Toyota Economic and Recall Crisis Research Paper

Toyota Economic and Recall Crisis - Research Paper Example Toyota has 522 subsidiaries, more than 320,000 staff worldwide, more than 12 Japanese factories, and more than 51 locations in 26 countries. As of 2009, Toyota faced a crisis that almost brought about its down fall. The company had earlier faced an economic crisis that started in 2007 spreading across auto industries worldwide. Consequently, in March 2008, the company recorded its first ever loss after 70 years. Other problems that have faced Toyota include the problem with acceleration in 2009 that led to a recall of millions of vehicles. As a result of this, consumer attitudes towards the brand changed. In January 2010, complaints from customers continued and the number of recalls continued to rise. This continued through April 2010, causing a further drop in customer’s feelings towards the brand. In an attempt to retain its customers, and maintain its position as the number one global auto industry, Toyota changed its motto to â€Å"Moving Forward!† Through this, the company communicated its desire to create a new and better beginning. Gradually, the company has been gaining positive disposition from its customers. Today, Toyota has been able to rise again, even though it has lost its number one spot. Keywords: Toyota, Toyota Motor Corporation, Toyota Production System, Manufacturers, Crisis, Automobile, Auto-maker, Gas Pedals, Acceleration, Recalls For many years, Toyota Motor Corporation has been the biggest automobile manufacturer in the world. It also is a leading advocate eco-friendly and technological cars. The company has exported millions of vehicles worldwide. Through this, it earned the reputation of being the best automobile manufacturer and exporter. Since 2007, the company has however faced a number of problems affecting both its reputation and positive customer disposition. Today, the company has however gradually regained its reputation. Toyota Motor Company was established in 1937 by Kiichiro Toyoda. In 1952, the company rapidly grew becoming successful (Borowski, 2010). Initially, the company exported its vehicles to South America. After five years, it was able to penetrate markets in North America. Having sold its products in North America, Toyota was able to penetrate the United States market in the business of exporting automobiles. Borowski (2010) points out that â€Å"In 1982, Toyota Motor Company and Toyota Motor Sales Company joined forces to Toyota Motor Corporation (TMC)† ( p.3). â€Å"The company now has 522 subsidiaries, 320,808 staff worldwide and is producing not only in the 12 Japanese factories but also in 51 other locations in 26 countries† (Borowski, 2010, p.3). In 2007, Toyota Motor Corporation had the highest share price value among all car-manufacturers. In, 2008, Toyota made an annual turnover worth billions of United States dollars after selling millions of vehicles.. Consequently, the company gained the status of being the biggest manufacturer of automobiles. This has however changed due to the financial crisis that began in 2007, damaging Toyota’s image, and also due to over sticking gas pedals that led to many recalls worldwide. According to Ohno, a structure of theories and procedures for improving collaborative strength known as the Toyota Production System is used at Toyota to maintain the company’s productivity, and at the same time, ensure that customers are satisfied with the quality and efficient delivery of vehicles (1998). The production of Toyota automobiles evolved from Henry Ford’s historic manufacturing systems. Herny Ford manufacturing system thus paved way for the foundation of the Toyota Production System. Due to conditions in Japan, there was inherent need to make considerable improvements to Ford’

Disscussion on any Economic Resource Which is Scarce in UAE or a Well Assignment

Disscussion on any Economic Resource Which is Scarce in UAE or a Well Known Country - Assignment Example Apart from that the water consumption in the emirates is massive and it is almost four times as that of Europe and desalinization plants will not be able to protect the fresh water resources for long time (Oil Rich But Water Scarce UAE in Grave Danger of Losing It’s Water Resources in Just 50 Years,2010). Thus identifying the problem, the paper focuses on the governmental measures to tackle this problem, cost structure and mechanism of the emirates on fresh and its price elasticity of demand. Finally it points out in suggesting optimal strategies to tackle this problem. Governmental measures to tackle the problem of water scarcity The government had been well aware of the water scarcity problem and devised many policies to overcome this problem (Massad & Kannan, n.d., p.100). However the scope of discussing all is limited and the focus is some particular strategies. The oil wealth of the UAE has attracted myriad of population into this arid empire with high demand of water whi ch made the government to face severe challenges to tackle the problem. The scarcity of water and high demand for water can be explained in a demand supply equilibrium framework. Fig.1 In the above diagram the initial equilibrium is attained at the point E, where the demand curve (DD) and supply curve SS intersects each other and the equilibrium price is P0 and the equilibrium quantity is Q0. Now as we have discussed that the population pressure has increased the demand of water to a great extent. So at the same price P0 it is found that the new demand curve (DD1) has shifted rightwards and an excess demand of occurs at that price. The supply being short there is problem in adjusting and attainment of equilibrium is a problem. Government has implemented strategies to lower the immigration rate. As for example in Dubai, the employers are subject to a new work permit quota system and are required to obtain pre-approval in order to sponsor individuals for work permits. Again in Abu Dha bi, the foreigners are required to have medical insurance or health card in order in order to obtain work permits and growing charges for attestations confirming foreign degrees .As direct consequences of the population boom heavy pressures fell on the agricultural sector of the Arab emirates. Enhanced technology research, support to local farmers, use of waste water and innovative solutions are adapted and implemented by the government to solve the water crisis problem. Other policies include large scale water production through eco-friendly techniques applied in desalinization plants, tight controls are kept on the quality of the imported produce as well as the stockpiling of the key crops (Szabo, 2011, p.6). Stress have been also given on non water policies because they are critically central to water policy reforms as the tasks becomes easier and productive when people outside the water sector show their eagerness to engage in complementary actions (Jagannathan et al, 2009, p.28 ). Awareness programs are also initiated by the government as well in solving the problem. Price elasticity of demand and water scarcity in UAE â€Å"The price elasticity of demand measures the sensitivity of the quantity demanded to changes in the price† (Elasticity n.d.). In other words it is a measure of how much a quantity demanded of a commodity changes when its price changes. Mathematically the price elasticit