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MNE Crisis Toyota

Comparative National Analysis

julia knoth

on 12 March 2014

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Transcript of MNE Crisis Toyota

MNE Crisis Toyota
Comparative National Analysis

Julia Knoth
Christine An
Rafael Cruz
Kamara Chuimbou
Kasey Snyder

Parliamentary Representative Democratic Monarchy
Emperor of Japan- Akihito
Head of Japanese Imperial party
Appoints Prime minister
Symbol of unity between state and people
Executive Power- Prime Minister-Shinzō Abe
Elected by Diet, appointed by Emperor
Legislative power- Diet
Lower House- House of Representatives
Upper House- House of Councilors
Independent Judiciary
Political Parties:
DPJ- Democratic Party of Japan
LDP- Liberal Democratic Party
NKP- New Komeito Party
PNP- People’s New Party
SDP-Social Democratic Party
JCP- Japanese Communists Party

Federal Constitutional Republic
States sovereign power
Balance of National Powers:
Executive - President Barack Obama
Legislative- Congress, House of Representatives, Senate
Judiciary- Federal court, Supreme court, Court of Appeals
Political Parties- Conservative/Liberal
held democratically by state and local government
Electoral college for presidential election
Suffrage right for citizens over 18 years old

Unemployment Rate: 7.3 %
GDP per capita: $49,965.27
Labor Force: 155 million
Largest Importer and Second Largest Exporter
From Auto Industry
Revenue: $15.58 billion
Employment: 3.7 million
Produced Cars 4,346,958 in 2013
The largest producer of commercial vehicles
The Big Three (Chrysler, Ford, and GM) are the last remaining American born car companies.
Unemployment rate: 3.7%
GDP per capita: $46,720.36
Labor Force: 65.9 million
5th largest importer and exporter in the world
From Car industry
Revenue: 472,962 million yen
Employment: 787,000
Produced 8,189,323 cars in 2013
Second largest car producer in the world.
• Rank 3 in the Global Technology Index; Rank 1 for Global Innovation
• Largest Telecom services market in the world—online ad and retail
• Mobile Shopping Growing(Smartphones)— apps, including barcode scanners and price comparison
• Increasing number of teens owning mobile phones—big users of social networking sites
• New Supply Plants open in US—host country also making vehicle parts originally imported from Japan

• World Industrial Leader in development of strength and heat resistant materials through Fusion Solution—production of improved and new products with existing technology
• Rank 2 in the Global Technology Index—Global R&D Investment, Global Researchers, and Global Innovation
• World leader in Information and Communication Technology (ICT) development→ Through ICT effectively innovating its production system
• Extensive investment in the fibre-optic network—uses one of the quickest broadband packages in the world→ Highly contributes to economic growth through stronger productivity impact
• Behavior patterns of Japanese consumers becoming more westernized→ Growing Telecom Industry

Language: English
Hofstede’s Cultural Dimensions:
Power Distance – ( 40 )
Equal rights for all, hierarchy is established for convenience, employees follow orders only as a matter of procedures
Individualism – ( 91 )
the expectation is that people look after themselves and their immediate families only
Masculinity – ( 62 )
Mostly, dominant values in the society is success and money
Uncertainty Avoidance – ( 46 )
Acceptance for new ideas, innovative products and a willingness to try something new or different

Trompenaars’s Cultural Dimensions:
Universalism/Particularism – ( U )
Individualism/Communitarianism – ( I )
Neutral/Emotional – ( E )
Specific/Diffuse - ( S )
Achievement/Ascription – ( Ach )

Language: Japanese
Hofstede’s Cultural Dimensions:
Power Distance – ( 54 )
Japanese accept inequality and are very conscious of their hierarchical position
Individualism – ( 46 )
collectivistic society: Japanese put harmony of group above the expression of individual opinions
Masculinity – ( 95 )
masculinity in Japan is the drive for excellence and perfection
Uncertainty Avoidance – ( 92 )
Japan is constantly threatened by natural disasters from earthquakes to volcano eruptions, what set its high score in U.A.

Trompenaars’s Cultural Dimensions:
Universalism/Particularism – ( P )
Individualism/Communitarianism – ( C )
Neutral/Emotional – ( N )
Specific/Diffuse – ( D )
Achievement/Ascription – ( As )

-Philosophical influence: Aristotle, Kant, Utilitarianism
-The Foreign Corrupt Practices Act of 1977 (15 U.S.C. §§ 78dd-1, et seq.)
-Corruption Perceptions Index Transparency International: US - 19 th
-Rights-centered moralities

-Philosophical influence: the Shinto Ethic, The Confucian Ethic, and the Buddhist Ethic
the goal and heart of ethics is the spontaneous and selfless expression of human-heartedness
‘ Makoto ’ (sincerity) to properly discharge all of one’s obligations so that everything will flow smoothly and harmony will be maintained; the outer behavior needs to be in line with the inner being. In extension, this means that ‘makoto people’ will not be self-seeking or show personal emotions.
-Not very strong recognition of individual rights in relation to privacy, intellectual property, and freedom of information Traditional cultures: Virtue-centered moralities
-Rule-based View: precise system of doing things based on form and process
-Business Ethics: Keiei = business in Japan stands for ’making effort to develop societies harmoniously and raise the well-being of the people. Business ethics means first a discipline
-Corruption Perceptions Index Transparency International: JAPAN - 17 th

