Toyota Internationalbusinessmgt 111126015046 Phpapp01

8/20/2019 Toyota Internationalbusinessmgt 111126015046 Phpapp01

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TOYOTA

Presented by:

Prannoy K.K

Nandakumar

MBA 2010-12

Aloysius Institute of Management Information !e"#nology


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INTRODUCTION• Founded in 1937

• Headquarters: Toyota City, Tokyo, Japan.

• Toyota has annual sales of 13! "illion

• #rodu$es : 6.78 million %ehi$les per year

• Has &3 o%erseas 'anufa$turin( $o'panies, in )7 $ountries*re(ions

• +'ployees :3,1,!!! people

• )nd lar(est auto'o-ile 'anufa$turer


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WORLD WIDE OPERATIONS

• Toyota conducts its business worldwide with 56 overseasmanufacturing companies in 27 countries and regions. Toyota's

vehicles are sold in more than 17 countries and regions.

3


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Toyota operations

!merican "amoa #ndia "aipan!ustralia #ndonesia "amoa

$ahrain #srael "audi !rabia

$runei %arussalam &hilippines "ingapore

hina (iribati "olomon #slands

)i*i (uwait "ri +an,a

-uam alaysia Tahiti

/ong (ong0 hina epal Taiwan

ew aledonia Thailand

ew ealand Tonga

3man 4nited !rab mirates

&a,istan anuatu

&apua ew -uinea iet am


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• Toyota and not Kiichiro Toyoda

• 1966, Toyota acquired Hino

• Toyota acquired Daihatsu

• Manuacturin! or assem"ly #lants$ %nited

&tates, 'ustralia, (anada, )ndonesia, *oland,

&outh 'rica, Tur+ey, the %nited Kin!dom,

rance, -rail, )ndia, 'r!entina and (ech/e#u"lic.

• Denso 0as s#un o


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• Toyota acuired additional ownerships in8

Toyota !uto $ody orporation0 (anto !uto

9or,s +T%0 entral otor 3.0 +T%0 and &.T.

Toyota otor anufacturing #ndonesia.


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TOYOTA &

ENVIRONMENT • ontribution towards a prosperous 21st century : zeroemissions

• &ursuit of environmental technologies

• oluntary actions : environmental issues

• 9or,ing in co:operation with society : Build close

and cooperative relationships


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Toyota Production Syste!ey Main Conce"ts

• ;ido,a


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#o$ does Toyota do it%

• Engineer it ((hrysler ) test and try to

"rea+

• Inspect (Mercedes system)

• Build it into the assembly process


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ENERIC STRATEIES

• Cost Leadership

• Differentiation


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SWOT Ana'ysis

Strengths: Weaknesses:

•Diersiied #roduct ran!e, hi!hly tar!etedmar+etin! and a commitment to leanmanuacturin! and quality.•2)T•TM•*roduct 4ine•Toyota5s culture

•Trade union issues•Hi!her 4ead Time•(om#any needs to cautiously +ee##roducin! cars in order to retain itso#erational eiciency

Opportunities: Threats:

•Toyota has also sold on its technolo!y to

other motor manuacturers, or eam#leord has "ou!ht into the technolo!y or itsne0 #lorer &% Hy"rid

•Toyota is to tar!et the ur"an youth mar+et.

•Toyota aces tremendous com#etitie

rialry in the car mar+et.

•conomic insta"ility


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PEST

• POLITICAL FACTORS:


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(C Matri)

STAS !

"ash "o# $ogs


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Toyota in Austra'ia

• %esigned with state of the art telecommunications0

but also has storm water recycling0 eBternal solar

shades0 double and triple glaAing0 Aoned and filtered

air conditioning0 and an air reticulation system toreduce energy usage

• !ward for the best contribution to sustainable

development

• arpets are made with recycled materials0 supplied all

over the world.


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Toyota in c*ina

• (onsiderin! (hina is an immature auto

mar+et, the com#any has ado#ted a three:

sta!e deelo#ment #lan

; irst to esta"lish a local sales net0or+ and

launch "rand #romotions, then

; To "uild auto #arts manuacturin! "ases, and,

; To esta"lish 0ith local#layers and #roduce automo"iles.


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Custoi+ation in Euro"e

• 1997 launched *rius a !asoline electric

car

• '#ril 1998 ne0 small car in uro#e mar+et

; ?aris

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Euro"e

• ?aris launched or tar!etin! uro#ean mar+et.

• n!a!e uro#ean desi!ners to desi!n morecars

• &tarted the rench /iiera Desi!n (enter

• )ncrease manuacturin! ca#acity in uro#e

• 4ocal #rocurement, locally #roduced units

• ntered into #artnershi#s 0ith other automo"ilecom#anies

• *artnered 0ith *&' *eu!eot

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TOYOTA , INDIA

• #n #ndia0 Toyota otor orporation entered in a *oint venture

with (irlos,ar -roup.

• CDE sta,e is owned by Toyota and the remainder by #ndia's

(irlos,ar group.

