Toyota Motor Corporation major business is cars manufacturing but it have a division named Toyota Financial Services which is a provider of automotive financial services, founded in 1983. The existent of this division may led the company to lose focus while consntrating on more than one field. Getting red off the financial part the company will be able to be more focused on car manufacturing market. Toyota’s net revenue from its major four markets Japan, North America, Europe and Asia are 11. 2%, 34%, 24. 1%, 12. 2%, respectively.
In 2008 57% of the unites that was sold in North America was manufactured outside North America while 57. 6% of the unites that was manufactured in Japan was exported to other countries. This is something Toyota should avoid because it makes the company lose money and to make it hard to provide a competitor price due to customs, tariff, and currency exchange. Toyota does their research and development in Japan only, while there are other important markets for Toyota but there is no connection between the market and the R & D department.
It is better to have a research and development offices around the world according to their sales market to meet the local demand which will lead to rise in the net revenue. One of the most powerful and reliable products that Toyota has is the Hybrid cars, which helped the company to recover from it crisis. So Toyota should meet the demand on the environmental cars by finding new and creative environment friendly cars such as the electric car. Toyota is the world’s largest automaker, which means that they are the biggest in the automobile industry in the world.
But Toyota went to its first loss in its operating income in its life due to the mortgage crisis in the United State. The company was obviously affected very badly by a crisis that happened in one country. Toyota shouldn’t focus in one market and neglect other important and rapidly growing markets such as China, Korea and India. Focusing on more stable markets and not ignoring any market will make the company be dependable on several markets which lead to saving it from losing. Toyota is having a recall on 3. million in United State only due to the risk that a loose floor mate could force down the accelerator, a problem suspected of causing crashes that have killed five people. Moreover, Toyota takes more time to provide the new cars to customers than Hyundai, Ford, and Honda. These issues were caused by a lack of process engineering which was one of the company’s strength in the past. Process Engineering is managing the design, operation, and maintained of the product. If Toyota acts toward this weakness it will keep going as the world’s largest automaker for more and more years.