Toyota Multan Motors 1 Acknowledgment I would like to express my deepest affection for my parents and friends who prayed for my success and encouraged me during this internship period. I appreciate and acknowledge the patience, understanding and love provided by employees of TMM. A token of special thanks to the following people who had been very friendly, co-operated with me throughout my internship period in Toyota Multan Motors and made it possible for me to learn and gather all the information needed for my internship report with as much detail as I could. These are the people who in spite of their busy scheduling took time out to explain to me the procedures and mechanics of work in the organization. My internship report would not have been possible without friendly and helpful attitude of following people Malik Israr Ahmad (CEO) Altaf-ur-Rehman (Manager Sales) Ch Imran Aktar (Deputy Manager of corporate sales) Majid Naeem Butt ( Manager of leasing) Amaar Ahmed (Deputy Manager of delivery) Syed Ghufran (Incharge sales) Syed Faheem Shamsi (NVD coordinator) Pervaiz, Bilal,Ammar, Naveed, Niaz, Hasnat Ahmad, Shakeel, Tauqeer, Mazhar( admin), Roshan, Jahanzaib waraich, Naheed, Hafeez, Nasir,Khalid Thanks to all that help me in making report .
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Toyota Multan Motors
1
Acknowledgment
I would like to express my deepest affection for my parents and friends who prayed for
my success and encouraged me during this internship period. I appreciate and
acknowledge the patience, understanding and love provided by employees of TMM. A
token of special thanks to the following people who had been very friendly, co-operated
with me throughout my internship period in Toyota Multan Motors and made it possible
for me to learn and gather all the information needed for my internship report with as
much detail as I could. These are the people who in spite of their busy scheduling took
time out to explain to me the procedures and mechanics of work in the organization. My
internship report would not have been possible without friendly and helpful attitude of
following people
Malik Israr Ahmad (CEO) Altaf-ur-Rehman (Manager Sales) Ch Imran Aktar (Deputy Manager of corporate sales) Majid Naeem Butt ( Manager of leasing) Amaar Ahmed (Deputy Manager of delivery) Syed Ghufran (Incharge sales) Syed Faheem Shamsi (NVD coordinator) Pervaiz, Bilal,Ammar, Naveed, Niaz, Hasnat Ahmad, Shakeel, Tauqeer, Mazhar( admin), Roshan, Jahanzaib waraich, Naheed, Hafeez, Nasir,Khalid
Thanks to all that help me in making report .
Toyota Multan Motors
2
Executive summary
It was my dream to work and get training to involve and get experience to learn this world class
car manufacturing organization.Toyota has the network of dealership all round the world, it was
my honor to work for Toyota Multan motors which is located in my city Multan. It has
marketing, sales, services and spare parts departments which work efficiently and effectively in
multan city.I have mentioned in my report different activities belongs to sales and services which
infact shows how it work with different customers and meet their demands of cars.I have done
my six weeks internship at Toyota Multan Motors Bosan Road.Marketing department of Toyota
multan motors is performing various marketing functions for the promotion of products and
services. These functions include the market segmentations, target marketing, product planning,
development, and positioning, promotional strategy. Sales department responsibility is to
develop sales. Some of the approval includes introducing new products, skill innovation.Toyota
Multan Motors continuously improving its services and provides new products as a
leading car manufacturing of Pakistan, in this way, Toyota multan motors make sure the
satisfaction of their customer as well their employees.
Toyota Multan Motors
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Table of Contents
Page #
1: Title page 1
2: Internship certificate scan copy 3
5: Acknowledgement 5
6: Executive Summary 6
7: Table of contents 7
8: Overview of the Organization 9
9: Organization Structure 16
10: Plan of my internship program 21
11: Training Program 24
12: Structure of marketing department 30
13. Functions of the Marketing department 33
14: Structure of Sales Department 43
15: Functions of Sales Department 45
16: Customer Services Department 47
Toyota Multan Motors
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Financial Analysis
Vertical and horizontal analysis of financial statements
17-Critical Analysis 51
18: SWOT analysis of the organization in the business sector 52
19: Conclusion 54
20: Recommendations for Improvements 55
21: References 56
22: Annexes 57
Overview of the Organization
Brief History
The Toyota motor corporation is a Japanese car manufacturer, which is the world‟s second
largest manufacturer from General motors, regardless of this fact it is ranked first in terms of
profitability, its net worth and revenue collection. It was founded in 1937 as a subsidiary of
Toyota industries.In the late 19th century, a Japanese Sakichi Toyoda invented Japan‟s first
power loom for textile industry. In 1918, Sakichi founded the Toyoda Spinning & Weaving
Company, and with the help of his son, Kiichiro Toyoda, his dream came true to make an
automatic loom in 1924. After Two years, he established Toyoda Automatic Loom Works.
