A Multinational Automobile Manufacturing Marketing
ukessays.com /essays/marketing/a-multinational-automobile-manufacturing-marketing-essay.php This is a management report on the Toyota corporation limited which is a multinational automobile manufacturing and sales company. The company was established by Mr. Kiichiro Toyoda on 28th August 1937 in Japan. Since then, company was developed continuously and it became the world’s largest car manufacturing company by 2009. At present, Toyota has 12 plants and 11 manufacturing subsidiaries and affilitiates in Japan and 53 manufacturing companies in 26 countries by 2009. (Toyo land, 2010). As of June 2010, Toyota has 320590 employees across the world. In addition, Toyota has other group companies such as Hino Motors Limited, Daihatsu motor company limited and Lexus. ( Toyota, 2010)
The main core business of Toyota is automobile manufacturing and sales. Toyota manufactures all types of vehicles from mini vehicles to large trucks. In addition company is also active in other nonautomotive areas including housing, financial services, communications, GAZOO, marine vehicles, biotechnology and afforesation. Toyota is also making contributions to the world of 21st century by developing new businesses. Moreover, Toyota promotes creativity and enterprising spirit, and is seeking seeds of enterprise outside the company as well by a venture fund, which Toyota has established for the purpose of fostering and in-house ambience. (Toyota, 2010) Appendix E of the report presents the main products and total employees of Toyota in all 53 overseas manufacturing companies.
Company Market and Competitors
Toyota is a multinational company and as mentioned above, the core business of the company is car manufacturing and sales. It exports cars in different countries of the world. The main markets of the company are:
Oceania and Middle East
The biggest car sales market for the company is USA, Europe and China where the average market in last 5 years (2005 – 2009) is 14674, 16740 and 8986 respectively. (Toyota, 2010) The main worldwide competitors of Toyota are:
General Motors (USA)
Volkswagen Group (Germany)
Hyundai – Kia (South Korea)
PSA Peugeot Citroen (France)
DaimlerChrysler (Germany) ( )
Recent Financial Data
The Table 1 below, is taken from Toyota global website, shows the Toyota’s yearly financial performances worldwide and it also indicates operating income return on revenues, pre tax return on revenues, pre tax return on capital, return on assets, return on equity and shareholder’s equity ratio of last 9 years. (Toyota, 2010)
Table 1: Toyota Annual Financial Performances
Analysis of the Current Business Environment Affecting the Industry For the purpose of this report, analysis of the Toyota’s current business environment in its core business i.e. car manufacturing and sales has been considered.
Macro Environment Analysis
The PESTLE analysis has been used to determine the macro environmental trends that have impacts on the car manufacturing industry, in particular on the Toyota company. Appendix B (Toyota, 2010) of the report describes the detailed PESTLE analysis and the main trends are summarised below: Political – government legislation (environmental, company cars, competition, etc.), fiscal policy, subsidies, taxes and duties
Economic – global economic downturn, increase in fuel cost, cheaper and easier finance scheme, geographic spread within developing countries, excess capacity, diversification Socio-cultural – increased use of cars, low financing and acquisition cost hence greater affordability, fashion and taste, growth in developing countries
Technological - hybrid cars, brands and joint venture, safety, plant efficiency, bio fuels for commercial utilisations
Legal – Anti-competitive regulations, international boundaries being eroded...
Please join StudyMode to read the full document