Business Enviornment of Toyota (Japan)

Toyota Motors

Vision & Mission

O Through improvements of conventional technology,

as well as pioneering efforts in the application of new

technologies, Toyota is taking great steps to develop

eco-cars which will help us become a low carbon

society.

O Statements to activities relating to the development of

key technologies.

SMART MOBILITY SOCIETY,

Environmental Technology, Safety

Technology, Quality Durability Reliability,

Intelligent Transport Systems, Smart Grid,

Personal Mobility ,Partner Robot,

Company ProfileO Company Name : Toyota Motor Corporation

O President and Representative Director : Akio Toyoda

O Date founded: August 28, 1937

O Capital : 397.05 billion yen (as of May 2014)

O Shareholders : Shareholder Composition

O Operations in North America, Latin America, Europe,

Africa, Asia, Oceania and Middle East

O Main Business Activities : Motor Vehicle Production and

Sales

O Number of employees (consolidated) : 338,875 (as of

March 31, 2014)

O Main Competitors : Bayerische Motoren Werke AG,

Chrysler Group LLC, Daimler AG, Ford Motor Co.,

General Motors Company, Honda Motor Company, Nissan

Motor, Tata Motors, Volkswagen AG and many other

automotive companies.

Worldwide Presence (Operations)

As of the end of Dec. 2013, Toyota conducts its business worldwide with 52 overseas manufacturing companies in 27 countries and regions. Toyota's vehicles are sold in more than 170 countries and regions.

Toyota Motors : 9th rank in Fortune 500 global companies

Global Presence (Geographically)

Red: Presence in Japan, Green : Official Dealership, Blue: Local Plant, L

Blue: Regional HQ

Steps involved in Globalization

Establish a local sales network and

launch brand promotion

Build Auto parts manufacturing

bases

Establish JVs with local players and build automobiles

there

Globalization Efforts….O Domestic Problems

O excessive capacity, choosy customers, surplus workforce and intensified

competition within Japan.

O In 1998, Japan sales accounted for a mere 38% of the company's total

sales, as compared to 52% in 1990

O In June 1995, Toyota announced the 'New Global Business Plan’

aimed at

O advancing localization (of production)

O increasing imports (through collaboration with foreign automobile

companies) over a three year period.

O A major objective of this plan was to increase Toyota's offshore

production capacity to 2 million units by 1998.

O Toyota focused on increasing overseas production significantly by

establishing new plants and expanding the capacity of the

existing plants

Scale Of Our Operations:

Vehicle ManufacturingPress Weld Paint

Plastics Assembly Quality Assurance

Scale Of Our Operations: Engine Manufacturing

Casting & Machining Assembly Quality Assurance

Production History [1992-2013]

Toyota’s Key Philosophies &

Practices: Toyota Way

CHALLENGE

KAIZEN

GENCHI GENBUTSU

CONTINUOUS

IMPROVEMEN

T

TEAMWORK

RESPECTRESPECT

FOR

PEOPLE

Sales Volume By Country

Production

Why they are globally top?

People Work style

Product Quality

Customers

USP’s of Toyota

O1. Safety

O2. Resale Value

O3. Maintenance

O5. Technology

O6. Affordability

SWOT analysis of Toyota

Current Economy and its Effect on Toyota

O Toyota became world’s largest automaker by units

sold from 2008 to 2010 as the US market collapsed

and G.M slid toward its 2007 bankruptcy.

O Following this disaster which was the worst since

World war II to bridge the gap Toyota concentrate

in manufacturing Prius and luxury-brand Lexus

hybrids.

O In 2011 Toyota ceding its title as the world’s largest

automaker to G.M following a natural disaster in

Japan i.e. Earthquake/Tsunami and flooding in

Thailand which saw a number of plants closed.

Cont….

O The Japanese car company saw profits increase by

57% in its fiscal year 2014, earning $18.2 billion

compared with $11.6 billion the previous year, thanks

partly to a weakening yen. Sales were also up, with

10.1 million units sold compared with 9.7 million in

fiscal year 2013. Sales are expected to slow next

year, however, as the yen is expected to strengthen

and taxes are expected to rise.

Cont…O Divorce ownership from control

O Perfect/Imperfect Competition

O Price elasticity of demand

O Trade Blocs

O Potential effects of climate change

Degree of Rivalry

Threat of Substitute

Barrier of Entry

Power of Buyers

Power of Suppliers

Conclusion

O In general the economic situation at the moment is

uncertain not only for Toyota but the whole automobile

Industry due to instability of economy.

O However still there is as huge chance for Toyota to

bounce back to World number one. By sticking to its

culture of doing things i.e. Kaizen and TPS including

examining price and income elasticity demand Toyota

can carry the Company through the current economic

downturn.

Recommendation & Suggestion

O Technological innovation including R&D on hybrid

cars can enable Toyota to gain advantage in these

rare opportunities.

O Toyota need to adjust with the changing of tastes and

environment concern as it is doing now to maintain its

position in the industry, its sound financial muscle

and expertise of its workforce can make this possible.

My Contact Details

O Name: Sambit Biswal

O Edu Qualification: B.tech

,PGDM

O Specialization: Operation and

Logistics Mngt.

O Hometown: Bhubaneswar

O State: Odisha

O Mobile no: 9439762322

O Email:

[email protected]