UNIVERSITI TEKNOLOGI MARA UiTM KAMPUS PUNCAK ALAMFACULTY OF Essay

UNIVERSITI TEKNOLOGI MARA (UiTM) KAMPUS PUNCAK ALAM

FACULTY OF BUSINESS ADMINISTRATIONS

BACHELOR OF BUSINESS ADMINISTRATIONS (HONS)

INTERNATIONAL BUSINESS (BA246)

INTERCULTURAL MANAGEMENT (IBM536)

TITLE: MULTINATIONAL CORPORATIONS (MNCs) AND INTERNATIONAL MANAGEMENT

STUDY CASE: TOYOTA MOTOR CORPORATION

STUDENT’S NAME MATRIC NO

1) ADIBAH BT SHU’AIBI 2019542253

2) FATINI ZAKIRAH BT HAMIZAN 2019583625

3) NUR SYAFIQAH BT SALEHUDDIN 2019314475

4) SHAH IZZUDDIN B AHMAD SHAFIEE 2019542253

5) TUAN NUR AIZAN AFIQAH BT TUAN AZLAN 2019324587

GROUP : BA246 2E

SUBMITTED TO : MADAM NURUL SALIZAWATEE BINTI MAHPAR

SUBMISSION DATES : 11TH OCTOBER 2019

TABLE OF CONTENT

TABLE OF CONTENT 2

ACKNOWLEDDGMENT 3

INTRODUCTION 4

2.1 TOYOTA MOTOR CORPORATION BACKGROUND 5

2.1.1 MNC BACKGROUND: COUNTRY OF ORIGIN. HISTORY, VISION, MISSION, PRODUCT(S)/SERVICE(S), BOARD OF DIRECTORS 5

2.1.2 CURRENT HEADQUARTER AND SUBSIDIARIES WEB 9

2.1.3 PAST/PRESENT FOREIGN MANUFACTURING BASE AND WHAT DO THE MNC PRODUCES IN EACH OF THE LOCATION 12

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ACKNOWLEDDGMENT

First and First and foremost, we would like to show our gratitude and thankful to Allah S.W.T. Because of His blessing, we finally can complete such a wonderful task and assignment with a great success without must face many challenges and difficulty.

We do believe that without the help and blessing from Him, for sure we would never be able to complete this task and assignment on time. Indeed, Allah is the best planner and he know what the best for His servant.

Furthermore, in performing our assignment, we had to take the help and guideline of some respected persons, who deserve our greatest gratitude. The completion of this assignment gives us much pleasure. Due to that, we would like to show our gratitude and respect to our Intercultural Management (IBM536) lecturer, Madam Nurul Salizawatee Binti Mahpar for giving us a good guideline for this assignment throughout numerous consultations. Without her help, it is impossible for us to complete the task and assignment given.

Besides that, many people especially our classmates also play a big role in our journey to complete this task and assignment. They do help in giving an idea, comments on what should be added in the report and give advised on how we can improve this task and assignment. Without their help, we believe that our report would lack of important information and do not be able to complete the same way as the guidelines ask for.

In addition, we also would like to send our appreciation to our beloved families for their endless moral support for us to do the best in this assignment. They always stand by our side when we felt down and lack of motivation. Indeed, family support is the best support that we need the most throughout the journey of completing this assignment.

Lastly, we also would like to show our gratitude and grateful to all persons who had been involved in this task and assignment either directly or indirectly. They had been a great helper to us in completing this assignment. Without their kind help, this task and assignment would not be able to be completed. Alhamdulillah, after all the great works and sacrification from many people, finally this task and assignment is completed and can be submit on time without having much problems and difficulty.

Sincerely,

THANK YOU

INTRODUCTION

Based on the topic of our assignment which is “Multinational Corporation (MNCs) and International Management”, we decided to choose Toyota Motor Corporation as our study case. As one of the largest Multinational Corporation (MNC), we believe that Toyota Motor Corporation can help us gains a lot of knowledge that related to our subject, Intercultural Management (IBM536) and also can be applied in our daily life and working experiences in the future. The purpose of doing this project is to study how the Multinational Corporation work in terms of their operational of international firms in host countries while highlighting the managerial perspectives that handling or managing the situation that involves crossing national boundaries. Besides that, we also want to analyse the relation between Multinational Corporation and how it relates to International Management.

