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Toyota value chain and SWOT analysis

Toyota value chain and SWOT analysis

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Toyota ppt Toyota ppt Presentation Transcript

  • GROUP MEMBERS RIDHI WASEEM JYOTI AFTAB TWINKLE
  • INTRODUCTION Sakichi toyoda, the founder of the toyota group of companies, started toyota as a textile machine company.  Launched first car in 1947  Toyota production system formed in 1950 based on just-in-time principle  Overseas production starts in 1959 (BRAZIL).  Ranked 6th in fortune global 500 list 
  • TOYOTA  Public company traded on the NYSE and the ADR exchange in Tokyo  Employed 400000 people in 2012  Revenue of $272,749 Million in 2012  Year end of March
  • Toyota seeks to create a more prosperous society through automotive manufacturing and to sustain profitable growth by providing the best customer experience and dealer support
  • VISION Produce reliable vehicles & sustainable development of society by employing innovation & high quality of product & services.
  • SOME BRANDS OF TOYOTA
  • OBJECTIVES Waste of over production  Waste of time on in hand  Waste of transportation  Waste of stock in hand  Waste of movement  Waste of making defective product 
  • WHERE THEY ARE TODAY        Second Largest automaker, but most profitable 51 manufacturing companies in 26 countries - Produce a vehicle every 6 seconds Brands: Toyota, Lexus, Scion Business partners with Daihatsu and Hino automotive business accounted for 90% of revenues Other 10%: housing, marine, GAZOO, telecommunications, ITS, Biotechnology and Afforestation Success attributed to Toyota Production System
  • MAJOR COMPETITORS OF TOYOTA
  • PLACE        Toyota started their hybrid technology in Japan After the high success in Japan, Toyota moved their Prius to the US market where it has been very successful. The first introduction of the Prius was in 2002 and since then Toyota has come out with the Highlander and Lexus RX 400H and next year they will release the Camry. Most Toyota hybrid vehicles are available for purchase nationwide Toyota Prius is offered nationwide but there are waiting lists for the vehicles Lexus first hybrid RX400H is available for purchase nationwide Toyota Highlander has limited availability as of right now, consumers can order the vehicle but they are not available on sales floors.
  • PROMOTION   Toyota Overall Promotion  The main promotion for Toyota hybrids is the tax deduction given to consumers who purchase hybrid vehicles Toyota Promotions  Bluetooth technology  Option with in the Prius that if the consumer has a Bluetooth mobile phone, that allows customers with onboard navigation system and hands free phone capabilities with the vehicle  Land Speed  Aiming for the younger market by having a race car that reached the speed of 130.794 mph
  • PRODUCT       The Toyota Prius and Highlander are both in transition from the introduction stage to the growth stage of the product life cycle Limited number of products are available through few competitors Other competitors are becoming attracted to the market and will have similar offerings soon They are focused on building brand and customer loyalty. The Toyota Sienna and Camry are still in development but will be ready for the introduction stage soon They are focused on promoting these products to create awareness
  • PRICE        Toyota is offering high quality at a relatively low price in order to penetrate the market The Prius is priced the same as other five seater hybrids in its class but gets much better gas mileage Same price as the Honda Insight but holds three more people A hybrid Highlander SUV costs $5,000 more than the conventional Highlander It delivers more horsepower than the conventional Highlander (30 horsepower) It gets 10 more miles to the gallon It greatly reduces the tail pipe emissions
  • SWOT ANALYSIS
  • STRENGTHS         Dedication to R&D High market share High durability Easy availability of spare parts Comfortable ride High good will Good resale value Low fuel consumption
  • WEAKNESSES Over dependency on Japan & U.S. Market..  Risk that R&D outlays will not generate new competitive advantages.  Poor organisational structure  The cars steering is a bit light and driver can not feel the road  The body of the car is too heavy.  The rims and tyres of the car are not impressive. 
  • OPPORTUNITIES Expanding HEV line in U.S. – gain more market share  Demand growth in China and India  Modifying designs that are proven for other countries  Consolidation through acquisition – European foothold  Develop new variety and style 
  • THREATS  Supply chain costs tied to oil (materials, production and shipping)  Foreign exchange fluctuations  Growth of competitor.
  • VALUE CHAIN
  • INBOUND LOGISTICS Primary activities logistics toyota in obtaining-Raw material  They do not process their own, or create your on, they use a third party. LIKE- leather seats, stearing, wheel, tyre to local companies. 
  • TOYOTA PRODUCTION SYSTEM(TPS)     The production system developed by toyota motor corporation to provide best quality, lowest cost, and shortest lead time through the eliminating of waste. The toyota production system was established on two concepts: JIDOKA: Automation with a human touch, means that when the problem occurs, the equipment stops immediately, preventing defective product from being produced. JUST-IN-TIME: In which each process produces only what is needed by the next process in a continuous flow.
