Case Study Of Toyota Company

Toyota Motor Corporation is headquartered in Japan and is a multinational corporation. Currently, Toyota is one of the largest automobile manufacturers in the world and also the number of vehicles the company has sold the most in the world auto market. Also, not only is one of the largest car manufacturers in the world, Toyota is always on the list of 10 car brands head of safety and quality. Toyoda family in Aichi Prefecture, Japan is the line they give birth and development of the Toyota brand. 4/1937 Mr. Kiichiro Toyoda was opened Toyota Company after the government licensed automobile manufacturing... The principal activity of the company is assembling and producing various kinds of automobiles and automobile parts manufacturer. In addition,

For operating and developing a business is not easy especially for Toyota. Toyota is a company in the automotive industry so making a major decision is usually taken very carefully, such as building a car factory in Europe, it is not easy.

First, Toyota wants to develop and expands its business on a large range really difficult because of the capital for the automotive industry is very large. North America is the largest foreign market for more than 60% production carried out at the local factory and foreign market is the second largest in Europe with more than 26% of products are manufactured and sold here. Toyota visible growth potential in this market is a matter of urgency and necessity, they have built a new factory here. To build a new factory to a capital need not small. Toyota has spent years carefully studied in order to decide where to put their plants. In addition, they also carefully calculate future cash flows and given the forecast period may return on investment. However, to achieve the purpose of building a new plant in Europe, they also need to complete the paperwork with the Japanese government and the localities where they invest. This steps did they take a lot of

During that time, the Japanese yen is rising against the euro, so they will be more profitable when vehicle production and consumption of vehicles in the European market. Also, when moving the plant to Europe, Toyota may also adjust the price to compete with other carriers due to changes in exchange rates. They have decided to put a factory in France and this is the main factory for the production of Yaris provides security for the European market. However, there are many difficulties due to the volatility of the exchange rate between the Japanese yen and the euro will change the income statement of Toyota. In addition, issues related to taxes and workers in Europe have higher prices than many countries in the world. So, Toyota had to make a financial statement to prove that they will be profitable after the plant