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A business organization is an entity set up by a person or group of people with the aim of making profit at the end of the business year by providing goods and services to make customers satisfied.
4.9 (984)
“ Ok, let me say I’m extremely satisfy with the result while it was a last minute thing. I really enjoy the effort put in. ”
Types of partnership are general partnership, limited partnership and limited liability partnership.
Demand is defined as the willingness and ability of a consumer to gain a particular product this is one of the most important micro factors when it comes to any company.
In the case of Toyota they always want to make the mobility and transportation of customers easy, since the innovation of automobiles has changed the wants and needs of the customers has also changed. When customers sit in their car they want to feel as if they are one with their vehicle and can be able to communicate effectively with their car, Toyota saw this and decided to fix this problems that’s why they are infusing artificial intelligence, connected car technologies, robotics and other forms of complicated technology innovations into their vehicles to make customers effectively connect with their car when they are driving. Toyota has also made their cars environmentally friendly by making hybrids of most of their cars and decreasing the CO2 emissions from their vehicles, as always there are also customers that like prestigious type of products so Toyota has also provided a wide range of SUVs which cater for this need which can be used by lower class, middle class and the upper class
Supply is clearly defined as the willingness and ability that a seller has to sell its products at different prices. In Toyota, the supply strategy of their company is very simple it is a low cost type of supply where quality products are gotten for very affordable prices, Toyota also really keeps strong relationships with its suppliers because they are in charge of product development and supply of parts. Toyota also adopted a lean production process which is used to avoid wastage of materials this is good because it helps them to conserve materials to produce more and more goods. The distribution is done by third party organization in almost every continent, they make sure products are gotten in every showroom at the right time.(UK essays, 2018)
Production costs- Toyota one of the leading automobile companies in the world saved about 875 million dollars to put in the research and development of powertrains and artificial intelligence. Toyota has also partnered with Mazda automobiles to build a 1.6 billion dollar auto plant in the country for production of vehicles but it didn’t go as planned as the president of the united states criticized them. (Bloomberg, 2018)
Market structure- A market structure is defined as characteristics that portray the structure of the market focusing on competition and pricing, there are four main types of market structures but the type that Toyota practices is an Oligopolistic type of market structure. Oligopoly is a type of structure in which few firms are present ,in which there are lesser number of producers and sellers. The prices may change at a point because of the actions of competitors (Ann, Ann and profile, 2018)
GDP consists of the overall total amount of goods and services a country produces annually ,the headquarters of Toyota is located in japan so my research is focused on the Japanese economy whose GDP was 4872.14 billion US dollars in 2017 and 4.939 trillion USD (2016) . In japan Toyota increased its revenue from 71.3 billion yen to 14.830.0 billion in 2017 which was a very good thing but when it came to the operating income it decreased drastically from 475.2 billion yen to 1,202.2 billion yen which was mainly due to the changes in exchange rates and high increase in expenses. With the fiscal policies Toyotas income taxes payable decreased from 343,325 million yen in 2016 to 223,574 million yen in 2017, The average foreign exchange rate for Yen to Us Dollar decreased from 120 in 2016 to 108 in 2017 while the Yen to Euro rate decreased from 133 to 119.
Globalization is defined as the framework in which there is development of policies and networks to help multinational companies to successfully exploit the resources of nations by free trade, free flow of capital, and gaining of cheap foreign labor.
Labor- Toyota Motor Corporation has done well when it comes to labor it has made it a point to find cheap labor from differennnt parts of the world this has further been divided into labors that have classified in a certain way and boosting the competition between laborers for work . Since there is a high competition for cheap labor too it has created a lot of problems where obviously they are paid below standards because they are cheap labor and they do not possess extraordinary skills which also makes it very difficult to take care of themselves in terms of upkeep making them frustrated this has made the globalization rate increase which Toyota needs to fix before its too late.
Society- The society has also been affected by Toyotas actions although Toyota has really helped many societies by honorably performing their social responsibilities and providing many sponsorships they have also negatively affected the society like where Toyota was giving an incentive package that was supposed to be used for the community for some educational purposes it turned out that eventually the grant was giving to Toyota and the education sector was affected causing the dropout rate to increase.
Perfect or Imperfect competition- Toyota Motor corporation uses the concept of microeconomics which is the imperfect competition but perfect competition is where firms in the business world have control over price in that particular market,here there are large number of buyers and sellers, all the producers have disparate products which are very close substitute goods which makes the cost very important to lure customers to buy their products, there is also a flexible come and go concept where anyone is free to join that market if you can compete with other firms and leave at your own preferred time, in this market too any firm can determine its own prices for products but you have to be mindful because its your price that will persuade people to buy your products. Now Toyota need to be the ones that will be able to set their own prices not take prices from the other firms, Toyota falls in an oligopolistic structure which there is sovereignty by other big automobile producing with very powerful means for example BMW, Volkswagen, Land Rover, Jaguar, Mercedes Benz, Honda, Hyundai, MINI and many more.
A trade bloc is an agreement between two or more countries within a particular region where they protect themselves against international trade i.e. where matters relating to tariff fees are decreased or removed when it comes to international trade between member countries. This is good for the company also because japan is a distinguished member of the Asian-Pacific Economic Cooperation (APEC) which is an association made up of 21 respective member countries with the main aim of lubricating the trade environment between the member countries of the Asian-Pacific Economic Cooperation this is a very good thing. The next agreement is the European Union Free trade Agreement with japan which makes it easy for them when they want to trade goods and services with these countries, some of the Trade blocs are the bilateral trade agreement between Australia, Newsland, China, India, Korea and Japan.
Price is defined as the monetary value that is placed on a particular product while demand is the willingness and ability of a consumer to get a particular good or service. In the case of Toyota they really have to put this at the back of their minds as the price and demand is what drives consumers to have interest in your product. The basic lifestyle of consumers is that they always buy more and more of an item when the price is low and at a reasonable state within their income but if the price suddenly increase they tend to buy lesser amounts of that product. Price elasticity of demand measures the responsiveness that a products demand gets by customers when there is an increase or decrease in the price of that particular product.
Everything About Toyota Motor Company. (2024, Feb 14). Retrieved from https://studymoose.com/everything-about-toyota-motor-company-essay
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