota annual report, the net profit loss of 4.2 billion U.S dollars (Toyota Annual Report, 2009). Last the financial market recession resulted negative impacts to Toyota's accumulation of capital. Due to the financial downturn, the organizations or financial institutions may unable to provide capital to the market.
The impact from competitive environment to Toyota.
Figure:share of U.S. Auto market. (Source)
According to this pie chart, GM, which is 18.2%, is the biggest automaker in U.S. among all the motor corporations, then is Toyota with 15.8%, followed by Ford, making up 14.3%: and the next coming is Chrysler at 12.1%. From the pie chart is obviously shows that the big three automaker are still the largest domestic producers which making up 44.6% market share.
The United States market always has been a prime concern for Toyota.. Due to its trade liberalization, highly developed, market demand(U.S. Auto market is about ten times bigger than the Canadian market). Especially, the demanding of Toyota luxury division Lexus was increased in recent years.
However the U.S. automotive market is highly competitive at least fifteen auto company was market their product in U.S. market. Toyota as a foreign brand faces intense competition from other competitors. The highly competitive business environment lead to cause lower vehicle units sales and inventory backlog. This caused Toyota downward price pressure. The factors influence competition including: quality of product, post-purchase services, and reliability. However, Toyota faced unexpectedly quality problem with sudden unintended acceleration, which caused Toyota economic damages nearly $7 billion, the 94,000 vehicles has been recalled.
Sustainability development of Toyota
Establishment of Global Special Committee for Global Quality control
Implemented approaches to address a deterioration in information gathering and information sharing practices between headquarters and the regional offices. These problem are seen to be the harmful side effects of the rapid globalization.
The function of this committee are restructure the quality management system
Strategies of interest rate swaps and localized in respond to fluctuation of Money exchange rate.
In order to reduce the adverse affect of fluctuation foreign currency exchange rates, Toyota use some certain derivative financial tool such as interest rate swaps and increase the target market production of localized. Likewise, increase the investment in target market to increase production capacity and build local raw material supply chain, that can as possible as minizing losses on currency translation. Nonetheless, the adverse affect still existed, Toyota have to maintain a high level of vigilance the dynamics of international exchange market.
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Product diversification in respond to highly competitive auto market.
In the highly competitive global business environment,
Conclusion
In todays global business environment multinational enterprise become more important, because countries adoption of opening oriented to promote the economic growth by attract Foreign Direct Investment (FDI). The multinational enterprise plays the role of investor between countries. Whereas, the business environment will become more competitive follow with the increased FDI. As the world forth largest multinational enterprise, Toyota faced several affect from globalization, which can be classified as political, government regulations, economic environment, social lifestyle, and technological factors. Due to those of factor Toyota will continue to seek the way of sustainable development that use some strategy or approach to solve problems, such as, open a new market with innovative product. But there are not ensure Toyota will have a bright future.
§
Find out more from UK Essays here: http://www.ukessays.com/essays/marketing/the-global-expansion-of-toyota-marketing-essay.php#ixzz3JsWI7uGc
This table shows that, the yen has been strong when translation with US dollars.
According to Toyota's annual financial statement, which clearly present a financial situation of Japanese yen are affected by translation risk and foreign currency transaction risk. The fluctuation of foreign currency change rates may affect the price of Toyota's products in worldwide market and use foreign currencies to purchases materials. Since 2009, Japan central bank to show sign of Japanese yen will further appreciates against U.S. dollars. It can cause adverse effect to Toyota's reported operating results and financial condition. Because Japanese yen is rapidly, consistently appreciates against other foreign currencies that will force Toyota to markup the price of all the export products. But the rapid increase value of Japanese yen can have favorable effect on material purchased, but it only inside of Japan. For Toyota oversea operations still suffered with high raw materials, and gasoline, due to the profit margins was fallen, when translated from dollars back to yen.
The impact of consumer preferences on Toyota
(Source: Annual Repot, 2006)
This table illustrate that, Toyota has build different product line across the China to fulfill local market demand.
The consumer preferences are one of the most important factors shaping international production for Toyota. The trend of distinct national preferences is spread every corner of the world. The homogeneity of preferences lead to Toyota's product reduces the benefits of manufactory in China, because of complicated relationship between car design and differences in consumer preferences as a typical example, the Ford promote new car "Mondeo" to the worldwide but the sales was not good as they expected, because Ford neglected focus localizing production.
This essay is an example of a student's work
Disclaimer
This essay has been submitted to us by a student in order to help you with your studies. This is not an example of the work written by our professional essay writers.
