Showing posts with label monika smidova. Show all posts
Showing posts with label monika smidova. Show all posts

Thursday, November 10, 2011

Influential leaders of Toyota

Toyota is known for keeping the family tradition when changing an important post in the company. Since 1937, when the company was founded by Kiichiro Toyoda, we see that the main positions in the company has been passed down from generation to generation.

I would like to mention the name of Shoichiro Toyoda, who was President (1982-1992) and also Chairman of TMC (1992-1999). Many people consider him a genuinely global manager, mainly because he approved and furthered the expansion of Toyota's production system into the United States, and he approved the development of the Lexus and the Prius hybrid (1). After these merits, when he opened the door for Toyota all over the world, he was considered Japan's leading voice on international cooperation and globalization in the early 2000s (1). 

Now we can notice an interesting case dealing with the 2009–2011 Toyota vehicle recalls.
Safety defects occured in the company's car and have been linked to the deaths of 39 Americans. Also, several vehicles experienced unintended acceleration. Currently, the President and CEO of Toyota Motor Corporation, Akio Toyoda, expressed his apology for the deaths of people and proclaimed that he, more than anyone, wish for their customers' cars to be safe. On the other hand he also mentioned: "I myself, as well as Toyota, am not perfect" (2). We'll see how the negotiations turn out in the U.S. Congress.



Tuesday, November 1, 2011

Entrepreneurs in auto service industry

In recent posts, we were mainly devoted to automobile companies, their profits, supply and demand, international attitudes, promotion and popularity of the brand, etc. However, it is important to mention that it is not just about to selling or buying cars, it´s also about how to keep it in shape . I found some interesting stories of entrepreneurs who started their small business in the last century and who are progressing in its development so far.

One of these companies is Ziebart International Corporation that is the worldwide leader in vehicle appearance and protection services (1).The company was found in 1954 by Kurt Ziebart, a German mechanic, who developed a process to stop corrosion and opened the first Ziebart store in Detroit (2). The company began franchising in 1963 and has grown to a network of approximately 400 locations in 30 countries (1). The main reason of their success is probably the fact that they focuse on three main sources of profit: professional detailing, window tint and protection.


Another successful entrepreneurship we can see in the founding of Big O Tires. A franchise is now based in Englewood, Colo and was established in 1962 by a group of independent tire dealers. "Each Big O center offers a variety of auto repair services, including brake, alignment and front-end repair, as well as tire and ride control products" (3). Like earlier mentioned company, Big O Tires has grown into one of America's largest retail tire franchisors, which is based in 21 states (4).

To become a  prosperous founder of a company, an entrepreneur must show discipline and calmness when the business fails. He must also be prepared for the tolerance of risks and show great attention to details. As an entrepreneur doesn´t have a boss to keep him at work when necessary, he must find his own balance (5).

Sources

Thursday, October 20, 2011

"U.S. and China Play Chicken Over Accounting"

In recent weeks we have noticed that the finance relationship between two global rivals, USA and China, are sharpened. The main reason is the audit reports for Longtop Financial Technologies; the electronics firm that was kicked off the New York Stock Exchange in August. One of the worst-possible case outcomes is that China companies could be completely shut out of U.S. capital markets. Moreover, future accounting data on American multinationals operating in China could also be deemed untrustworthy (1).

"It's really a Cuban missile crisis that we are looking at right now," says Paul Gillis, an expert in trans-national accounting who spends most of his time in China. The U.S. Securities and Exchange Commission (SEC) which holds primary responsibility for enforcing the federal securities laws and regulating the securities industry along with the Justice Department are investigating possible investor fraud by Longtop. Although the SEC has asked China for vital documents, China has refused to provide for violation of the prohibition to provide requested documents directly abroad. This shows that China is not yet ready to work with actors such as the SEC or the PCAOB (Public Company Accounting The Oversight Board) (1). 

