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Amandeep Kaur Christy Powell Sherry Tai Alexandra Vera

Toyota Crisis

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Page 1: Toyota Crisis

Amandeep KaurChristy Powell

Sherry TaiAlexandra Vera

Page 2: Toyota Crisis

Toyota Corporation

Page 3: Toyota Crisis

Political

Japan United States

Constitutional monarchy with a parliamentary government.

Japanese constitution includes a bill of rights similar to the U.S Bill of Rights

Federal republicConstitution based federal

Republic Strong Democratic

traditionLimited regulation from

the government

Page 4: Toyota Crisis

EconomicJapan United States

GDP$5.960 trillion (2012)

Industrialized, free market economy

Third largest in the worldLabor force

64.97 million workersFourth largest export

market for United States goods and servicesMotor vehicles: 13.6 %Auto parts: 4.6%Export to the USA: 17.7%

GDP15.68 trillion (2012)

Market oriented economyImports

Consumer goods (includes automobiles) 31.8%

Labor force159.1 million workers

Page 5: Toyota Crisis

SocialJapan

United States

Population127.6 million

(2012)Birth Rate

8.23 births / 1,000 population

Life Expectancy83 years old (2011)

Population313.9 million (2012)

Birth Rate13.66 births / 1,000

populationLife Expectancy

79 years old (2011)

Vehicle usage around the

World

Page 6: Toyota Crisis

Technology

Japan United States

The worlds largest market for hybrids

Among world’s largest and technologically advanced producers of motor vehicles.

Rapid urbanization also weakens the demand for automobiles because Japan’s cities are connected with top quality public transportation. People are finding that owning

a car is not a necessity.

The US has the largest and most technologically powerful economy in the world

Being risk-takers, no other country can imitate it’s technological creativity.

David Kirkpatrick, Fortune senior editor said,” this is the country where some of the most important breakthrough products are still being created”.

Page 7: Toyota Crisis

Culture

Hofstede’s Cultural Dimensions

Power Distance Japan is more conscious of hierarchical position while the United States everyone

has equal rights.

IndividualismJapan is more collectivist where as the U.S

are more individualistic.Masculinity

Japan is the most masculine in the world, they drive for excellence and perfection.

The U.S. live to work to earn their money and higher status.

Uncertainty AvoidanceJapan is most UA on earth because of the constant threats of natural disasters and

changes are so different to realize in Japan. In the US they accept new ideas, new

products and are risk takers.

Long Term OrientationPeople in Japan see their life as a very short moment, you do your best in your life time and that is all you can do. Their business is

to serve the stakeholders and society at large for many generations to come. The

US is more short term orientated where the business performance is based on a short term basis and profits are on a quarterly

basis.

Page 8: Toyota Crisis

AnalysisJapan was recuperating from the recall of Toyota products and Toyota was on its way of recovering from the recall fiasco that affected 14 million vehicles worldwide.

On March 11, 2011 a 9.0 magnitude earthquake hit Japan and caused many damages to the Toyota manufacturing facilities.

The earthquake shut down 11 nuclear power reactors and nearly 10% of Japan’s electrical power generation.

Production was stopped in Japan and American car manufactures were to concerned because they rely on the Japanese companies for auto parts.

The American manufacturing factories cut production because of the parts shortages but didn’t fire any employees.

Since Japan is high in masculinity dimension, Toyota’s president and member of the founding family he repeatedly said the company remains committed to keeping production and jobs inside Japan.

Page 9: Toyota Crisis

Bibliography

Hays, Jeffrey. "Facts and Details." TECHNOLOGY IN JAPAN: HIGH-TECH FACTORIES, MAGLEV TRAINS AND PATENTS. Oct. 2012. 28 Sept. 2013 <http://factsanddetails.com/japan.php?itemid=875&>.Kirkpatrick, David. "The United States of Technology?" CNNMoney. 06 July 2007. Cable News Network. 29 Sept. 2013 <http://money.cnn.com/2007/07/05/technology/fastforward_us.fortune/>.Terry, Jordan. "Americans Don't Want Smaller Cars." The Atlantic. The Atlantic Monthly Group,

24 June 2009. Web. 30 Sept. 2013. <http://www.theatlantic.com/business/archive/2009/06/americans-dont-want-smaller- cars/20044/>.

"Japanese Trains." Japanese Trains. Japan-guide, n.d. Web. 30 Sept. 2013. <http://www.japan-guide.com/e/e2019.html>.

Greimel, Hans. "Vehicle Demand Shrivels in Japan." Automotive News. Crain Communications, 1 Apr. 2013. Web. 30 Sept. 2013.

<http://www.autonews.com/article/20130401/OEM01/304019980/vehicle-demand-shrivels-in-japan>.

 "Japan: Government." GlobalEDGE: Your source for Global Business Knowledge. Mar. 2012. Michigan State University. 28 Sept. 2013 <https://globaledge.msu.edu/countries/japan/government/>.

"THE HOFSTEDE CENTRE." Japan. 01 Oct. 2013 <http://geert-hofstede.com/japan.html>.

"World Bank Group." World Bank Group. The World Bank Group. 01 Oct. 2013 <http://www.worldbank.org/>.

Page 10: Toyota Crisis

Bibliography"Vehicles in Use | OICA." OICA. International Organization of Motor Vehicle Manufacturers, n.d. Web. 01 Oct. 2013. <http://www.oica.net/category/vehicles-in-use/>.

Jaruzelsk, Barry. "The World's 10 Most Innovative Companies, And How They Do It." Forbes. Forbes Magazine, 4 Apr. 2011. Web. 01 Oct. 2013. <http://www.forbes.com/2011/04/04/10-top- innovative-companies-apple-google-leadership-managing-how.html>.

Vijayenthiran, Viknesh. "Toyota Overtakes BMW to Regain Most Valuable Brand Title." Yahoo Autos. N.p., 24 Mar. 2013. Web. 01 Oct. 2013. <http://autos.yahoo.com/news/toyota-overtakes- bmw-to-regain-most-valuable-brand-title-202908276.html>.

"History of Toyota." TOYOTA MOTOR CORPORATION GLOBAL WEBSITE. N.p., n.d. Web. 01 Oct. 2013. <http://www.toyota-global.com/company/history_of_toyota/>.