in this project report the focus is on globalization impact on Toyota. the topics covered in this assignment are :- 1. Meaning of globalization 2. Positive & Negative impact of Globalisation 3. case study on Toyota (impact of Globalisation) this assignment beneficial for BBA/B.Com students.

1. 1
A
Project Study Report
On
“IMPACT OF GLOBALISATION ON TOYOTA”
INTERNATIONAL BUSINESS
(SML – 501)
Submitted By:-
KRISHNA CHETIWAL
B.COM Honors
5th semester (3rd year)
K13836
Submitted To:-
Nitendra Hada Sir
Assistant Professor
School of Commerce &
Management

2. 2
ACKNOWLEDGEMENT
I would like to express my special thanks of gratitude to my teacher (Nitendra Hada Sir) who
gave me the golden opportunity to do this wonderful project on the topic (Impact of
globalization on toyota company), which also helped me in doing a lot of Research and I
came to know about so many new things I am really thankful to them.
Secondly I would also like to thank my parents who helped me a lot in finalizing this project
within the limited time frame.

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CONTENTS
CONTENT NAME PAGE NO.
Meaning of Globalization
4
Positive impact of Globalization
5 - 6
Negative impact of Globalization
7
Case study on Toyota
Introduction
9
Impact of globalization on Toyota
10
Production graph of Toyota
11
Conclusion
12
Bibliography
13

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MEANING OF GLOBALISATION
 It is the process of growing & expanding to exist throughout the entire world.
 It is a situation in which available goods & services, or social and cultural influences,
gradually become similar in all parts of the world.
 Globalization refers to integration of one country’s culture with the rest of the world
 Globalization increases interdependence.
 Globalization is inevitable with fast modes of transport and communication.

5. 5
POSITIVE EFFECTS OF GLOBALIZATION
1. Global market –
The privatization of industries owned by the state has enabled the emerging markets to be
successful. Most of the companies are increasing the consumer demand through extension
and expansion of their value chain to international levels. As a result, the positive effects of
globalization are expressed by the rising transactions across the borders.
Globalization has resulted in the formation of multinational corporations. The concentration
of corporations in specific geographical economies has led to investment in other new
geographical areas, where market competition is very high. Due to increased competition,
the corporations continue to enlarge their market, in order to enjoy the economies of scale.
This is because globalization enables economies to compete fairly at all levels, hence
attracting investors.
2. Competition –
Competition in the market is largely due to globalization. As a result, the positive effects are
visible, since global competition leads to products of high quality. The enhanced quality of
both products and services are based on production approaches of customer demands and
customer services.
For domestic companies to survive in the market, they are forced to raise their customer
satisfaction levels, as well as their standards, while fighting competition from foreign
companies. Besides, a global product must live to its goodwill when it gets into a new
country. For example, the competition between Samsung and Apple has raised the market
standards, as well as the customer service. Also, the two brands are living on their goodwill
to survive the competition.
3. Culture –
Globalization has resulted in numerous positive effects on culture. There is no single
civilization that had all good practices. Instead, the coming together of various cultures has
made the world today a better place. The welcoming of people from various backgrounds
and civilizations has resulted in the creation of new cultures, thus leading societal growth.

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4. Legal effects –
Human rights have been improved as a result of globalization since media coverage on
violations of the rights receives attention from all over the world. It is through globalization
that leaders address inequalities since information and openness get promoted. In most cases,
the result is enhanced prosperity and democracy.
5. Stable security –
Although the effect cannot be seen directly, globalization has contributed greatly in
enhancing the world security. For example, it is extremely difficult to see two countries
attacking each other if the economy of one of the countries depends largely on the economy
of the other country.
Irrespective of the many violence that is being experienced in the world today, it is evidently
clear that if some countries were not depending on each other’s economy, deadlier conflicts
could have or would occur, but all have been halted by globalization.

7. 7
NEGATIVE EFFECTS OF GLOBALIZATION
1. Environmental Damage –
Increased production means increased utilization of natural resources. Besides, increased
trade results to increased transport, which uses fossil fuels. As a result, pollution has
increased, leading to climate change. The changes in climate are now a serious threat to
humanity and the future of the world, all because of globalization.
2. Fluctuation in prices –
Globalization has led to increased market competition, hence leading to fluctuation in prices.
For example, developed countries like the USA have been forced to reduce their products
prices, because countries such as China offer the same products at cheaper prices. This is
because the production cost in China is lower than in the USA. As a result, for developed
countries like the US to withstand the competition and have customers, they are forced to
lower their prices. The impact is adverse, as the ability to sustain social welfare in the US
gets reduced.
3. Job insecurity –
Due to globalization, most global economy jobs are insecure and temporary. The impact is
mostly felt in developed countries since they can outsource cheaper white collar and
manufacturing jobs. For example, wages and manufacturing costs are lower in India and
China, making countries like US and UK to outsource cheaper labor. The effect is people in
developed countries losing or having fewer jobs.

8. 8
CASE
STUDY

9. 9
INTRODUCTION OF TOYOTA MOTOR COMPANY
Name of company Toyota Motor Corporation
Industry Automotive
Type Public
Founded August 28, 1937
Founder Kiichiro Toyoda
Headquarters Japan
Area served Worldwide
Website www.toyota.com
 Toyota Motor Corporation is the third world’s prevalent automaker.
 It has 12 plants in Japan as well as 54 manufacturing companies in 27 countries.
 It also markets its vehicles in more than 160 countries worldwide.
 In the year, 2010, Toyota employed approximately 300,734 people globally.
 It is the second largest automobile manufacture worldwide plus the ninth largest
company globally by its revenue.
 Toyota will lead the way to the future of mobility enriching lives around the world
with the safest and most responsible ways of moving people

10. 10
IMPACTS OF GLOBALIZATION ON TOYOTA MOTOR COMPANY
 Globalization can be termed as the network in which policies and networks operate in
so as to aid in the success of multinational corporations in their aim to exploit
successfully the resources of nations and communities.
 Globally, Toyota Motor Corporation is ranked the seventh biggest company and the
second largest in the automobile industry. Toyota Motor Corporation has its branches
in 28 countries with over 50 branches in place. In the year 2007, it is reported that
Toyota Motor Corporation made a profit of 14.9 billion dollars. Globally, Toyota can
be categorized as the standard of globalization since its practices and policies have
been imitated.
 Toyota Motor Corporation uses lean production as a way of maximizing its profits,
minimized cost while the sellable outputs are maximized.
 Toyota Motor Corporation can be seen to be using cheap labor to fulfill its policies of
lean production.
 It is evident that their revenues are boosted further by tax abatements and the
reduction of the operational costs.
 It is no wonder that Toyota Motor Corporation has reported to be reaping millions of
profits with a net profit of over fifteen billion U.S dollars in the year 2007 and it is
speculated to grow as the year’s progress.
 However, as the profits of Toyota continue to grow the impact of globalization must
be the community, environment and people.

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PRODUCTION INDEX OF TOYOTA

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CONCLUSION
Here I, conclude that by preparing this project, I came to know that what is globalization,
how it affected the companies all over the world, benefits of globalization & so on.
In this project, I take the example of Toyota which is biggest multinational company; here I
came to know that impact of globalization on Toyota, production graph of Toyota.

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BIBLIOGRAPHY
 www.toyota.com
 www.slideshare.com
 www.goggle.com