Major Influential Factors in Implementing Global Strategies in Toyota Motor Corporation

Toyota Motor Corporation
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Toyota Motor Company
Table of Contents TOC \o "1-3" \h \z \u 1. Introduction PAGEREF _Toc85964907 \h 32. Background to Toyota Motor Company PAGEREF _Toc85964908 \h 33. Major influential factors in the implementation of global strategies PAGEREF _Toc85964909 \h 43.1. Theoretical discussion PAGEREF _Toc85964910 \h 43.2. Influential factors in implementation of global strategies in Toyota PAGEREF _Toc85964911 \h 74. Barriers to implement global strategies PAGEREF _Toc85964912 \h 94.1. Theoretical discussion PAGEREF _Toc85964913 \h 94.2. Barriers to implementation of global strategies in Toyota PAGEREF _Toc85964914 \h 115. Suggestions to prevent failure to implement global strategies PAGEREF _Toc85964915 \h 125.1. Theoretical discussion PAGEREF _Toc85964916 \h 125.2 Suggestions to prevent failure to implement global strategies in Toyota PAGEREF _Toc85964917 \h 136. Conclusion PAGEREF _Toc85964918 \h 14References PAGEREF _Toc85964919 \h 15
1. Introduction
The success of multinational enterprises operating in the modern business environment depends significantly on their global strategy. According to Tallman and Pedersen (2011), global strategy is a “strategy with comprehensive worldwide perspective” (p.12). A key aspect of this definition is the worldwide perspective which implies that global strategies take into account factors beyond the home country’s boundaries, such as international taxation laws, cultures, and financial systems. Global strategy is thus wider in scope, and as a result, a myriad of factors are taken into consideration when developing a strategy for the international marketing environment. In this paper, I will evaluate the implementation of global strategies in Toyota Motor Company, one of the popular and biggest automobile companies in the world. I will first provide the company’s background before examining the major influential factors in implementing its global strategies. I will then analyze the barriers to the implementation of global strategies in the company before offering suggestions to prevent failure to implement these strategies.
2. Background to Toyota Motor Company
Toyota was founded in 1937 by Kiichiro Toyoda, who changed the focus of the company from the manufacture of the automatic loom to automobiles (Toyota Global, n.d.). The Japan-based company has 372,434 employees who help it attain its goals (Yahoo Finance, 2021). The company has a market capitalization of $240 billion, implying that it is one of the biggest in the world. Today the company owns and operates 67 manufacturing firms spread across the world (Toyota UK, 2021). Its products, primarily automobiles, are marketed and sold in more than 170 countries (Toyota UK, 2021). Some of its popular automobile products include the Prius+, GT86, Yaris GR sport, Hilux, and Landcruiser G8. Toyota leads the global automobile market share with 8.5%, ahead of Volkswagen and Hyundai, which are second and third, respectively (Figure 1).
Figure 1: Global automotive market share 2020
Source: Statista (2020)
The company’s 2019 annual report presents some of the global strategies the company has been...