Automotive Production Levels - Toyota Motors Research Paper

Automotive Production Levels - Toyota Motors - Research Paper ExampleIn the first quarter of financial socio-economic class 2013, Toyotas unit sales had jumped to 2,268,563 units amounting to sales r notwithstandingue of 5,233,688 million yen. Consolidated sales change magnitude by 85.7% in fiscal year 2013 compared to fiscal year 2012 and net revenues increased by 59.9%. These changes are indicative of a change in either Toyotas determine structure or the demand and sum up forces in the market. Among other things, these changes can also be attributed to changes in the value of the yen and cost reduction measures taken by Toyota to stay afloat and efficient. Market price also plays a role here and can be calculated using a transparent relationship between sales revenue and units sold. (Market price = Sales Revenue/Units Sold. According to the data presented, the price for Toyotas increases in the market in fiscal year 2012 based on the unit sales and sales revenue figures for that year can be calculated to be 2.59 million yen. For fiscal year 2013, this amounted to 2.31 million yen. The demand curve for a firm shows how much of a product the market is willing and able to pay for at the given price. The supply curve of a firm shows how much of a product the firm is willing and able to produce at the given. ... product is increased, demand tends to decrement and when the product price is diminish, demand tends to increase, hence establishing an inverse relationship between demand and price levels. Similarly, it can be seen from this analysis, that the aggregate market price for Toyotas products was decreased in fiscal year 2013 which takingsed in an increase in sales which depicts an increase in the demand for Toyota in the market. In the same vein, when the supply of a product is increased, its price decreases and if the supply levels in the market are decreased, the products price in the market increases. The equilibrium point thus keeps break with c hanges in demand and supply due to different market factors. Also relevant is the concept of spatial equilibrium (Nagurney, 2002) which speaks about how supply and demand prices result in trade flows. The figure below illustrates the aggregate demand and supply schedule for FY 2012 and 2013. Price (million Yen) 2.59(2012) 2.31(2013) 1,221,374 2,268,563 Quantity (units) Demand FY 2012 Supply FY 2012 Demand FY 2013 Supply FY 2013 The gentleman economy has been going through rough times and its basic structure has been forever changed since the financial crisis of 2007-2008. Market trends have also significantly changed since then even though the market has recently picked up for the better. Toyotas performance, measured by its sales, production, revenue and cost figures etc declined steadily in the fiscal years 2011 and 2012, however it increased its performance dramatically in fiscal year 2013 and picked up fast pace to increase its sales, production and profit levels and overall re venue levels. It also managed to decrease its production cost and reduce market price to boost its demand in the market. These maneuvers paid