Kiichiro adopted innovations in nature by his father, especially during his visits to Europe and
the U.S. in the 1920‟s, he started taking interest in the nascent automotive industry, Sakichi
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Toyoda received for selling the patent rights of his automatic loom, and Kiichiro laid the
foundations of Toyota Motor Corporation (TMC), which was established in 1937. Started From
looms to cars, the Toyota successful experience has been shaped by extending the boundaries of
outstanding vehicles manufacturer all around the world.
Toyota in Pakistan:
In Pakistan, Indus Motor Company is having sole distributorship of Toyota and Daihatsu Motor
Company for assembling, marketing and manufacturing.Indus Motor Company (IMC) is a joint
venture between the House of Habib , Toyota Motor Corporation Japan (TMC) , and Toyota
Tsusho Corporation Japan (TTC) for assembling, progressive manufacturing and marketing of
Toyota vehicles in Pakistan since July 01, 1990. IMC is engaged in sole distributorship of
Toyota and Daihatsu Motor Company Ltd. vehicles in Pakistan through its dealership
network.The company was incorporated in Pakistan as a public limited company in December
1989 and started commercial production in May 1993. The shares of company are quoted on the
stock exchanges of Pakistan. Toyota Motor Corporation and Toyota Tsusho Corporation have 25
% stake in the company equity. The majority shareholder is the House of Habib.
Nature of Organization
Toyota Motor Corporation (TMC) origin in the country of Japan is the world‟s largest auto
manufacturer, offering a full range of beautiful and latest vehicles design models. Toyota not just
selling auto motors, but also ensures after sales and full service of their clients with full different
range of warranties. Toyota builds dealer networks to sell these cars and to do services. Ensure
dealers are sufficiently trained and can deliver excellent services to customer
Toyota is at the heart of global manufacturing, a company that has grown within 70 years to
become the world‟s second largest vehicle manufacturer, which shows the great interest of
reliability and full trust from the customers of Toyota for many years. The company wanted to
integrate back office systems and external sources of information regarding vehicle data to
The Toyota Multan Motors offers monthly fix salary Rs. 8,000 plus incentives to the sales force.
Incentive is based on the performance of employees. For example, if the employee sales the
corolla above 10 units than the incentive will be @ 500/vehicle.
Expert power:
The Toyota Multan Motors provides the latest information to the sales department by conducting
the get together in the relevant branches.Evaluation of sales force:It is the policy of Toyota
Multan Motors that each sales person is required to sale not less 10 vehicles in one month. Thus
sales force is evaluated by this standard. Sales force is also evaluated by the competition among
the co-workers.
Functions of Sales Department
Sales Methodologies
The main function of a sales department is to attrac and retains customers Use of technique of
sales and sale strategy is an activity that is designed to help boost the sales of a product or
service. This can be done through an advertising campaign, public relation activities, , a free gift
campaign, a trading stamps campaign, through demonstrations and exhibitions, through prize
giving competitions, through temporary price cuts, and through door-to-door sales, personal sales
letters, and emails.
Toyota sales department usually follows the sale point method which is indicated below:
Toyota competitive strategy
Consumer attitudes and buying patterns
Brand strategy
After sales and service warranties
Advertising strategy
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Advertising strategy further move towards:
Price discounting
Gift with purchase offers
Mail in offers and rebates
Premium offers
Group promotions
Loyalty incentives
Last year model rebate offer
Type of Selling like personnel selling, door to door selling
Toyota uses various tools to carry on its marketing efforts such as direct marketing, promotional
campaigns and personal selling. Direct marketing is done through circulating printed materials
such as brochures and pamphlets and holding launching ceremonies and functions. Personal
selling is done mainly on an institutional level and the sales force is extensively trained for this
purpose. Promotional campaigns the most commonly used are the print medium however the
electronic medium is used sometimes. The campaigns are conducted by Toyota along with the
various dealers; however the final approval is from the company itself. A dealer without the
approval of Toyota cannot even launch an advertisement.
Sales returns procedures
If the car is not in stock, then usually it take one to two months for advance booking, Advance
booking can be cancel on request with necessary documents to sign and full amount refund
policy has adopt by Toyota. If any customer for any reason wqould likes to cancel its booking
order, then he has to cancel the order before the delivery notice or dispatch the car from the head
office.It has a form to fill up and some other necessary documentation for record and Toyota
refund the full amount to client.
