Research On The Entry Method Adopted By Toyota

Question: The research must be relevant to their current higher education programme (in terms of content) and the unit is designed to equip learners with the skills needed for future research, in both academic and commercial applications. Answer: Introduction This research has been conducted on Toyota Motor Company or TMC. It is one of the leading multinational firms that sell high end cars to the clients. The company was originally formed in the Japan, but has slowly and steadily extended the business to different parts of the globe. This research basically concentrates on the challenges that are faced by the company at the time of entering into a new foreign market. Entry into new market has become quite common due to globalization. The strategies adopted by the company has been analysed and the challenges are evaluated in this report. LO1.1. Research outline This research has been conducted to find the relevance of selecting an effective entry mode into a foreign country. TMC is one of the leading and reliable automobile manufacturing companies in Japan. Some of the competitors of the company are Honda Motors, Ford, Nissan Motors, and others. Due to increase in the demand from the customers, the company at present specialises in the manufacture of branded cars like Allison, Lexus, Premio, and Camry. This research has been carried out to find the relevance of the entry mode and analyse how the same can affect the business performance. The company leads in the manufacturing and sales of eco-friendly cars, which also consumes less fuel (Berthon et al., 2003). The strategy adopted by the company is imitated by many other existing companies. Sales of the car have been carried out in many parts of the European countries and the USA. The company basically concentrates on adopting and implementing steps through which the quality of the products can be improved. This has been done so as to achieve larger share in the market. The quality of services rendered surpasses the expectations of the clients, and this is one of the reasons the company leads. The research questions are framed on the entry mode and the relevance about the same. Such factors have to be analysed as this will help in implementing the right strategies through which the changes can be implemented (Chaffey et al., 2000). LO1.2. Factors contribution for the research project The research has been conducted to analyse the relevance of the company, when compared to the competitors in the market. TMC has been rendering quality services to the clients from different parts of the world. This has been possible due to business expansion, which is quite essential for increasing the brand image for the company. Through the business expansion process, it is also possible to increase the sales for TMC, which is required for implementing plans for future business expansion. In this process, the issues handled by the company have been analysed. This has to be done with an intention of finding the better options through which the challenge can be overpowered. Apart from this, the entry into foreign market in the globalised economic condition is unavoidable by any company. Through the entry mode, it is possible for the companies to overpower the competition level that exists in the industry. Apart from this, the management can also increase the sales, which can be used for developing or manufacturing new cars that will serve the purpose of the clients. In fact the mode of entry method into different foreign markets determines the operational activities and success of the company (Cornelissen, 2001). LO1.3. Critical review TMC has recorded tremendous growth over the period of time. This has been possible due to strategy plan and implementation of the accurate plan that has contributed towards the successful business operations. The company has conquered major part of the Chinese market, and has overpowered the major challenges that had impacted the performance of the company. At the time of planning and implementing strategies for entry mode selecting there are different factors that needs to be considered. Some of the factors that are basically considered in this method are alliances, joint ventures, exports, and franchises. The above mentioned methods are quite essential for approaching maximum number of clients and increasing the sales. Apart from this, the company also analyse the importance of the entry time frame, gap that exists between different economy of the countries, strategies that has been adopted for implementing changes, the challenges that are expected to be faced at the targeted count ry, openness, cultural differences and distances, risks, and the brand awareness amongst the potential clients. These factors have to be closely delayed as it will help in drafting the best policies through which the necessary changes can be implemented by the management of the company (Egan, 2001). As per the facts that have been collected by the management of TMC, it has been analysed that the success rate of the business operations in China is quite likely high. The figures are much better when compared to the sales made by the other companies. Entry mode and business expansion is possible when the customs are aware of the products, and are willing to invest on the purchase of something new. At the time of planning for the entry mode, it is essential for the company to analyse the future growth and the sales margin that can be earned by TMC. These days, many buyers from different parts of the globe look forth for purchases of reliable and cost effective cars. This is one of the reasons; there has been an increase in the level of competition. Apart from this, the company can choose either joint venture or alliance method for carrying out the operational activities on a foreign land. Through this process, it is possible for the company to acquire larger market share in the inte rnational market. In this method, the company can easily concentrate on adopting and implementing effective distribution methods or create networks that would increase the sales (Eagle and Kitchen, 2007). LO1.4. Research questions The research questions are - Position