• Toyota (irlos,ar otor &rivate +imited FT(G has 2 units

one solely handling manufacturing and the other focused on

mar,eting0 distribution and sales

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Vision and Mission

• %ision is to "e the most res#ected and successulenter#rise, deli!htin! customers 0ith a 0ide ran!e o

#roducts and solutions in the automo"ile industry 0ith

the "est #eo#le and the "est technolo!y.

• &ission o Toyota is to #roide sae @ sound


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Core Va'ues

; Aorld class #roduct quality.

; 'chiein! the ultimate !oal o com#lete

customer satisaction.

; osterin! the s#irit o Team0or+.

; )nculcatin! ethical and honest #ractices.

BC


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PRODUCT LI-E CYCLE

B1

TKM IS IN BETWEEN THEGROWTH AND MATURITY

STAGE .Toyota decided to repace!"ais #eca"se o$ t%o reasons.

!"ais %as a &a'or s"ccessa&on( t)e to"r operatorse(&ent #"t %as not pop"ar at

t)e indi*id"a+)o&e se(&ent.

Second reason %as t)eincreased co&petition $ro&,)e*roet Ta*era %)ic) %aspercei*ed to #e a &ore re-ned

"p&aret SU/.

Toyota aso %anted to #rin( int)e atest prod"cts in t)eIndian &aret.!"ais %as ony a test prod"ct.

0"rt)er1 Toyota %anted toappea to t)e indi*id"a+)o&e


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DISTRI(UTION NETWOR!

&enetration


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-our .ey co"onents /orToyota

These are lin,ed to the pursuit of a new global image with 8• being ,ind to the earth0

• providing comfort of life0

• eBcitement for the world0

• and respect for all people.

The encompassing motto of Toyota

Hinnovation into the futureH is Hwor,ing with passion and

dedication to create a prosperous society.H

B3


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LOO =Three ellipses depicting the heart of the customer0 the heart

of the product0 and the ever:eBpanding technological

advancements and boundless opportunities that lie

ahead.>


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Pricin0 Strate0y Pricin0 Strate0y

• Optiona"Feat#re Pricin! 8 e.g. an #nnova customer can order

mud flaps0 side steppers or other accessories.

• Pro$otiona Pricin! :


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• 9arranties and "ervice contracts 8 The company provides I year or 1 la, (m Fwhichever earlierG

warranty on all repairs using Toyota genuine parts.

• %ifferentiated &ricing 8

+ocation &ricing 8 Toyota cars are priced differently

in different states. ar cost remains the same acrossthe country but the road taB and insurance rates differin different states.

B6


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Inno1ation

• Toyota has introduced new ideas J technologies whichenable them to lead the innovation among otherscompetitors.

Bample1. /ybrid gas:electric vehicles.

2. !dvanced &ar,ing -uidance "ystem.

I. ight:speed automatic transmission.

K. )our:speed electronically controlled automatic with buttonsfor power and economy shifting.

B7l


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,Prootion 2INNOVA3 A'' you desire 3

B8


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CSR Strate0y

Toyota com#any contri"uted to #u"lic relation5s in

the ollo0in! manner $

1. )t contri"uted to Tsunami.

B. Toyota Kirlos+ar si!ns M% 0ith -an!alore%niersity or #romotion o 2a#anese lan!ua!e.

3. Toyota o"seres earth day "y su##ortin! localschools.


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'o4a'i+ation

• '!!ressie Elo"aliation eorts that

"e!an in mid 199Cs

• 3 Elo"aliation #ro!rams

• Fe0 Elo"al "usiness #lan =19GG:1998>

• Elo"al ision BCCG =1996 ;BCCG>

• Elo"al ision BC1C =BCCB ; BC1C>

3C


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5676 'o4a' Vision

• Toward a recycle:oriented society

• Toward the age of #T and ubiuitous networ,s

• Toward a mature society Fthe decline of nationalism

and warG

• Toward motoriAation on a global scale Fsocieties with

little private transport gaining moreG


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'o4a' Vision 5668

• 199G Hiroshi +uda "ecame *resident

• To im#roe domestic sales ; ocus on

dealer net0or+

• )ncenties to increase sales to dealers

• '!!ressie means to attract youn!sters to

its #roducts• unctional discre#ancies amon! the

dealers

3B


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• Heay inestments in adertisin!

• +uda decided to ocus on im#roin!