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The sale of the car can return before to hand over to clients, but once all the necessary documents
with dispatch notice issued by the firm or dealer to Toyota main head office, than it can not
cancel the order.
Customer services department
Process of developing relations with customer
Since customers are the „king of the business,‟ Toyota put value in building good customer
relationships. Once customer relations department identify the potential customers in term of
establish connections, the customers relations department keep turn them into loyal customers
who continue doing business with Toyota and bring more people into the brand.Good customer
relationships drive the business to success. Toyota Just makes people believe in their customer
relations team effort‟s ability to satisfy their needs and fulfill their expectations as well as in their
auto cars and services. In the process of finding people who would believe in Toyota, consider
making a relationship with them and Toyota will not have to spend huge amounts of money just
to attract more customers.
Relationships with customers are developed over time and are not built overnight. It is not a one-
time experience with customers. That is why Toyota effective customer relations plans include
strategic activities that entail building good customer relationship apart from developing the
product or adding a new product line to the market. Below are some helpful techniques for
Toyota in building customer relationships.
Focus on to build the network of customers
Toyota has a desire to grow more and expand its operations. One way to achieve it is to build the
network of customers. The Toyota customers relation department do not just focus on
promotional activities and advertising programs but also take positive efforts to expand the
network of customers Expand customer‟s connections by conducting business seminars,
Toyota Multan Motors
31
attending Toyota events and responding to business invitations, and getting exposed to the
programs of the society. Since networking is a long-term investment, make sure to place value in
a relationship once it is for
Keep in Touch with Customers Regularly
Toyota always takes feed back, monitor customers after sales and gives awareness on new car
launch. Customers may come and go for some reasons, even with the most loyal of customers.
That is why once customers relations department have built a relationship with them, do not end
from there. The process is continuous; a customer‟s relations department constantly
communicates with their customers.
Make a follow-up after sales
For existing customers, Toyota provides them with the latest updates of new vehicles and any of
marketing programs. It is also a way of educating them with the latest market trends and keeping
them up-to-date with auto industry technology.
Techniques of retaining customer
One of the important operations activities of Toyota customer‟s relation department is to use
different techniques of retaining customers so that the company keeps alive and giving services
on regular basis. Following tools and techniques use to retain customers by Toyota:
Collect as much information as possible on each of its customers. Monitor them, take
feed back and provide services and make sure fulfill warranties and recall in case of
trouble. Responded fast and give efficient and friendly services with full confident.
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Repeatedly make sales force team aware of the value of each customer. Ensure this
taking care will be a part of any sales training they receive. Both sales team and
employees of services department must be made aware of this fact.
Customer relation department always try to make sure that entire managerial staff aware
of client problems.
The training includes that do not allow any customer to just walk away. Talk to him/her
on the telephone; make personal visits, in order to find out the reason for his "jumping
ship".
Reward, encourage and issues appreciation letters to the sales force team, office staff and
employees in the customer service department for their nurturing ties with loyal customers
Techniques of attracting new customer
To create new customers, Toyota value the past customers and fulfill all the commitments and
after sales services warranties, which is a good sign for Toyota reputation and have a good
impact and same time word of mouth plays an important role to attract new customers.
Toyota believes on Kaizan (continues improvement) by means of technology, design, comfort
and safety and give awareness to the potential and target customers using following tools and
methods of advertising:
TV, Radio and Magazines:
One of the most important tools of advertising use by marketing and sales department to attract
new customers.
Brochures:
Brochures are also one of the promotional activities, it consists of different models, prices,
colors, specifications, documents required from customers, and other necessary information.
Toyota Multan Motors
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Pamphlet:
Locally through the Pamphlet, the Pamphlets are given to the walk-in customers for the
promotion.
Banners and billboards:
This is also one of the ways to promote the products and services of Toyota. The Banners are
pasted at the door of Branches and dealership.
Media releases:
Media releases are a great way to transmit information about new launches, new models product,
and services to the large amount of potential customers.
Toyota Website design and Networking:
Toyota website is an important tool to attract new customers. All the new technologies and
launches of new models and cars can view by new customers to get useful information regarding
Toyota line of products with all kind of sales and services information is available on line.
Advance booking facility is available on line to attract and convenience.
Events:
Memorable events held by Toyota marketing and sales department plays a tremendous roll to
attract new customers which includes exhibitions and new launch ceremonies.
