External Analysis of the Automotive Industry Essay

External Analysis of the Automotive Industry - Essay Example rm has concentrated and accelerated its development of hybrid vehicles by providing customers with attractive and appealing cars people truly want, the chairman added (ibid.). The big opportunity for Toyota is to capitalize on its excellent goodwill and customer loyalty with the production of reliable automotive vehicles. Its Prius model is still regarded as the best-ever car among 300 models that are eco-friendly (Ikematsu & Honma, 2010, p. 1). However, the current fiasco over the Prius recalls (500,000 units recalled so far) due to sticky pedals and unintended acceleration has put Toyota in a bad light and together with the 8 million other Toyota models recalled worldwide, has put into question Toyotas manufacturing expertise and its priorities. Previously, the two earlier heads of Toyota (Sakichi and Kiichiro Toyoda, grandfather and father, respectively, of current president Akio Toyoda) had always emphasized the customer first in all its corporate decisions. This means Toyota has acquired a very excellent reputation for quality, performance, comfort, good mileage and a low price. But some independent analysts are of the opinion Toyotas present troubles are self-inflicted as it had strayed away from its original founders mission statement of serving the customers first. Priorities during Toyotas early years were always safety, quality and sales (a distant third) but the current presidents obsession to surpass the achieve ments of his predecessors by becoming the worlds number one maker (achieved in 2008 by eclipsing GM) led to quality problems. Instead, the obsessive drive to become number one caused Toyota some missteps that had greatly eroded its great brand name and excellent reputation for quality craftsmanship in the minds of consumers and other stakeholders. The year 2008 also saw the company posting its only second loss (but biggest) ever in its corporate history to the tune of US$4.8 billion. It had jumbled its priorities and put sales first and

International Trade Laws Essay Example | Topics and Well Written Essays - 1250 words

International Trade Laws - Essay Example This works for the higher competitive advantage of the national companies, and thus 'closing eyes' on the illegal actions foreign companies take abroad, as well as trying to sue them for the refund of the damages which national companies pay abroad, and which is often resolved for the benefit of the national company, is a means of fighting competition through the means and methods which are legal only on the surface. 'Competition law embodies an inherent conflict while protecting local consumers from monopolies, cartels and oligopolies - it ignores the very same practices when directed at foreign consumers'. (Francis, 1995) For example, even GATT /WTO rules allow the existence of the foreign trade cartels, and if the same actions would be considered to be illegal within the country, these actions are seen as proper and legal at the international level. (Mathis, 2002) It was interesting to note, that one of the literary sources recommends adoption of the claw back provisions for the poor countries, which would want to develop their export markets. These claw back provisions would allow local courts to refund any penalty payment put on the local company by a foreign entity for the violation of trade policies and using unfair methods of international trade. ... Let's have a closer look at the GATT International Antitrust Code, which has created the four main principles, violated through the use of claw back provisions. - National laws should be applied to solve international competition problems; - Parties, regardless of origin, should be treated as locals; - A minimum standard for national antitrust rules should be set (stricter measures would be welcome); and - The establishment of an international authority to settle disputes between parties over antitrust issues. (Tarullo, 2002) The use of claw back provision if the violation of the first noted principle - they are not crated in accordance with the international laws and they don not foster creation of the laws which would support competition on the international level. Moreover, 'parties, regardless origin, should be treated as locals'; however claw back provisions are clear examples of the absolutely opposite actions of the parties. Claw back provisions are often depicted as the best means of protecting the parties from the improper judicial treatment in the foreign country; however fighting illegal actions and unfair competition is possible only through the adoption and use of such fines and damage payments for the benefit of the party the rights of which were violated. According to the Havana Charter 1947, there is a list of actions which are supposed to be illegal and represent the moves of the unfair competition; among these actions are discriminating particular enterprises, excluding enterprises from a specific territorial market, etc. Claw back provisions, on the contrary give local (national) companies legal basis for unfair competition' actions in the foreign country through understanding that in case they are sued, their country of