  • OUTBOUND LOGISTICS  Outbound logistics means Collecting, storing & distribution the product to buyers.  Toyota cars directly sent to toyota dealer, its for local.  If sending more distance or export its delivery using container.
  • MARKETING & SALES    Its provide means & incentives which allow buyers to purchase the product. Corporate Environmental Awareness: In 2003, Toyota embarked on its first pan-European corporate advertising campaign conducted by its Corporate Affairs department. In order to better communicate its environmental principals and activities – and support the "Aim: Zero Emissions" message – Toyota created an Environmental Brochure in early 2004. The Environmental Brochure was designed and published to target the general public, presenting Toyota’s basic environmental messages with a clear focus on the environmental technologies that are beneficial to consumers.
  • C0NTINUED... 1-Brand Environmental Awareness: a) Toyota vehicles stand at the Brussels International Airport. b) Toyota vehicles advertisement on the front of Toyota Motor Europe’s head office in Brussels, Belgium.
  • CONTINUED,,,,  Survey: Customer Satisfaction.  Greening the Supply Chain: Toyota therefore enlists the participation of those suppliers in the effort to provide environmentally friendly parts and materials to its customers. To do this, Toyota developed a set of Environmental Purchasing Guidelines, which the company encourages suppliers to follow.  Remanufactured Parts.  SMART Repairs.  Chemicals & Oils.
  • SERVICE Service means it enhance or maintain the value of the product. PARAMETERS- Quality of service, type of problem, service user friendly, service advisor, service delivery. 
  • TOYOTA PHILOSOPHY  Selling price-cost=profit  Customer decide the selling price  Profit is what remains after subtracting the cost from it.  The main way to increase profit is to reduce cost.
  • SUPPORTIVE ACTIVITIES
  • FIRM INFRASTRUCTURE  Modern and sophisticated  Robotic system used with human as the operator
  • HUMAN RESOURCE MANAGEMENT  Toyota has approximately 400000 employees world wide  In placement of an employee, the co. hold the test continued with the training according to its disciplines and expertise
  • TECHNOLOGY 4 major technology used by Toyota is concerned with safety of its costumers.... 1. 2. 3. 4. Pre-crash safety with collision-avoidence assists Adaptive driving beam Pop up bonnet Emergency response technology.
  • PROCUREMENT 1. 2. 3. Acquire our supplier to provide quality item at low price and in timely manner. We co-operate with them to promote environmental preservation and meet the other demand of our society. Long term view toward our relationship with supplier based on fair business practices..
  • FINANCIAL INFORMATION
  • TOYOTA Revenue - $172,749 million  Gross Profit - $43,517 million  Operating Income - $15,571 million  Total Net Income - $10,907 million 
  • COMPETITORS  Annual Revenue  Ford - $171,652 million  General Motors - $193,517  Honda - $80,705
  • GROWTH  1-year sales growth: 5.6%  1-year net income growth: 0.8%  1-year employee growth: 0.1%
  • millions of Japanese Yens' As of: Mar 31 2010 JPY Mar 31 2011 JPY Mar 31 2012 JPY Mar 31 2013 JPY Revenues 17,724,729.0 17,820,520.0 17,511,916.0 20,914,150.0 TOTAL REVENUES 18,950,973.0 18,993,688.0 18,583,653.0 22,064,192.0 Cost of Goods Sold 15,971,496.0 15,985,783.0 15,795,918.0 18,010,569.0 GROSS PROFIT 2,267,176.0 2,378,362.0 2,195,089.0 3,423,197.0 Selling General & Admin Expenses, Total 2,119,660.0 1,910,083.0 1,839,462.0 2,012,309.0 OTHER OPERATING EXPENSES, TOTAL 2,119,660.0 1,910,083.0 1,839,462.0 2,012,309.0 OPERATING INCOME 147,516.0 468,279.0 355,627.0 1,410,888.0 Interest Expense -33,409.0 -29,318.0 -22,922.0 -22,967.0 Interest and Investment Income 78,224.0 90,771.0 99,865.0 98,673.0 Other Non-Operating Expenses, Total 147,031.0 256,489.0 251,835.0 240,678.0 Other Non-Operating Income (Expenses) 33,372.0 27,168.0 17,029.0 3,608.0 4 Year Trend