Toyota Multan Motors
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LEASING DEPARTMENT Types of leasing
Three types of leasing is being conducted in the Toyota Multan Motors.
Documents Required: (For Business Person):
Copy of CNIC.
Two recent passport size colored photographs.
Last one year Bank statement(s).
Residential utility bills (as a proof of residence).
Business proof required.
Copy of valid driving license (optional).
Two references.
Bank’s Signature Verification form.
(For salaried person (Private)):
Copy of CNIC.
Two recent passport size colored photographs.
Last six months Bank statement(s).
Recent salary slip.
Employment certificate.
Residential utility bills (as a proof of residence).
Copy of valid driving license (optional).
Two references.
Bank’s Signature Verification form.
(For Government person):
Copy of CNIC.
Two recent passport sizes colored photographs.
Last six months Bank statement(s).
Copy of professional degree/certificate.
Residential utility bills (as a proof of residence).
Copy of valid driving license (optional).
Two references.
Leasing tips: Leasing a car is a very bad idea if you want to own the car after the lease period ends. You can be faced with a balloon payment at the end of the lease that is very expensive.
Toyota Multan Motors
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Bank is the owner of the vehicle and only transfers its usufruct to the customer, hence, customer is responsible for any risks and liabilities attached to the usage of the vehicle, while risks relating to ownership remain with the Bank throughout the period. Description Responsibility 1. Expenses related to ownership Bank 2. Expenses related to use of asset Client 3. Risk associated with ownership Bank 4. Risks associated with use of asset Client 5. Third party liability in case of accident Client 6 Expenses and risks associated with ownership Client Is there any penalty involved if one fails to pay the Rental on time? Nominal additional charges are taken by the Bank due to any delay in rental installment(s) by the customer, which are used for “charity” purposes, rather than going into the income of the Bank, as it is done in the case of conventional lease. Does Banking charge Insurance? It is a requirement of the State Bank of Pakistan for auto finance / leasing institutions to insure the leased vehicle(s). Hence, we are bound to charge Takaful/ Insurance, which is within the rental installments, throughout the Ijarah period. What if any mishap happens to the Vehicle? If the vehicle is stolen or destroyed in any mishap, unlike conventional lease, Ijarah rentals will not be charged, and security is refundable in this case. However, this is subject to there being no misconduct, or negligence, on part of the client How the client becomes owner of the Vehicle? Once the client successfully repays the whole rental, Bank gives him / her opinion to become the owner of the vehicle, against the security already deposited with Banking. You are Eligible if you are:
A Pakistani National.
Earning at least two times more than your monthly Car rentals.
Between 21 to 60 years, (for salaried class), and of age, till the maturity of the lease period.
Employment experience of minimum six months in a permanent capacity in the current organization.
Being in business for at least on year.
Vehicle Delivery Inspection Quality (VDIQ ): This department deals with the over all checking of the Vehicle at the time of arrival and the selling to customer. At arrival stage, the vehicle that come from the Indus motor company the Inspector check the vehicle and if any default occurs then it claim to the Indus Motor Company. At the Selling perspective the inspector’s check the vehicle so that the customer are more facilitate rather they have any problem faced after the purchasing:
Toyota Multan Motors
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Delivery section has daily stock position that will show three things
1st I did note chassis number from key and note down on stock position at model
color that show PDS has not been done yet
2nd I note chassis number from key and note down on stock position at engine
number that show PDS has been done but washed not be done.
3rd I note that chassis number of that vehicle from showroom and note down on
stock position at both engine and chassis number that show that PDS and
washed both has been done.
After booking order IMC will send vehicle chassis number and engine number to MIS officer Faisal that will note down vehicle chassis and engine number at file of customer. Now Faisal will send these file of customer to delivery section and show that vehicle in transit to Multan. When vehicle dispatch from IMC then Delivery section will keep file in transit section, When vehicle received at TMM then delivery section will keep file stock position After receiving vehicle at TMM, delivery section will call to customer to take a vehicle from TMM.
What is transit claim? When vehicle dispatch from IMC to TMM during transit if any claim occur such like damage, paint crushing then IMC will provide transit claim to TMM because IMC is doing charge freight & insurance at each vehicle invoice.
New vehicle delivery section(NVD):
Before delivery process TMM checks these three things 1. PDS(Pre-Delivery service)
2. Wash
3. Payment confirm according to invoice
Now delivery section will take these things from customer
Customer copy
NIC photocopy
Letter of authorized person ( in case of bank case or corporate case)
Delivery section will provide following things:
Remote of vehicle
Lighter
First free service card
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Log book ( information for vehicle maintenance with schedule )
Warranty book’
Now delivery section will take sign on file for
Documents received
Vehicle received
Warranty book received
Now delivery person will confirm the chassis number and engine to customer according to requirements of documents. tell about them 1st free service and insurance of vehicle. After these procedure customer can take vehicle.
