Based on the topic of our assignment which is “Multinational Corporation (MNCs) and International Management”, we decided to choose Toyota Motor Corporation as our study case.
As one of the largest Multinational Corporation (MNC), we believe that Toyota Motor Corporation can help us gains a lot of knowledge that related to our subject, Intercultural Management (IBM536) and also can be applied in our daily life and working experiences in the future.
The purpose of doing this project is to study how the Multinational Corporation work in terms of their operational of international firms in host countries while highlighting the managerial perspectives that handling or managing the situation that involves crossing national boundaries.
Besides that, we also want to analyse the relation between Multinational Corporation and how it relates to International Management.
Each project or assignment must have its own goals or aim on what to be achieved at the end of the research. Throughout this project or assignment report, we believe there are some aim or goals that can be obtained or learned from choosing Toyota Motor Corporation as our study case. Some of the aim or goals of the project are:
- To know deeper about the Toyota Motor Corporation background including the country of origin, history, vision, missions, products or services and Board of Director.
- To study the current or previous Headquarter (HQ), subsidiaries web and past or present foreign manufacturing base of Toyota Motor Corporation.
- To find out about the type of organizational structure of Toyota Motor Corporation and how it led to the employee’s performances in the organization itself.
- To investigate the organizational or management style of Toyota Motor Corporation’s leader and manager and how it effects on employee’s performances.
- To analyse what type of communication style that being applied by Toyota Motor Corporation and does it help to deliver the messages efficient and effectively.
- To learn the type of decision-making style that being carried out by Toyota Motor Corporation’s leader and how it gives impact to the whole organization.
- To find out the leadership style that has been applied by Toyota Motor Corporation’s leader and how it effects the whole organization.
Country of Origin
Toyota Motor Corporation is originally located at one of the develop country in East Asia and known as the country of rising sun, which is in Japan.
In addition, Japan is known as the country that has advanced technology and has been producing thousands of new innovations that led to make changes in our daily lives from practical to more efficient. Today, Japan is recognized as one of the competitive countries together with United States, Russia and China.
History of Toyota Motor Corporation
The business of Toyota Motor Corporation starts at the 19th century when the founder of Toyota Motor Corporation, Sakichi Toyoda and his son Kiichiro Toyoda decided to set up Toyoda Automatic Loom Works in 1926 after they successfully created automatic loom.
After that, Mr Toyoda became more interested in automotive industry during his trips to North America and Europe and he sold the patent right for his automatic loom to British company. The Toyota Motor Corporation was fully formalized as business entity in 1937 and A1 passenger is known as their first product created in 1935.
The very famous philosophy that has been used in business industry, “Just-in-time” is originally instilled by Mr Toyoda and this became a part of Toyota’s business practice until today. “Just-in-time” is defined as producing specific quantities of ordered items and make sure the product is produced on time with minimum waste. Until today, this system has been adopted by most of vehicle-makers all around the world.
Figure 1 Sakichi Toyoda, the founder of Toyota
Vision and Mission of Toyota Motor Corporation
In order to be able to achieve something bigger in the future, each organization must have strategic planning that contain important element, which is vision and mission that can helps organization to set their main target and priorities while ensure everyone in the organization to works towards the same goals and objectives.
Global Vision of Toyota Motor Corporation
“Toyota will lead the way to the future of mobility, enriching lives around the world with the safest and most responsible ways of moving people. Through our commitment to quality, constant innovation and respect for the planet, we aim to exceed expectations and be rewarded with a smile. We will meet our challenging goals by engaging the talent and passion of people, who believe there is always a better way.”
Global Mission of Toyota Motor Corporation
Toyota’s mission statement is: “Create vehicles that are popular with consumers.” Thus, Toyota’s mission statement includes the following strategic actions:
- · Provide world-class safety to protect the lives of customers.
- · Provide optimization of energy/infrastructure to local communities.
