2. VISION
”To be the most successful and respected car
company in America.”
STRATEGIC OBJECTIVES
• Solidify Toyota's status as a leader in
automotive innovation and sales globally.
• Expand their range of environmentally-friendly
vehicles to lead the green initiative in the
automotive sector.
• Develop and implement marketing strategies
that highlight reliability, technology, and
sustainability.
• Continuously adapt to global market trends and
consumer preferences, particularly in safety
and eco-friendliness.
• Streamline operations to increase efficiency
and reduce production costs without
compromising quality.
• Invest in research and development to pioneer
advancements in autonomous vehicles .
• Improve profit margins through cost reduction
strategies and lean manufacturing principles.
• Maximize shareholder returns through strategic
growth, consistent profitability, and a strong
global presence.
MISSION
“To attract and attain customers with high
valued products and services and the most
satisfying ownership experience in America.”
3. Toyota Balanced Scorecard Objectives
FINANCIAL
Increase profitability
and shareholder value
CUSTOMER
Enhance customer
satisfaction and loyalty.
INTERNAL
Streamline processes
for operational
excellence. Improve
Efficiency and
effectiveness.
Cultivate a culture of
continuous learning
and innovation.
LEARNING &
GROWTH
4. FINANCIAL
CUSTOMERS Despite being red, Mars is actually a very cold
place in the Solar System
PROCESSES Jupiter is a gas giant and the biggest planet in
the Solar System
POTENTIAL Saturn is composed mostly of hydrogen and
helium and has several rings
Market Capitalization
Dividend Yield
Total Revenue
Revenue Growth Year-Over-Year
Operating Profit
Profit Margin
Earnings Per Share (EPS)
Return on Equity (ROE)
KPI Target
Revenue Growth
Increase annual
revenue by 7%
Profit Margin
Maintain a minimum
net profit margin of 10%
Cost Management
Reduce operational
costs by 5% annually
5. CUSTOMER
Market Share Growth
Sales Percentage from Hybrid/Electric Vehicles
Average Revenue Per Vehicle Type
Customer Loyalty Rate
Number of New Models Launched
Customer Profitability
Revenue from New Model Launches
KPI Target
Customer
Satisfaction
Index (CSI)
Achieve a CSI
score of 90
Market Share
Increase market
share by 2%
Product Quality
Maintain a
product defect
rate below 0.2%
6. INTERNAL PROCESS
Inventory Turnover Ratio
Supply Chain Cycle Time
First Pass Yield
On-Time Delivery to Customers
Production Flexibility
Cost of Quality
Rate of Continuous Improvement Initiatives
Environmental Impact Measures
Employee Productivity
Health and Safety Incidents
KPI Target
Manufacturing
Efficiency
(OEE)
Attain an OEE of 90%
across all
production facilities
Supply Chain
Performance
Reduce lead time by
15%
Innovation and
R&D
Launch 5 new
innovative products
per year
7. LEARNING & GROWTH
Adherence to Core Values
Employee Engagement Level
Employee Satisfaction Level
Organizational Learning Level
Line of Sight
Performance-Appraisal Rating
Turnover Rate
Diversity & Inclusion
KPI Target
Employee Satisfaction
Maintain an employee
satisfaction score of 85%
Training Hours per
Employee
Provide an average of 50
hours of training per
employee annually
Organizational Culture
Alignment
Ensure 90% of
employees understand
and align with Toyota's
core values
Editor's Notes
Market Capitalization: Reflecting Toyota's total market value based on the stock price.
Dividend Yield: Representing the dividend income relative to the stock price.
Total Revenue: The sum of all sales of goods and services.
Revenue Growth Year-Over-Year: Percentage increase in total revenue compared to the previous year.
Operating Profit: Income after the deduction of operating expenses, such as wages and cost of goods sold.
Profit Margin: Net income divided by revenue, showing the percentage of sales that turn into profits.
Earnings Per Share (EPS): Net income divided by the number of outstanding shares, indicating profitability on a per-share basis.
Return on Equity (ROE): Net income divided by shareholder equity, measuring profitability relative to owner's investment.
Market Share Growth: Percentage increase in Toyota's share of the automotive market.
Sales Percentage from Hybrid/Electric Vehicles: Reflecting the company's success in the eco-friendly vehicle market.
Average Revenue Per Vehicle Type: Breakdown of revenue generated per segment like sedans, SUVs, trucks, etc.
Customer Loyalty Rate: Proportion of repeat customers within a certain period.
Number of New Models Launched: Indicating Toyota's innovation and response to market demand.
Customer Profitability: Average profit generated per customer or per vehicle sold.
Revenue from New Model Launches: Total sales generated from models introduced within a specific timeframe.
Inventory Turnover Ratio: How frequently Toyota turns over its inventory within a given period.
Supply Chain Cycle Time: The total time taken for a component to travel from supplier to assembly line.
First Pass Yield: The percentage of products that meet quality standards without requiring rework.
On-Time Delivery to Customers: The rate at which finished vehicles are delivered to dealerships or customers on schedule.
Production Flexibility: The ability to switch production lines to different models or features quickly in response to market demand.
Cost of Quality: The total cost associated with ensuring products meet quality standards, including prevention, appraisal, and failure costs.
Rate of Continuous Improvement Initiatives: The number of Kaizen or continuous improvement projects implemented within a specific timeframe.
Environmental Impact Measures: Metrics that quantify the environmental efficiency of the production process, such as emissions per vehicle produced.
Employee Productivity: Output per employee, which could be measured in units produced per labor hour.
Health and Safety Incidents: The number of workplace incidents that result in injury or lost time, aiming for a decrease over time.
Adherence to Core Values: Measuring the extent to which employees' actions align with the company's core principles.
Employee Engagement Level: Assessing the emotional commitment of employees to their work and the company.
Employee Satisfaction Level: Evaluating overall workforce contentment with job conditions and the organizational environment.
Organizational Learning Level: The rate at which the company acquires and applies new knowledge to improve performance.
Line of Sight: Employees' understanding of how their roles contribute to the company's strategic objectives.
Performance-Appraisal Rating Change: Monitoring the progression of employees' performance over time.
Turnover Rate: The rate at which employees leave and need to be replaced.
Diversity & Inclusion: The diversity of the workforce and inclusivity of the workplace environment.
