Toyota's International Business Expansion in Thailand Report

This report examines Toyota Motor Corporation's international business strategies, focusing on its planned expansion into the Thailand market. It begins with an overview of Toyota, its global operations, and its competitive strategies, highlighting product quality and technological innovation. The report then analyzes Toyota's organizational design structure and the control issues it faces. It delves into Toyota's entry strategies for the Thai market, including export headquarters, direct exporting, and licensing. Operational control, including lean manufacturing and global strategies, is also discussed. Furthermore, the report explores Toyota's human resource management practices, emphasizing recruitment, training, and performance management. The conclusion stresses the importance of effective strategies, tools, and understanding of political and economic factors for organizational success. The report includes a bibliography of relevant sources.

INTERNATIONAL BUSINESS
ACROSS BORDERS

INTRODUCTION
Cross border businesses can be referred to as the form of
importing and exporting goods or services in the neighboring
countries, in order to benefit their businesses or communities.
However, starting up a business in the overseas countries presents
several taxation, regulatory and legal challenges and thus, having
a local help is necessary for the success of the business venture.
As per the economic conditions, Thailand’s strong population
forms quite a healthy base of customers.
In addition to this, strong exports, steady growth, skilled as well as
cost effective workforce and abundant natural resources help in
attracting the foreign investors as well as enable them in
developing and prospering their industries in the markets of
Thailand.

OVERVIEW OF THE COMPANY
 Founded in the year 1937, Toyota Motor Corporation engages into the manufacturing and
sales of motor vehicles as well as its parts.
 The company is headquartered in Japan and conducts its businesses all across the world.
 Toyota sells its vehicles in over 170 countries as well as regions.
 It conducts its operations by maintaining the following segments of financial services,
automotive operations and other.
 The section of automotive operations mainly designs, assembles, manufactures as well as
sells passenger cars, trucks, minivans and related parts of vehicles and accessories.
 On the other hand, the segment of financial services mainly offer lease financing to the
dealers as well as customers of Toyota vehicle.
 The other segments mainly deal with the manufacture, sale and designing of
telecommunications, housing and related businesses.
 However, the company’s current situation is a bit critical as they are not entering another
phase of expansion.
 Around 300,000 employees of the company are working all across the world and giving
their best in order to bring safety, peace and happiness to the customer communities.
 The company is working together in order to achieve these goals and with the support
from the employees, the company has managed to win the hearts of its target customers.

INTERNATIONAL COMPETITIVE
STARTEGY
Toyota Company’s success both in the markets of Japan and on the international platform is due to their
desire to make the products as well as services with premium quality.
Toyota Motor Corporation is the multinational company, which produces cars, buses, robots and trucks.
It is the largest manufacturers of cars in the Asia and the second largest producers.
This part of the assignment discusses about the international competitive strategies undertaken by the
company in order to enter the markets of Thailand.
The company has adopted certain strategies in order to achieve success and develop their businesses on the
international platform.
Firstly, the product strategy adopted by the company is based on premium quality and innovative
technology.
The company is also focusing on further international market research activities, creativity and hard work
for achieving success.
Secondly, the company is the world leader of research and development in the advanced automotive
technologies.
It has developed intelligent responses to several challenges of automobile industry in modern day and at
the same time, assuming responsibilities for the future generations.
Thirdly, the company has adopted a different strategy for the problem of pollutant emissions.
The company is committed to design less polluting vehicles by developing the hybrid systems as the basic
factor of manufacturing neat technology cars.

ORGANIZATIONAL DESIGN
STRUCTURE
The organizational design structure of Toyota Motor
Corporation is entirely based on the company’s varied
business operations all across the world. Toyota
organizational structure is being divided into four different
levels;
Chairman
President
Executive Vice President and
Senior Managing Directors.