of Toyota in China Which mode of entry has been used by Toyota in European countries and China How has been the competitors market analysed for selecting the best entry modes. Position of the competitors and the products that has been offered by the ribald company. LO1.5. Plan and process of carrying out the research This research work has been intended to be carried out through the qualitative research method. Through this method, it is possible to analyse the facts and make valid conclusion on the research work. The data has been collected from different reliable quantitative and qualitative method. This has been done to find the challenges that exist in the industry. The study or reference materials have been collected from different reliable sources. This has been done to find the accurate answers that will help in smooth conduct of the research work (Ferdous, 2008). LO2. Research procedure LO2.1. Research questions The term of entry mode has wider implications on the performance of the company. In this method, the company selects on the best methods to venture into the foreign market. This is quite an important factor as it will help in carrying out the business activities without any interruptions. The strategy adopted by Toyota has always been simple and effective. This is one of the reasons the company has been able to sell the products and services to different customers from various markets. The entry mode helps the company to select upon an effective penetration method, which is considered to be quite important for the success of the business. TMC has adopted the policy of think global, through which the customers from different markets can be easily approached by the company. In this process, the company analyse the investments that needs to be made and the process that would be followed for carrying out the business performance. Both the factors are considered to be quite important as t his will help in accomplishing the task of approaching customers from various markets. One of the common methods that has been adopted by the company includes joint ventures were the company collaborates with the foreign company to carry on with the production activities. While doings so, the company analyse the benefits and challenges that can impact the process of business expansion (Harrell et al., 2007). Position of Toyota The company has larger share of market in the global market, which is much better than the other companies. This is perhaps the prominent reasons why the company has globally succeeded in the carrying out the business operations in different parts of the globe. In order to carry out the research the company has conducted an analysis on various factors and has collected information from different reliable sources. This includes the below mentioned factors Conducting surveys - The survey about the product views and reviews has been conducted on selected groups of people. This has been done with an intention of finding the information about the sales and the quality of the cars that is sold by TMC. The survey questions are framed after analysing the needs or the facts that has been intended to be collected by the company. The answers are analysed and an effective solution to cope with the challenges are then worked upon. Such a process is considered to be quite tedious and time consuming. This is one of the reasons, the company intends to specify the questions and put forth the facts in the right manner (Harvard Business Review, 2001). Collecting facts from the past performance - Toyota is one of the leading companies in the world. The company specialises in the manufacturing of reliable and eco-friendly cars. This has boosted the sales for the company. While analysing the entry mode for the company, the management intends to collect the relevant facts that would help in selecting the best method that will cater the needs of the company. Apart from this, the process that needs to be selected for conducting the marketing is also selected by the company. This will help the management to venture into the foreign market without any facing challenges. The awareness or the information collected from the past performance of the company can be compared with the competitors. This will help in the selection of the right strategies through which the changes can be implemented by the management for approaching the clients. Referring to different materials from reliable sources - In this method, the survey has been conducted to find about the brand popularity amongst the customers from various market. This is quite an important factor, as helps the management in selecting the best strategies through which the sales can be increased and improved. Reliable external sources include journals, financial statements, magazines, and others. These factors are quite important as it will help in selecting the bets suitable methods for increasing the sales (Holm, 2006). LO2.2. Research investigation The Japanese company has been interested in conquering foreign markets, and this has been a part of the business expansion plan. Thus, the company has successfully ventured into the European market and other parts of the globe. The company has been termed to be the 2nd largest global automobile manufacturing companies that have been rendering quality and reliable services to the clients. In this process, the company has established many organization and branches that is meant to handle the requirements of the clients. Apart from this, the management has proposed to venture into new markets and conquer better market positions. For this, it is necessary to select the best and workable methods for the entry mode. While doing so, the management of the company also consider the challenges that are associated with the - Rival companies selling products in the market Price Quality expectations of the clients Brand awareness (Kim, Han, Schultz, 2004). Through this process, the company attempts to analyse the challenges that can directly impact the earning ability of TMC. In this process, the company also adopts and implements effective strategies through which the opportunities in the market can be explored and the new developmental plan can