Each project or assignment must have its own goals or aim on what to be achieved at the end of the research. Throughout this project or assignment report, we believe there are some aim or goals that can be obtained or learned from choosing Toyota Motor Corporation as our study case. Some of the aim or goals of the project are:

1. To know deeper about the Toyota Motor Corporation background including the country of origin, history, vision, missions, products or services and Board of Director.

2. To study the current or previous Headquarter (HQ), subsidiaries web and past or present foreign manufacturing base of Toyota Motor Corporation.

3. To find out about the type of organizational structure of Toyota Motor Corporation and how it led to the employee’s performances in the organization itself.

4. To investigate the organizational or management style of Toyota Motor Corporation’s leader and manager and how it effects on employee’s performances.

5. To analyse what type of communication style that being applied by Toyota Motor Corporation and does it help to deliver the messages efficient and effectively.

6. To learn the type of decision-making style that being carried out by Toyota Motor Corporation’s leader and how it gives impact to the whole organization.

7. To find out the leadership style that has been applied by Toyota Motor Corporation’s leader and how it effects the whole organization.

2.1 TOYOTA MOTOR CORPORATION BACKGROUND

2.1.1 MNC BACKGROUND: COUNTRY OF ORIGIN. HISTORY, VISION, MISSION, PRODUCT(S)/SERVICE(S), BOARD OF DIRECTORS

Country of Origin

Toyota Motor Corporation is originally located at one of the develop country in East Asia and known as the country of rising sun, which is in Japan. In addition, Japan is known as the country that has advanced technology and has been producing thousands of new innovations that led to make changes in our daily lives from practical to more efficient. Today, Japan is recognized as one of the competitive countries together with United States, Russia and China.

History of Toyota Motor Corporation

The business of Toyota Motor Corporation starts at the 19th century when the founder of Toyota Motor Corporation, Sakichi Toyoda and his son Kiichiro Toyoda decided to set up Toyoda Automatic Loom Works in 1926 after they successfully created automatic loom. After that, Mr Toyoda became more interested in automotive industry during his trips to North America and Europe and he sold the patent right for his automatic loom to British company. The Toyota Motor Corporation was fully formalized as business entity in 1937 and A1 passenger is known as their first product created in 1935.

The very famous philosophy that has been used in business industry, “Just-in-time” is originally instilled by Mr Toyoda and this became a part of Toyota’s business practice until today. “Just-in-time” is defined as producing specific quantities of ordered items and make sure the product is produced on time with minimum waste. Until today, this system has been adopted by most of vehicle-makers all around the world.

Figure 1 Sakichi Toyoda, the founder of Toyota

Vision and Mission of Toyota Motor Corporation

In order to be able to achieve something bigger in the future, each organization must have strategic planning that contain important element, which is vision and mission that can helps organization to set their main target and priorities while ensure everyone in the organization to works towards the same goals and objectives.

Global Vision of Toyota Motor Corporation

“Toyota will lead the way to the future of mobility, enriching lives around the world with the safest and most responsible ways of moving people. Through our commitment to quality, constant innovation and respect for the planet, we aim to exceed expectations and be rewarded with a smile. We will meet our challenging goals by engaging the talent and passion of people, who believe there is always a better way.”

Global Mission of Toyota Motor Corporation

Toyota’s mission statement is: “Create vehicles that are popular with consumers.” Thus, Toyota’s mission statement includes the following strategic actions:

• Provide world-class safety to protect the lives of customers.

• Provide optimization of energy/infrastructure to local communities.

• Put high priority on safety and promote product development with the ultimate goal of “completely eliminating traffic casualties”.

• Deliver cars that stimulate and even inspire and earn smiles from our customers.

• Address employees’ education under “Genchi-genbutsu” philosophy, which is to go to the source to find the facts to make correct decisions, build consensus and achieve goals at our best speed.

