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  1. 1. TOYOTA o Deepa Ram Suthar o Arun Sharma o Kalpesh Kumar Sharma o Deepak Lamba o Avinash Misra
  2. 2. • 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.
  3. 3. History of Toyota auto Industry • Established in 1937 out of Sakichi Toyoda’s weaving machine company • Launched first car (SA Model) in 1947 • “Toyota Production System” formed in 1950 based on just in time principal • First global expansion in 1959 at Brazil • In July 2012, cumulative production >200M units
  4. 4. Founder & CEO Founder kiichiro Toyoda Chairman Takeshi Uchiyamada •CEO •President Akio Toyoda
  5. 5. Business segments • Automotive • Design, manufacture and sales of passenger cars, recreational vehicles, SUVs and related parts • Financial services • Provisions of loans to car buyers and car deales • Others • Industrial vehicles (forklifts, etc.)
  6. 6. Toyota Total Sales By Region Japan, 25% Oceania, 3% Asia, 11% Middle East, 7% Africa, 4% Europe, 14% Latin America, 4% North America, 32% SALES
  7. 7. Toyota Visionary Management 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.
  8. 8. 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 communities. • 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 management. • Pursue growth through harmony with the global community via innovative management. • Work with business partners in research and manufacture to achieve stable, long-term growth and mutual benefits, while keeping ourselves open to new partnerships.
  9. 9. 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 the times. •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
  10. 10. 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 efficient methods. • TPS Concept  Jidoka — Highlighting/visualization of problems — -Quality must be built in during the manufacturing process!-  Just-in-Time - Making only "what is needed, when it is needed, and in the amount needed!"
  11. 11. International Business Strategy Four international business strategies have been worked out by Toyota: • Global standardization strategy • localization strategy • transnational strategy • International strategy
  12. 12. • 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 economies. • 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.
  13. 13. • 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.
  14. 14. Toyota’s objectives : 1. Business objectives: • To maximize shareholder’s wealth and giving them returns on their capital invested. • Effective working capital management • Cost management • Quality production • Resources utilization (manpower, capital, assets and other) • Public image in market (national and international) • Overcome competition
  15. 15. 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 society. • Proper waste management as a corporate social responsibility • Protect whistle blowers and have regular meetings and review on social, cultural and environmental issues.
  16. 16. 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.
  19. 19. Environment 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.
  20. 20. Education 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’
  21. 21. Traffic Safety Toyota promotes initiatives to improve traffic safety, viewing people, vehicles and the traffic environment as an integrated whole. 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
  22. 22. Society, Culture and more Toyota initiatives support various arts and cultural activities with the emphasis on “fostering culture,” “broadening horizons” and “revitalizing local cultures”. In Japan, 1. “Kokoro Hakobu Project” Disaster Area Recovery Support during 2011 Tsunami. 2. ‘Toyota Community Concerts’ Contribute to Promotion of Regional Culture through Music 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
  23. 23. 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.
  24. 24. 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 .
  25. 25. STP segmentation, targeting and positioning 4Ps of TOYOTA SWOT Analysis Flower of services Other Services Marketing Strategies
  26. 26. MARKETING • 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)
  27. 27. 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."
  28. 28. 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 attitudes.  Toyota uses a psychographic and behavioral approach to segmenting the market
  29. 29. The prius: • 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. The tundra: • Targets on consumers interested in functionality and recreation. The lexus: • 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. Trucks: • truck lovers or professional who need trucks
  30. 30. 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.
  31. 31. 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 Regular Cap(4x2&4x4) • 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....
  32. 32. TOYOTA uses: • show room, • advertisement, • free drive plan, • special offer and exhibitions, • after sales services, • Toyota’s blog: ( • TV programme, • Websites ( as a means of promotional strategy.
  33. 33. SWOT Analysis Location of Factor TYPE OF FACTOR Favorable Unfavorable Internal Strengths  Strong financial performance  Brand image  Strong performance in Asia region  Research and development activities  Toyota production system Weaknesses  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 External Opportunities  Increasing demand for hybrid electric vehicles like prius  Opportunities in Asian market  New models like Toyota Aygo for youth Threats  Economic slowdown  Competition in the global automotive market  Tightening emission standards  Appreciating Japanese Yen against US Dollar
  34. 34.  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
  35. 35. • 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.
  36. 36. • Continuous improvement. • Customer Satisfaction. • Quality Products. • Unique Production System • . Respect for people. • segmentation, targeting, and positioning nurtured by its variety of offers and product attributes.
  37. 37. Financial Highlights of Toyota Motor Corporation
  38. 38. Production History Revenue ¥22.064 trillion (FY 2013) [2] Operating income ¥1.320 trillion (FY 2013) [2] Profit ¥962.1 billion (FY 2013)[2] Total assets  US$ 377.281 billion (2013) [3]  US$ 372.928 billion (2012) [4] Total equity ¥12.773 trillion (FY 2013
  39. 39. Consolidated Financial Highlights (U.S. GAAP – Generally Accepted Accounting Principles) *Fiscal years ended March 31 Financial Highlights Net Revenues Operating Income Net Income and ROE (Return on Equity)
  40. 40. Capital Investment* and R&D (Research & Development) Expense Vehicle Production Vehicle Production by Region * Excluding vehicles and equipment on operating leases
  41. 41. Vehicle Sales Vehicle Sales by Region
  42. 42. Securities code 7203 (Japan) Number of shares issued 3,447,997,492 shares Number of shareholders 628,902 shareholders Fiscal year end March 31 Dividend payout confirmation date March 31 *When interim dividends are declared, the dividend payout confirmation date is September 30. Number of shares per unit 100 shares Transfer Agent Mitsubishi UFJ Trust Bank Limited Stock listings Japan: Tokyo, Nagoya, Osaka, Fukuoka, Sapporo Overseas: New York, London Corporate Stock Summary Stock Overview (As of March 31, 2013)
  43. 43. Names 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 Holders 82,399 Trust & Custody Services Bank, Ltd. 75,309 Mitsui Sumitomo Insurance Co, Ltd. 66,063 SSBT OD05 OMNIBUS ACCOUNT- TREATY CLIENTS 61,752 DENSO CORPORATION 58,903 Major Shareholders (Top 10 Largest Shareholders) (As of March 31, 2013)
  44. 44. Share Price Transition Toyota's share price and trading volume on the Tokyo stock exchange
  45. 45. References • 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 motivation. • 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 •
  46. 46. Thank You…….