Urk Kuldar Inc. & Toyota Motor Company Joint Venture
Sep 11, 2014
Urk Kuldar Inc. & Toyota Motor CompanyJoint Venture
Shaun CalvinCEO Urk Kuldar Inc.
Should Urk Kuldar Inc. enter into a Joint Venture with Toyota Motor Company to
design and manufacture a specialized, all terrain, armored vehicle?
The Situation In 2012 Urk Kuldar Inc. turned down an
estimated $25 million in contracts because of their location
Unable to operate in required terrain Would need specialized vehicles
Specialized Vehicles, Specialized Problems
Expensive Too specialized Limitations Multipurpose option costs $4 million each Market is limited in options
Why Toyota Urk Kuldar Inc.
uses primarily Toyota Hilux and Tundra
Highly satisfied with current motor pool
Hilux with only a few modifications went through “Impassable” terrain to become the first automobile driven to the North Pole
Top Gear UK Toyota Hilux taken to North Pole
Toyota Tundra
http://youtu.be/5rOGmGXcR7M
Urk Kuldar Inc. History Started as Urk Kuldar
Securities October 2000
Started by Mogg Bonecutta
Shaun Calvin took ownership May 2006
January 2008 Urk Kuldar went Public as Urk Kuldar Inc.
One of the largest private security companies in the world
Third highest client satisfaction rating in the world
2012 profits were $6 Million
Current estimated worth: $71.2 million
Urk Kuldar SWOT Analysis
Strength Excellent reputation Highly trained
Personnel Experienced
Management International
Recognition
Weakness Relatively small Can not effectively
offer all services in all regions and environments.
Limited Manufacturing Capabilities
Opportunities Relatively untapped
markets available Rising need for private
securities world-wide Expansion available
into other fields Large quantity of
trained workforce to draw from
Threats Competition from
larger, more well established companies
Competition with higher operations capacities
Surge of new competition offering cheaper services
Toyota History Started 1933 by
Kiichiro Toyoda Founded in Japan 1935 produced A1 car
& G1 Truck Toyota Crown first
Japanese vehicle to be exported
2003 produced 6.78 million vehicles, second only to GM
2006 Surpassed GM as worlds larges automaker by 128000 vehicles
Current President: Akio Toyoda
In 2012 reported 283.5 billion in profit
Toyota SWOT Analysis
Strength Wide range of car variants to
offer One of the oldest car
manufacturers which brings high brand awareness
Highly diversified product portfolio
World class R&D and Engineering capabilities
High brand awareness and market presence in the international market
Product known for durability
Weakness Immense competition
from world class competitors
Lesser grip in European market as compared to other car manufacturers
Opportunities Expanding Automobile
market and opportunities for launching new products
Concentrated efforts in hybrid segment can help Toyota become a market leader
Augmenting worldwide distribution and servicing network to increase market penetration
Threats Intense competition in the
market leading to saturation
Competition offering innovative features at lower price
New entrants in the same segment with better features and lower price
Car manufacturers catering to high ended customers
Recent Toyota Issues Recalled 6.5 million vehicles for problems
with the acceleration peddle during late 2009 and early 2010
Recalled 7.4 million vehicles due to fire hazard caused by electrical issues in October 2012
In 2011 an earthquake hit Japan, disrupting the their ability to manufacture these parts. As a result of this interruption, production in the US dropped to 30% capacity
Urk Kuldar Inc. Risks Could lose $4 million after selling related
assets Damaged Reputation Loss of future clients Loss of some current clients Total losses could be close to $8 million
Urk Kuldar Inc. Benefits Supplied a fleet of the new vehicle for the
cost of manufacturing Gain ability to accept contracts in
previously regions previously unavailable worth around $25 million/year
Receive 20% of total profits from sales estimated at $1.4 billion
Improved reputation
Toyota Benefits New vehicle to sell, nothing else like it Marketable to government, security and
industrial sector These sectors will still spend for this
product even when the public has cut back on buying other models.
Improved reputation for quality Significant profit
RecommendationWe recommend that Urk Kuldar Inc.
participate in this joint venture with Toyota Motor Company in both designing and
marketing of the new vehicle. In addition we recommend using our manufacturing facilities
in place of those in Japan to produce necessary parts for assembly to prevent any unforeseen break in supply from overseas.
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