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Toyota Motor Corporation: Processes and Strategies

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Toyota Motor Corporation: Processes and Strategies.

Toyota Motor Corporation is a multinational automobile manufacturer that was founded in 1937 by Kiichiro Toyoda as a spinoff from the larger Toyota industries, for purposes of creating vehicles (Hino 130). Ever since this time, Toyota has grown to become the world’s biggest motor vehicle manufacturer in terms of production and sales of autos. Toyota does not major only in manufacturing automobiles, but also provides financial services and builds robots, among other things (Liker and Meier 45). Toyota’s success in business is to a greater extent attributed to its unique management accounting and finance practices. This paper reports on Toyota Inc’s management accounting and finance practices that affect its value in the motor manufacturing industry.

Brief Description of Toyota Motors Corporation

Toyota Motor Corporation has its headquarters in Aichi, Japan with over three hundred thousand employees worldwide. This company majors in manufacturing and selling automobiles ever since its spinoff in 1937 from Toyota Industries (Hino 130). This company is part of the Toyota Group; one of the biggest conglomerates in the globe, and includes company like the Hino motors, Lexus, and Daihatsu. Apart from manufacturing vehicles, this company also makes hybrid cars, electric vehicles, and robots among other auto items. Toyota is known for its unique management accounting concepts that utilize lean accounting philosophy, the just in time strategy, the kaizen and the kaiben approaches to manufacturing. To be in tune with this practice, Toyota has a unique management system known as the Toyota Production System, which is an integrated socio-technical system that is inclusive of its manageme...

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