The paper 'Toyota Companys Global Production Network " is a good example of a management case study. The global economic complexities, the unevenness, and inequality of geography in the business context are claimed to pose a great problem to companies whose operations are in more than one country. These organizations have, therefore, been forced to incorporate complex interactions and actions with interest groups ranging from the social, cultural, economic, and political fields (Kelly 2013, p. 87). They are therefore forced to embrace dynamism brought by its multi-scalar operation levels in different territories; in this case, the symmetrical power between these parties’ relationship and dynamism is focused on the achievement of a specific geographical outcome.
This paper, therefore, aims to review Toyota’ s Global Production Network as it tries to find out the type of labor that is used in product or service creation at different points of the Global Production Network, the institutional arrangement that best explains this GPN structure and whether the value is evenly captured in the GNP if not who are the major benefiters. Global Production Networks offer global organization and an easy route to the international markets.
Thus, an organization such as Toyota that strives to meet the market specifications in regards to affordability and efficiency of its products is able to gain access to the overseas market and some market intelligence through its Global Production Networks (Amasaka, & Sakai 2009, p. 411). On the other hand, the Global Production Network also enables Toyota to benefit from a steady product demand which is attributed to the company’ s increased productions overseas and the technical assistance it obtains from clients firms within its Global Production Network (Zirpoli and Becker n. d.
pp. 16-17). Therefore, the Global Production networks offers the company attractive intermediaries in its efforts to penetrate the foreign market. Through its Global Production Networks, it has been able to export its products at affordable transactional cost. The type of labor that goes into creating a product or service at the different points in the GPN entails Toyota embracing the notion of subcontracting with specialized suppliers, for instance, the company enlarged its equity in its three main large parts suppliers; Toyota Gosei, Denso and Aishin Seiki (Minhyung 2010, p. 65).
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