AAA Framework for Toyota Motor Corporation Free Sample

Question: Discuss about the AAA Framework for Toyota Motor Corporation. Answer: Introduction Toyota Motor Corporation is one of the most successful automobile manufacturing company of Japan. As stated in Toyota motor corporation global Website(2009),in the year 2016, it has been ranked as the 13th largest automotive manufacturing company. It is quite important for such a renowned company to integrate various operational strategies in order to maintain its position. One of the most important strategical framework , that was initiated by Pankaj Ghemawat, is the AAA strategy (Ghemawat 2015). It helps in analysing the strategies related to adaptation, aggregation and arbitrage of a company. In this report, the AAA framework for the Toyota company would be analysed. Adaptation Toyota is a global company, that has its manufacturing units all over the world. Toyota has manufactured various luxury, comfort, and SUV cars. Being an international company, Toyota has been successful in achieving accelerated demand with its high quality products. The company has been segregating its market in accordance to the demand and thereby helps in fulfilling the needs of the customers. The company has adapted various engineering developments along with technological enhancement, that thereby helps the company to build their car models as per the current demand of the people (Collis 2015). Yaris, Corolla, RAV4, Fortuner, Tacoma, Sienna are some of the well known models of the company. Aggregation Toyota very successfully acknowledges the cultures of the countries where it operates. This helps the company to perform well, raise its sales and revenues generated from manufacturing different automobiles. This feature, thereby, provides the long run scope for the company. Being an international company, Toyota has been successfully acquiring various mergers and acquisitions that has enables the company to lower its cost of manufacturing its products (Das and Dutta 2012). This has raised the level of both investments and revenues, and has managed to attract customers towards the company. The company successfully conducts various geographical, administrative and economical aggregation that helps in implementing successful expansion of the company. Arbitrage Toyota performs cultural arbitrage that helps in enduring the cultures of various countries where it operates. It accesses the needs accordingly and results in manufacturing better cars, improving the quality of the company (Collis 2015). It promotes geographical arbitrage by promoting its products across the borders. By abiding the legal and administrative arbitrage of all its operational companies, Toyota successfully keeps a check on the risk management related to the company. Conclusion The AAA triangle proposition generated by Pankaj Ghemawat is one of the vital framework that consists of adaptation, aggregation and arbitrage strategies of a company (Ghemawat 2015). In this report the AAA framework for the Toyota automobile manufacturing company has been conducted, that helps in providing a clear view of how the company proposes various policies in accordance with these three elements, thereby, enhancing the growth of the company. References Collis, D.J., 2015. The Value of Breadth and the Importance of Differences. InEmerging Economies and Multinational Enterprises(pp. 29-33). Emerald Group Publishing Limited. Das, D. and Dutta, P., 2012. A system dynamics framework for an integrated forward-reverse supply chain with fuzzy demand and fuzzy collection rate under possibility constraints.framework,8, p.9. Ghemawat, P., 2015. From International Business to Intranational Business. InEmerging Economies and Multinational Enterprises(pp. 5-28). Emerald Group Publishing Limited. Toyota motor corporation global website. (2009). Toyota motor corporation global website. [online] Available at: https://www.toyota-global.com/ [Accessed 27 Sep. 2016].