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Toyota Final Power Point
- 2. Introduction •Executive summary •Description ofbusiness •Financials •Market Analysis •Explore political and economic risks •Marketing Strategy and solutions Toyota
- 3. Executive Summary •“Since Toyota’sfounding we adhered to the core principle of contributing to society through the practice of manufacturing high-quality products and services. Our business practices and activities based on this core principle created values, beliefs and business methods that over the years have become a source of competitive advantage. These are the managerial values and business methods that are known collectively as the Toyota Way” (The fourteen principles of the Toyota Way, 2003).” Toyota
- 4. Description of business •ToyotaMotor Corporation designs, manufactures, assembles, and sells passenger cars, minivans, commercial vehicles, and accessories in Japan, North America, Europe, Asia, and globally. •mini-sized cars, passenger vehicles, commercial vehicles, and auto parts under the Toyota brand name; mid-size cars Toyota
- 5. FinancialsToyota 2010 2011 2012 2013 2014 209 408 283 962 1800 TOYOTA’S FINANCIALS INBILLIONS 2010 2011 2012 2013 2014
- 6. Market Analysis •Target Brazil •Economicinfrastructure •GDP 2.253 trillion •Consistent economic growth, relatively low inflation rates and improvements in overall living conditions •Vast amount of resources •Rise of the middle class Toyota
- 7. - 0.50 1.00 1.50 2.00 2.50 3.00 3.50 2010 2011 20122013 2014 2015 Toyota Sales Japan North America Europe Asia Central and South America, Oceania, Africa, The Middle East Market AnalysisToyota
- 8. Poverty and RegionalGrowth 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 2014 2015 2016 Projected Regional Growth Projected Regional Growth 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 2007 2008 2009 2010 2012 Poverty decline Toyota
- 9. Systematical approach •Utilizing asystematical approach by defining and solving the following: • Economical risks • Political risks • Limits Toyota will face with expansion in Brazil Toyota
- 10. Define •Marketing vision: Toincrease sales and productivity •Target Market: Brazil •Ideal customer: Middle Class •Product: Compact automobiles which exceed 100mpg Toyota
- 11. Political Risks •Defined •High costsdue to labor laws(CLT) • 16,000 labor unions • Working hours may not exceed 48 hours a week • Every employee is entitled to 30 days PTO every 12 months; If dismissed must pay back 1/3 of vacation earned • Annual bonus equal to one months salary • 120 days of leave for pregnant women • Transportation and meals Toyota
- 12. Political Risks •Tax Rates •Tariffs 0 10 20 30 40 50 60 70 1 68.3 38.7 36.5 47.346.3 Total tax rate % of profit Brazil Europe Asia Mexico United States Toyota
- 13. Economical Risks •Inflation continuesto rise •Interest rates on the rise •Foreign exchange and capital inflows •Fiscal policies Toyota
- 14. Specific Limitations •Threats •Cultural differences •Values and norms • Social structure • Groups • Religious and ethical systems • Language • Education Toyota
- 15. Success Benefits Size of Economy EconomyGrowth Costs Corruption Advertising Legal Costs Overall Success Risks Political risks Economic risks Cultural risks Toyota
- 16. Strategies and Solutions •Localizationstrategy • Introducing affordable fuel economy cars • Will stabilize the costs • Will create a demand due to lower fuel costs • Continue to reduce labor and material costs will help fight economic and political risks • This strategy will help fight continued inflation rates Toyota
- 17. Localized Production •Opening factoriesthroughout Brazil will help create: • Trust • Loyalty • Build rapport • Create jobs and better cost of living Toyota
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- 19. Cultural Strategy •Hiring managersand executives within the culture •Giving back to the community by • Fixing roads and housing • Setting up committees to feed the poor • Implementing tuition reimbursement for employees going to college within the community • Only buying products from Brazil for manufacturing Toyota
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- 21. References 2014 Index ofEconomic Freedom, Brazil. (2014, July 13). Retrieved from The Heritage Foundation: http://www.heritage.org/index/country/brazil Brazil. (2014, August 8). Retrieved from The World Bank: http://data.worldbank.org/country/brazil Brazil's surging auto industry tries to keep up with demand. (2012, January 27). Retrieved from Cars Direct: http://www.carsdirect.com/automotive-news/brazils-surging-auto- industry-tries-to-keep-up-with-demand De Sainte Croix, S. (2012, March 23). Middle Class Growth in Brazil: Daily. Retrieved from The Rio Times: http://riotimesonline.com/brazil-news/rio- business/middle-class-growth-in-brazil/ Toyota
- 22. References Jordan, L. (2012,September 21). Brazil says over 50% in Middle Class: Daily. Retrieved from The Rio Times: http://riotimesonline.com/brazil-news/rio-politics/brazil-says-over- 50-in-middle-class/# Malinowski, M. (2009, August 13). Tax Laws discourage firms from outsourcing abroad. Retrieved from Business insights in Latin America: http://www.bnamericas.com/news/technology/Tax_laws_discourag Menghani, J. (2013). Marketing Strategies and Plans of Toyota Motors. Vile Parle: M.L. Dahanukar College of Commerce. Toyota
- 23. References Muller, J. (2012,October 22). Why The World's Automakers Love Brazil. Retrieved from Forbes: http://www.forbes.com/sites/joannmuller/2012/10/05/why-the- worlds-automakers-are-loving-brazil/ Paying taxes. (2014, August 9). Retrieved from The World Bank: http://www.doingbusiness.org/data/exploretopics/paying-taxes Toyota