o Deepa Ram Suthar
o Arun Sharma
o Kalpesh Kumar Sharma
o Deepak Lamba
o Avinash Misra
• Toyota Motor Corporation is a
Japanese automotive manufacturer headquartered
in Toyota, Aichi, Japan.
• As of January 2014, is the fourteenth-largest
company in the world by revenue.
• Toyota was the largest automobile manufacturer in
2012 (by production).
• Toyota is the world's first automobile manufacturer
to produce more than 10 million vehicles per year.
• The company was founded by Kiichiro Toyoda in
1937 as a spinoff from his father's company Toyota
Industries to create automobiles.
• In 2013 the multinational corporation consisted of
333,498 employees worldwide.
History of Toyota auto Industry
• Established in 1937 out of Sakichi Toyoda’s weaving machine
• Launched first car (SA Model) in 1947
• “Toyota Production System” formed in 1950 based on just in time
• First global expansion in 1959 at Brazil
• In July 2012, cumulative production >200M units
• Design, manufacture and sales of passenger cars,
recreational vehicles, SUVs and related parts
• Financial services
• Provisions of loans to car buyers and car deales
• Industrial vehicles (forklifts, etc.)
Toyota Total Sales By Region
Middle East, 7%
Latin America, 4%
North America, 32%
Toyota’s Visionary Management concept can be
expressed using the metaphor of a tree. The roots of
the tree are the shared values
that underlie our spirit of monozukuri. The fruit of the
tree is our contributions to “always making better
cars” and “enriching the lives
of communities.” The trunk of the tree is a stable
business foundation that supports products that
please our customers. Henceforth,
we will conduct our business so as to achieve
continuous growth through a virtuous cycle
comprising these three elements.
Guiding Principles at Toyota
• Honor the language and spirit of the law of every nation and undertake open
and fair business activities to be a good corporate citizen of the world.
• Respect the culture and customs of every nation and contribute to economic
and social development through corporate activities in their respective
• Dedicate our business to providing clean and safe products and to enhancing
the quality of life everywhere through all of our activities.
• Create and develop advanced technologies and provide outstanding products
and services that fulfill the needs of customers worldwide.
• Foster a corporate culture that enhances both individual creativity and the value
of teamwork, while honoring mutual trust and respect between labor and
• Pursue growth through harmony with the global community via innovative
• Work with business partners in research and manufacture to achieve stable,
long-term growth and mutual benefits, while keeping ourselves open to new
Five Main Principles of Toyoda
•Always be faithful to your duties, thereby contributing to the
company and to the overall good.
•Always be studious and creative, striving to stay ahead of
•Always be practical and avoid frivolousness.
•Always strive to build a homelike atmosphere at work that is
warm and friendly.
•Always have respect for spiritual matters, and remember to
be grateful at all times
Toyota Production System
• A production system which is steeped in the philosophy of "the complete
elimination of all waste" imbuing all aspects of production in pursuit of the most
• TPS Concept
— Highlighting/visualization of problems —
-Quality must be built in during the manufacturing process!-
- Making only "what is needed, when it is needed, and in the amount needed!"
International Business Strategy
Four international business strategies have been worked out by Toyota:
• Global standardization strategy
• localization strategy
• transnational strategy
• International strategy
• Global standardization strategy:
Global standardization strategy focuses on increasing profitability and profit growth by
reaping the cost reductions that come from economies of scale, leaning effect, and location
• Localization strategy:
A localization strategy practitioner increases profitability by customizing the firm’s goods or
services so they provide a good match to tests and preferences in different national markets.
• Transnational strategy:
a transnational strategy is aiming to simultaneously achieve low costs through
location economies, economies of scale, and learning effects; differentiate their
products offering across geographic markets to account for local differences;
and foster a multidirectional flow of skills between different subsidiaries in the
firm’s global network of operations.
• International strategy:
taking products first produced for their domestic market and selling them
internationally with only minimal local customization.
Toyota’s objectives :
1. Business objectives:
• To maximize shareholder’s wealth and giving them returns on their capital
• Effective working capital management
• Cost management
• Quality production
• Resources utilization (manpower, capital, assets and other)
• Public image in market (national and international)
• Overcome competition
2. Ethical objectives:
• No compromise in ethics
• True and fair presentations, comply with law and standards Maintain highest
level of honesty, integrity, professionalism and ethical behaviours.
3. Cultural social and environmental objectives:
• See foreseeable future needs, company’s responsibilities as a manufacturer
company and always take proactive steps that benefits customers as well as
• Proper waste management as a corporate social responsibility
• Protect whistle blowers and have regular meetings and review on social,
cultural and environmental issues.
The Strategic plan for Toyota Company:
The Strategic plan for Toyota is to serve as guideline for conducting and
coordinating development, research, marketing ,and all other business
activities across the motor industry and for increasing the development of
new and exciting efforts based on identification of region in the motor
invention opportunity and challenges. Toyota follow the concept of strategy
can be updated and changed anytime whenever it is in need of that. Strategy
is not any fixed rule that any origination when establishes it can’t change.
