Toyota Human

to

Ford's Excellence Capital

in vs.

the

Global

Automotive hysical

Industry : Capital

preliminary The automotive industry is a process o! desi"nin" # developin" # producin" # mar$etin" # and sellin" motor vehicles % &orld 'otor (ehicle roduction )**+,)**-. . The evolution o! today's automotive industry has been in!luenced by various innovations / !uels # vehicle components # social in!rastructure # manu!acturin" practices # as 0ell as chan"es in the mar$etplace # suppliers and business structures includin" "overnance strate"y % 1tur"eon )**2. . 'a3or players in the automotive industry 0orld today is Ford # 4aimler Chrylser # General 'otors # Honda # Toyota # and 5issan % 6radley )**+. . 7ne o! the automotive corporation that is able to demonstrate its competitiveness in an era o! "lobal competition is Toyota . Toyota became the lar"est corporation # is one o! the much,admired corporation # develops and has the advanta"e that tends to be stable over time even surpass its competitors . Althou"h in the midst o! stru""les and competition increasin"ly !ierce mar$et today. Has mana"ed to become the 0orld's leadin" automobile companies . In the increasin"ly !ierce competitive situation # Toyota 0ould be able to sho0 the existence and excel as 0inners . International 7r"ani8ation o! 'otor (ehicle 'anu!acturers % 7ICA . puts Toyota in the !irst place # producin" 9#++-#:+; recorded in )*;* . Toyota Avan8a sho0ed its dominance in national car sales # Toyota Avan8a sales continue to increase each year until it reaches the top spot in )**< and )**- # In contrast to that experienced by the 4aihatsu =enia # =enia sales could not match the sales o! Toyota Avan8a althou"h e>ually occupied Top Ten best,sellin" car in Indonesia . 6y )**- # the total number o! sales reached 2?)? units o! Toyota Avan8a # 4aihatsu =enia sedan"an sales reached only :#+-* units . Thou"h both o! these cars is a product $aloborasi % cooperation . and produced under the auspices o! the same company Toyota 'otor Corportion % T'C . % @a0a os )*;*. . Also in Indonesia alone Toyota has produced some o! the achievements o! 0hich the 1uperbrands a0ard !rom 1uperbrands 7r"ani8ation in )**? and )**+ # Indonesian 6est 6rand A0ard !rom 'ars 10adan ma"a8ine in )**;,)**? # the Golden 6rand A0ard # Indonesia's 'ost Admired Company % I'AC . in )**: A )**+ !rom 6usiness &ee$ ma"a8ine and Frontier # Indonesian Customer 1atis!action A0ard !or 4eer products !rom )**; to )**+ !rom 1&A and Frontier later in )**? received an a0ard !rom the I'I a0ard % Bu$man )*;*. In the era o! "lobali8ation # the e!!ect o! human capital as intan"ible assets have played a very important role . Even human resources in accordance 0ith the ne0 paradi"m o! the company's current mana"ement practices # not only as a !actor o! production but has been re"arded as a valuable asset !or the survival o! the company . There are t0o ma3or !orces 0hy human capital at the center o! ma3or concern in the business community . First # competition in the business environment is a result o! the "lobali8ation o! trade and the development o! some $ey sectors such as telecommunications # transportation # and !inancial services . 1econd # the development o! in!ormation technolo"y very >uic$ly # especially a!ter the emer"ence o! the internet . 6oth o!

