云南民族文化
A Brief Understanding of IBS ‐‐A Ca Study of Toyota卜算子怎么读
A Brief Understanding of International Business
小学生作文辅导Strategy
--A Ca Study of Toyota
文艺常识
by Peter LIU, peterliu@acculine‐
MSc International Business
P14B45 International Business Strategy
can什么意思
Lecturer: Dr Yee Kwan Tang
楠木手串
Sponsored by
10 May 2010
Content
Introduction (2)
Basic Concept of International Business Strategy (2)
Brief Background of The World Auto Industry (4)
Brief Background of Toyota (4)
锦州北普陀山IBS of Toyota (6)
Entry to US Market (7)
Americanization as A Way of Localization (8)
Recommendations (9)
Conclusion (10)
Reference (11)
Introduction
Any ambitious enterpri that is going to achieve and sustain profitability and profit growth, no question, would have to expand business abroad, to gain extra market and sales, and profit in result, by employing benefit of location and large scale economies, experience and learning sharing effects.
英雄人物的事迹
However, as it has been lf-proven to countless firms, foreign markets are never a flat plain field without trap, instead absolutely reprent an adventure. The adventurers would face immen issues like cross-border management coordination, unions, local consumer taste and preference over products and rvices, local government regulations, majority among which stem from the environmental divergence in different markets, legally, economically, or culturally. Automotive industry is born for global market, due to the intrinsic pressure for cost reduction, as the initial high cost per unit retards the market expansion to great degree. Meanwhile, most of time, cars are consumer products who markets are filled with local taste and preference, and local government regulations becau the industry is never too little for local government to neglect the influence of automotive industry over whole local economy. This paper will go through the basic thinking of international business strategy concept, and focus on the current world largest automaker Toyota’s strategy, in the context of the past and ongoing environments.
Basic Concept of International Business Strategy
Facing the firms with foreign market orientation are two apparently contradictory goals, to reduce cost by product standardization and, subquently, central production at optimal location in the world and to cater to local demands for customization by product differentiation, localized marketing mix an
d so on which unquestionably tend
to rai cost. In order to deal with the two opposing ends, four international business strategies have been worked out, empirically and/or theoretically, namely global standardization strategy, localization strategy, transnational strategy, international strategy. Global standardization strategy focus on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, leaning effect, and location economies. The strategy applies best when there are strong pressures for cost reductions and minimal demands for local responsiveness, mainly where products that rvice universal needs prevail. A localization strategy practitioner increas profitability by customizing the firm’s goods or rvices so they provide a good match to tests and preferences in different national markets. Localization is most appropriate where consumer tastes and preferences differ substantially across nations and cost pressures are not too inten. Converly, a transnational strategy is aiming to simultaneously achieve low costs through location economies, economies of scale, and learning effects; differentiate their products offering across geographic markets to account for local differences; and foster a multidirectional flow of skills between different subsidiaries in the firm’s global network of operations. Finally, many enterpris pu
rsue an international strategy, taking products first produced for their domestic market and lling them internationally with only minimal local customization.
Brief Background of the World Auto Industry
Since the landmark innovations such as moving asmbly line by Ford (Bak 2003), Kanban production system by Toyota (Liker 2004), the automotive industry has been improving tremendously in terms of cost reduction and quality upgrade, in turn, has been enlarging the market scale in developed markets including USA, Europe and Japan, and also paving way into emerging and promising markets like China, India, Brazil and Russia. The major car makers in the world are Toyota, General Motors, V olkswagen, Ford, Honda, Nissan, PSA, Hyundai, Suzuki, Fiat, Renault, Daimler, Chrysler, in order of vehicles produced in 2008 from 9,237,780 to 1,893,068 units respectively including cars, light/heavy commercial vehicles and heavy bus (OICA 2009). However, quite interesting, much of the biggest manufacturers do not necessarily produce all the products in home country; instead, many of them have active production in countries to employ location economies and/or to save transportation cost, or circumvent local content regulation and other barriers. In 2009, the top 10 motor vehicle producing countries are China, Japan, USA, Germany, South Korea, Brazil, India, Spain, France and Mexico, from 13,790,994 to 1,557,290 units produced by each country (OICA 2010).
Brief Background of Toyota
Since establishment in 1933 as a division of Toyoda Automatic Loom Works, Toyota developed from plain field, through many legendary well-known creative managements including production tup time reduction, grouping the front workface into teams, decentralizing the responsibilities of identifying and fixing defective parts to the whole team during asmbling, developing Kanban system on which the famous