RATIO ANALYSIS
Ratio analysis involves the methods of calculating and interpreting financial ratios to
assess the firm's performance and status. The basic input ratio analysis, the firm's
income statement and balance sheet for the periods to be examined.
Liquidity ratios
Activity ratios
Debt analysis ratios
Profitability ratios
Marketability ratio
LIQUIDITY RATIOS:
Net working capital
Current ratio
Quick (acid—test) ratio
Cash ratio
Net working capitals:
Ratio Formula 2010 2011 2012
Toyota Multan Motors
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Net working
capital
CA - CL = 42,780,379.1 95,742,855.4 1,157,296,698.9
Interpretation:
TMM, NWC shows +ve balance. It means that company having ability to meet its short-
term obligations when they come due. Also this balance has improved from previous
year, which shows that company is more efficient in selling its inventory as compare to
previous year. It's also quit useful for internal control.
Current ratio:
Ratio Formula 2010 2011 2012
Current ratio CA / CL = 1.165 1.397 1.50
Interpretation:
Current ratio has increased from previous year, which indicate that the firm's current
asset has increased which lift up the liquidity position of the firm. This number is greater
than one, then the company has enough current assets to cover its short term liabilities.
A number that is much higher than one, however, might indicate that the company is
hoarding its assets instead of putting them to use. A number less than one indicate that
the company may experience problems with liquidity.
Quick Ratio
Ratio Formula 2010 2011 2012
Quick Ratio CA – inventory / CL 0.88% 0.76% 0.93%
Interpretation :
Quick ratio is improved from previous year also reduce the level of stock in trade.
Actually inventory is not more liquid asset, so in case of insolvency, firm will not be able
to sell its inventory as per requirement .In the light of finance this ratio should be 1.00 or
greater than it but Honda's ratios is less than but it is acceptable.
Why? Because larger manufacturing concerns affords it because they already sets the
impressive collecting policies.
Toyota Multan Motors
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Cash Ratio:
Ratio Formula
2010 2011 2012
Cash Ratio:
Cash + Marketable
Securities /CL
18.27% 7.27% 13.11%
Interpretation
Cash ratio is increased this year than previous also Honda increased its investment on
fixed assets. But on the other hand Toyota sold its inventory more than previous year
but on credit.
ACTIVITY RATIOS
Inventory Turnover:
Ratio Formula 2010 2011 2012
Inventory Turnover:
CGS / Inv. = 24.2 16.7 24.02
Interpretation
The inventory turnover ratio of the company improved from last year it means that
company is more efficient in selling its inventory in a year;
Average Age of Inventory:
Ratio Formula 2010 2011 2012
Average Age of Inventory:
360 / Inv. Turnover = 14.8 21.5 14.98
Interpretation:
As, in year 2012, the company is able to sold its inventory, so this ratio has decreased,
which shows efficiency of firm in selling its inventory as compare to previous year..
Average Collection Period:
Toyota Multan Motors
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Ratio Formula 2010 2011 2012
Average Collection Period:
A/C Receivable / Annual
Sale /365 =
23.70 15.95 13.09
Interpretation:
It has decreased from previous year, which is good sign for them.
If It has increased from previous year, which is not good sign for them. Its mean we are
giving the relaxation to our customer which might be harmful in long run because we
must receive our receivables as soon as possible.
Average Sales per Day:
Ratio Formula 2010 2011 2012
Average Sales per
Day:
Net Sales / 365 5014734.46 7223532.46 8901296.91
Interpretation
Here Toyota increased its sale, which shows the high sales revenue
Total Assets Turnover:
Ratio Formula 2010 2011 2012
Total Assets Turnover N Sales / TA = 4.62 6.71 8.22
Interpretation
Total assets turnover has increased, its mean more efficiently its assets have been
used.
DEBT RATIO ANALYSIS
Debt Ratio:
Ratio Formula 2009 2010 2011
Debt Ratio Total liabilities / Total Assets *100= 85.76% 71.56% 66.26%
Interpretation:
The ratio is decreasing from previous year which firm degree of indebtedness
increasing and more financial leverage it has
Time Interest Earned Ratio:
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Ratio Formula 2009 2010 2011
Time Interest Earned Ratio EBIT / Interest = 4 2.85 3.99
Interpretation:
This ratio is actually measures the firm’s ability to make the contractual interest
payments. In previous ratio is very low but this year it has increased with good numbers.
