Introduction
Different companies in the world are associated with the production of various goods and services that have global components. In this context, the term ‘globalization’ relates to the international integration brought about by the exchange of elements between different parts of the world. Such aspects include understanding, concepts, and components of different cultures.
The process has resulted in enhanced global interconnections. The development has been brought about by increased cultural and trade exchange. Some companies have taken advantage of the situation and established subsidiaries in countries away from their homeland (Kotabe and Murray 8). Such firms have transformed from national entities to multinationals. The operations of these organizations have various impacts on society. Some of the effects are positive, while others are negative.
In this paper, the author will analyze a multinational company with various global components. The impacts of the company on the modern society will be reviewed. The industry selected for this paper is the car manufacturing sector. Toyota is used as an example of a multinational firm in this industry. The cars produced by the company have a wide range of impacts on the environment. A net calculus of these products will be determined in this paper.
The Car Industry: An Example of a Sector with a Global Network
An example of a manufacturing sector where globalization is extensive is the car industry. Many companies have invested in the business to increase their market share and profit margins. Most consumers of these products are only aware of their positive impacts on their lives. The majority of them are ignorant of the negative effects (Mathieu, 460).
Toyota: An Example of a Major Operator in the Global Car Industry
One of the firms that have excelled in the globalization of the car manufacturing industry is Toyota. It is a Japanese manufacturer with several subsidiaries across the world (Mathieu 452). It has operations in countries like England, China, the United States of America, and France.
The Harm Caused by Toyota’s Global Component
The main aim of any manufacturer is to make profits. Consequently, supply is constantly replenished to ensure the demands of customers are met. The same applies to the car industry. However, studies have shown that an increase in the number of cars in society is harmful. Statistics show that Toyota is one of the largest producers of cars in the world.
Every car produced by the company has negative impacts on the environment. Most of these machines emit dangerous gases into the surroundings. The gases are harmful to people, plants, and animals. It is not easy to stop the gases from reaching the environment and the atmosphere. Later, these compounds collate in the air and come down in the form of acid rain, which is very harmful (Mathieu 453). Furthermore, the oil and the grease used in cars are global components. They cause harm to the environment after use.
Beneficial Properties of Toyota Company
The existence of Toyota in the global arena is associated with a number of benefits. For example, the company has played an important role in building the economy of many nations. The firm engages many employees in different places of the world. The individuals could have been jobless if the company had not established its operations in their countries. The job opportunities have led to the growth of these economies (Mathieu 461).
Another benefit of Toyota operations entails foreign direct investment. The cars manufactured are a major aspect of international trade and foreign direct investment among countries. Western Europe, Asia, and North America are global leaders in this front. The regions have a large stake in car imports and exports.
At large, Eastern Europe and Asia are net exporters, whereas North America is a net importer. North America, Eastern Europe, the Middle East, and Africa are the main importers of cars and automotive products (Kotabe and Murray 10). The interactions have led to an increased exchange of cultures and ideas.
Trade is another benefit to the countries where Toyota has its branches. The existence of the entity has spurred growth in the car repair service industry. The repair of some parts requires specific products from the manufacturer. Such developments have led to increased demand for specialized parts. Many individuals are engaged in the service industry, leading to the growth of the economy (Mathieu, 454). The trade has allowed many families to raise their living standards.
It is also noted that the globalization of Toyota as a manufacturing company has enhanced the efficiencies and the opportunities generated by open markets. As a result, companies have been able to communicate easily and efficiently with customers, suppliers, and customers. The capability has enhanced the management of inventories and supplies from customers (Bhim et al. 160). Similarly, local companies have had the opportunity to sell their products to the manufacturer.
The interaction has created a cycle of a trade. Toyota, for instance, has been selling its cars and accessories with ease in New York (Kotabe and Murray 12). Likewise, Apple has been selling its high technology computers and other accessories to Toyota with similar ease. Consequently, the globalization of Toyota Company has eased business communication in the world.
Toyota Company operates on two major pillars. They are continuous improvement and respect for the people. The two have helped the company to achieve its goals and improve its operations by generating new ideas and working best on its abilities.
The organization acknowledges the important role played by various parties. The management realizes that the success of the entity depends on these stakeholders. In addition, the firm has realized that performance is enhanced through individual effort and functional teamwork (Mathieu 455).
Toyota prioritizes the benefits and welfare of its shareholders with regards to its management procedures. To this end, the organization works hard to improve its corporate structure and image. The aim is to achieve sustainable growth, which is expected to enhance the corporate value of the company. In the process, employees, the public, and other stakeholders have benefitted.
For example, on March 31, 2014, the management informed that it would continue paying dividends to its shareholders (Kotabe and Murray 14). Based on its projections, the company expects improvements in its profit margins. The reason is that the firm intends to expand its growth by exploiting the well-established customer base.
Comfort, safety, and convenience in transport are other benefits provided by Toyota’s model cars. The firm’s innovativeness supports the automotive industry and helps it to meet the safety demands of the consumers. The company’s products are unique. They meet the needs of the clients effectively. At the same time, they are produced and developed at low costs, making them affordable (Bhim et al. 159). The company has adopted a platform policy. The approach is beneficial to the globalization of companies in this sector.
Automakers invest money and time in development platforms. As a result, sharing in the sector has various benefits. They include reductions in expenditures associated with research and development. Toyota achieves this by spreading the cost of the final product over several production lines (Mathieu 470).
As a result, Toyota has helped automakers to provide low-cost items. In addition, economies of scale in the industry have increased as a result of Toyota’s globalization components. The move has resulted in high returns on investment.
