Week 4: MNC Section IV: Multi-National Corporation (MNC) (Toyota)
Conduct an analysis of the conditions of trade on your MNC(Toyota). Home Country: JAPAN and Host: USA
Q1. Indicate opportunities and challenges that affect your MNC, including any current policies or agreements that have been recently passed.
The culture of Toyota encourages employees to continually think of innovative solutions to problems. The corporation has maintained its lead over its rivals thanks to the release of some of the most technologically advanced automobiles available on the market. According to Morgan & Liker (2020), Toyota has some of the most important strategic advantages due to its research and development (R&D) efforts. These advantages are particularly useful when it comes to producing technologies for automobiles that are safer, better for the environment, and use information technology. The firm maintains one of the most extensive research facility networks of any manufacturer in the United States. This is done to maximize the return that can be obtained from its investments in R&D. Toyota’s brand value is estimated to be $44.7 billion by Forbes and $50.29 billion by Interbrand, respectively (Morgan & Liker, 2020). These rankings place Toyota seventh and ninth, respectively, in the world. According to both lists, it is the most valuable brand in the automotive industry. As a result of the company’s expertise in reducing expenses, it has also decreased the prices of the automobiles it sells to clients compared to the prices charged by competitors operating within the same industry. This demonstrates that Toyota’s strategy of reducing costs and making the most efficient use of its resources has given it an advantage over its competitors.
It has been discovered that Toyota has recalled more vehicles than any other firm in the automotive sector. This may indicate poor management or a lack of interest on their part. The fact that the company is the largest automaker in the world does not make it any easier for the strategic management layer because it cannot guarantee the quality of the products it sells to its customers. The importance of marketing to companies with international operations is growing. Consumers are more interested in other brands currently available on the market than in Toyota’s original purpose. This is because Toyota has a history of recalling products for various reasons. Therefore, the company’s marketing staff has had difficulty convincing new and existing customers to purchase automobiles from the company.
It is possible to say that the corporation has attempted and failed at several different marketing methods that were intended to change how people think of them. This is because their brand loyalty has been questioned more than once. According to Lam & Mercure (2021), the United States of America and Japan have at long last agreed upon the terms under which industrial goods will be allowed to enter each nation’s market. There is a plan to continue discussing expanding the scope of the free trade agreement at some point in the future.
Q2. Here you could examine the regional trade agreements of the host/home countries. Do they have Free Trade Agreements? If not, pick a host country that does have a trade agreement with your home country and inform us about that agreement.
The United States and Japan Trade Agreement (USJTA) was fully operational on January 1, 2020 (Lam & Mercure, 2021). As part of this agreement, Japan committed to providing the United States with increased access to its market by either lowering tariffs, gradually eliminating the majority of tariffs, or allowing a certain number of imports into the country at a reduced duty rate. The United States and Japan have agreed to increase their commercial ties. The USTA argues for modest reductions in tariffs as well as increases in quotas to make it simpler for businesses to enter new markets.
Q3 Write the Conclusion of all the above findings.
Toyota is a multinational automaker with production facilities on all seven continents. The automobile manufacturer offers a diverse line-up of vehicles, which place a premium on ride quality and operability. Despite this, the company has been plagued by various strategic issues, which have negatively impacted both its ability to make money and its sales. The firm struggled with issues including brand awareness and marketing, which were among its most significant challenges.
Lam, A., & Mercure, J. F. (2021). Which policy mixes are best for decarbonising passenger cars? Simulating interactions among taxes, subsidies, and regulations for the United Kingdom, the United States, Japan, China, and India. Energy Research & Social Science, 75, 101951.
Morgan, J. M., & Liker, J. K. (2020). The Toyota product development system: integrating people, processes, and technology. Productivity Press.