Course:- Strategic Management Presented By: Avais Hasan Zaidi Salman Haji Lateef Umer Siddiqui Tariq Mehmood

1. Presented By:
Avais Hasan Zaidi
Salman Haji Lateef
Umer Siddiqui
Tariq Mehmood

2. Tariq Mehmood
MS – HRM
SID – 56908
Email:
shadowsofursoul@gmail.com
tariqmehmooda30s@gmail.com
LinkedIn Profile:
https://www.linkedin.com/in/tariq-mehmood-
87530840/

3. Presentation Outline
 Introduction
 Industry Analysis
Internal Environment Analysis
SWOT Analysis
External Environment Analysis
Recommendation
 Conclusion

4. Introduction
 IMC was incorporated in 1989 as a joint venture company between the House of
Habib of Pakistan, Toyota Motor Corporation and Toyota Tsusho Corporation of
Japan.
 The main product offerings include several variants of the flagship ‘Corolla’ in the
passenger cars category, ‘Hilux’ in the light commercial vehicles segment and
‘Fortuner’ in Sport Utility Vehicle Segment.
 The manufacturing facility and offices are located at a 105 acre site in Port Qasim,
Karachi, while the product is delivered to end customers nationwide through a
strong network of 37 independent Dealerships spread across the country.
 Sale of Vehicle by unit- 500,000 units
 Net revenue earned in 2013 – 57.1 billion.

5. Introduction
To attract & attain customers with high-
valued products & services & the most satisfying
ownership experience
To be the most successful & respected car
company
World domination with regard to car
supply.
The company seeks to achieve market leadership by
delivering value to customers & providing high quality
vehicles

6. Core Values
 World class production quality
 Achieving the ultimate goal of complete customer
satisfaction
 Being seen as the best employer
 Fostering the spirit of teamwork
 Inculcating ethical and honest practices

7. Guiding Principles

8. Industry Analysis (Pakistan)
 An active and high growing field.
 Annual production : 100-170 thousand.
 Lack of competition due to only 3 assemblers and one small car
assembler (Toyota, Honda,suzuki & Nissan).
 Turnover : $ 3.6 Billion
 GDP contribution : 2.8 %
 Job contribution : 1.392M
 Auto industry is the 2nd largest tax payer (customs duty,sales
tax,withholding tax).

9. Contd
 the automobile market was governed by very few Original Equipment
Manufacturers and the market lacked a free and healthy competitive
environment

10.  Local sales of PC & LCV increased by 3.4 %
 Production in the industry also increased to 153,997 units
(2014) with a total increase of 11%

11. Internal Environment Analysis
CORE COMPETENCIES
Produce
- What is needed
- In the amount that is needed
Total quality control
All workers to meet customers’ needs
Involve all workers in the company
(BEING INCLUSIVE)
- To achieve total effectiveness of
the production system
- To ensure total productive
maintenance
Computer integrated manufacturing
to include:
- Design
- Production
- Distribution
- After sales service
- Support in the field
- Use computers & IT

12. Internal Environment Analysis
VALUE CHAIN OF TOYOTA
1.Efficient & effective marketing and sales service
a. Qualified staff
2. Supply after sales service
a. handle complaints & provide solutions
b. provide sales training
3. Efficient production method
a. Toyota has quality instruments to assemble & tune new car engines
b. Has an effective method of stopping work if there is a problem –
therefore there is no poor quality
4. Upright inbound logistics ensures:
a. The clients’ demands are met
b. therefore there is no storage costs or wastage do to lack of demand
5. Good accessibility:
a. Toyota manages a vast dealership

13. SWOT Analysis
• BRAND value
• Pioneer in Introducing Hybrid Cars
in Pakistan.
• Many dealership in Pakistan
• Availability of spare parts
• Good resale
• High Market share
• Marketing appeal to distinct niches
• Little diversification to allied lines
• Foreign Exchange risk
• No low cost PC.
• Dealerships residing in the outskirts
• Expanding HEV lines
• Increased demand for cars
• Deterioated transport system
increases demand for PC (passenger
cars).
• Tough competitors like suzuki &
Honda
• Smuggling of auto parts.
• High Inflation rate
• Imposition of Heavy taxes
• Floods in pakistan
• Rise in price of raw material
• Lack of skilled labor