Profitability Ratio
Gross Profit margin
RATIO Formula 2009 2010 2011
Gross Profit
margin
Gross Profit /
Net Sales =
4.808% 3.899% 3.182%
Interpretation:
Here the gross profit decreases that are showing completion is increasing in the market
also causing of recondition vehicle sale is increasing in the market.
Net Profit Ratio
Ratio Formula 2009 2010 2011
Net Profit Ratio Net Profit (After
Taxation) / Net
Sales =
0.809% 0.530% 0.490%
Interpretation:
This ratio is actually measures the firm successes with respect of earning sale. Here the
decrease in the ratio of profit margin that cause…………………………
Operating Profit Ratio
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Ratio Formula 2009 2010 2011
Operating Profit
Ratio
Operating Profit
/ Net Sales
1.035% 0.708% 0.644%
VERTICAL ANALYSIS OF INCOME STATEMENT
Vertical analysis is the procedure of preparing and presenting common size
statements. Common size statement is one that shows the items appearing on it
in percentage form.
2010 2011 2012
Sales 100% 100% 100%
Less : C.G.S 95.19 96.1 96.8
GROSS PROFIT 4.8 3.89 3.1
Less: operating expenses
Administrative expenses 0.63 0.54 0.4
Selling expenses 0.79 0.87 0.67
Store expenses 0.17 0.14 0.13
Financial expenses 1.76 1.25 1.09
Depreciation 0.41 0.29 0.22
Total operating expenses 3.77 3.11 2.53
OPERATING PROFIT 1.03 0.78 0.64
Add; other income 0.04 0.03 0.09
NET PROFIR BEFORE TAX 1.07 0.81 0.65
Less; income tax liability for the year @ 25% 0.26 0.28 0.16
NET PROFIT 0.80 0.53 0.49
An application of the vertical analysis idea is to place all items on the income
statement in percentage form in terms of sales.
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Here we can see that the revenue is kept 100 % in all three years and the
percentages of various other items are determined in respect of total revenue.
If we see the item Cost of Sales in all three years, in year 2010 it was 95.19 %of
sales, in year 2011 it increased to 96.1% of Revenue and in slightly moved up in
year 2012 to 96.8 % of sales of the respective years.
If we take Gross Profit in year 2010, 2011 and in year 2012 it was 4.8%, 3.89%
and 3.1% of Revenue. That are every passing year it is going to decrease.
By subtracting all the operating expenses we come to net profit in year 2010,
2011 and in year 2012 the net profit was 0.8%, 0.53% and 0.49 % of Net
Revenue
HORIZONTAL ANALYSIS OF INCOME STATEMENT
Comparison of two or more year's financial data is known as horizontal analysis.
In this analysis we keep one year as base and we examine the changed of the
respective items in the next years
2010 2010-2011 2011 2011-2012
Sales 100% 44.04% 100% 23.22%
Less : C.G.S 100% 45.42% 100% 24.14
GROSS PROFIT 100% 16.79% 100% 0.57
Less: operating expenses
Administrative expenses 100% 23.27 100% (8.51)
Selling expenses 100% 59.9 100% (4.81)
Store expenses 100% 17.26 100% 17.69
Financial expenses 100% 2.79 100% 7.72
Depreciation 100% 3.23 100% (7.12)
Total operating expenses 100% 18.9 100% 0.4
OPERATING PROFIT 100% 9.01 100% 1.26
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Add; other income 100% 9.19 100% (64.01)
NET PROFIR BEFORE TAX 100% 9.02 100% (1.33)
Less; income tax liability
for the year @ 25%
100% 52.62 100% (29.52)
NET PROFIT 100% (5.51) 100% 13.84
In this analysis year 2011 & 2012 is being kept as base and we see the relative
changed in the next years by keeping it a base. If we assume that the revenue of
the year 2011 is 44.04% in year 2012 it reduced by 23.22 % and in year 2011
the reduction of Net Revenue as compared to year 2010 is by -5.51% and same
goes for the rest of the items
Vertical analysis of balance sheet
One application of the vertical analysis idea is to state the separate assets of a
company as percentages of total sales.