!lo"al sales #erormance

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Ear'y 'o4a'i+ationE9orts:

• 2une 199G Toyota announced Fe0 Elo"al-usiness *lanI aimed at localiation o#roduction and increasin! im#orts oer a

3 yr #eriod• 4ocaliation 0as the ocus

• '#art rom this short ;term !lo"al

"usiness #lan Toyota also came u# 0ith alon!:term !lo"al ision in 2une 1996

3J


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'o4a'i+ation E9orts:

)ncreasin! #roduction o automo"iles "y

im#roement in three core areas$

• %#!radin! its /@D

• Deelo#in! ne0 line o #roducts

• /e#laced en!ines o its 4eus ran!e ocars 0ith stron!er models @ made desi!nchan!es as #er customer eed"ac+

3G


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• Toyota's corporate goal is to achieve continuous growth and enhance

its corporate value by contributing to society and gaining customers'

enduring trust through global operations and through products

refecting Toyota's advanced technology that target the local demandin each market

• The automotive industry is intensely competitive across the globe

and is expected to transorm signicantly in the uture. In order to

respond to changes in environment and attain urther growth Toyota

will come together as a group and pursue the ollowing agenda


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• Attractive Product Lineup Responding to Consumer Preferences in Each Region

• Next-Generation Eco-cars Centered on Hybrid ode!s

• Annua! "nit #a!es of Hybrid ode!s G!oba!!y

ex$

• %ear Ended arch &'( )**+ )**, )*'*-inthousands.

• Total !nit "ales ### $%& ##


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• ode!s /argeted to Resource-rich and

Emerging ar0ets

• G!oba! ode!s 12( 2it34%aris( Camry

and Coro!!a4Auris

• Premium 5rand ode!s Lexus.6


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• Loca!i3e G!oba! 7perations 8ith /argeted

Regiona! #trategies

• 9apan as the Center of the G!oba!

7perations

P t ! I iti ti


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Proote !ey Initiati1es'o4a''y

• aintain Leadership in Research and

:eve!opment

• 1mprove E;ciency

• #trengthening


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;UANTITATIVE AND ;UALITATIVEDISCLOSURES A(OUT MAR!ET

RIS! •


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• (ased on its assessment o market needs and prospects.To respond fexibly to fuctuations in demand in each oits production operations throughout the world

• T)" starts with the customer by asking *+hat valueare we adding rom the customer's perspective,*(ecause the only thing that adds value in any type of

process- be it in manufacturing marketing or adevelopment process-is the physical or informationtransformation of that product service or activity intosomething the customer wants.


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;ua'ity

• Toyota's philosophy is to identiy deects when

they occur and automatically stop production so

that the problem can be xed beore the deect

continues downstream.

• o and see.

• /naly0e the situation.• !se one-piece fow and andon to surace problems.

• /sk *+hy,* ve times.


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Standardi'ation• Toyota "eliees standardied 0or+ is the "asis or em#o0erin!

0or+ers and innoation in the 0or+ #laceThe S• &ort:&ort throu!h items and +ee# only 0hat is needed 0hile dis#osin!

o 0hat is not.

• &trai!hten =orderliness: ' #lace or eerythin! and eerythin! in its#lace.

• &hine =cleanliness>: The cleanin! #rocess oten acts as a orm oins#ection that e#oses a"normal and #re:ailure conditions that couldhurt quality or cause machine ailure.

• &tandardie =create rules:Deelo# systems and #rocedures tomaintain and monitor the irst three &s.

• &ustain =sel:disci#line:Maintainin! a sta"ilied 0or+#lace is anon!oin! #rocess o continuous im#roement.

/echno!ogy


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/echno!ogy

• Toyota introduces new technology only ater it is proven through

direct experimentation with the involvement o a broad cross-section

o people

Leadership

• Throughout Toyota's history key leaders have 'been ound within the

company at the right time to shape the next step in Toyota's

evolution.

• Toyota's leaders are home grown. 1eaders must live and thoroughly

understand the company's culture day by day.

• 1eaders must demonstrate this ability and understand how work gets

done at a shop foor level. Toyota believes that a supercial

impression o a situation will lead to ine2ective decision-making and

leadership.

Mana0in0 "eo"'e


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Mana0in0 "eo"'e"tage 34 5rientation. The group needs strong direction rom the leader and must

understand the basic mission rules o engagement and tools the members will

use

"tage 64 7issatisfaction. /ter going to work the members discover it is harder

than they thought to work as a team. In this stage they continue to need strong

direction 8structure9 rom the leader but also need a lot o social support to getthrough the tough social dynamics they do not understand.

"tage $4 Integration. The group starts to develop a clearer picture o the roles o

various team members and begins to exert control over team processes. Theleader does not have to provide much task direction but the team still needs a

lot o social support.

"tage #4 )roduction. The group becomes a high-perorming team no longerde endent on the leader.

Per/orance easureent


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There are at least three types o measures at Toyota4

3.lobal performance measures-how is the company doing, /t this level

Toyota uses nancial :uality and saety measures very similar to those usedby other companies

6.5perational performance measures-how is the plant or department doing,

Toyota's measurements are timelier and better maintained than at other

companies. The people at the work group level or the pro;ect manager's level

painstakingly track progress on key metrics and compare them with

aggressive targets. The metrics tend to be specic to a process.

• $. "tretch improvement metrics-how is the business unit or work groupdoing, Toyota sets stretch goals or the corporation which are translated into

stretch goals or every business unit and ultimately every work group.

Tracking progress toward these goals is central to Toyota's learning process.


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Toyota Internationalbusinessmgt 111126015046 Phpapp01