Although the U.S. regulators have displayed remarkable patience in dealing with foreign nations, especially China, there was no meaningful movement in negotiations with this country in recent years. Because China needs access to the US capital and China does not want to be a global financial outlier, the PCAOB predicts one or two joint inspections of China-based auditors this month (1). But according to the last information, the planned visit to Washington by their Chinese counterparts to continue the talks has been postponed (2).

Source

Sunday, October 16, 2011

Global Companies

To be considered as a multinational corporation, company has to show some physical presence in different nations. There are many companies, such as Toyota, Ford and Global Motors which operate in different countries all around the world (North and Latin America, Europe/Africa, Oceania & Middle East, Asia) (1) + (2). One of the advantages of being in global market is not only establishing foreign subsidiaries in host countries, but it´s also creating new jobs for people in the host countries. A perfect example is Japanese Toyota which has a seat in Japan but also form much oportunities for unemployed people in the USA by launching their subsidiaries. 


The success of automotive companies in different countries depends on many factors. Companies must adapt to socio-cultural, economic, legal and environmental forces. The most important is probably sociocultural adaptation. As the Toyota´s summary about the overseas model line up shows, Toyota´s model Land Cruiser Prado is almost unknown in North America but it´s very well produced overseas in Europe. On the other hand, the other model Camry is exactly the opposite (3). Companies has to find the primary needs and interests of people. 

Next, the key success of any company is to find the best time to export or import, depending on the exchange rate. The high value of the dollar is good for domestic traders and vice versa.

Sources:

Sunday, October 9, 2011

How do companies differentiate themselves from one another?

Companies differentiate themselves by having different mission statements as well as different models. Each company wants to be the most successful and respected car company in various part of the world, but only some of them actually uses efficient strategies to help the buyers buy. The main distinction is in promoting the product. Whereas one of the last Toyota Venza commercials pointed out the difference between virtual and real life, the last promoting commercial of Chevy Silverado (part of General Motors industry) showed the single parts of the car (1), (2). People are interested in different kinds of cars and different kinds of commercials, but there should be something interesting, unusual and fresh in commercials, therefore from my point of view the first commercial is definitely better.   

Although most cars have the same overall purpose, they vary in different models, accessories and efficiency as well as in placing the product. People in the different parts of the world prefer various types of cars. The last news of Toyota company announced starting export from their foreign subsidiary in India to South Africa in March 2012 (3). On the other hand, General Motors focuses on producing Chevrolet Colorado Pickups in Thailand (4).

All car companies have one thing in common. They´re instantly trying to act "green" to our environment. Car designers and engineers work to find the most sensitive ways to improve the impact of products during their entire lifecycle.

Sources




Sunday, September 18, 2011

Basic Economic Facts About the Auto Industry


The automobile is a primary mode of transportation for many developed economies. About 250 million vehicles are in use in the United States. Around the world, there were about 806 million cars and light trucks on the road in 2007, consuming over 260 billion US gallons (980,000,000 m3) of gasoline and diesel fuel yearly. What are the main conditions for a well-developed Auto industry? Basic and key reasons for any successful Auto business are:
  • Stable business and political environment (NAFTA member)
  • Highly developed technical base
  • Highly educated workforce, good access to university graduates with technical education
  • Strategic position
People use cars daily to get to work, to get children to school, shopping etc. They need cars every day. So how do the Auto companies make money? The primary income of money is in selling their products to people at a reasonable price. The additional incomes can be automotive repairs and maintenance. On the other hand, what are the companys' costs? There are few examples:
  • Production costs
  • Employee salaries
  • Automobile dealers
  • Auto parts, accessories, and tire stores
  • Promoting the product, such as advertising, billboards
In 2010, the number of cars in operation for the first time exceeded the value of one billion pieces. Magazine WardsAuto registered it. The government through information and historical development trends calculated that currently 1.015 billion cars run the world.

Sources

(1) http://www.hybrid.cz/1-miliarda-tolik-dnes-jezdi-po-svete-aut
(2) http://www.czechinvest.org/en/1automotive-industry
(3) http://en.wikipedia.org/wiki/Automotive_industry
(Image) http://www.fashionera.in/website/fashionera/gift/automobile/automobile%20industry.htm

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