International Business 1, 2) I Research Proposal

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Toyota's system is superior.

2) Toyota's arms-length relationship spread the risk of overcapacity with the suppliers and reduced capital expenditures. Toyota was able to maintain the same degree of production flexibility and quality control by contracting out. The major drawback of Toyota's system was a dependence on other companies for supplies. There was also the risk of a supplier going out of business. American manufacturers did not have this risk.

3) the development of Toyota's lean production system was driven by the need to be a better competitor that U.S. automakers and the desire to offer a wide range of products. Factors unique to Japan were important because the lean production system required labor-management relations, and a strong support network called keiretsu.

4) Toyota entered the NUMMI joint venture in order to gauge the feasibility of manufacturing in the U.S. market.

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They were able to gain experience with American labor unions and in operating in the U.S. market. Toyota benefitted greatly from this partnership as they were able to parlay this experience into plants of their own in the U.S.

5) the driving factor behind the expansion of production capacity in both the United States and in Europe was the desire to sidestep import barriers.

6) the role of national culture contributed to shaping Toyota's lean production system, but the company was able to expand because their system is widely applicable.

7) Toyota is becoming more a global corporation because it has expanded not only its sales into countries around the world, but its production capabilities. This results in long-term competitive advantage in international experience, global production and marketing….....

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