- · Put high priority on safety and promote product development with the ultimate goal of “completely eliminating traffic casualties”.
- · Deliver cars that stimulate and even inspire and earn smiles from our customers.
- · Address employees’ education under “Genchi-genbutsu” philosophy, which is to go to the source to find the facts to make correct decisions, build consensus and achieve goals at our best speed.
- · Through true mutual trust with partners, contribute to the development of new technology and improved expertise.
- · Contribute to economic development of local communities with R&D operations functioning effectively in each region.
Products of Toyota Motor Corporation
- Car Air-Conditioning Compressors
- Car Electronics
- Stamping Dies
Material handling equipment
- Internal Combustion Lift Trucks
- Electric Lift Trucks
- Storage Equipment
- Conveying Equipment
- Spinning Machinery
- Weaving Machinery
Services of Toyota Motor Corporation
No cost maintenance plan
- Rotate tires
- Maintenance reminder
- Multi-point inspection
- Engine oil and filter change
- Toyota Genuine Parts
- Inspect and adjust fluid levels
- Toyota-trained technicians
- Battery- jump-start
- Tire service
- Lockout protection
- Emergency fuel delivery
Сurrent headquarter and subsidiaries web
Figure 2 Toyota’s headquarter in Toyota City, Aichi
Each Multinational Corporation (MNC) must have their own headquarters (HQ) that are known to be responsible to handle several corporate functions such as strategic planning, corporate communications, tax, legal, marketing, finance, human resources, information technology, and procurement. The development of these headquarters (HQ) functions can determined the successful paths to growth for a multibusiness enterprise in the future.
Headquartered of Toyota Motor Corporation is located at the east of Nagoya, which is in Toyota City, Aichi. The original name of Toyota City is known as Koromo. But, the strong ties of Toyota Motor Corporation in the city gave the town new name which is Toyota City. With estimated population for about 420,000 people and total area was 918.32 km?, This Toyota City is located about 35 minutes from Nagoya.
Besides be the location of the headquarter of Toyota Motor Corporation, Toyota City in Aichi also has several of Toyota’s manufacturing plants. Example of Toyota Motor Corporation’s manufacturing plants are Tsutsumi plant and Honsha plant.
In this Toyota City also, it has other facilities that are commonly used by the residents there. Examples of the most famous facilities and accommodation that exits in Toyota City are Toyota Stadium, Toyota Automobile Museum, Asuke Town, Toyota City Skyline and Korankei.
Subsidiary is defined as a company that are originally owned and being fully controlled by another company, called the parent company. Subsidiaries company also helps the business grow internationally. Besides to gain profit and revenue, subsidiaries company also helps to cater all demand from customers all around the world and build the strong relationship with them. Here is the list of subsidiaries of Toyota Motor Corporation:
No Company Name Business activities
- Aero Asahi Corporation Aviation and space information infrastructure
- Amlux Toyota Co., Ltd. Operations of web automobile-themed facility
- Calty Design Research, Inc Interior and exterior styling proposal
- Central Motor Wheel Corporation Manufactures and distributes automobile parts
- Daihatsu Manufactures automobiles and engines
- Daihatsu Motor Kyushu Co. Ltd Manufacture domestic internal-combustion engines
- Delphys Inc Marketing and advertising company
- GAC Toyota Vehicle-related services for ride-hailing drivers
- Hino Motors Manufactures of commercial vehicles and diesel engines
- Indus Motors Company Manufactures of auto parts and accessories
- Kuozui Motors Manufactures of automobiles
- Lexus Manufactures luxury and performance of vehicles
- Pt Astra Daihatsu Motor Manufactures of automobiles
- Subaru Corporation Manufactures of automobiles
- TACTI Corporation Motor vehicle accessories, tools, and equipment.