• Through true mutual trust with partners, contribute to the development of new technology and improved expertise.

• Contribute to economic development of local communities with R&D operations functioning effectively in each region.

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Product and services of Toyota Motor Corporation

Products of Toyota Motor Corporation

AUTOMOBILE

1) Vehicles

2) Engines

3) Car Air-Conditioning Compressors

4) Car Electronics

5) Stamping Dies

MATERIAL HANDLING EQUIPMENT

1) Internal Combustion Lift Trucks

2) Electric Lift Trucks

3) Storage Equipment

4) Conveying Equipment

TEXTILE MACHINERY

1) Spinning Machinery

2) Weaving Machinery

Services of Toyota Motor Corporation

NO COST MAINTENANCE PLAN

1) Rotate tires

2) Maintenance reminder

3) Multi-point inspection

4) Engine oil and filter change

5) Toyota Genuine Parts

6) Inspect and adjust fluid levels

7) Toyota-trained technicians

ROADSIDE ASSISTANCE

1) Battery- jump-start

2) Tire service

3) Lockout protection

4) Winching

5) Towing

6) Emergency fuel delivery

Table 1 Product and services of Toyota Motor Corporation

Board of Director of Toyota Motor Corporation

Top Executives in Toyota Motor Corporation

Member of the Board of Directors

Audit & Supervisory Board Members

Table 2 Board of Director of Toyota Motor Corporation

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2.1.2 CURRENT HEADQUARTER AND SUBSIDIARIES WEB

Figure 2 Toyota’s headquarter in Toyota City, Aichi

Each Multinational Corporation (MNC) must have their own headquarters (HQ) that are known to be responsible to handle several corporate functions such as strategic planning, corporate communications, tax, legal, marketing, finance, human resources, information technology, and procurement. The development of these headquarters (HQ) functions can determined the successful paths to growth for a multibusiness enterprise in the future.

Headquartered of Toyota Motor Corporation is located at the east of Nagoya, which is in Toyota City, Aichi. The original name of Toyota City is known as Koromo. But, the strong ties of Toyota Motor Corporation in the city gave the town new name which is Toyota City. With estimated population for about 420,000 people and total area was 918.32 km?, This Toyota City is located about 35 minutes from Nagoya.

Besides be the location of the headquarter of Toyota Motor Corporation, Toyota City in Aichi also has several of Toyota’s manufacturing plants. Example of Toyota Motor Corporation’s manufacturing plants are Tsutsumi plant and Honsha plant. In this Toyota City also, it has other facilities that are commonly used by the residents there. Examples of the most famous facilities and accommodation that exits in Toyota City are Toyota Stadium, Toyota Automobile Museum, Asuke Town, Toyota City Skyline and Korankei.

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Subsidiary is defined as a company that are originally owned and being fully controlled by another company, called the parent company. Subsidiaries company also helps the business grow internationally. Besides to gain profit and revenue, subsidiaries company also helps to cater all demand from customers all around the world and build the strong relationship with them. Here is the list of subsidiaries of Toyota Motor Corporation:

No Company Name Business activities

1 Aero Asahi Corporation Aviation and space information infrastructure

2 Amlux Toyota Co., Ltd. Operations of web automobile-themed facility

3 Calty Design Research, Inc Interior and exterior styling proposal

4 Central Motor Wheel Corporation Manufactures and distributes automobile parts

5 Daihatsu Manufactures automobiles and engines

6 Daihatsu Motor Kyushu Co. Ltd Manufacture domestic internal-combustion engines

7 Delphys Inc Marketing and advertising company

8 GAC Toyota Vehicle-related services for ride-hailing drivers

9 Hino Motors Manufactures of commercial vehicles and diesel engines

10 Indus Motors Company Manufactures of auto parts and accessories

11 Kuozui Motors Manufactures of automobiles

12 Lexus Manufactures luxury and performance of vehicles

13 Pt Astra Daihatsu Motor Manufactures of automobiles

14 Subaru Corporation Manufactures of automobiles

15 TACTI Corporation Motor vehicle accessories, tools, and equipment.

16 Toyota Australia Manages motorsport, advertising and operations

17 Toyota Auto Body Manufacturers of auto parts of vehicles

18 Toyota Automall Development Corporation Planning, operation of shopping centers and auto malls

19 Toyota Boshoku Manufactures of automotive component

20 Toyota Canada Inc Manufactures automotive parts and performance vehicles

21 Toyota Connected Corporation Software engineers and data scientists

22 Toyota Communication System Co Stored information about development, manufacturing, sales operations in electronics technologies

