Mrs. Friers, in her early sixties, of Georgetown’s new Wal-Mart store

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• International Hr Management
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• Case-2 (20 Marks)
• Toyota Comes to Georgetown
• Mrs. Friers, in her early sixties, of
  Georgetowns new Wal-Mart store cannot be
  anything but polite when she discusses Toyota. In
  a low voice to my companion, the doctor at the
  local Scott County General Hospital, Friers said,
  You know Doe, Toyota did not offer that job to
  my daughter. I am sorry to hear that,
  theDoctor commented casually. Are you all glad
  that Toyota came to town? I asked Mrs. Friers,
  somewhat to fill the void. Yes and no ... we
  were all excited when they first announced it . .
  . it kind of sank in now, I guess. Toyotas
  labour practices was the hot topic at the local
  drug store too.

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• TOYOTA COMES TO GEORGETOWN
• Georgetown, about 25 miles south of
  Lexington, Kentucky is the Scott Countys
  heartland. The countys population is 25,000 out
  of which 22,000 are white. Over 53 per cent of
  the household income is between 15,000 to
  49,999 per year. It has 93.7 males for every 100
  females. About 43 per cent of the population are
  between the ages of 18 to 44 years.
• TOYOTAS OPERATIONS
• In May 1988, the first Kentucky Camry
  was introduced at a plant wide celebration. And
  in the same year, Camry received the J.D. Power
  Gold Plant Quality Award. In November 1988,
  Toyota announced plans to double the plant size
  and production at the Georgetown plant. In
  September 1991, Toyota unveiled a major model
  redesign for the year 1992. In January 1992,
  Toyota announced plans to expand Power train
  Plant to add V-6 productions. By March, the
  production of Camry Wagon began.

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• THE GAINS AND THE BARGAINS
• Toyotas direct employment in the U.S.,
  as of December 1993 was 16,674. including the
  1438 Toyota/Lexus dealers, the company employs
  over 90,000 people in the U.S. In Georgetown
  alone, it employs 6000 people representing all
  120 counties of the State of Kentucky. What
  Kentucky gained from Toyota is a question that
  ninny people ask. For instance, the company was
  provided with an incentive package of 325
  million.
• OTHER STATES FOLLOW LEAD
• The State of Tennessee, in order to
  bring in Nissan, convinced the Federal Government
  to approve 5 million-a-year tax break on plant
  expansion (production expanded from 250,000 to
  450,000), and allowed it to operate under the
  Free Trade Zone as Kentucky did for Toyota.

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• TOYOTA TRIES TO BE A GOOD CITIZEN
• From the day of inception. Toyota
  officials insisted that the company should be a
  part of the community. For instance, it cited the
  following contributions 1 million for the
  citizens of Scott County to build a community
  centre, 15 million over a 20 year period to the
  County school system 141,000 to develop a child
  care centre 500,000 for the development of a
  Thoroughbred Park 25,000 and 30,000 to the
  Lexingtons Childrens Museum and Philharmonic
  respectively.
• GEORGETOWN ON THE MAP
• Has Toyota not been the single mo
  stimportant factor to bring prominence to this
  area? The existence of two interstate highways
  1-64 and 1-75 was what had attracted Toyota to
  Georgetown. Yet these two highways contributed
  negatively by moving people away, towards bigger
  cities like Lexington, Kentucky and Cincinnati,
  Ohio.

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• Questions
• 1. What is the difference between American
  production policy and Japanese production policy?
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• 2. Where the Japanese Excel?
•  
• 3. In quality control of Toyota what do you
  observe?
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• 4. Can Japanese, be really leader in auto
  production and marketing, all over the world?
  Justify your moves.

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