Industry Opportunities
As the yen becomes weaker, companies are given greater flexibility to improve the design of their cars and regain market share.
Japanese brands have a crucial role in the development of new technology whether it is in batteries or fuel cells.
Limited military, more spent on technology and research
Expansion and development of manufacturing opeerations in southern asian countries : Thailand, Indonesia, Philippines
Increased production of Electric and Hybrid cars have enticed green users and lead to an industry based off sustainable energy
Joint ventures with companies in North america

Industry Threats
The recurrence of a global recession could hinder the demand for cars and ultimately hurt Toyota greatly because of its large size.
The lack of product quality control may severely damage the automaker’s reputation if it leads to another mass recall over a critical flaw.
The urban population is increasingly relying on public transportation.
Forecasted consumption hikes could harshly hurt car sales.
Competitive threat from new technology
Emerging countries expanison into market: Brazil, India
"The World Factbook." Central Intelligence Agency. Central Intelligence Agency, n.d. Web. 07 Mar. 2014.
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"World Development Indicators." United States Data. The World Bank Group, n.d. Web. 07 Mar. 2014.
"U.S.-Japan Study: Japanese Elders May Be Happier." Elders. New America Media, n.d. Web. 07 Mar. 2014.
Ogura, Kazuya. "Overtime Work in Japan." WASEDA ONLINE. The Japan News, n.d. Web. 07 Mar. 2014.
"Social Statistics: Education." United Nations Statistics Division - Demographic and Social Statistics. United Nations, n.d. Web. 07 Mar. 2014.
"Motor Vehicles (per 1,000 People)." Data. The World Bank Group, n.d. Web. 06 Mar. 2014.
"Consolidated Performance Highlights." Annual Report 2011: Toyota (2011): 1-113. TOYOTA MOTOR CORPORATION. Web. 7 Mar. 2014.
Khurram, Shanzeh. "Is the American Dream Becoming Too Materialistic?" The Huffington Post. TheHuffingtonPost.com, 17 Feb. 2013. Web. 05 Mar. 2014.
"Economic News Release." U.S. Bureau of Labor Statistics. United States Department of Labor, n.d. Web. 7 Mar. 2014.
"Life Satisfaction." OECD Better Life Index. OECD., n.d. Web. 07 Mar. 2014.
R. Veenhoven, Happiness in United States (US), World Database of Happiness, Erasmus University Rotterdam, The Netherlands. Viewed on 2014-03-07 at http://worlddatabaseofhappiness.eur.nl
R. Veenhoven, Happiness in Japan (JP), World Database of Happiness, Erasmus University Rotterdam, The Netherlands. Viewed on 2014-03-07 at http://worlddatabaseofhappiness.eur.nl
"Japan Autos SWOT." SWOT - Japan SWOT - Q2 2014. Business Monitor International, n.d. Web. 08 Mar. 2014.
United Kingdom. Business Monitor International. Japan Power Report-Includes 10 Years Forecast to 2020. London: Senator House, 2013. Web.
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Canis, Bill. Congressional Research Service. Motor Vehicle Supply Chain: Effects of the Japanese Earthquake and Tsunami. 2011. Web. <www.crs.gov>.
"JAMA - Japan Automobile Manufacturers Association, Inc." JAMA - Japan Automobile Manufacturers Association, Inc. N.p., n.d. Web. 11 Mar. 2014.
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Central Intelligence Agency. Central Intelligence Agency, n.d. Web. 10 Mar. 2014.
Population: 316,438,601 (2013)
Life Expectancy: 79
U.S. counterparts, give and receive less economic, instrumental and emotional social support, resulting in a lower life expectancy than japan.
School life expectancy: 17 years
Motor vehicles (per 1,000 people): 797
North America accounts for 28.98% of vehicle sales by region for Toyota.
The American dream is becoming more and more materialistic.
Output per hour: 11.2 (2010) to 2.0 (2011)
Life Satisfaction: 7.0/10 rating
The average self-evaluation of life satisfaction was higher than the average of 6.6
Since the crisis, the average happiness level decreased to 7.4
Social Inequality: 1.21
Population: 127,253,075 (2013)
Japan has a population density of 337 (2010) persons per square km. The space in Japan is more precious than in the United States.
Life Expectancy: 83
2,000 Working hours per year
Japanese workers are said to be hard-working and “lifetime employment” is the norm.
School life expectancy: 15 years
Motor vehicles (per 1,000 people): 591
Output per hour: 14.8 (2010) to -2.8 (2011)
In 2011, Japan had the second largest productivity growth decline in manufacturing than in the previous year.
Life Satisfaction: 6.0/10 rating
Although, 87% of people reported having more positive experiences in a given day than negative.
Since the crisis, the average happiness level increased to 6.5
Social Inequality: 1.17
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