2010 2011 2012
ASSETS
CURRENT ASSETS
Sundry debtors
Adv deposit/ prepayment
Securities and refund
Advance to staff
Stocks
Cash & bank balance
FIXED ASSETS
Operating fixed assets
As per schedule
Work in process
55.4%
13.93
3.66
1.83
18.18
8.23
75.98
14.11
9.90
29.33%
12.49
2.44
0.8
38.6
2.04
85.73
14.2
29.50
12.28
3.09
1.25
33.15
7.54
86.8
13.15
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45
Total 100% 100% 100%
LIABILITIES
Current liabilities
Sundry creditors
Expense payable
Bank over draft
Income tax payable
Capital & liabilities
Partner capital account
Un-appropriated profit/ loss
2.55
1.50
59.86
1.24
65.17
31.08
3.74
5.70
1.66
52.06
1.91
61.36
35.07
3.56
2.78
1.26
52.15
1.34
57.54
38.42
4.03
100% 100% 100%
While working in Balance Sheet with Vertical Analysis we keep Total Assets and
Total Liabilities as 100 % and we take out the relative importance of the Current
and Noncurrent Assets in the company financial statements.
YEAR 2010:
In this year the current assets were 75.98 % of Total Assets where as the Non
Current Assets of the company were 24.01% of Total Assets i.e., 100 % The
Current Liabilities and capital & liability were 65.17% and 34.82% of Total
Liabilities.
YEAR 2011:
In this year the current assets were 85.73% of Total Assets where as the Non
Current Assets of the company were 14.2 % of Total Assets i.e., 100 % The
Current Liabilities and capital & liability were 61.31% and 38.62% of Total
Liabilities.
YEAR 2012:
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In this year the current assets were 86.6 % of Total Assets where as the Non
Current Assets of the company were 13.5 % of Total Assets i.e., 100 % The
Current Liabilities and capital & liability were 57.54% and 42.45% of Total
Liabilities.
Horizontal analysis of balance sheet
2010 2010-2011 2010 2011-2012
ASSETS
CURRENT ASSETS
Sundry debtors
Adv deposit/ prepayment
Securities and refund
Advance to staff
Stocks
Cash & bank balance
FIXED ASSETS
Operating fixed assets
As per schedule
Work in process
100%
100%
100%
100%
100%
100%
100%
(47.42) %
(10.9) %
(34.46) %
(55.54) %
110.84%
(75.40) %
12.02%
0.4%
100%
100%
100%
100%
100%
100%
100%
100%
1.15%
(1.08) %
28.64%
50.98%
(13.65) %
271.63%
1.86%
(7.29) %
Total 100% 100%
LIABILITIES
Current liabilities
Sundry creditors
Expense payable
Bank over draft
100%
100%
100%
122.09%
9.8%
(13.65) %
100%
100%
100%
(50.96)%
(23.77)%
0.7%
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Income tax payable
Capital & liabilities
Partner capital account
Un-appropriated profit/ loss
100%
100%
100%
52.62%
(6.52) %
12.04%
(5.51)%
100%
100%
100%
(29.52)%
(5.62)%
10.15%
13.84%
Total 100% 100%
Same concept is being followed here in Balance Sheet, 2010 & 2011 year was
kept as base year and the relative changes are being observed from here.
For instance, Current assets were100 % in year 2010 the reduction in year 2011
was by 44 % and in year 2011 the increase was by 0.21 % of the base year
amount and same goes for rest of the items
Critical Analysis
First of all, I am so glad that it is an end of my MBA degree program, which was my dream that
come true.Its true that the theory, what we study in the program of MBA from our university is
having much difference as compare to the practical and experience life but I would say one thing
here is that the studies what we have is mostly about ideal environment and situations and they
evolve from the Europe and American cultures and society research and development.
I am not completely satisfied whatever we had studied during our MBA program as compare to
that experience, what I saw and learn in TOYOTA.
The first thing what I observer is the interaction with the people who work in the field. The
behavior, attitude and dealing of workers and employees including top management are entirely
different as we studied.Secondly, it‟s difficult to handle the current situation dealing with
different clients at a time especially when client is angry and that time we have no alternative
other than to keep silent.Co-workers, workers and management are not as comfortable working
together as we have studied in our books.
All the department employees usually do not feel comfortable sharing business problems and
they feel that it might be their insult if they have to ask any questions or help.Toyota is a big
organization and here I saw that the management tried to follow those rules and regulations
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which TOYOTA wants to be implement to have the standards, which here they are quite
successful.I also observe that usually instead of helping for the new comer in our organization,
the employees do not co-operate as much as they suppose to do.
Its may be they feel panic that their position might be snatch with some body else or new ones
and that things make them feeling not to help or co-operate as they should do.But overall, few of
the top management and few of the other staff workers appreciate me and made me feel
comfortable and I realize that not all people got the same mentality and still people are there,
who wants other to be successful.