A GOOD CORPORATE CITIZEN
TOYOTA’s CSR POLICY (2005)
• EMPLOYEE PARTICIPATION
• INFORMATION DISCLOSURE
• GLOBAL PERSPECTIVE
Establishing a low carbon society
Establishing a recycling based society
Using Renewable Energy i.e. at Tsutsumi plant
1. Helping to Realize a Sustainable Society through Forestry
Activities ‘Forest of Toyota’: A Model Forest to Vitalize Satoyam
2. Valuing Nature’s Wisdom, Expanding Environmental Programs `
Rooted in the Community ‘Toyota Shirakawa-Go Eco-Institute’
3. Human Development Program ‘Toyomori’ to Restore the
relationship between city and mountainous villages.
Toyota’s philosophy says “manufacturing begins with educating people.”
1. In Japan, ‘Toyota Children Meet Artists’ Program —A workshop-style class with
artists, which helps children to discover the diverse ways of thinking and life.
2. In USA, Toyota Family Literacy Program’ Marks 20th Anniversary Contributing to
the Development of U.S. Society
3. In Taiwan , Scholarships for the children of model drivers
4. In China, Toyota Study Assistance Fund’ Supports Chinese Students
5. In SA, Increasing Basic Academic Skills by ‘Toyota Teach’
Toyota promotes initiatives to improve traffic safety,
viewing people, vehicles and the traffic environment as an
1. Toyota ‘Traffic Safety Campaigns’ Conducted Every Spring and Autumn in Concert with
Japan’s National Traffic Safety Campaigns
2. ‘Toyota Driver Communication’ at ‘mobilitas’ Aims to Raise Awareness of Traffic Safety
3. Hands-on Traffic Safety Events, Held Wherever People Gather, Allowing Them to Understand
Effective Traffic Safety through Various Experiences
4. ‘Toyota Safety School Teaches’ Local Children about Traffic Safety
Society, Culture and more
Toyota initiatives support various arts and cultural activities with the
emphasis on “fostering culture,” “broadening horizons” and
“revitalizing local cultures”.
1. “Kokoro Hakobu Project” Disaster Area Recovery Support during 2011 Tsunami.
2. ‘Toyota Community Concerts’ Contribute to Promotion of Regional Culture through
3. ‘Toyota Choreography Award’ Discovers the Next Generation of Choreographers.
4. In Venezuela, From the ‘Pinta Tu Escuela’ Program to Building a New School
5. In Philippines, Providing Regular Medical Service in Impoverished Areas
6. In Vietnam, Natural Disaster Relief in Japan and Overseas
Motivational Practices in Toyota
1.Maslow’s Hierarchy of Needs
• All employees of Toyota are satisfied in lower level needs.
• The way Toyota promoted a strong team spirit and sense of
belonging is by showing no discrimination between team members
• Toyota also encourages its employees to try to solve challenging
problems to build up their confidence so that they can satisfy their
higher needs in esteem and self-actualization.
2.Goal Setting Theory
• Goal specificity: Toyota required goals must be clear and defined .
• Goal difficulty: One of the challenging goal found in Toyota is that managers even
challenged workers to find solution to make things one Yen cheaper.
• Goal acceptance: At Toyota, an “community of fate” ideology was developed.
• Performance feedback: If performance feedback is clear, employees are more
motivated. Toyota uses visual management systems .
STP segmentation, targeting and positioning
4Ps of TOYOTA
Flower of services
• Toyota's marketing efforts focused on emphasizing the positive experiences of ownership
and vehicle quality
The ownership experience has been targeted in slogans such as
• "You asked for it! You got it!" (1975–1979)
• "Oh, what a feeling!" (1979 – September 1985, in the US)
• "Who could ask for anything more?" (September 1985 – 1989)
• "I love what you do for me, Toyota!" (1989–1997)
• "Everyday" (1997–2001)"
• "Get the feeling!" (2001–2004)
• "Moving Forward" (2004–2012)
• "Let's Go Places" (2012–present)
LOGO & BRANDING
The logo made its debut on the 1989 Toyota Celsior
The three ovals in the new logo combine to form the letter "T", which
stands for Toyota.
The overlapping of the two perpendicular ovals inside the larger oval
represent the mutually beneficial relationship and trust between the
“customer and the company”
The larger oval surrounding both of these inner ovals represents the "global
expansion of Toyota's technology and unlimited potential for the future."
Toyota’s segmentation and target market is guided by its philosophy of
‘right car in the right place’:
It has segmented all the countries across the globe as its market
All of toyota's vehicles speak to a different consumer segmentation.
Based on income, gender, life cycle stages, needs/desires, etc.
Vehicles are designed so as to attract on the basis of lifestyle choices and specific
Toyota uses a psychographic and behavioral approach to segmenting the market
• targets on conscious consumers who place an importance on the environment
• targets individuals that want to save at the gas pumps.
• targets individuals that care about safety, family, quality, etc.
