WELCOME

P RESENTATION ON
W ORLDWIDE O PERATIONS OF T OYOTA
Motor Corporation
MOVING FORWARD
Group Members:

Md. Mahmudul Hasan(07202022)

Nipu Raj Sen(07202047)

Kazi Khalid Hasan(07202039)

Abeda Sultana(07202050)

Katibur Rahman(07202011 )
 Headline Facts
 Name: Toyota Motor Corporation

 Type: Public

 Headquarters: Toyota City ;

Tokyo, Japan.

 Toyota has annual sales of $120 Billion

 Produces : 5.8 million vehicles per year

 Has 53 overseas manufacturing companies,

in 27 countries/regions

 Employees :3,16,000 people

 3 rd largest automobile manufacturer

Headquarter (Toyota City)

 About The Toyota Motor Corporation

 Established in 1937 out of

Sakichi Toyoda’s weaving
machine company
 Founder: Kiichiro Toyoda
 Launched first car (SA
Model) in 1947
 “Toyota Production System”
formed in 1950 based on
Just-In-Time principle
 First global expansion in
1959 at Brazil
HISTORY

Toyota star ted in 1933 as a division of

toyoda automatic loom wor ks devoted to
the production of automobiles under the
direction of the founder's son,kiichiro
toyoda. Its fir st vehicles were the a1,
passenger car and the g1 in 1935. Toyota
motor co. was established as an
independent and separate company in
1937.
 Principles of Toyota

 "Five Main Principles of Toyoda":

1. Always be faithful to your duties, thereby contributing to the
Company and to the overall good.
2. Always be studious and creative, striving to stay ahead of the
times.
3. Always be practical and avoid frivolousness.
4. Always strive to build a homelike atmosphere at work that is
warm and friendly.
5. Always have respect for God, and remember to be grateful at all
times.
 Mission
 Toyota’s fundamental mission is to contribute to
people’s lifestyles, society, and the economy through
automotive manufacturing. In upholding this mission,
we have always focused on the future of the
automobile industry when deciding how best to
position our company.
 Vision

 Toyota aims to achieve long-term,

stable growth in harmony with the
environment, the global economy, the
local communities it serves, and its
stakeholders.
 Values
 Its five core values express the beliefs and values shared by the Toyota Group. All
Toyota team members, at every level, are expected to use these values in their daily
work and relations with others.

1. Challenge
2. Kaizen
3. Genchi Genbutsu
4. Respect
5. Teamwork
 Philosophy
 Long-term thinking as a basis
for management decisions.

 A process for problem-solving.

 Adding value to the

organization by developing its
people.

 Recognizing that continuously

solving root problems drives
organizational learning.
 Revolutionary Production System

 Revolutionized manufacturing
industry
 At its core is “lean”
 a relentless drive to

improve efficiency and

eliminate waste
 Beginnings of TPS were born
out of necessity due to lack of
resources in post-war Japan.
 Toyota Production System
Key Main Concepts
 SMED
 Single Minute Exchange of Dies

 Promoted flexibility of production runs

 JIT

Just In Time manufacturing

Small batches which reduced inventory costs,
tightened relationship with suppliers and improved
quality control
 “5 Whys” Quality

Asking “Why?” 5 times to locate source of problems

Stopping the production line whenever there are
quality problems to ensure they are not repeated
 Low cost supplier
 Long term supplier relationships
 Production Growth
Growthby Region1998-2006

45%
40%
% of Growth

35%
30%
25%
20%
15%
10%
5%
0%
Asia- East North West South Africa/
Pacific Europe America Europe America Middle
East
 The Toyota Product Development System's
implementation challenges

 Toyota Product Development System challenges involve:

* A new approach to engineering leadership -- A rethinking of engineering management roles
and skill sets.
* A new approach to knowledge management -- New systems for storing, accessing and using
engineering data.
* A new approach to design variations -- Implementation of set-based concurrent engineering.
* A new approach to the development process -- Less focus on process standards and more
focus on product standards and design results.
* A new organizational design -- Creation of the "Big Room" and use of visual management
for the development process.
 Toyota’s Strategy
 Increase competitive strength through
advanced technology

