Date: 19th, June, 2008 Level: Master Thesis EFO 705, 15 credits Authors: Sixing Guo China guosixing@hotmail.com Pasapoo Upathamwaranon Thailand pasapoo@hotmail.com Title: The Internationalization Process of Toyota in Europe: From the Perspectives of Entry Mode and Network Structure   Tutor: Leif Linnskog Research Problem: In European market, what entry mode did Toyota select? Why did they select those entry modes? And how did they manage their internal and external network structure during the entry mode evolution process?    Purpose: We describe and explain how Toyota conquered the European market from the perspective of entry mode and network. And we also intend to provide some useful information to the companies that want to gain experience before entering into the European market.   Method: We design this thesis as a case study about the entry mode of Toyota in the European market. In order to get an in-depth understanding of the research problem, the qualitative research approach is chosen. During the analysis part, all the information is derived from the secondary documents, such as website, articles and so on. Conclusion: After the analysis the process of Toyota developed in the European market, we found that after careful consideration about both internal and external factors, Toyota usually prefers to conquer a new market with a relevant low risk entry mode, such as exporting or licensing, in the beginning. Then, with the increase of their experience as well as the growth of network, they began to change to a higher risk level entry mode, like joint venture or wholly owned subsidiaries. During the evolution process, in order to provide an effective way of interaction between headquarters and subsidiaries, Toyota’s structure changed from time to time. Keywords: Internationalization, Entry mode, Toyota, Network structure

In 2005, Outokumpu began to implement its system of continuous improvement, OK> 1, at Avesta Jernverk. OK> 1 has not generated sufficient results on plant KPI:s. The purpose of this study is to identify the understanding,  participation and commitment regarding to OK> 1, and to suggest some actions to make OK> 1 more successful with emphasis on these three aspects. The thesis shall also determine whether there are any differences in the attitude towards OK>1 between Blue Collars and White Collars. The study consisted of a survey, and interviews. The output from these methods were processed and analyzed and finally resulted in a SWOT – analysis and suggested actions for improving the understanding, participation and commitment towards OK>1. The thesis work also covered a literature study concerning Lean Production, to get a deeper understanding of how to implement Lean Production successfully. The results of the survey pointed out that Blue Collars do not understand OK>1 as well as White Collars, and that they do not participate as actively as White Collars in improvement activities. To improve the results on plant KPI:s the thesis suggests following actions: education, simplification of methods and increased feedback from the management.

Background: There are various manufacturing methods and systems in automobile industries throughout the world. Of these, many practice lean manufacturing methods. The most effective and influential to all of these methods is the “Toyota Production System” (TPS). The TPS was invented by Toyota's founding fathers in 1930 in Japan. The TPS continuously evolves making it a benchmark for the manufacturing, product development or any other sector of industry. It is fully based on “Socio-Technical” systems in a continuously changing manufacturing environment. It is about learn through doing and also about tacit knowledge and not explicit procedural knowledge. Outcome: The Toyota Production System is called “The Toyota Way” and it actually gives you a roadmap or more of a compass to set your direction and helps you steer your own course. Toyota has internally developed simple but effective tools and consistently trains their team members to implement those in all aspects of manufacturing and designing their vehicle. For example, Toyota has developed Kaizen or continuous improvement through which they eliminate waste that adds cost without adding value no matter how small it is. Toyota is known for the quality of their products. Not surprisingly their product is made at a significantly lower price within a given segment of the auto market. It is a result of hard work, innovation, and a Japanese work culture of generations at Toyota all across the world. Conclusions: Through theoretical analysis backed by my personal observations as an employee and from the sales figures of Toyota automobiles, I firmly believe that Toyota backs up its philosophy of long term benefits over short term financial goals. The right processes will produce right results. It is also one of the top companies among their group of long term suppliers as Toyota challenges them and helps them to improve. Initial quality and customer satisfaction surveys of J.D.Powers and Associates for Toyota and Lexus vehicles have won numerous awards since 2001. / text

Bachelor-Arbeit Univ. St. Gallen, 2004.

Thesis (M.A.)--Georgia Southern University, 2006. / "A thesis submitted to the Graduate Faculty of Georgia Southern University in partial fulfillment of the requirements for the degree Master of Arts" ETD. Includes bibliographical references (p. 124-126) and appendices.

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Esta dissertação aplica os princípios e conceitos do Sistema Toyota de Produção (STP) na Indústria da Construção Civil. Nosso objetivo é desenvolver um método de intervenção baseado nos princípios do STP que melhorem a qualidade e a produtividade na Construção Civil. A Etapa Construtiva Estrutura do processo construtivo é o foco desta dissertação. O Sistema Toyota de Produção é uma metodologia estruturada que objetiva reduzir as perdas produtivas ( e com isto os custos). O sucesso do STP na industria automobilística motivou a sua aplicação na Indústria da Construção (IC), apresentado neste trabalho. A aplicação dos princípios e conceitos do STP no ambiente da Construção Civil foram suportados pele efetiva participação dos trabalhadores da Construção Civil que ajudaram a identificar os problemas relevantes e a propor soluções. A participação dos trabalhadores foi guiada pelo um método de pesquisa adotado: a pesquisa-ação. Os principais resultados obtidos com o trabalho incluem a redução do tempo de atravessamento em 25 %, a análise e aprimoramento do processo produtivo estudado, o estabelecimento de um política de melhoria contínua e o estabelecimento de um método de intervenção que suporta os resultados acima apresentados. / This dissertation applies the principles and concepts of the Toyota Production System (TPS) to the Construction Industry. Our objective is to develop an intervention method based on TPS principles that improves quality and productivity in Civil Construction. The structure building phase of the construction process is the focus of this dissertation. The Toyota Production Systems is a structured methodology that aims at reducing production losses (and therefore costs). The success of TPS in the automobile industry motivated its application in the Construction Industry (CI), reported in the present work. The application of TPS principles and concepts to the CI environment was supported by the effective participation of Civil Construction workers, who helped identifying relevant problems and proposing solutions. Workers participation was guided by the research method adopted: the action research. Main results obtained include 25% lead-time reduction, analysis and refinement of the focused productive process, the establishment of a continuous improvement policy and the achievement of an intervention method that supports the results above.