14. External Environment Analysis
External Challenges
 Failure of the government to form auto policy which expired in june 2012.
 The company was in constant dialogue with GOP to redress several
taxation matters , review of the duties .
 Launch of the New 11th generation toyota corolla
 Suzuki’s agreement for sale of 50,000 Vehicles under ‘Apna Rozgar
Scheme’ of the Punjab Gov.
 Govt decision to provide extra ordinary Tax concession to HEV( Hybrid
Eletric Vehicles) as a means to promoting fuel efficient technology failed to
provide significant merit
 Local OEM’s who introduced the technology with After sales support had
no advantage to the policy
 Commercial importers took full advantage of lower prices of used HEV’s.

15. Production
 The plant has a total land of 426,500 Sq M with covered
area of 45,000 Sq M
 Comprises of Weld shop, Paint and Assembly shop
 22 work stations in weld shop, 37 work stations in Paint
shop and 32 work stations in Assembly shop and 8 work
stations at final inspection

16. Toyota Production System
 Guided Principles: Just-in-Time and JIDOKA.
 JIT- Eliminating the need for maintaining large Inventories
(reducing financial Cost/inventory Cost)
 JIDOKA-Work stops immediately whenever a problem
occurs (prevents defective items to proceed).
3M approach : Avoid Uneveness , waste ,overburden.
Tool: Yamazumi Chart ( measurement of time taken for
completing all activity)

18. Financial Analysis/Operating
Highlights

20. As per results;
 Enjoys Market share of 25% fy (2013-2014)
 During FY 2012-13, Production plummeted due to impact of liberization of
Import policies by GOP. ( reduced customer on HEV)
 Impact: Company posted a reduction in Net income by 21%
 During revision of import Policy in FY 2013-14, meager improvement in
overall numbers. The key highlight was a better bottom line representing a
15% YoY growth in Net Income.
 Net revenues showed a YoY decline of 11% in the same year.
 Major setback to meet increased demand by customer due to inventory
backfill could not be materialized.
 The assembly lines remained non-operational for 18 WD.
 Impact: Shortfall of 1500 units of production and sales

21. Contd
 a significant increase of 124% in fixed operational assets.
 Impact : IMC can now enhance its production capacity.
 No significant change found in company's inventory turnover
and debt collection period.
 The overall assessment based on the IMC’s fundamentals
suggest that there is a significant impact of external and
economic factors like customer demand, changes in fuel
prices, fluctuation in local currency, law & order situation of
the country, government policies etc

22. IMC strategies in place

23. Recommendation
Business level strategy >>
 Focus on technology and innovation of
Hybrid vehicles as future
differentiation strategy
Functional level strategy >>
 Operation strategy : Focus on Optimization of cycle time and
reduction of non-valued added activity enhancing the productivity.
 Marketing strategy : Reinforce Toyota brand image to restore
reputation and build brand loyalty to increase value of Toyota

24. Recommendation
Enhance market share >>
 Concentrate on the current market by the design,
production and marketing
 Invest and expand with more dealerships in the country
 Continuous learning and improvement of Toyota product and process
through technology and innovation
 Increase customer responsiveness; identify and satisfy needs,
improve support and after sale services

25. Conclusion
 Toyota has sources of strong competitive advantages in
automotive industry, such as TPM, value chain, strong brand,
wide product offering and hybrid vehicles
 Major recalls, economic crisis, and intense competition have
posed serious challenge for Toyota
 Growing emerging markets and shifting customers demands
offer opportunities for Toyota to attain superior profitability
and growth
 Toyota must sustain its competitive advantages to retain its
position and achieve future success

26. Thank You