Conclusion
• Competitiveness of Toyota
• IMV as solution
• FDI, R&D, HRM
Regionalizing to improve competitiveness
• Rethink production strategy
• FDI as Solution
• Entry mode, Control, Commitment
• Opportunity to do business closer to customers
Challenges
• Crisis response in 1990s
• Declining competitiveness; need to catch up
• Forced to restructure
• Cultural barriers
• Maintaining quality production
• Fortify global brand
Introduction
• 1999 initiation
• Goal of IMV
• Shift from local to regional production
• High quality and lower costs
• 5 MPV models
• Thai and Indonesian subsidiaries
• Keiretsu
• Kaizen
HRM
• Culture & philosophy
• Respect for the people and trust
• Kaizen
• Keiretsu structure
• Identify with Toyota
• OJT & LBD
• Rotation system
• TPS (quality)
• Jidoka and JIT
AGENDA
1. Introducing the IMV project
2. Challenges for Toyota
3. Regionalizing to improve competitiveness
4. Entry modes
5. R&D
6. HR
7. Conclusion
Research & Development at regional units
• FDI in R&D
• Local demand growth and R&D within close proximity (Kuemmerle, 1999)
• Understanding customer needs and preferences
• Process innovation
• Better knowledge-transfer
• Offshoring R&D and innovation performance (Nieto & Rodriguez, 2011).
• Results through captive offshoring
• R&D in Thailand
Choice of entry mode and degree of control
• Licensing, Joint-venture, Wholly-owned subsidiary
• Resource commitment
• Quality, engagement and control
• Demand conditions and regional familiarity offsets resource commitment
• Thailand and Indonesia as important markets
• Logical choice for regional production
Arigato! Got questions ???
Presented to you by Morten Gregersen & Sophia Denney
"HR is probably the most visible and important function within TMC" (Liker & Hoseus, 2010)
