Should Urk Kuldar Inc. enter into a Joint Venture with Toyota Motor Company todesign 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. Hilux with only a uses primarily few modifications Toyota Hilux and went through Tundra “Impassable” Highly satisfied terrain to become with current motor the first automobile pool driven to the North Pole
http://youtu.be/5rOGmGXcR7MTop Gear UK Toyota Hilux taken to North Pole Toyota Tundra
Urk Kuldar Inc. History Started as Urk Kuldar One of the largest Securities October private security 2000 companies in the Started by Mogg world Bonecutta Third highest client Shaun Calvin took satisfaction rating in ownership May 2006 the world January 2008 Urk 2012 profits were $6 Kuldar went Public as Million Urk Kuldar Inc. Current estimated worth: $71.2 million
Urk Kuldar SWOT AnalysisStrength Weakness Excellent reputation Relatively small Highly trained Can not effectively Personnel offer all services in Experienced all regions and Management environments. International Limited Recognition Manufacturing Capabilities
Opportunities Threats Relatively untapped Competition from markets available larger, more well Rising need for established private securities companies world-wide Competition with Expansion available higher operations into other fields capacities Large quantity of Surge of new trained workforce to competition offering draw from cheaper services
Toyota History Started 1933 by 2006 Surpassed GM Kiichiro Toyoda as worlds larges automaker by 128000 Founded in Japan vehicles 1935 produced A1 car Current President: & G1 Truck Akio Toyoda Toyota Crown first In 2012 reported Japanese vehicle to 283.5 billion in profit be exported 2003 produced 6.78 million vehicles, second only to GM
Toyota SWOT AnalysisStrength Weakness Wide range of car variants to Immense competition offer from world class One of the oldest car competitors manufacturers which brings high brand awareness Lesser grip in Highly diversified product European market as portfolio compared to other car World class R&D and manufacturers Engineering capabilities High brand awareness and market presence in the international market Product known for durability
Opportunities Threats Expanding Automobile Intense competition in the market and opportunities market leading to for launching new saturation products Competition offering Concentrated efforts in innovative features at hybrid segment can help lower price Toyota become a market leader New entrants in the same segment with better Augmenting worldwide features and lower price distribution and servicing network to increase Car manufacturers market penetration 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
Recommendation We 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 werecommend 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.
Works CitedBailey, Scott. "Toyota sets new production record in North America." Bizjournals. America City Business Journals, 11 Jan. 2013. Web. 18 Jan. 2013. <http://www.bizjournals.com/sanantonio/blog/2013/01/toyota-sets-new-production-record-in.html>.Belsie, Laurent. "Toyota recall involves record number of cars." CSMonitor. Christian Science Monitor, 11 Oct. 2011. Web. 18 Jan. 2013. <http://www.csmonitor.com/Business/In-Gear/2012/1011/Toyota-recall-involves-record-number-of-cars.-Is-yours- included-video>."History of Toyota." Toyota Global. Toyota, 2013. Web. 17 Jan. 2013. <http://www.toyota-global.com/company/history_of_toyota/>."Overview." Toyota Global. Toyota, Mar. 2012. Web. 18 Jan. 2013. <http://www.toyota-global.com/company/profile/overview/>."Polar Challenge." BBC. BBC UK, 2007. Web. 17 Jan. 2013. <http://www.bbc.co.uk/programmes/b007v18p>.Schreiner, Bruce. "Toyota To Shut Down North American Factories Due To Parts Shortage." Huffington Post. Huffington Post, 4 Apr. 2011. Web. 18 Jan. 2013. <http://www.huffingtonpost.com/2011/04/04/totoya-will-close-north-american- plants_n_844585.html>.Strumpf, Dan, and Stephen Manning. "Stuck gas pedal causes 2nd major Toyota recall." Miami Herald. The Associated Press, 21 Jan. 2010. Web. 16 Jan. 2013. <http://www.orangecountylaw.com/files/1_21_1020_miami_herald_article.pdf>."A Toyota History." New York Times. New York Times, 2009. Web. 18 Jan. 2013. <http://www.nytimes.com/2008/02/10/business/worldbusiness/10iht-10chronology.9900084.html?_r=1&>."US Army Moves Ahead with V-Hull Strykers." Defense Industry Daily. Defense Industry Daily LLC, 22 Oct. 2011. Web. 16 Jan. 2013. <http://www.defenseindustrydaily.com/us-army-moves-ahead-with-stryker-hull-modification-06308/>."World Exclusive: GM Defense Stryker Out on patrol in 8x8 Light Armored Vehicle." Motor Trend. Motor Trend Magazine, Dec. 2001. Web. 18 Jan. 2013. <http://www.motortrend.com/features/163_0112_gm_defense_stryker/viewall.html>.
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