- Toyota Australia Manages motorsport, advertising and operations
- Toyota Auto Body Manufacturers of auto parts of vehicles
- Toyota Automall Development Corporation Planning, operation of shopping centers and auto malls
- Toyota Boshoku Manufactures of automotive component
- Toyota Canada Inc Manufactures automotive parts and performance vehicles
- Toyota Connected Corporation Software engineers and data scientists
- Toyota Communication System Co Stored information about development, manufacturing, sales operations in electronics technologies
- Toyota Financial Services Financial services subsidiaries globally.
- Toyota (GB) PLC Sales, after sales, marketing, and customer relations
- Toyota Housing Corporation Product, marketing, division, construction support function planning
- Toyota Kirloskar Motor Manufactures and sales of automobiles
- Toyota Manufacturing UK Manufactures operation of automobiles
- Toyota Motor East Japan Manufactures and sale of commercial cars, auto bodies, and auto parts
- Toyota Motor Europe Manufacturing, parts and vehicles logistics centres
- Toyota Motor Hokkaido, Inc Automatic transmissions, CVTs, and transfer cases
- Toyota Motor Korea Co. Ltd Distribution of automobiles, trucks, trailers, and other motor vehicles.
- Toyota Motor Kyushu Production of vehicles, engines, and hybrid units
- Toyota Motor Manufacturing Canada Manufactures automobiles
- Toyota Motor Manufacturing France Manufactures automobiles
- Toyota Motor Manufacturing Indiana Manufactures automobiles
- Toyota Motor Manufacturing Kentucky Manufactures automobiles and engines
- Toyota Motor North America Manufactures of aluminum wheel
- Toyota Motor Sales, USA Sales and production of automobiles
- Toyota Motorsport GmbH Provides motorsport and automotive services
- Toyota Motor Thailand Automobiles, commercial vehicles, engines
- Toyota New Zealand Importer and distributor and refurbish in assembly plant
- Toyota Peugeot Citroen Automobile Czech Manufacturing automobiles
- Toyota Racing Development Produces various tuning products and accessories
- Toyota Research Institute, Inc Basic research, forward-looking and leading-edge technology development
- Toyota South Africa Motors (Pty) Ltd Vehicle assembly
- Toyota Technical Development Trends and explanations in body, engines, chassis, materials and many more
- Toyota Tsusho Supporting Toyota Motor’s automobile business and Toyota Group companies,
Table 3 List of Subsidiaries of Toyota Motor Corporation and Its Main Business Activities
past/present foreign manufacturing base and what do the mnc produces in each of the location
Region Country Name of Manufacturing Company Main Products
- Canada Canadian Auto parts Toyota Inc. (CAPTIN) Aluminium wheels
- Toyota Motor Manufacturing Canada Inc. (TMMC) Corolla, RX350, RAV4
- United States Toyota Automobile Beach California, Inc. (TABC) Catalytic converters, steering columns and stamped parts
- Toyota Motor Manufacturing, Kentucky, Inc. (TMMK) Camry, Camry Hybrid, Avalon, ES350 and Engines
- Bodine Aluminium, Inc Aluminium castings
- Toyota Motor Manufacturing, West Virginia, Inc. (TMMWV) Engines and transmissions