be introduced. This has been done to introduce new and better designs in the car manufacturing sectors. This is one of the prominent reasons; the company has been able to successfully expand the business and conquered major shares in different parts of the globe. Apart from this, the company has also been successful in conquering the major share in the China market. This has been possible due to the thorough analysis that has been carried out by the management for marketing and customer satisfaction. Thus, the management has proposed to introduce many plants in different parts of the globe. This has been done with an intention of extending the business operations and conquering major share in the global market. In the year 2010, the company recorded a sale of 73 million cars. This has been possible due to strategic planning and implementation of the right plan through which the major share in the market could be conquered. The research has been conducted to find the flexibility policy adopted by the company, and its impact on the business performance. Such factors have to be analysed, as this will help in the business development. China has been considered to be one of the prominent and potential markets. The research has been conducted to fi nd the impact of the entry mode that has been selected by the company (Kotler,2003). The selection of the entry mode also depends upon the marketing strategies that have been selected by the company. In this method, the company follows different strategies for improving the marketing style and follow the right steps to improve the business performance. This has been done to acquire larger share in the global market. In order to conduct the research, the experts analyse the data that are related to the marketing strategies and the steps that was followed by the company to increase the sales. At present, the company follows the strategy of continues development, wherein the changes are made to introduce the changes that will help in conquering the market share. Also, the product quality is analysed, and this has been done with an intention of adopting the best steps that will help in conquering the major share in the market. For improving the quality, the company focus on the below mentioned factors Quality Value of the products Price Entry mode depends upon the availability of the staffs on different markets. This will help in the selection of the best option that will cater the needs of the clients. In this process, the company also communicate the technology that will be followed for improving the quality of the services that has been proposed to be rendered to the clients. At the time of planning for production activities, the company also analyse the requirements of the future generations. This is one of the reasons; the management of the company has been able to adopt different strategies for capturing various market customers. In order to venture into new market, the company conducts a research through which the challenges and other limitations are analysed by the management. This has been done to plan and implement the right steps through which the sales for the product can be increased. In this process, the past performance and marketing strategies followed by the company is also analysed (Krueger, and Ca sey, 2000). LO2.3. Collect the relevant data for conducting the research The data collected from the survey are presented below Survey questions 20-29 30-39 40-49 50-59 Brand awareness Yes Yes Yes Yes Happy with the new models Yes Yes Yes No Changes expected Yes Yes Yes Yes Price satisfaction No Yes Yes No Fuel consumption Yes Yes Yes Yes Happy with the looks of the car Yes Yes Yes Yes Satisfied with the marketing strategy Yes Yes Yes Yes The above table represent the satisfaction level of the customers and the expectations of the potential buyers from the company. Different age groups have various opinions about the product, and this makes the company to work towards catering the needs of the potential buyers. Quantitative check Questions 19-28 29-38 39-48 49-58 59-68 Is the entry mode satisfactory Yes Yes Yes Yes Yes has enough facts collected for conducting the entry mode research May be Yes No Yes No Is any additional step required for making the changes in promoting the services Yes Yes Yes May be May be Has the changes in the product line discussed with the clients NO Yes Yes May be Yes is the information about the product readily available for the clients Yes Yes Yes Yes Yes Has the company been successful in the past performance Yes No May be Yes No The above research question has been conducted to find the details related to the plan that has been proposed by the company for extending the business to international market. This has been conducted to find the relevance of the plan to extend the business to foreign country. The present level of customer satisfaction has to be analysed, as this will help in analysing the challenges that can affect the future goals of the company. LO3. Analyse the research outcomes LO3.1. Appropriate research evaluation techniques The research evaluation technique is drafted on the basis on the facts that needs to be evaluated or monitored by the company. This is one of the most important aspects and needs to be drafted and implemented in the right manner. In order to implement the changes in the business strategies it is quite important to understand the expectations of the clients. This will help the company to draft the best policy that will help in venturing into the new market. The strategies adopted by TMC are quite different in various countries, and this is one of the reasons the management could succeed in approaching and convincing the customers about the products that is sold to the clients. In the sampling method (the table mentioned above) the company analyse the expectations and awareness of the clients about the products and services. The sample questions drafted has been considered after analysing the challenges that are expected to be faced on the business performance on the foreign country. In this method, the changes that are expected to be implemented for the company to venture into new market have been analysed. This has