CS: Global Spacial Organisation + Operation of Toyota (a TNC)

Question 1

Describe the spacial organisation of Toyota.

Answer 1

• HQs is located in Toyota City, Japan (a central industrial hub)
• 2004: it had 12 plants, 11 subsidiary companies in Japan + 51 manufacturing companies in 26 countries, making it 3rd largest manufacturer of automobiles globally
• it operates 54 factories in 20 diff countries + has partnerships w manufacturers in 7 other countries (many factories are in emerging countries but there’s also 16 in Japan + 7 in USA)
• 2/3rds of Toyota’s sold in Europe are manufactured in Portugal

Question 2

Explain why Toyota’s HQs is located in Toyota City, Japan.

Answer 2

• area has many automotive manufacturers + suppliers which creates a strong + efficient supply chain for Toyota
• it has good transport networks (e.g. roads, rails + ports) that support its global distribution of goods + components to + from Toyota’s factories
• area has a highly skilled workforce specialising in automotive engineering, manufacturing techniques + tech dev. allowing Toyota to easily employ ppl for its research + dev.

Question 3

Explain why 2/3rds of Toyota’s sold in Europe are manufactured in Portugal.

Answer 3

• allows Toyota to benefit from trade agreements + absence of tariffs as it’s a part of EU, making it easier to export cars to other EU countries w/o additional costs
• it’s cost effective bc labour + operational costs are relatively cheaper compared to other Western European countries

Question 4

What are the positive eco. impacts of spacial organisation + operation of Toyota?

Answer 4

• 2004: employed >1/4M ppl globally + sold nearly 6.72M vehicles in >140 countries
• automotive business makes up >90% of Toyota’s total sales + remaining 10% of operations inc. telecommunications, prefabricated housing + leisure boats
• since 1990, it has invested >$7B in Europe + currently employs >90,000 ppl in its 9 manufacturing plants in 7 countries + various retailing subsidiaries
• 1992: Toyota decided to set up a plant for its expanding market in UK

Question 5

Why did Toyota decide to set up a plant for its expanding market in UK in 1992?

Answer 5

• it avoided tariffs + quotas bc of introduction of single European market
• it had a good skilled + flexible workforce, a strong tradition of engineering + vehicle manufacturing + favourable working practices
• it had a large domestic market for Toyota cars, reliable industrial transport links to customers + 230 British + European based supply partners
• integration + communication was easily facilitated bc English is a common language

Question 6

What are the positive envi. impacts of spacial organisation + operation of Toyota?

Answer 6

• Toyota Production System, which has a main goal of eliminating waste, has dec. pollution + production costs
• e.g. in USA, Toyota’s 2 factories have achieved ‘zero landfill status’ bc it sells or gives away all waste products to companies that recycle waste