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In particular, after the second oil crisis, Toyota was enhance the production aims to provide an effective and creative production design to gain more market share in China (i.e., Toyota's Corolla produce by global platform and modified for different region to match consumer's needs). But Toyota has ignored the preferences are not yet homogeneous across all of China, even in the target region, there are have several differences local tastes of demand. In contrast, the Honda's Accord is also use the global platform but modified the car's exterior body to different specific market area, thus, Honda has completely different automobile production line for each target market, i.e., the difference platforms between Japan, Thailand and China. Due to this reason Toyota fall into extremely passive position compare to other competitors.
The Impact of United States Financial Crisis on Toyota .
The United States financial crisis of 2007 has considered being the worst economic crisis since the 1930's great depression. The main factor trigger of the financial crisis was the United States real estate bubble was busted, caused property price tied by the value of securities, then the price of house was decline straightly, not only America this financial tsunami has wave to the entire world. Which contributed consumer lost approximate hundreds of billions of U.S. Dollar, several key businesses have failed, and the stock markets have fallen significantly. Obviously, the financial crisis has been hit down United States economy heavily; even the bailout of banks by national government has measured. But the financial markets haven’t showed the sign of recovery.
As biggest auto-maker in north America "Toyota" was faced an unprecedented situation by the financial recession. The adverse results are largely, the vehicle sale hardest hit in northern America and Europe market with drop in sales of 673 thousand vehicles() especially, the sales of Toyota's luxury division Lexus was drop significantly.
Moreover, increase price of crude oil and iron and steel raw material impact Toyota's operation, this fiscal year was drop 68 percent of benefits compare with previous fiscal year and according to Toyota annual report, the net profit loss of 4.2 billion U.S dollars (Toyota Annual Report, 2009). Last the financial market recession resulted negative impacts to Toyota's accumulation of capital. Due to the financial downturn, the organizations or financial institutions may unable to provide capital to the market.
The impact from competitive environment to Toyota.
Figure:share of U.S. Auto market. (Source)
According to this pie chart, GM, which is 18.2%, is the biggest automaker in U.S. among all the motor corporations, then is Toyota with 15.8%, followed by Ford, making up 14.3%: and the next coming is Chrysler at 12.1%. From the pie chart is obviously shows that the big three automaker are still the largest domestic producers which making up 44.6% market share.
The United States market always has been a prime concern for Toyota.. Due to its trade liberalization, highly developed, market demand(U.S. Auto market is about ten times bigger than the Canadian market). Especially, the demanding of Toyota luxury division Lexus was increased in recent years.
However the U.S. automotive market is highly competitive at least fifteen auto company was market their product in U.S. market. Toyota as a foreign brand faces intense competition from other competitors. The highly competitive business environment lead to cause lower vehicle units sales and inventory backlog. This caused Toyota downward price pressure. The factors influence competition including: quality of product, post-purchase services, and reliability. However, Toyota faced unexpectedly quality problem with sudden unintended acceleration, which caused Toyota economic damages nearly $7 billion, the 94,000 vehicles has been recalled.
Sustainability development of Toyota
Establishment of Global Special Committee for Global Quality control
Implemented approaches to address a deterioration in information gathering and information sharing practices between headquarters and the regional offices. These problem are seen to be the harmful side effects of the rapid globalization.
The function of this committee are restructure the quality management system
Strategies of interest rate swaps and localized in respond to fluctuation of Money exchange rate.
In order to reduce the adverse affect of fluctuation foreign currency exchange rates, Toyota use some certain derivative financial tool such as interest rate swaps and increase the target market production of localized. Likewise, increase the investment in target market to increase production capacity and build local raw material supply chain, that can as possible as minizing losses on currency translation. Nonetheless, the adverse affect still existed, Toyota have to maintain a high level of vigilance the dynamics of international exchange market.
This essay is an example of a student's work
Disclaimer
This essay has been submitted to us by a student in order to help you with your studies. This is not an example of the work written by our professional essay writers.
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Example Essays
Who wrote this essay
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Product diversification in respond to highly competitive auto market.
In the highly competitive global business environment,
Conclusion
In todays global business environment multinational enterprise become more important, because countries adoption of opening oriented to promote the economic growth by attract Foreign Direct Investment (FDI). The multinational enterprise plays the role of investor between countries. Whereas, the business environment will become more competitive follow with the increased FDI. As the world forth largest multinational enterprise, Toyota faced several affect from globalization, which can be classified as political, government regulations, economic environment, social lifestyle, and technological factors. Due to those of factor Toyota will continue to seek the way of sustainable development that use some strategy or approach to solve problems, such as, open a new market with innovative product. But there are not ensure Toyota will have a bright future.
§
Find out more from UK Essays here: http://www.ukessays.com/essays/marketing/the-global-expansion-of-toyota-marketing-essay.php#ixzz3JsWI7uGc
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