Environmental technology

 Fuel consumption, emission, recoverability

 Hybrid vehicles and next generation fuel
cells
 Cost-reduction efforts

 Discontinuation, integration of older models

 Increased emphasis on financial services
and information communication system

 Expanding the value chain—becoming the

Total Mobility Services Provider
 Marketing Strategy (Offensive)
 Toyota aggressively marketed their cars to Americans as being fuel-efficient,
environmentally friendly, small sizeand having better build quality than other
Brands.
 In the 1980's they had people tell the story of hitting 100,000 miles in their Toyota
while other different cars were died at 80,000 miles. Toyota found that many of
their cars were going 200,000 miles. That wasa huge marketing success and it
didn't even cost much money. (Building a Quality Brand Strategy).
 Now TOYOTA team is improving by concentrating on being a "green" company
that cares about the environment.
 Diversity in their products which maximize market share, profitability of the
company as all the society sectors (Youth, Men/Women, rich) are being served
with products that are under their convenience.
 Marketing Strategy (Defensive)
 Overseas production for reducing labor cost.
 Building a Huge Dealers network overall the world, that’s made their products
reachable for all around the world.
 Built the best system (TOYOTA Production system-TPS) that organizes
manufacturing and logistics for their automobile manufacturer, including interaction
with suppliers and customers. Their system has proven its effectiveness through
thepast and present. And Now TPS system being studied & followed by other
automakers.
 After many years of the excellence, TOYOTA brand become known in selling a high
quality, low maintenance, reliable and fuel efficient vehicles with widely available
spare parts.
 By the excellent reputation that TOYOTA has built through the past, their cars have
got the best resale value. This participates in “Captives Customer”and maximizes
customer retention, market share, profitability and maximize Net marketing
contribution.
 In the past TOYOTA MOTOR COMPANY has lunched “Scion”for youth market,
because the younger customer has a greater "lifetime value" to the company. (The
younger person has more car purchases in his future than does the older one).
 Promotional Strategies

 Advertising
 Public Relation and
Community Building
Show exercises
 Personal Selling
 Direct Marketing
 Pricing Strategy

 Traditional Pricing Strategy

Cost plus Profit = Selling Price
When costs increase, raise the selling price to pass on the higher costs
to the customer – and maintain the desired profit margin
Some manufacturers feel that the profit margin should be a hedge against
poor sales, to cover potential losses
 Toyota Pricing Strategy
Selling Price minus Cost = Profit
Markets and customers determine selling price
Profit is what’s left after subtracting the cost
Continuously reducing cost results in continuous profit growth
Cost reduction through waste elimination is given the highest priority
 Products & Services

 Automobile:

 Materials handling equipment:

 Logistics:

 Textile machinery:
 WORLD WIDE OPERATIONS
 In the beginning of 2007, Toyota has grown to a large multinational corporation from where it
started and expanded to different worldwide markets and countries by becoming the largest
seller of cars.
 As of the end of March 2008, Toyota conducts its business worldwide with 56 overseas
manufacturing companies in 27 countries and regions. Toyota's vehicles are sold in more than
170 countries and regions.
 Toyota has a balanced scorecard which notes specific outcomes and measures of environmental
action, and uses a plan-do-check-act cycle to carry them out.
 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 dealers

 Others

Industrial vehicles (forklifts, etc.)
 Pre-fabricated housing
 Worldwide Sales

Japan 25%
Oceania 3%
Asia 11%
Middle East 7%
Africa 4%
Europe 14%
Latin America 4%
North America 32%
 S.W.O.T. Analysis
Strengths Weakness
 Brand image  Always charge the premium price
 Market Leadership  Management Control by local partner
 Toyota produces most of its cars in US and Japan whereas
 Easy availability of spare parts
competitors may be more strategically located worldwide to
 Dealership network
take advantage of global efficiency gains.

Suitable for rural

Opportunities Threats

Switching diesel market toward petrol and CNG market

Government reducing the excise duty on imported car
Failure of competitor model
IR interest rate Higher
Reduction in Diesel prices
Unacceptability of competitor model
Entrance of the new Firms
Price increase in 1000cc
 Target Audience
 Investment Managers

 Venture Capitalists

 Management Consultants

 Research Companies

 Other Industry Professionals

 Innovation
 Toyota has introduced new ideas & technologies which enable them to lead the
innovation among others competitors.
Example
1. Hybrid gas-electric vehicles.
2. Advanced Parking Guidance System.
3. Eight-speed automatic transmission.
4. Four-speed electronically controlled automatic with buttons for power and
economy shifting.
Toyota Motor Corporation today
In April 2002, Toyota adopted the 2010 Global Vision, a vision for meeting
mobility needs in a way that respects our earth and all people. It is made of long-
term policies centered on the basic theme of 'innovation into the future.' Four key
themes based on trends seen as developing from 2020 to around 2030 are:
 Toward a recycle-oriented society
 Toward the age of IT and ubiquitous networks
 Toward a mature society (the decline of nationalism and war and the rise of
respectful exchange of ideas)
 Toward motorization on a global scale (societies with little private transport
gaining more)
 Four key components for Toyota
These are linked to the pursuit of a new
global image with :
 kind to the earth,
 comfort of life,
 excitement for the world,
 and respect for all people.

