The earthquake and subsequent tsunami in Japan had a significant negative impact

Question

The earthquake and subsequent tsunami in Japan had a significant negative impact on Toyota, reducing their ability to produce parts to be delivered to their manufacturing and assembly plants around the world. Using the laws of supply and demand as a construct, research and discuss the impacts on Toyota and the auto industry in general from such an event. How does a business remain competitive when prices must remain high due to a reduction in supply? Please answer in 250 words or more and make handwriting legible

Explanation / Answer

There was a huge impact of earthquake and tsunami in Japan and Toyota was also impacted. It has an effect on the operations and the employees of the company. The production was suspended and this was done so that the employees could make contribution to the relief efforts. It affected the production bases.

It also ended up facing risks for the global operations. It sells the vehicles under the essential brands of Toyota, Lexus and scion and the company was aggravated even with the regional accounts. The plants including Toyota Motor Hokkaido Plant, Toyota Motor Tohoku Plant, Central Motor Corporation Miyagi Plant, were affected. The production at the two plants were started again and there was disruption in supply chain and damages were made to the port. There was increasing pressure on the manufacturing capacity. There was short term effect that gage Ted the growth estimates and the international market share.

Business can remain increasingly competitive even when the prices remain high because of supply reduction by avoiding the impact of increasing costs.

Businesses know how to adjust the effect inflation pertaining to the current operating costs. There is attention given to the capital requirements and strategic positioning. It will be useful to take advantage of pricing implementation and following pricing decision. The newly discovered value can be leveraged. It is also important to communicate value and make implementation as the correct key. The value needs to be communicated and value proposition needs to be analyzed

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