Toyota. Multinational companies

Background: Toyota Motor Corporation, commonly known simply as Toyota and abbreviated as TMC, is a multinational corporation headquartered in Japan. Toyota started in 1933 as a division of Toyoda Automatic Loom Works devoted to the production of automobiles under the direction of the founder's son, Kiichiro Toyoda. Its first vehicles were the A1 passenger car and the G1 in 1935. Toyota Motor Corporation was established as an independent company in 1937. TMC is part of the Toyota Group, one of the largest conglomerates in the world.

In 2009, Toyota Motor Corporation employed 71,116 people worldwide (total Toyota 320,808). TMC is the world's largest automobile maker by sales and production. From November 2009 through the first quarter of 2010, Toyota recalled more than 8 million cars and trucks worldwide in several recall campaigns, and briefly halted production and sales. Toyota Motor Company expands their venture in most of the countries.

Toyota has factories in most parts of the world, manufacturing or assembling vehicles for local markets. Toyota has manufacturing or assembly plants in Japan, Australia, India, Sri Lanka, Canada, Indonesia, Poland, South Africa, Turkey, Colombia, the United Kingdom, the United States, UAE, France, Brazil, Portugal, and more recently, Argentina, Czech Republic, Mexico, Malaysia, Thailand, Pakistan, Egypt, China, Vietnam, Venezuela, the Philippines, and Russia.

Corporate Profile:

  • Multinational Company: Toyota Motor Corporation
  • Founded: August 28, 1937
  • Founder: Kiichiro Toyoda
  • Industry: Automotive, Robotics, Financial services, Biotechnology
  • Headquarter: Toyota City, Aichi, Japan.
  • Area served: Worldwide
  • Chairman: Fujio Cho
  • President: Akio Toyoda
  • Products: Automobiles, Financial Services
  • Revenue: JPY 18,950,973 million (In 2010)
  • Operating income: JPY 147,516 million (In 2010)
  • Net income: JPY 209,456 million (In 2010)
  • Total assets: JPY 30,349,287 million (In 2010)
  • Total equity: JPY 10,359,723 million (In 2010)
  • Employees: 71,116
  • Divisions: Lexus and Scion
  • Website:

Problems of Toyota Motor Corporation

Every multinational company must face some difficulties when they diversify their venture in expected countries. The problems may be cultural, economical, political, environmental, societal, religious, taxation demerit, or others. In this point of view, Toyota Motor Corporation had been struggled to expand their business in other countries which are as follows:

  1. Toyota Motor Corporation had been roiled by a rash of strikes at their Chinese parts plants forcing them to idle or suspend their Chinese assembly operations. The automakers could be hit by rising costs or a fall in production, or both.
  2. Toyota Motor Sales USA has repaired more than 4 million vehicles affected by recalls linked to unintended acceleration in most of the regions.
  3. Tariff and non-tariff barriers can be divided as vehicle tariffs, parts tariffs, domestic content requirements, and trade balancing requirements, import quotas and used part quotas, and mention the specific quotas on each case.
  4. In Japan and Tokyo, Toyota Prius broke new ground as the first mass-market hybrid car. Hybrid technology, combining electric batteries with a petrol-driven back-up engine, is well established. But barely 1% of industry sales last year had hybrid or electrically powered vehicles.
  5. On May 8, 2009, Toyota reported a record annual net loss of US$4.2 billion, making it the latest automobile maker to be severely affected by the 2007–2010 financial crises
  6. Toyota is being blamed for Japan’s falling reputation abroad, political difficulties, and just about everything including the bad weather (it snowed this morning in Tokyo,) and the falling GDP.
  7. To say the societal risk of Toyota recently a massive recalls at Toyota, from breathing new life, raises an interesting question for public relations folks. It is a criticism for their reputation.
  8. Some experts say that Toyota’s perceived quality score could fall 20%, leading to a 4% drop in the residual value of its cars. The company could face difficulty borrowing for its operations.

These are the problems that had been faced by Toyota Motor Corporation. Possible Solutions of the Problems

Following are the steps of the solution that have been taken by the Toyota Motor Corporation.

a) Toyota, the world's top automaker, previously thought the problem was caused by a foreign substance entering during manufacturing of the valve springs, and beefed up checks so that wouldn't happen. But the company had thought the issue was an isolated problem that didn't require a recall for every country in which they do their business.

b) Toyota Motor Corp. started a global recall over engine defects in its various models sold around the world, as well as the Crown sold in Japan, moving to repair some 270,000 vehicles to replace valve springs – crucial engine components that are flawed and could cause vehicles to stall.

c) For solving the defective parts of automobile in different countries Toyota’s engineers have developed and rigorously tested a solution of training policies that is both effective and simple.

d) To minimize the environmental risks Toyota targeted in the areas of vehicle life cycle, environmental management systems, and environmental management with their business activities and made desired cut-off the higher price for the serving segments.

e) Every year Toyota Motor Corporation calls a conference to minimize all types of difficulties having around their internal and external departments or areas.

f) Toyota wants to serve the best quality motors for their customer in every diversifying country as well as their own country.


I am very glad to make this assignment on multinational company about the problems and solutions. A selected company as Toyota Motor Corporation has been chosen and made the explanation on it. It is very important to know about the diversifying policies, rules, risks, problems and solutions overall a company’s performance in different countries. Following are the possible recommendation that I have prepared for Toyota Motor Corporation.

  1. Every multinational company needs to clarify the market situation about its growth to determine the product quality which served to the target market effectively can be solved the competitive risks.
  2. Toyota Motor Corporation needs to relate the better relationship with other countries’ government, political oppositions, companies, customers, suppliers and the business related personnel. Sales also may be increased.
  3. Negotiation policies must be cleared for Toyota.
  4. Determining the final report on company to the people.
  5. Environmental conditions of Toyota must be reputed by the activities of strategic formulation on their possible way.