CONTROL ISSUES
The company is currently facing some control issues as it saw around
nine million vehicles getting recalled due to their vehicles
experiencing unintended acceleration.
The reason for this mishap was because the customers were getting
faulty car parts.
The major problem that gave rise to this issue as the managers were
unaware of fast technologies like tools, equipments, operating method
and others, which are designed to make the task more effective.
Only 60% of the cars were being tested for safety as well as quality
and the others remained unchecked.
The organizational managers were not reporting this issue to their
higher management and took direct control over it, which degraded the
situation further.

ENTRY STRATEGIES
The company is planning to enter the markets of Thailand for expanding their business.
Conducting their business in the Thailand market will prove to be beneficial for them, as the country has
strong economic conditions.
In addition to this, the country has experienced a rapid growth in the Gross Domestic Product over the
past years.
The company has adopted certain entry strategies, which are being discussed in this part of the report.
Toyota Corporation established their export headquarters to penetrate into the markets of Toyota.
This helped them in increasing their distributors in the market of Thailand.
In addition to this, the company also adopted the strategy of producing their products at the home country
and shipping the surplus amount to the new country, which is one of the easiest modes of entering the
foreign markets.
Moreover, Thailand is highly associated with the import of gross products from several parts of the world.
Therefore, directly exporting the surplus products will not be a problem for the Toyota Company.
The strategy of entering the new market would be perfect for the company as it will be able to hire
distributors or agents who can take care of the export business.
In addition to this, the company can also go for licensing strategy of entering the markets of Thailand.
 In simpler terms, it refers to the contractual arrangement and the firm provides their proprietary assets to
the foreign company, by exchanging royalty fees.
Furthermore, it will assist the company in diminishing the risks and cut the investment amounts required
for sharing the proprietary secrets.

OPERATIONAL CONTROL
For the strategic decision areas of operations management, the company
uses the technique of lean manufacturing.
It also emphasizes upon the waste minimization strategy in order to
maximize the process efficiency as well as capacity utilization.
Therefore, Toyota Corporation supports their business efficiency as well as
cost effectiveness in the overall procedure as well as capacity designing.
In addition to this, the company uses local location, global and regional
strategies as well.
For instance; the company has its manufacturing plants in Thailand, China
and the United States and dealership in almost all the markets.
Thus, the company addresses their strategic decision of the areas of
operations by a mixed set of operational strategies.

HUMAN RESOURCE MANAGEMENT
The human resource managers of the Toyota Company recruits and selects
workers from all across the world, based on their talents and skills.
The firm use aptitude tests, panel interviews, competency-based interviews,
application forms and others for hiring the most deserving candidate.
In addition to this, proper training as well as development strategies is being
utilized in order to train the newly hired candidates.
Moreover, orientation programs are also being organized for educating the
candidates regarding the company’s overview, objectives, aims and mission.
The human resource managers for the overseas company also look after the
performance appraisal system, reward and recognition systems, management
promotions, compensation and benefits, organizational communication,
flexible working and other factors as well

CONCLUSION
It can be concluded that the Toyota Corporation can undertake certain
strategies for the improvement of their management.
Organizational effectiveness and efficiency relates to the success of the
business.
However, a professional should focus on their quality services.
The key to organizational success is the effective utilization of the
right strategies as well as tools for accomplishing a specific goal.
In addition to this, Toyota Company should make proper utilization of
their international human resource management.
As the company is going to expand its business in the markets of
Thailand, it is important for the managers to gain an understanding of
the political and economical factors which affects the country.

BIBLIOGRAPHY
Adeola, O., Boso, N. and Adeniji, J., 2018. Bridging
Institutional Distance: An Emerging Market Entry Strategy for
Multinational Enterprises. In Emerging Issues in Global
Marketing (pp. 205-230). Springer, Cham.
Bamberger, P.A., Meshoulam, I. and Biron, M., 2014. Human
resource strategy: Formulation, implementation, and impact.
Routledge.
Binder, J., 2016. Global project management: communication,
collaboration and management across borders. Routledge.
Brewster, C., Chung, C. and Sparrow, P., 2016. Globalizing
human resource management. Routledge.

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