O ambiente concorrencial atual está impondo novos fatores de competição às empresas. Com a globalização e a abertura do mercado, as empresas brasileiras estão implantando programas de qualidade e produtividade tendo como referencial principal (benchmarking) as empresas japonesas. As conseqüentes mudanças no ambiente empresarial não estão, entretanto, sendo consistentemente acompanhadas por evoluções nas sistemáticas de controle e custeio. As informações relativas ao controle de uma empresa devem ser acuradas o suficiente para subsidiar o processo de tomada de decisões no atual ambiente competitivo. Porém, as tradicionais práticas de controle e custeio, além de obsoletas, podem constituir uma restrição para a continuidade dos programas de melhoria das empresas. Este trabalho mostra a evolução dos sistemas de manufatura, com ênfase particular no Modelo Japonês / Sistema Toyota de Produção. Uma atenção especial é dada à necessidade de mudanças nos sistemas de controle das empresas, principalmente na parte de custeio. Mostra-se ainda algumas características das sistemáticas de controle e custeio nas empresas japonesas em comparação com a lógica predominante nas empresas ocidentais. Apóia-se o trabalho em um caso real de uma empresa que já passou por um processo de racionalização, sob forte influência dos conceitos japoneses de qualidade e produtividade, e que, agora, sente a necessidade de uma maior transparência e melhor entendimento do comportamento dos custos em seu ambiente, para poder dar continuidade a este processo de melhorias. / The current competitive environment is imposing new competition factors to the companies. Due to the opening of the Brazilian market, Brazilian companies are implementing programs for quality and productivity, having as a benchmark tha Japanese companies. Nevertheless, the consequent changes in the companies’ environment are not being followed by improvements in the control and cost systems. The information relates to the control of any company should be accurate in order to help the decision making in the current competitive environment. However, the traditional control and cost systems, may become a constraint to the continuity of the quality programs. This thesis shows the evolution of the manufacturing systems, with an enphasis in the Japanese Model/Toyota Production System. A special attention is given to the need of changes in the companies’ control systems, mainly in the cost activities. Some characteristics of the control and cost systems in the japanese companies in comparison to the predominant systems used by the occidental companies are also shown. The thesis was based in an actual case of a company that has already passed through a quality program which was based in the Japanese quality and productivity concepts, and that is now feeling the necessity of a better understanding of its costs’ environment, in order to keep its quality program on.

O ambiente concorrencial atual está impondo novos fatores de competição às empresas. Com a globalização e a abertura do mercado, as empresas brasileiras estão implantando programas de qualidade e produtividade tendo como referencial principal (benchmarking) as empresas japonesas. As conseqüentes mudanças no ambiente empresarial não estão, entretanto, sendo consistentemente acompanhadas por evoluções nas sistemáticas de controle e custeio. As informações relativas ao controle de uma empresa devem ser acuradas o suficiente para subsidiar o processo de tomada de decisões no atual ambiente competitivo. Porém, as tradicionais práticas de controle e custeio, além de obsoletas, podem constituir uma restrição para a continuidade dos programas de melhoria das empresas. Este trabalho mostra a evolução dos sistemas de manufatura, com ênfase particular no Modelo Japonês / Sistema Toyota de Produção. Uma atenção especial é dada à necessidade de mudanças nos sistemas de controle das empresas, principalmente na parte de custeio. Mostra-se ainda algumas características das sistemáticas de controle e custeio nas empresas japonesas em comparação com a lógica predominante nas empresas ocidentais. Apóia-se o trabalho em um caso real de uma empresa que já passou por um processo de racionalização, sob forte influência dos conceitos japoneses de qualidade e produtividade, e que, agora, sente a necessidade de uma maior transparência e melhor entendimento do comportamento dos custos em seu ambiente, para poder dar continuidade a este processo de melhorias. / The current competitive environment is imposing new competition factors to the companies. Due to the opening of the Brazilian market, Brazilian companies are implementing programs for quality and productivity, having as a benchmark tha Japanese companies. Nevertheless, the consequent changes in the companies’ environment are not being followed by improvements in the control and cost systems. The information relates to the control of any company should be accurate in order to help the decision making in the current competitive environment. However, the traditional control and cost systems, may become a constraint to the continuity of the quality programs. This thesis shows the evolution of the manufacturing systems, with an enphasis in the Japanese Model/Toyota Production System. A special attention is given to the need of changes in the companies’ control systems, mainly in the cost activities. Some characteristics of the control and cost systems in the japanese companies in comparison to the predominant systems used by the occidental companies are also shown. The thesis was based in an actual case of a company that has already passed through a quality program which was based in the Japanese quality and productivity concepts, and that is now feeling the necessity of a better understanding of its costs’ environment, in order to keep its quality program on.

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