Please select an organization or industry with which you are familiar and which allows access to its financial information. (TOYOTA). Prepare a 3200-3,500-word paper...
a. Firstly give an industry/organization overview. Be sure to include a history of the organization/industry, the market in which it operates, the role of government regulations on your organization/industry, and any issues or opportunities that the organization/industry faces.
b. Analyzing the current market conditions of the organization/industry you selected and address the following topics in your analysis:
- Market structure
- Impact of new companies entering the market
- Productivity (consider the law of diminishing marginal productivity)
- Cost structure: Wages& Benefits; Fixed costs and Variable Costs
- Price elasticity of demand.
- Supply and demand analysis
- Impact of government regulations
Toyota Motor Corporation
The Company considered for this analysis in this paper is Toyota Motor Corporation. Toyota Motor Corporation is a Japan based, Multinational Automotive Giant, which is the world's leading manufacturer of automobiles. The company employs around 316,000 people globally. The first part of the paper provides a brief overview of the automotive industry. It looks at the history of Toyota and charts the progression of the firm into the leader of the automobile industry. Further, it gives a brief description of the market in which this company operates. Then the role of Government regulation on this industry is discussed.
The various issues and opportunities faced by the company are also looked at. The second part of this paper analyzes the prevailing market conditions of the industry in which the organization operates. The paper analyzes the market structure of the automotive industry. It also discusses the impact of new companies entering into the market. In addition, it addresses the various issues related to Prices, Technology and productivity. The paper also analyzes the cost structure of the company. The role of Price elasticity of demand is also discussed. The various competitors of the company are also discussed along with the Supply and demand analysis. The impact of Government regulations on the company is also discussed.
The Company was established by Kiichiro Toyoda in 1937. The company is the number one Automobile Player, as far as the global unit sales are concerned. In addition the company is also a leading player in terms of vehicle quality, engineering innovation, modern design, market capitalization and profitability. It has been the flag bearer of Japanese Automobile Manufacturers. The company excels in terms of customer satisfaction too. The company has also been the founder of the best production process in the world and has a manufacturing process i.e. Toyota Production System to its credit. The Toyota Production System is a manufacturing process, which helps in controlling the production costs, reducing defects and improving the quality of the products. Toyota has also initiated the use of hybrid petrol or the electric technology. It is considered as one of the strongest advocate of the fuel economy.
The company's market capitalization is estimated to US$155bn which is 25 times as larger than GM. The company is the owner of the 'Lexus' and 'Scion' brands and it has stakes in Daihatsu Motors and Fuji Heavy Industries Isuzu Motors, and Yamaha Motors. The company has around 522 subsidiaries all over the world. The company's headquarters are located in Toyota City and Nagoya and in Tokyo. The company is also into financial services business and creation of robots.
The Company history dates back to 1993, when Toyoda Automatic Loom Works started a new division for the production of automobiles. The person behind the creation of this new division was Kiichiro Toyoda, who was the son of the owner of Toyoda Automatic Loom Works. The Japanese Government provided the company with the assistance in the development of this division. The Government was involved in this project, as they required domestic vehicle production because of the worldwide money shortage and the war with China. The company produced 'Type A Engine' in 134 which were used in first 'Model A1' passenger car, in the year 1935. The company started producing Model AA passenger car started in 1936.
The company Toyota Motor Corporation was started as an independent company in 1937. The company did not take the name of the founding family. This was done to symbolize the distinction between the founder's work life and home life and also to simplify the pronunciation. Also the name Toyota is more auspicious than Toyoda in Japan because of its association with the number eight. The company got into the production of trucks during the World War II for the assistance of the Imperial Army. Due to the shortage, the company kept the design of the truck as simple as possible.
After the World War II, in the year 1947 the company started the production of commercial passenger car with the model 'SA'. A separate sales company known as Toyota Motor Sales Corporation was started in 1950. This was followed by the creation of Toy pet dealer chain in the year 1956. The Company exported its first car Crown to the United States and other American and Brazilian divisions of the company in 157. This move was followed by the creation of Toyota Motor Sales Inc. and Toyota do Brasil S.A.
The company started its expansion in 1960 by the development of research and development facility. In this year, the company brought out its 10 millionth model and a partnership with Hino Motors and Daihatsu was formulated. In 1963, the company rolled out its first Toyota built outside Japan at Port Melbourne in Australia. The company had become a Multinational Giant by the end of 2000 and had worldwide presence.
The company mainly operates in the automotive industry. According to an estimate, in 2007, the worldwide sales were around 71.9 million for the new automobiles. The highest sales were recorded in Europe which were 22.9 million followed by Asia Pacific with 21.4 million and around 19.4 million recorded in USA and Canada. The automobiles markets in the South America and Asia showed a stronger growth.
The Unites States of America has around 250 million vehicles. If the Worldwide figures are considered, then there are around 806 million cars and light trucks running on the road since 2007. These vehicles consume more than 260 billion gallons of gasoline and diesel on a yearly basis. These figures are ever increasing, especially in growing markets like China. Due to rapidly increasing oil prices, the automotive industry has come under the pricing pressure fuelled by rise in cost of raw material and changing buying habits ...
The response addresses the queries posted in 3650 words with APA references, looking at market structure, impact of new competitors, prices, technology, productivity, cost structure, price elasticity of demand, supply and demand and the impact of government regulations.