Toyota Marketing in China Essay Example | Topics and Well Written Essays - 1750 words

Toyota Marketing in China - Essay Example Sales of marketable vehicle in the country are forecasted to grow at a CAGR of around 5.5% during 2008-2010. Based on the past performance, it is projected that passenger car sales will cross 11 Million Units in 2010. China is the world's second largest car market. It overtook Japan just last year and is challenging to become the world's largest automobile market. The industrial revolution in China has prompted development and growth in the middle-class of China and the automobiles have translated into a symbol of prestige. Toyota was a latecomer to the China market. Within its global strategies, North America is the top priority, followed by its home country Japan. China has been included in Toyota's top development strategy in recent years with its first China-made VIOS sedan produced in Tianjin in October 2002. Considering China as an immature auto market, the company had adopted a three-stage development plan -- first to establish a local sales network and launch brand promotions, then to build auto parts manufacturing bases, and, finally, to establish joint ventures (JVs) with local players and produce automobiles. Although a latecomer, Toyota has jumped to the front in terms of imported car volume -- 50,000 units annually (Jiang, 2004). The company stepped into the most important and critical stage -- speeding up the localization of its products, since its rivals, such as Honda and General Motors, started accelerating their saturation into China. After the market entry of the Prado and Land Cruis er with China's First Automobile Works, its manufactured goods with Guangzhou Automobile Manufacturing Co -- Camry, which was a great success in the Untied States, was also developed. Forbes magazine comments on Toyota's success in the US auto market, saying that once the company sets goals, it will manage to exceed the targets. What is more demanding to its rivals is Toyota's approach to realize these goals. That estimation may well apply to its China development. Although Toyota missed the first opportunities, it will likely catch up if it pays more attention to the China market and introduces high-end brands. Toyota may scale back its ambitious target of selling more vehicles in the United States this year than it did in 2007, as damage from an economic slowdown and high oil prices becomes more fully known. Toyota sold more than 4.8 million vehicles worldwide in the first half of this year, up 2% from the same period a year earlier, the Japanese automaker said Wednesday. That exceeded General Motors Corp.'s sales of 4.5 million vehicles in the same period, setting up Toyota to potentially end GM's 76-year run as the world's top automaker by sales (CNN Money, 2007) Toyota, the third-biggest foreign car brand in China, reported investing 3.6 billion Yuan ($526.8 million) to double the production capacity of one of its plants. This should boost Toyota's overall capacity in China to 830,000 units by the first half of 2010. Global requirement for light hybrid electric vehicles (HEV) is estimated to reach 4.5 million units in 2013. Increasing energy costs and greater than before emissions regulations are likely to increase demand for HEVs. The US is expected to experience the highest level of demand for HEVs, estimated at two million units in

THE ACQUISITION AND THE ROLE OF HUMAN RESOURCES Assignment

THE ACQUISITION AND THE ROLE OF HUMAN RESOURCES - Assignment Example He left other executives and it didn’t keep them in the loop on the matter. This made other executives angry as to the modalities of the acquisition was not shared with them. Several questions were asked about the correctness of the acquisition strategy. Alan who had a fantastic working relationship with Peter was also not informed well about the acquisition. He was repeatedly told that this topic is not to be discussed among them and it is off the table. Peter didn’t trust their other executives and forgot that he should have adopted a leadership style where everyone’s ideas are put in place (Douglas 31-32). No one from the bottom line of workers was included and even when asked specifically about the company, Peter was visibly upset and without answering they left. This shows that he wanted to do the acquisition all by himself. This resulted in high turnover rate of the employees since it didn’t have a clearly defined goal and direction after the acquisi tion. Answer 2 Peter has included only three members as part of the acquisition team. He left out the other top executives from being part of the team. Hence the top management were visibly upset. Even Alan who was his best partner and shared so many successes was not kept updated with the acquisition story. There were times when Alan asked about the potential company, but Peter was surprised at how they knew the information which was supposed to be kept a secret. Peter became frustrated and replied that the discussion was off the table. He also tried to contact Peter in email but the answer was same. Several other employees began to ask the managers about the acquisition strategy but no one knew specifically to answer their queries. At a special executive meeting, Peter told others about the company name but directed them not to throw any suggestion at them (Geber 28-37). Many questions were thrown at them, but no proper answer to their questions was given. This made the executives irritated. They were wondered what was the product lien, marketing sales force, territories of the acquiring company. This made the top executives angry at the leadership style of Peter. Answer 3 Scorecard Inc. faced many Human Resource issue in course of Acquisition of Partners Manufacturing. After the Acquisition of the company, there was high rate of turnover. At first it was imperative on the management to formulate a HR policy which would be in line with the operations of Scorecard. All the employees should be given the same benefit so that they don’t feel any partiality is been done with them. The HR manager should compensate them following a proper method (Lubatkin 295-302). There shouldn’t be any inconsistencies in the decision making process which might lead to frustration. The employees should be properly given work on the basis of their competency level. At all levels of operations be it manufacturing or other, it was imperative to keep the keep the employe es motivated so that the customer loyalty doesn’t get affected. It was necessary to talk with the employees as to why they were leaving. Performance evaluations needed to be one thoroughly at all levels. Answer 4 Peter Wolfe, CEO of Scorecard was initially very effective which made the company grew at 5% per annum. But he was hesitant at first to acquire any company. But due to pressure from management, he finally agreed on going for acquisition of a company. He formed a group of three