Financial And Political Factors Affecting Toyota's Automotive Industry

Table of Contents

Introduction 1

Background and History of Toyota 1

Market Share of Toyota and its Financial Summary 2

Financial Summary (U.S GAAP) 3

The Automotive Industry 4

Political Factors effecting Toyota 5

Ethical Factors Effecting Toyota 6

Toyota’s Innovation 6

Theories applied by Toyota 7

Lean Accounting 7

Toyota’s International Decision Making 9

Conclusion 10

References 10

Introduction

A company’s success or failure is dependent upon the factors it applies upon itself and the decisions it makes according to its structure, ideology and the thinking of the ownership. A multinational is also subject to multiple other factors which may cause an impact on the company’s decision making, especially in the international sector. The

Define value, and identify the value stream for each product (or service);

2. Eliminate all unnecessary steps in every value stream;

3. Make value flow, which requires rethinking the entire work organization;

4. Pull all activity by the customer, or, in other words, produce to customer demand; and

5. Pursue perfection continuously.

The lean approach is not a search for a perfect end-state with zero waste. It is a never-ending journey toward perfection through continuous improvement—constantly seeking and implementing better and less wasteful ways of performing processes than the ways we knew previously. Ohno identified seven types of waste:

1. Overproduction: Producing more than the amount currently needed by the next process or customer. This is the worst form of waste because it con¬tributes to the other six.

2. Waiting: Operators or machines waiting for a process to finish, for materials, for parts or repairs, for setup for the next product, or for information.

3. Transportation: Unnecessary movement of parts or products.

4. Processing: Beyond what is necessary to provide the specified or promised value to customers.

5. Inventory: Having more than necessary for a precise¬ly controlled pull

Under the accompanying fundamental arrangements, built in May 2006, Toyota actualizes an inward control framework while leading vital improvements. Thus its overseeing bodies take after the tenets and regulations set by the guardian organization and keep up an implicit rules, control and honesty while settling on choices in the global