23 Toyota Financial Services Financial services subsidiaries globally.

24 Toyota (GB) PLC Sales, after sales, marketing, and customer relations

25 Toyota Housing Corporation Product, marketing, division, construction support function planning

26 Toyota Kirloskar Motor Manufactures and sales of automobiles

27 Toyota Manufacturing UK Manufactures operation of automobiles

28 Toyota Motor East Japan Manufactures and sale of commercial cars, auto bodies, and auto parts

29 Toyota Motor Europe Manufacturing, parts and vehicles logistics centres

30 Toyota Motor Hokkaido, Inc Automatic transmissions, CVTs, and transfer cases

31 Toyota Motor Korea Co. Ltd Distribution of automobiles, trucks, trailers, and other motor vehicles.

32 Toyota Motor Kyushu Production of vehicles, engines, and hybrid units

33 Toyota Motor Manufacturing Canada Manufactures automobiles

34 Toyota Motor Manufacturing France Manufactures automobiles

35 Toyota Motor Manufacturing Indiana Manufactures automobiles

36 Toyota Motor Manufacturing Kentucky Manufactures automobiles and engines

37 Toyota Motor North America Manufactures of aluminum wheel

38 Toyota Motor Sales, USA Sales and production of automobiles

39 Toyota Motorsport GmbH Provides motorsport and automotive services

40 Toyota Motor Thailand Automobiles, commercial vehicles, engines

41 Toyota New Zealand Importer and distributor and refurbish in assembly plant

42 Toyota Peugeot Citroen Automobile Czech Manufacturing automobiles

43 Toyota Racing Development Produces various tuning products and accessories

44 Toyota Research Institute, Inc Basic research, forward-looking and leading-edge technology development

45 Toyota South Africa Motors (Pty) Ltd Vehicle assembly

46 Toyota Technical Development Trends and explanations in body, engines, chassis, materials and many more

47 Toyota Tsusho Supporting Toyota Motor’s automobile business and Toyota Group companies,

Table 3 List of Subsidiaries of Toyota Motor Corporation and Its Main Business Activities

2.1.3 PAST/PRESENT FOREIGN MANUFACTURING BASE AND WHAT DO THE MNC PRODUCES IN EACH OF THE LOCATION

Region Country Name of Manufacturing Company Main Products

North America

Canada Canadian Auto parts Toyota Inc. (CAPTIN) Aluminium wheels

Toyota Motor Manufacturing Canada Inc. (TMMC) Corolla, RX350, RAV4

United States Toyota Automobile Beach California, Inc. (TABC) Catalytic converters, steering columns and stamped parts

Toyota Motor Manufacturing, Kentucky, Inc. (TMMK) Camry, Camry Hybrid, Avalon, ES350 and Engines

Bodine Aluminium, Inc Aluminium castings

Toyota Motor Manufacturing, West Virginia, Inc. (TMMWV) Engines and transmissions

Toyota Motor Manufacturing, Indiana, Inc. (TMMI) Sequoia, Highlander, Sienna

Toyota Motor Manufacturing, Alabama, Inc. (TMMAL) Engines

Toyota Motor Manufacturing, Texas, Inc. (TMMTX) Tundra, Tacoma

Toyota Motor Manufacturing, Mississippi, Inc. (TMMMS) Corolla

Latin America Argentina Toyota Argentina S.A. (TASA) Hilux, Fortuner

Brazil Toyota do Brasil Ltda. (TDB) Corolla, Etios

Mexico Toyota Motor Manufacturing de Baja California S .de R.L.de C.V. (TMMBC) Tacoma, Truck beds

