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Toyota Motors

In: Business and Management

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Overview of Toyota Motor Corporation
Toyota Motor Corporation is one of the world’s largest automotive manufacturers by auto sales, designs and manufactures a diverse product line-up like buses, minivans, trucks, SUVs, luxury, and sports vehicles. Toyota makes automotive parts for its own use and for sale to others. Popular models include the Camry, Corolla, Land Cruiser, and luxury Lexus line, as well as the Tundra truck. Toyota conducts its business worldwide with 27 countries and regions. The countries that Toyota operates are: Canada, USA, Argentina, Brazil, Mexico, Venezuela, Czech Republic, France, Poland, Portugal, Turkey, U.K., Russia, Kenya, South Africa, Egypt, China, Taiwan, India, Indonesia, Malaysia, Pakistan, Philippines, Thailand, Vietnam, Australia, and, Bangladesh. Toyota Motor Corporation is a Japanese automaker headquartered in Toyota, Aichi, Japan. Japan has a commercial law system based entirely on custom (Hahn, 1984). These customs were known and used by commercial society of Japan. It is being enforced by courts, guild, trades associations, and different self-regulatory guilds.
Market System
Market economy is the type of economy that Japan have. Market economy means that the resources are allocated and controlled by consumers who “vote: by buying goods (Daniel, Radebaugh, Sullivan, 2011). Japan’s economy relies on its manufacturing industry which produces automobiles, robots, televisions, and electronic equipment. Toyota Motor Corporation is best suited in this country because of their specialty in automobiles.
Political Risk Political risk is the potential loss arising from a change in government policy (Daniel, Radebaugh, Sullivan, 2011). The types of political risk are: expropriation, international war, unilateral breach of contract, destructive government actions, harmful action against people, restrictions on repatriation of profit, different points of view and discriminatory taxation policies. The possible sources for political risk for Toyota Motor Corporation in other countries could be the change in government policies and the change in the government leaders which some has a great influence in the product that they want to have in their own country. As a political consultant, I would suggest that the company should continue to build its relationship with the stakeholders.
Stakeholders
Toyota Motor Corporation must satisfy its stakeholders who include the shareholders, customers, business partners, local communities, and employees to further enhance its competitiveness as a corporation. Since Toyota operates internationally and has a lot of competitors, they must fully cater to customer’s needs in order to achieve a stable and long-term growth.
Code of Conduct
Toyota Motor Corporation’s Code of Conduct which was originally issued and was revised in 2006 which seeks to provide a basic code of conduct and to serve as a model and compass. It provides detailed explanations and examples of actions that the company must be aware when doing business activities. The guiding principle at Toyota is the contribution towards sustainable development in its interactions with stakeholders. The guiding principles are: honoring the language and spirit of the law of every nation, respecting the culture and customs of every nation, dedication in providing clean and safe products, developing outstanding products, fostering a corporate culture that enhances individual creativity and teamwork value, pursuing growth in harmony with the global community and working with business partners in research and creation to achieve a stable, long-term growth and mutual benefits while keeping open to new partnerships. It is the company’s best interest to follow their code of conduct in order to operate the business in an open and fair way. Toyota aims to become the most values, respected, and trusted company in the world by its customers and society.

Toyota’s Social Contribution Activities

In 1989, Toyota established the Corporate Citizenship Activity Committee chaired by the company president and directors to act as the highest level decision making body. The purpose is to undertake social contribution activities to contribute to sustainable social vitality. Some of the social activities include environment, education, volunteer, society, traffic safety, and culture. Toyota “Traffic Safety Campaigns” is being conducted every spring and autumn in concert with Japan’s National Traffic Safety Campaigns. During this campaign, traffic safety picture books and story cards are donated under the campaign to children entering kindergartens and nursery schools nationwide. These educational materials show children the dangers of running into the street and help them to learn how to cross the streets correctly. These activities started in 1969 and have continued every year for more than 40 years.

Indicators for Investments The indicators that the company should monitor to guide their investment is their increase or decrease in their sales, competitor’s new line of products and living with the companies guiding principles. It is very essential that the company is holding on with its vision and philosophy to ensure that the company’s goal is being met. Continuous monitoring of other countries economic and political status will help in making strategic planning for better sales for the company.

References
Daniels, J. D., Radebaugh, L. H., & Sullivan, D. P. (2011). International business (13th ed.). Upper Saddle River, New Jersey: Prentice Hall.
Hahn, E.J. (1984). Japanese business law and the legal system. Westport, Connecticut: Greenwood Publishing Group.
Medeiros, J. (2007). Toyota motor corporation: strategic analysis. Retrieved from http://voices.yahoo.com/toyota-motor-corporation-strategic-analysis-377931.html?cat=27
Toyota Motor Corporation. (2013). Toyota code of conduct. Retrieved from http://www.toyota-global.com/company/vision_philosophy/toyota_code_of_conduct.html
Toyota Motor Corporation. (2013). Worldwide operation. Retrieved from http://www.toyota-global.com/company/profile/facilities/worldwide_operations.html

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