- Toyota Motor Manufacturing, Indiana, Inc. (TMMI) Sequoia, Highlander, Sienna
- Toyota Motor Manufacturing, Alabama, Inc. (TMMAL) Engines
- Toyota Motor Manufacturing, Texas, Inc. (TMMTX) Tundra, Tacoma
- Toyota Motor Manufacturing, Mississippi, Inc. (TMMMS) Corolla
- Latin America Argentina Toyota Argentina S.A. (TASA) Hilux, Fortuner
- Brazil Toyota do Brasil Ltda. (TDB) Corolla, Etios
- Mexico Toyota Motor Manufacturing de Baja California S .de R.L.de C.V. (TMMBC) Tacoma, Truck beds
- Venezuela Toyota de Venezuela Compania Anonima (TDV) Corolla, Fortuner, Hilux
- Africa Kenya Associated Vehicle Assemblers Ltd. (AVA) Land Cruiser
- South Africa Toyota South Africa Motors (Pty) Ltd. (TSAM) Corolla, Hilux, Fortuner, Dyna
- Egypt Arab American Vehicle Co. (AAV) Fortuner
- Europe Czech Republic Toyota Peugeot Citroen Automobile Czech, (TPCA) Aygo
- France Toyota Motor Manufacturing France (TMMF) Yaris (Vitz)
- Poland Toyota Motor Manufacturing Poland (TMMP) Engines, Transmissions
- Portugal Toyota Caetano Portugal, S.A. (TCAP) Land Cruiser
- Turkey Toyota Motor Manufacturing Turkey Inc. (TMMT) Verso, Corolla, C-HR
- United Kingdom Toyota Motor Manufacturing (UK) Ltd. (TMUK) Avensis, Auris, Auris Hybrid
- Russia Limited Liability Company “TOYOTA MOTOR” in Saint-Petersburg (TMR-SP) Camry, RAV4
- Kazakhstan Saryarka AvtoProm LLP (SAP) Fortuner
- China Tianjin Fengjin Auto Parts Co., Ltd. (TFAP) Axles, CVJ
- Tianjin FAW Toyota Engine Co., Ltd. (TFTE) Engines
- Tianjin Toyota Forging Co., Ltd. (TTFC) Forged parts, CVJ
- Tianjin FAW Toyota Motor Co., Ltd. (TFTM) Vios, Corolla, Crown, Reiz
- FAW Toyota (Changchun) Engine Co., Ltd. (FTCE) Engines
- GAC Toyota Engine Co., Ltd. (GTE) Engines
- Sichuan FAW Toyota Motor Co., Ltd. (SFTM) Coaster, Land Cruiser, Land Cruiser Prado, RAV4
- GAC Toyota Motor Co., Ltd. (GTMC) Camry, Yaris, Highlander, Camry Hybrid, Levin
Toyota Motor (Changshu)
- Auto Parts Co., Ltd (TMCAP) Transmissions
- India Toyota Kirloskar Motor Private Ltd. (TKM) Corolla, Innova, Fortuner, Etios
- Toyota Kirloskar Auto Parts Private Ltd. (TKAP) Axles, Propeller shafts, Transmissions
- Indonesia PT. Toyota Motor Manufacturing Indonesia (TMMIN) Innova, Fortuner, Vios, Sienta
- P.T. Astra Daihatsu Motor (ADM) Avanza
- PT. Hino Motors Manufacturing Indonesia (HMMI) Dyna
- PT. Sugity Creatives Specially equipped HiAce
- Philippines Toyota Motor Philippines Corp. (TMP) Innova, Vios
- Toyota Auto parts Philippines Inc. (TAP) Transmissions, Constant velocity joints
- Thailand Toyota Motor Thailand Co., Ltd. (TMT) Corolla, Camry, Camry Hybrid, Vios, Yaris, Hilux, Fortuner
- Siam Toyota Manufacturing Co., Ltd. (STM) Engines, Propeller shafts
- Toyota Auto Works Co., Ltd. (TAW) HiAce
- Vietnam Toyota Motor Vietnam Co., Ltd. (TMV) Camry, Corolla, Vios, Innova,
- Taiwan Kuozui Motors, Ltd. Camry, Corolla, Vios, Yaris, Engines,
- Stamped parts
- Malaysia Assembly Services Sdn. Bhd. (ASSB) Vios, Hilux, Innova, Fortuner, HiAce
- Pakistan Indus Motor Company Ltd. (IMC) Corolla, Hilux
- Toyota Motor Corporation Australia Ltd. (TMCA) Camry, Camry Hybrid,
- Middle East
- Bangladesh Aftab Automobiles Ltd. Land Cruiser
Table 4 Product of Toyota Motor Corporation produces in each region