these developments have dramatically chan"ed the business structure and encoura"e intan"ible assets are increasin"ly important role !or the company % &heaterly )**:. . Alon" 0ith these t0o # more and more companies depend on intan"ible assets . This is re!lected in the shi!t o! the 6roo$in"s study instutution in the Cnited 1tates that examined +** companies in the last )* years . In ;29) # tan"ible assets represent <)D o! the company's mar$et value # !ell to :9 D in ;22) . A recent study conducted in )**) sho0ed that the "reater the rate o! decline to ;+ D # 0hile 9+ D is an intan"ible asset that determines the mar$et value o! the company . A company 0ill produce di!!erent per!ormance i! mana"ed by di!!erent people # di!!erent means o! human resources in mana"in" the assets o! the same company 0ill "enerate di!!erent added values . Thus# it can be concluded that a company 0ill produce di!!erent per!ormance i! mana"ed by di!!erent people or by $atalain that the tan"ible assets o! the company are very have a relationship o! dependence on intan"ible assets in the case o! human capital that "enerates intellectual capital , related to the E $no0led"e and $no0in" capability o! a social collectivity E # as an or"ani8ation # intellectual community # or pro!essional practice that can mana"e and create value !or a company % Ghosal )**:. . 1ystems and practices o! human resource investment is believed to be a source o! competitive advanta"e !or companies because the system is di!!icult to be imitated by other companies or simply purchased in the mar$et . The behavior o! investment in human resources to support the ar"ument that investment in human resources is a potential source o! competitive advanta"e . The system imposes on human investment can si"ni!icantly impact on resources and the individuals 0ithin the company so that it can be one important !actor achievement o! competitive advanta"e % 6arney # ;22+ . . HF excellence compared to other production !actors in a company's competitive strate"y include the !ollo0in" : the ability o! innovation and entrepreneurship # uni>ue >ualities # $eahliaan special # di!!erent services and productivity capabilities that can be developed as needed % Fobert and @ac$son ;29?. .

Ford

vs.

Toyota

hysical

vs.

Human

Capital

Ford emphasi8es physical capital !actor # can not deny that Ford has contributed "reatly to the advancement o! the automotive industry in the present century . Ford 0as involved in the invention o! the automobile industry . 1ince the !oundin" o! the Ford company is very concerned 0ith the value o! a product . &ith # creates a T ,type cars and lar"e 6alc$ . In contrast to 0hat is done by 1a$ichi Toyoda # more concerned 0ith human capital to "o outside @apan as America and Europe to learn ho0 to create a car o! the !uture . This ne0 investment seen in the ;22*s 0hen Ford is less innovation and not accordin" to the needs at that time . This is 0here the value o! human capital competitive advanta"e can be seen . American road conditions at the time 0ere small # so it is di!!icult to be passed by the Ford ,made lar"e cars . Toyota sa0 this is an opportunity that is by creatin" a small si8e car . Then # 0hen the car 0as $no0n only blac$ colored car paint # Toyota ma$es a car 0ith innovation creates color!ul even in some places# such as Texas can order colors and products in accordance 0ith the principle o! 3ust in time . 7n the other hand # in ;2-* the value o! oil soared so hi"h that ener"y 0hen it needs demandin" !uel,e!!icient vehicles # Toyota throu"h human capitallnya mana"ed to create ener"y ,e!!icient

cars . All applications ideas embodied the outside is a re!lection o! the 0or$ers therein . Ford tendency is the process o! Americani8ation . &hile Toyota did "locali8ation e" Toyota Avan8a is sold in Indonesia are not available in other countries . This strate"y is based on the level o! need !or Indonesia 0hich is the lar"est number o! the 0orld 's population into t0o so that it re>uires a !airly lar"e car !or the !amily . 7n the other hand # Ford emphasi8es the "ro0th properties in lar"e numbers . This strate"y is a 0aste accordin" to Toyota . 6ecause # sometimes the inventory is not used but operatin" costs still runnin" . Toyota precisely throu"h its principles to ma$e cuts in parts inventory . Toyota emphasi8es human capital does not mean i"norin" physical capital . In expandin" the mar$et # Toyota is ta$in" into account the values o! the index human host country # this statement dictated by A$io Toyoda # president o! Toyota . Toyota loo$ed at the !actors physical capital is somethin" that can be adapted and !ollo0 nature . For example# in Hon" Gon" Toyota only has a small buildin" # and do a boo$in" system . This is due to reduce inventory space in lar"e numbers . Hon"$on" Countries that have a hi"h tax rate # Toyota avoids the cost o! this system 0ith the pull method .