Harmful Aspects of the Toyota Company
Noise and air pollution are the major harmful properties associated with Toyota as a key player in the car industry. Pollution is caused by the release of combustion gases and other wastes to the environment. The wastes include particle pollution, ground-level ozone, and carbon monoxide. Others are sulfur oxides, nitrogen oxides, and lead (Bhim et al. 166).
The pollutants have negative impacts on the surroundings. The most harmful elements include particle pollution and ground-level ozone. The former includes soot, smoke, and chemically formed droplets. The particles are harmful to human health when they are inhaled (Bhim et al. 160). The chemicals mainly originate from burning fuel in cars. They are also released from Toyota’s manufacturing factories.
Another harmful aspect of the motor vehicle industry is the occurrence of accidents. The mishaps are caused by natural factors, human-related errors, or faulty cars. People who have been involved in accidents with regards to Toyota cars have either died, left with permanent wounds, or escaped unhurt.
The nature of the impacts depends on the intensity of accidents or the car’s capability to handle such situations (Mathieu 457). Approximately 1.2 million people die worldwide from car accidents. It is noted that 40 percent of these occurrences involve Toyota cars (Bhim et al. 165).
Another harmful aspect of Toyota’s cars is the congestion of major roads around the world. The congestion increases levels of traffic noise, which has negative impacts on individuals and on the environment. The quality of urban life has reduced drastically as a result of these cars. The use of rubber tires is believed to be one of the major factors behind the rise in inner-city traffic (Bhim et al. 167).
Addressing the Problems Brought about by the Car Industry: A Case Study of Toyota Company
In an attempt to address the problem of air pollution, most companies have shifted to the production of hybrid and electric cars. Such innovations reduce the use of fossil fuel, which is the major source of pollution in the industry. Another move involves the production of biofuels. An example of a hybrid car is Toyota Prius. Others are BMW i8. The cars use fossil fuels on the high drive (Bhim et al. 160). However, on the low drive, they utilize saved electric energy.
Manufacturers have also considered installing catalytic converters to car exhausts. The aim is to convert carbon that would have been released as soot to carbon dioxide and water (Bhim et al. 165). The management at Toyota Company needs to speed up the development of the new technology to help reduce the number of pollutants released into the air.
On the issue of car accidents, Toyota aims at installing its vehicles with high-quality airbags and seatbelts. Such interventions hold the passenger to one place during the accident. The advancement can help curb the impacts of the collision, which mainly harm passengers during accidents. Another feature that the management should take into consideration is crush assistance. The systems and devices help the driver and the vehicle to detect obstacles and avoid collisions (Bhim et al. 160).
Another feature is a pedestrian protection system. To this end, most of the front parts of the car are made from plastic instead of metal. Such components reduce the impact received by a pedestrian in case of an accident (Bhim et al. 167). Some companies like Volvo have invented in passenger airbags that cushion a pedestrian from the car’s impact. Toyota should consider innovating along these lines.
A number of these measures have been implemented in Toyota manufacturing processes. They include seat belts, airbags, and driver-assist controls. Improvements are still being made. The company has also collaborated with Google on research to produce self-driving vehicles. In addition, advisories are given to parents to ensure their cars are safe to handle in case their children are involved in accidents (Bhim et al. 167). The advisories include ensuring that the cars conform to the world’s safety measures.
Some of the new innovations expected to be launched by the company include the detection of drunk drivers. To this end, the automobile is designed to stop operating if the driver is drunk. The innovation will curb the menace caused by drunk drivers, who are the leading cause of accidents. In an attempt to curb noise pollution, Toyota installs silencers in its car engines. The procedure involves muffling the engine to reduce noise when in operation.
Net Calculus of Toyota Products
The benefits of the cars manufactured by Toyota are more compared to the disadvantages. The car industry is a major source of employment for many people. Many economies around the world depend on this sector. Cars from this company have eased the process of moving from one place to another (Mathieu 462). The ease is one of the benefits associated with the globalization of Toyota Company.
As a manager, to come up with a net calculus of Toyota’s global operations, it is important to take into consideration how the company is attempting to reduce the negative impacts of its processes. The adoption of catalytic converters reduces air pollution. Muffling of engines, on its part, deals with noise pollution (Bhim et al. 168). The introduction of hybrid and electric cars has led to a reduction in pollution from fossil fuel. The innovation has made it possible to use cars and at the same time, make the world a safer place to live in.
Finally, most of the car parts can be recycled after the machines are decommissioned. For instance, they can be sold as scrap metal. Recycling will greatly reduce the amount of car litter lying unutilized. Finally, cars can be made safer and operated on clean fuel to save the planet. The objective can be achieved by reducing emissions, for example, through the adoption of electric cars (Mathieu 470). Based on this, one can argue that the net calculus shows the car industry can be beneficial if it is adjusted to reduce its negative impacts on the environment.
Works Cited
Bhim, Singh, Garg Santosh, S. Sharma and Grewal Chandandeep. “Lean Implementation and its Benefits to Production Industry.” International Journal of Lean Six Sigma 1.2 (2010): 157-168. Print.
Kotabe, Masaaki, and Janet Murray. “Global Sourcing Strategy and Sustainable Competitive Advantage.” Industrial Marketing Management 33.1 (2004): 7-14. Print.
Mathieu, Valerie. “Service Strategies within the Manufacturing Sector: Benefits, Costs and Partnership.” International Journal of Service Industry Management 12.5 (2001): 451-475. Print.