been done with an intention of carrying out the business activities on a foreign country. In this process, the sample questions have been circulated amongst customers of different age group. The views and opinion presented by different members have been taken into consideration at the time of drafting policies for venturing into new market. Through this process, the company attempts to analyse the fact about the customer satisfaction level. This is one of the most important factors, as it helps in satisfying the needs of the customers. Clients of different age group have expressed various views and this has been done as per the past experiences (McGrath and J.M, 2005). Survey Male Female Are you aware of the types of car that has been offered by Toyota Yes No Do you own a car Yes Yes Is there anything specific that you like about the product Yes May-be Are you happy about the reviews about the cars Yes Yes Is there any specific models that you would want to buy Yes No Are you happy about the car availability options in your country Yes Yes LO3.2. Interpret and analyse the results in terms of the original research specification The research has been conducted to find the facts that are associated with the increase in the sales of car on a foreign market. In this process, the research is conducted to find the facts and other relevant information that can affect the sales of the product. The management analyse the challenges and draft the best policy based on the information that is collected from the clients. It is quite important to consider the opinion about the clients, as this will help in drafting the best policies through which the required changes can be implemented by the management. In this process, the change that has been intended to be implemented for increasing the sales has to be analysed. This will help in approaching maximum number of clients from different markets. The research states that many customers are aware of the types of cars that are sold by TMC. Also, the changes intended to be implemented by the management has to analysed, as this will help in approaching the customers. At the time of implementing plans for entry mode, the facts related to the below mentioned factors has to be collected The type of marketing strategies that needs to be selected by the company. Process that needs to be followed for conducting the marketing strategies Promotional activities that needs to be adopted by the management of the company. Analysing the expectations of the clients (Neuman, 2006). Steps that would have to be followed for implementing the changes through which the rival companies can be overpowered. Strategies that needs to be adopted for increasing the sales. LO3.3. Make recommendations and justify areas for further consideration Selecting the type of entry mode is quite an important factor for the company. In this process, the challenges have to be analysed, and the right steps needs to be taken for introducing the product to the clients. The company needs to collect additional information that are related to the below mentioned factors Analyse the expectations of the potential buyers Evaluate the steps that needs to be followed for increasing the sales for the company on a foreign market Monitor the challenges and draft the best policies through which the changes can be implemented by the company. Select the best entry method through which the company can easily appoint maximum number of clients from different markets. Through the research the company analyse the areas that needs to be worked upon especially at the time of extending the business to foreign market. Some of the challenges that are analysed in this process, includes - Analysing the strategy that needs to be adopted for approaching clients from different markets Draft policies for introducing the changes through which the necessary changes can be implemented by the company. Analyse the steps that needs to be followed for marketing the products that are sold by the company Evaluate the present market condition that can directly impact the sales of the products for the company. Implement changes that will help in increasing the sales (RAND Survey Research Group, 2005). LO 4: Address to the audiences The research has been conducted to find the facts that are associated with the product or business extension. This is one of the most important factors that contribute towards the successful business operational activities. In this process, the company conducts research to find the details that are associated with the challenges that can impact the business extension to the foreign market. The factors has to be analysed, as this will help in drafting the best policies through which the foreign clients could be attracted towards the sales. In this process, the needs of the customers have to be analysed as this will help in approaching maximum number of clients from different markets. In the similar manner, the research work is conducted to analyse the type of changes that are required to be implemented by the company. This will help in approaching the clients and drafting policies for increasing the sales. Such factors are quite important as this will help in analysing the changes tha t are required to be implemented by the company. The research states that the customers are aware of the products and would be interested in the purchases of the products at a reasonable price. It also states the awareness of the brand amongst the clients. This is one of the most important factors that need to be considered at the time of selecting the method for increasing the sales (Ryan and Bernard, 2000). Conclusion The changes that are intended to be introduced by the company at the time of introducing the products in the foreign market have to be analysed. This will help in adopting and implementing the changes that are considered to be essential for the business expansion. In this process, the challenges associated with the product introduction, sales performance, and customer expectations have to be analysed. This will help the company in approaching maximum number of clients, without losing much time on the same. 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