On pursuing its business model, Toyota periodically reviews the carrying value of its long-term assets used in the business, including intangible assets as circumstances deserve such review. The company carries out the review using estimates of future cash flows and fair value that the management think would influence the accurate valuation of assets. In the same way, Toyota also needs to consider the assets like high quality fixed income bonds and fixed income bonds that are presently available and anticipated to be available in the future. The company also takes into account the deferred tax assets as there are chances for the actual taxable income to differ from the estimated amounts due to various assumptions (Toyota Motor Corporation, 2010). There are liquid assets in the business which the company defines cash and cash equivalents, time deposits, marketable debt securities that are taken into account to make sure that the company is in line with its business model. However, goodwill is not material to Toyota’s consolidated balance sheet, and intangible assets with a definite life are amortised on a straight-line basis with estimated useful lifetime of five year. Intangible assets with indefinite life are examined for impairment whenever incidents or circumstance signify that a carrying amount of an asset may not be recuperated. The company evaluates the impairment loss when carrying amount of an asset exceeds the estimated undiscounted cash flows. Toyota’s strategy and aim for plan asset management is to maximise returns on plan assets to meet future benefit payment requirements under risks that the company thinks to be permissible (Toyota Motor Corporation, 2010). Assets in financial accounting can be considered as the economic resources of the firm. Anything that is touchable or intangible and able to be owned by or administered to produce value by preserving it on the process of obtaining a positive economic value can be regarded as an asset. In simple worlds, asset can be stated as an ownership that can be converted into cash (cash itself is an asset). Asset in simple sense is anything of value that a company owns, including cash and should be recorded on the balance sheet of the company. Even if the firm used credit to purchase an asset, the company still owns it. In such case, the original cost of the asset must be recorded on the asst side of the balance sheet as well as the amount that the company owes should be recorded on the liability side of the balance sheet. The three components that constitute a company’s balance sheet, which illustrate the business’s financial position at any point are assets, liabilities, and owners’ equity (U.S. Securities Exchange Commission, 2007). This association among these three components can be explained using the following equation: Assets = Liabilities + Owners’ Equity This equation sets the framework for keeping trace of money as it flows in and out of the business. Every penny in the business should be recorded into appropriate ledgers, every single transaction into the books using a double-entry system of debit and credit. In general accounting practice, assets are recorded on the top left side of the balance sheet. Assets may be classified in many ways and the principal distinction normally made for business purposes is between: Fixed assets and Current assets. There are other business
Toyota Motor Corporation – Management of Assets Now days, the global automotive industry is facing increased worldwide competition more than ever before. Automotive firms are forced to introduce innovative and competitively priced products. Nevertheless, Toyota Motor Corporation with its 70-year history is able to achieve its objectives regardless of the challenges it face today…
This paper presents brief report on the management strategy of Toyota Motor Corporation and gives detailed analysis of both the internal as well as external environments. In order to analyze the business environments, various business analysis tools such as SWOT and PESTEL analysis will be included in the paper.
The purpose for conducting a SWOT analysis in any business organization or firm is to find out the goals and objectives of the same. Every business must have a certain aim that it wishes to achieve by the end of every annual year, and thus conducting a SWOT analysis helps the business to grow and develop with respect to overcoming any kind of hurdles that come in between.
The Toyota is the world’s largest automobile manufacturer in terms of sales and production. According to Pearce II and Robinson, organizational culture stands for a set of important assumptions that a firm’s members share in common (lecture note). The Toyota’s organizational structure facilitates effective strategy implementation.
The purpose behind the establishment of any business organization is mainly to make profits and earn maximum customer recognition. Before entering a market, business organizations must identify the forces operating in that particular market, which encompasses the behavior of the targeted customers, strength of other dealers and possible challenges in that specific market.
In relation to the study the company which has been selected is Toyota Motor Corporation, a renowned Japanese automobile company. The automobile giant having its headquarters in Toyota, Aichi, Japan, was established by Kiichiro Toyoda in the year of 1937. Toyota entered USA market by doing a joint venture with General Motors in the year 1984.
While the United States languishes from the 2008 financial crisis and the European Union battles credit crunch issues that threaten to undermine the whole continent, several countries have been posting tremendous economic growth especially China, India, Indonesia, Latin American countries and South Africa.
One of the industries that have attracted quite a number of firms is the motor vehicle industry. This is based by the increased demand for motor vehicles not only in the emerging market but also by the consumers in the developed countries. Similarly, the demand for eco friendly automobiles has gone up in the international market thus calling for the manufacturers to emulate modern technology to produce brands that have lees impact on the environment.
The flow of communication in all directions establishes harmony in operations besides keeping the stakeholders and other related resources up to date, to achieve the organizational objectives, which reflects Toyota’s global image, brand recognition and reputation.
of Japan. The company has a wide array of product line under the brands Chevrolet, Pontiac, GMC, Oldsmobile, Buick, Cadillac, Saturn, and HUMMER. The company's marketing arm is supported by retail dealers and distributors in the United States, Canada, and Mexico as well as dealers overseas.