  • EBT, INCLUDING UNUSUAL ITEMS 336,876.0 778,306.0 630,574.0 1,635,168.0 Income Tax Expense 92,664.0 312,821.0 262,272.0 551,686.0 Minority Interest in Earnings -34,756.0 -57,302.0 -84,743.0 -121,319.0 Earnings from Continuing Operations 244,212.0 465,485.0 368,302.0 1,083,482.0 NET INCOME 209,456.0 408,183.0 283,559.0 962,163.0 NET INCOME TO COMMON INCLUDING EXTRA ITEMS 209,456.0 408,183.0 283,559.0 962,163.0 NET INCOME TO COMMON EXCLUDING EXTRA ITEMS 209,456.0 408,183.0 283,559.0 962,163.0
  • Data Hide charts
  • Currency in Millions of Japanese Yens Mar 31 2010 JPY Mar 31 2011 JPY Mar 31 2012 JPY Mar 31 2013 JPY Cash and Equivalents 1,865,746.0 1,300,553.0 1,104,636.0 1,107,409.0 Short-Term Investments 2,185,889.0 1,240,429.0 1,095,927.0 1,311,147.0 Trading Asset Securities -- 154,887.0 69,149.0 38,500.0 TOTAL CASH AND SHORT TERM INVESTMENTS 4,051,635.0 2,695,869.0 2,269,712.0 2,457,056.0 Accounts Receivable 1,886,273.0 1,449,151.0 1,999,827.0 1,971,659.0 Other Receivables 360,379.0 306,201.0 408,547.0 432,693.0 Inventory 1,422,373.0 1,304,242.0 1,622,282.0 1,715,786.0 Prepaid Expenses 511,284.0 359,948.0 437,698.0 481,194.0 Finance Division Loans and Leases, Current 4,209,496.0 4,136,805.0 4,114,897.0 5,117,660.0 As of: Assets 4 Year Trend
  • LIABILITIES & EQUITY Accounts Payable 1,956,505.0 1,503,072.0 2,242,583.0 2,113,778.0 Accrued Expenses 1,735,930.0 1,008,864.0 988,689.0 1,182,514.0 Short-Term Borrowings 160,735.0 192,309.0 410,276.0 227,829.0 Current Portion of LongTerm Debt/Capital 249,416.0 Lease 303,369.0 334,492.0 205,866.0 Finance Division Debt, 5,087,846.0 Current 5,528,179.0 5,258,899.0 6,399,948.0 Finance Division Other -Current Liabilities -- 10,434.0 15,331.0 Other Current Liabilities 1,342,395.0 2,127,477.0 2,397,904.0 2,603,061.0 TOTAL CURRENT LIABILITIES 10,686,214.0 10,790,990.0 11,781,574.0 12,912,520.0 Long-Term Debt 955,060.0 913,737.0 608,134.0 583,538.0 Minority Interest 570,720.0 587,653.0 516,217.0 624,821.0 Finance Division Debt, 6,060,349.0 Non-Current 5,669,456.0 5,555,112.0 6,876,849.0 Finance Division Other -Non-Current Liabilities 7,104.0 8,191.0 11,752.0
  • In Millions of JPY (except for 12 months ending 2013-03per share items) 31 12 months ending 2012-0331 12 months ending 2011-03-31 12 months ending 2010-0331 Net Income/Starting Line 1,083,482.00 368,302.00 465,485.00 244,212.00 Depreciation/Depletion 1,105,109.00 1,067,830.00 1,175,573.00 1,414,569.00 Amortization - - - - Deferred Taxes - 6,395.00 85,710.00 25,537.00 Non-Cash Items -190,256.00 27,152.00 -6,777.00 332,608.00 Changes in Working Capital 452,981.00 -17,244.00 304,018.00 541,604.00 Cash from Operating Activities 2,451,316.00 1,452,435.00 2,024,009.00 2,558,530.00 Capital Expenditures -1,938,974.00 -1,532,082.00 -1,691,191.00 -1,437,601.00 Other Investing Cash Flow Items, Total -1,088,338.00 89,424.00 -425,153.00 -1,412,583.00 Cash from Investing Activities -3,027,312.00 -1,442,658.00 -2,116,344.00 -2,850,184.00 Financing Cash Flow Items - - - - Total Cash Dividends Paid -190,008.00 -156,785.00 -141,120.00 -172,476.00 Issuance (Retirement) of Stock, Net -43,098.00 -37,448.00 -28,617.00 -10,251.00 Issuance (Retirement) of Debt, Net 710,348.00 -161,114.00 604,064.00 -95,255.00 Cash from Financing Activities 477,242.00 -355,347.00 434,327.00 -277,982.00 Foreign Exchange Effects 137,851.00 -55,939.00 -127,029.00 -8,898.00 Net Change in Cash 39,097.00 -401,509.00 214,963.00 -578,534.00
  • COMPETITIVE ADVANTAGES Cost leadership scm in Toyota vendor manufacture dealer customer  Local part receiving pc(panama city) store production dock dealer.  Internal and vendor local part stock reduction using kanban cycle  Use “pull” system to avoid over production  Best mini MPV (toya avanza) 
  • SUGGESTED STRATEGY  Developed and produced multi product line for different income class.  Design less fuel consuming engines.  Developing new brands with unique features.
  • RECOMMENDATION  Invest in other product line  Make more hybrid car.
  • QUESTIONS FOR AUDIENCE Q1-When Toyota motors launched his first car?
  • Answer- In 1947
  • Q2- Full form of TPS?
  • Answer- Toyota Production System
  • Q3- What is the two concept of Toyota Production System?
  • Answer- JIDOKA & JIT