The encompassing motto of Toyota

"innovation into the future" is "working
with passion and dedication to create
a prosperous society."
 Achievements by Toyota
Year Awards
 2003 Toyota success in German J.D. Power and Associates
Customer Satisfaction Index Study .

 2004 Toyota Prius wins 2005 European Car of the Year.

 2005 Hybrid Synergy Drive rewarded for its excellent fuel economy.

 2006 Third year of International Engine of Year awards for Prius.

 2007 Euro NCAP awards all-new Corolla 5 star safety rating.

 2008 Honors for Toyota in the 2008 International Engine of the Year
Awards.
 Achievements by Toyota From a Sustainable
Point of View
 Some key achievements include:

• Vehicle life cycle analysis which reduces the environmental impact in the design,
production, distribution, driving and eventual disposal of cars.

• All vehicles are manufactured at ISO 14001 plants, with targets to reduce energy, CO2,
water, waste and harmful substances.

• A 20% reduction in CO2 emissions since January 2006 for our NZ operations.
• CarboNZero certification for our business operations since 2006.

• A comprehensive dealer environmental management programme since 2005.

• Top 5 listing in Massey University's Corporate Environmental Responsiveness Survey

since 2007.

• Strong engagement with employees through our annual ‘Environment Month' activities
and promotion
 Toyota Success Today
 Toyota participates in community activities, sponsoring educational and cultural
programs as well as research.
 Toyota is the world's second or third largest manufacturer of automobiles in
both unit sales and in net sales,.
 The #1 seller of retail vehicles in the US.
 In the United States, Toyota has roughly double the sales of Honda, and has
replaced Chrysler Group as the #3 seller.
 It produces over 5.5 million vehicles per year, equivalent to one every six
seconds.
 Challenges
 Industry overcapacity

 Economic downturn

 Globalization

 Environmental concerns

 The IT revolution

 Diverse and shifting

consumer demand
 Outcomes of Toyota

 Revenue USD $203.26 billion (2009)

 Operating Income USD $-4.56 billion (2009)

 Net Income USD $-4.33 billion (2009)

 Total Equity USD $-5.54 billion (2009)

 International Presence and Position in the
Domestic Market
Int’l Market (2000) Japan Market (2000)

9,000
GM
8,000
Ford
7,000
6,000 Daimler
5,000 VW Chrysler
T
4,000
O
Fiat Nissan Honda
3,000 Y PSA Renault
2,000 O
T
1,000 A
0
 Communication Skills within Toyota
Corporation
 In Toyota Corporation engagement is achieved greatly through communication
process. While many factors collectively influence engagement levels, the following
communication-based elements indicate a strong engagement environment:

- Immediate supervisors are rated as good communicators.

- Management is trusted in what it says and does.
- Communication is honest and straightforward, helping maximize organizational and
individual performance.
- Employees are communicated to first with vital organization news.
- Employees truly understand organization’s business strategy.
- Employees are able to apply their knowledge of business strategy to their job duties.
- Accomplishments are recognized and rewarded.
- Employees recommend organization to colleagues and friends
 Action Plan

 Promote the development of technologies to achieve best-in-class fuel efficiency

performance.
 Introduce vehicle technologies, which support the diversification of energy and fuel
sources.
 Promote the development of clean-energy vehicles and ensure wider market acceptance
 Reduce water consumption.
 Enrich stakeholder communications .
 Actively contribute to sustainable development efforts.
 Market Position

Market Capturing
14'945'390
Market Share 16%
 Relations With Customers
•The Customer Relations Division is "the division within the company
in direct contact with customers needs."

•The staff place an emphasis on the voices of individual customers,

through consulting with them and handling their complaints, striving to
improve customer satisfaction.

•The Customer Assistance Center acts as a contact point within the

company for customers and has consulted with or handled complaints
from about 200,000 people 2008-09 fiscal year.

•Toyota is in contact with its dealers throughout Japan to handle

customer complaints, and makes a sincere effort to gain customer trust
and satisfaction, striving to maintain and increase the number of Toyota
fans.

•The Customer Relations Division also makes direct proposals to sales,

research and development, and production divisions and holds
discussion meetings with them, so that customers' voices can be useful
in improving the company's products and corporate activities.

•Looking overseas, Toyota is supporting efforts at its distributors

worldwide to strengthen and improve their systems for dealing with
customers, as evidenced by the establishment of a Customer Assistance
Center in TMCI, China in July 2002.
 Conclusion

It is sure that with superior technology & best industry practices, Japanese auto
major is giving a run for the auto industry, which is dominated by the Americans.
Imminent is the day; the Toyota will be the largest automobile manufacturer of
the world, surpassing General Motors. All credits to the production prowess and
the technical innovation, which made the Japanese sail through the rough waters,
a journey that started in 1933 and still continuing.
THANKS FOR YOUR ATTENTION