Final answer:
Toyota's key issue is designing its global production and distribution network to stay competitive in a market increasingly defined by technological advancements and globalization(option c).
Step-by-step explanation:
A key issue facing Toyota is the design of its global production and distribution network. In the face of technology shifts and globalization, markets have evolved, transforming from local competitions to global battlegrounds(option c). With the rise of business-to-business websites and the ease of online transactions, companies such as Toyota are now competing in a market that is much more diverse and widespread, against renowned manufacturers like Honda, Nissan, Volkswagen, Mitsubishi, and Mazda.
In addition to this competitive landscape, there's a debate over whether information and communication technologies will favor small or large firms. Some argue that technology enables small businesses to reach wider markets, while others believe these technologies benefit larger firms, allowing for the management of operations on a global scale. This impacts firms, like Toyota, in the automobile industry, which was once dominated by local American companies but now faces stiff competition from international brands.
Ultimately, increased competition spurs innovation and quality improvements. American car producers are now making far better cars than several decades ago due to competitive pressure, particularly from East Asian and European carmakers, including Toyota. Thus, Toyota's challenge lies in efficiently designing its networks to maintain competitiveness in this rapidly changing global market.