• Targets on consumers interested in functionality and recreation.
• targets a more sophisticated, "classy" consumer, individuals interested in style, luxury,
comfort, status etc.
• targets the middle aged consumer who care about family, safety, security, prestige....all
wrapped up in a stylish bow.
• truck lovers or professional who need trucks
The manufacturer's suggested retail price (MSRP), list price or recommended retail price (RRP) of a
product is the price which the manufacturer recommends that the retailer sell the product.
70 different models sold under its name TOYOTA
• VANS: Sienna, Previa, Tarago, Estima
• TRUCKS: T100, Tacoma(4x2&4x4), Tundra CrewMax(4x2&4x4), Tundra Double Cap(4x2&4x4), Tundra
• SEDANS: Avalon, Camry, Corolla, ECHO,
• SUVs: 4Runner, FJ Cruiser, Highlander, Highlander hybrid, Land cruiser, RAV4, Venza, etc.
• WAGONS: Prius plug-in, Prius V, Pruis C, etc.
• Tercel, Supra, Yaris, etc....
• show room,
• free drive plan,
• special offer and exhibitions,
• after sales services,
• Toyota’s blog: (http://blog.toyota.com)
• TV programme,
• Websites (www.toyota-global.com)
as a means of promotional strategy.
Location of Factor TYPE OF FACTOR
Strong financial performance
Strong performance in Asia region
Research and development activities
Toyota production system
The company recalled 9 million vehicles in 2009-2010 and
7.43 million cars in 2012
An increase in recalls not only results in losses but also
harms the brand image of the company
Increasing demand for hybrid electric vehicles like prius
Opportunities in Asian market
New models like Toyota Aygo for youth
Competition in the global automotive market
Tightening emission standards
Appreciating Japanese Yen against US Dollar
Increase competitive strength through advanced technology:
Environmental technology (fuel consumption, emission, recoverability)
Hybrid vehicles and next generation fuel cells
Cost-reduction(discontinuation, integration of older models )
• Increased emphasis on financial services and information communication system
• Financial services:
Car loan and car leasing including Classic or Choices finance, operating leases,
Vantage leases, Driveway & Toyota Payment
Protection products including car insurance, vehicle warranties and servicing into
one easy monthly payment.
Payment Protection Insurance, a quick, easy and affordable way to make sure
you can keep up your payments in the event of an accident, illness or death.
• Continuous improvement.
• Customer Satisfaction.
• Quality Products.
• Unique Production System
• . Respect for people.
• segmentation, targeting, and positioning nurtured by its variety of offers and product
Revenue ¥22.064 trillion (FY 2013) 
Operating income ¥1.320 trillion (FY 2013) 
Profit ¥962.1 billion (FY 2013)
Total assets US$ 377.281 billion (2013) 
US$ 372.928 billion (2012) 
Total equity ¥12.773 trillion (FY 2013
Consolidated Financial Highlights (U.S. GAAP – Generally Accepted Accounting Principles) *Fiscal
years ended March 31
Net Revenues Operating Income Net Income and ROE
(Return on Equity)
Capital Investment* and R&D
(Research & Development)
Vehicle Production Vehicle Production by Region
* Excluding vehicles and equipment
on operating leases
Vehicle Sales Vehicle Sales by Region
Securities code 7203 (Japan)
Number of shares issued 3,447,997,492 shares
Number of shareholders 628,902 shareholders
Fiscal year end March 31
*When interim dividends are
declared, the dividend payout
confirmation date is September
Number of shares per unit 100 shares
Transfer Agent Mitsubishi UFJ Trust Bank Limited
Japan: Tokyo, Nagoya, Osaka,
Overseas: New York, London
Corporate Stock Summary
(As of March 31,
Number of shares held
(thousands of shares)
Japan Trustee Services Bank, Ltd. 328,913
Toyota Industries Corporation 218,515
The Master Trust Bank of Japan, Ltd. 185,036
State Street Bank and Trust Company 132,366
Nippon Life Insurance Company 129,455
The Bank of New York Mellon as
Depositary Bank for Depositary Receipt
Trust & Custody Services Bank, Ltd. 75,309
Mitsui Sumitomo Insurance Co, Ltd. 66,063
SSBT OD05 OMNIBUS ACCOUNT-
DENSO CORPORATION 58,903
Major Shareholders (Top 10 Largest Shareholders) (As of March 31, 2013)
Share Price Transition
Toyota's share price and trading volume on the Tokyo stock exchange
• Liker, J. K. (2004). The Toyota Way: 14 Management Principles from the
World’s Greatest Manufacturer. Madision, Wisconsin, USA: McGraw-Hill.
• Bodek, N. (2008). Toyota managers know the road to Lean is by way of
• Besser, T. (1995, May). Rewards and Organizational Goal Achievement: A
Case Study of Toyota Motor Manufacturing in Kentucky. Journal of
Management Studies, 383-399
• A Brief Understanding of International Business Strategy --A Case Study of
Toyota by Peter LIU