Impact of Globalisation on Toyota Essay Example | Topics and Well Written Essays - 3000 words

Impact of Globalisation on Toyota - Essay Example Globalisation has played a major part in the emergence of automobile industry and Toyota has been a leading name in the industry which has also been impacted due to globalisation. The paper will discuss and explore the characteristics or issues of globalisation along with its impact on Toyota. Theoretical Framework Globalisation does not have any definite or specific definition. According to Vogel (2010), â€Å"Globalisation is known as the domination of the world economy by multinational companies†. Free trade policies and practices have enabled these large corporation entities to operate their business globally further influencing world economy. Capitalist nations have been mostly benefitted by globalisation. Trade and multinational companies have been highly benefited as a result of globalisation (Vogel, 2010). Globalisation has influenced the political as well as technical environment of the world. However, globalisation can be termed as practice of trading among the natio ns through the operations of the internationally operating corporations. The exchange of goods and services were possible as globalisation enabled these companies to operate in various nations facing minimum friction (Martin Frost, 2011). The effect of globalisation was noticeable after the World War II. The monetary and corporative movement was highly noticeable after the World War II which can be marked as increasing pace towards globalisation. The advancement of technology, establishment of new organisations along with introduction of legal policies and establishment of legal systems are highly responsible for globalisation to flourish and develop. The characteristics of globalisation has... This research focuses upon Toyota that is considered to be amongst the largest car and vehicle manufacturing companies. The company operates its business in a global market and industry where intense competitions are observed. As a result of globalisation, the industry the company deals in is facing many emerging potential competitors from various nations. The advancement of technology has created huge demand in the markets. The advancement of technology has allowed better productions which are gaining demand in the market. Toyota has incorporated advanced technologies in the process of its manufacturing goods. Although, the efforts applied by the company need to be enhanced to cope up with increasing pace of globalisation and upgrading of technologies. The company needs to be actively involved in advancing the technologies it incorporates in manufacturing its goods. As the company is globally renowned, the expectations of the customers would grow with the expansion as well as increa sing impacts of globalisation. Toyota is recognised as an environmental friendly company. This has contributed in its image globally, adding to its brand image gaining company goodwill. With the help of various entry strategies accommodated by the company, it has been able to operate well in multiple nations. Being a Japan originated company, the company has been able to generate maximum of its profit from various European nations and the US as well.