The Toyota Motor Corporation started with humble beginnings. Kiichiro Toyoda in 1933, visited the United States and several automobile plants. He returned to Japan and started an automobile division in his father’s loom factory. General Motors and Ford had already established automobile plants in Japan but this did not stop Toyoda. Toyota Motor Corporation was founded August 28, 1937. In the year 2000, Toyota was the world’s third largest car company and the largest car company in Japan. The current president of Toyota is Akio Toyoda. Toyota maintains a 9.8 percent share of the automobile global marketplace.
Japan itself, has very few natural resources, which prompted the Toyota Motor Corporation to develop fuel efficient vehicles. Change in political environment in Japan, prompted Japanese auto manufacturers to rely on new technoligies to guarantee success in the industry such as the birth of the small car. While other countries concentrated on large, luxury vehicles, Japanese manufactures were busy focusing on building small, fuel-efficient vehicles that would grow to dominate the automotive industry.
Political unrest can lead to military action and wars, which make materials needed for car manufacture difficult to find. Such was the situation Toyota Motor Company faced during Word War II, when a crippled Japanese economy forced the company to start building ‘recycled’ vehicles.
Corporations must also comply with the laws of trade both nationally and internationally. After World War II, “Japan’s automakers knew that they could no longer count on government protection in the form of high import duties or other barriers as they had before the war. After World War II, in 1955, Japan joined the General Agreement on Tariffs and Trade (GATT) anticipating the day of increasing international trade. In 1965, Japan legalized imports of foreign passenger cars. This was the beginning of true competition between Japan and other overseas car manufacturers. (Reference for Business 2010).
Understanding the culture of a country where you are exporting to can help a corporation to become successful in the industry. The president on Toyota Motor Corporation in the late 1980’s was Shoichiro Toyoda. He placed great importance on public relations with the United States and was determined to overcome their bitterness about losing business to Japan’s automotive industry. He worked to instill the concept of free competition in the minds of the American people. He was successful in entering into a business venture with General Motors which resulting in Toyota beginning production efforts in the United States. His perseverance in overcoming social and cultural barriers helped Toyota become the success it is in the United States today.
Toyota Motor Corporation has been a significant player in the global automotive marketplace since the 1940’s. Their past success and continued success can be accounted for in part due to a diligence in accessing environmental factors including economic, technological, political and legal, also cultural and social. Toyota continues to grow as a global leader throughout the automotive world. Production is in excess of five million vehicles per year and employing more than 320,000 employees.
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Burien Toy