My point of view here is that learning theory is not just sufficient. Having practical experience is
a big difference working with others to have patience, abilities, interpersonal skills and need
communication skills.
SWOT analysis of the organization
Strengths
Brand image of Toyota worldwide
Very strong auto vehicle industry position is based upon a number of factors including a
diversified product range, highly targeted marketing and a commitment to lean
manufacturing and quality. The company makes a large range of vehicles for both private
customers and commercial organizations.
World's second largest carmaker with 6.78 million units.
Toyota Pakistan is in the list of high automated dealership like Japanese standards
providing quick and modern workshop services through fully computerized control.
Market leadership
Excellent dealership network worldwide with easily available spare parts.
Weaknesses
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Huge investment with expensive fixed costs and high cost of training and retaining labor.
In case if car market experiences a down turn then company could see over capacity. On
the other hand the car market experience an upturn then company may miss out on
potential sales due to under capacity because it takes time to accommodate. This is a big
problem with high volume car manufacturing like Toyota.
Always charge the premium price to the customers.
Management control by the local partners and dealers.
In Pakistan, Toyota tries to feel at ease with good looking; well dress, rich and educated
people and the poor looking customers feel some bit strange in the environment of the
dealership. Toyota Pakistan employees should try to accommodate behaviorally all type
of customers.
Delivery of car takes months for advance booking of customer‟s favorite color of its
choice.
Opportunities
Introduction of hybrid vehicles (environment friendly vehicles) by Toyota based on
technological developed helps increases car sales due to oil prices increases.
Investment in hybrid R&D by Toyota helps for selling its technology to other motor
manufacturers like FORD.
Toyota has launched its new Aygo, which is targeted at the streetwise youth market
„urban youth‟ market and captured the nature of dance and DJ culture in a very
competitive segment.
.In case of failure of competitor new launch usually helps Toyota brand more strong.
Switching diesel market towards petrol and CNG market.
Threats
Toyota faces tremendous competitive rivalry in the car market.
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Continues competition increases with new entrance coming from China, South Korea and
new plants in Eastern Europe.
Movement in the price of raw material such as rubber, steel and fuel are potential threats
for Toyota.
Government reduces the excise duty on imported cars.
Low investment from the new projects results decreases purchasing power of customers
in the current economic situation.
Conclusion
I have concluded that Toyota is really working well. It has a well reputed organization having
good control of human trainings to teach with good techniques.The technology is really
appreciated by me, which Toyota uses to manufactured cars and also the sales and marketing
department working well to give an excellent image of Toyota in a market.Toyota is an old
multinational organization with excellent controlling and management globally and it is prove by
Toyota that excellent management with same quality and same standards have been
implementing successfully.The environments are too professional to work inside Toyota and the
services which are provided by whole team and management is really follows the standards.
The vehicles which Toyota provide is really one of the world class ranking in a cars and even in
Pakistan I observe that people feel much proud buying and keeping Toyota cars, which shows
the image of Toyota and shows excellent reputation of work and services.It was my excellent
experience to work with one of the top ranking organization in the world(TOYOTA) and its
good for me to implement further in my career the good things and professionalism whatever i
learnt in Toyota and I would like to keep applying in my further practical life.
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Recommendations for Improvement
Should focus more to give awareness to common public for new launches and models of
cars.
It is also possible to attract or retain customers by investment in new technology like
express maintenance packages which can make the services quicker, easier, cost efficient
and more flexible.
Should expand more dealership in remote areas because I observe that customers have to
come from too far areas.
Must improve employee loyalty.
Must improve communication gap between employees and customers.
Should improve co-ordination in between departments.
Should give awareness about leasing and credit facilities which Toyota offers to the
customers.
Try to be friendlier with customers, when they enter inside so that they can finish their
hesitation.
Sales people should be in uniform with proper name tag on it, which I was missing in
them.
Lake of skilled workers on dealership because of low wages.
Salaries should be appropriate and sufficient to make employees satisfied, which is key to
success.
References
Mr. Sohail Sheikh Manager Customer Relations
Mr. Ch.Imran Deputy Manager Corporate
Mr. Majid Naeem Deputy Manager Leasing
Mr. Amaar Ahmed Deputy manager of New Vehicle
Mr. Toqeer Service Advisor
Mr. Luqman Customer Services Executive
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Annexure
Personal data collection through the staff of dealership during training period
Internet
Personal meeting with the head of Marketing Department