Venezuela Toyota de Venezuela Compania Anonima (TDV) Corolla, Fortuner, Hilux

Africa Kenya Associated Vehicle Assemblers Ltd. (AVA) Land Cruiser

South Africa Toyota South Africa Motors (Pty) Ltd. (TSAM) Corolla, Hilux, Fortuner, Dyna

Egypt Arab American Vehicle Co. (AAV) Fortuner

Europe Czech Republic Toyota Peugeot Citroen Automobile Czech, (TPCA) Aygo

France Toyota Motor Manufacturing France (TMMF) Yaris (Vitz)

Poland Toyota Motor Manufacturing Poland (TMMP) Engines, Transmissions

Portugal Toyota Caetano Portugal, S.A. (TCAP) Land Cruiser

Turkey Toyota Motor Manufacturing Turkey Inc. (TMMT) Verso, Corolla, C-HR

United Kingdom Toyota Motor Manufacturing (UK) Ltd. (TMUK) Avensis, Auris, Auris Hybrid

Russia Limited Liability Company “TOYOTA MOTOR” in Saint-Petersburg (TMR-SP) Camry, RAV4

Kazakhstan Saryarka AvtoProm LLP (SAP) Fortuner

Asia

China Tianjin Fengjin Auto Parts Co., Ltd. (TFAP) Axles, CVJ

Tianjin FAW Toyota Engine Co., Ltd. (TFTE) Engines

Tianjin Toyota Forging Co., Ltd. (TTFC) Forged parts, CVJ

Tianjin FAW Toyota Motor Co., Ltd. (TFTM) Vios, Corolla, Crown, Reiz

FAW Toyota (Changchun) Engine Co., Ltd. (FTCE) Engines

GAC Toyota Engine Co., Ltd. (GTE) Engines

Sichuan FAW Toyota Motor Co., Ltd. (SFTM) Coaster, Land Cruiser, Land Cruiser Prado, RAV4

GAC Toyota Motor Co., Ltd. (GTMC) Camry, Yaris, Highlander, Camry Hybrid, Levin

Toyota Motor (Changshu)

Auto Parts Co., Ltd (TMCAP) Transmissions

India Toyota Kirloskar Motor Private Ltd. (TKM) Corolla, Innova, Fortuner, Etios

Toyota Kirloskar Auto Parts Private Ltd. (TKAP) Axles, Propeller shafts, Transmissions

Indonesia PT. Toyota Motor Manufacturing Indonesia (TMMIN) Innova, Fortuner, Vios, Sienta

P.T. Astra Daihatsu Motor (ADM) Avanza

PT. Hino Motors Manufacturing Indonesia (HMMI) Dyna

PT. Sugity Creatives Specially equipped HiAce

Philippines Toyota Motor Philippines Corp. (TMP) Innova, Vios

Toyota Auto parts Philippines Inc. (TAP) Transmissions, Constant velocity joints

Thailand Toyota Motor Thailand Co., Ltd. (TMT) Corolla, Camry, Camry Hybrid, Vios, Yaris, Hilux, Fortuner

Siam Toyota Manufacturing Co., Ltd. (STM) Engines, Propeller shafts

Toyota Auto Works Co., Ltd. (TAW) HiAce

Vietnam Toyota Motor Vietnam Co., Ltd. (TMV) Camry, Corolla, Vios, Innova,

Fortuner

Taiwan Kuozui Motors, Ltd. Camry, Corolla, Vios, Yaris, Engines,

Stamped parts

Malaysia Assembly Services Sdn. Bhd. (ASSB) Vios, Hilux, Innova, Fortuner, HiAce

Pakistan Indus Motor Company Ltd. (IMC) Corolla, Hilux

Oceania

Australia

Toyota Motor Corporation Australia Ltd. (TMCA) Camry, Camry Hybrid,

Engines

Middle East

Bangladesh Aftab Automobiles Ltd. Land Cruiser

Table 4 Product of Toyota Motor Corporation produces in each region

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