4. Toyota: The Innovators
Developed a strong company culture
“The Toyota Way”
A Methodology copied by many.
Possess Innovative Patents that
provide advantages over competitors
5. “The Toyota Way”
Respect
Teamwork
Challenge
Kaizen: Concept of continuous
improvement
Genchi Genbutsu: Go and See, for
managers
6. The Toyota Way &
Consumers
Years of satisfaction
Consumer Loyalty based on:
Trust
Safety
Quality
Reliability
Innovation
Design
7. Toyota 2009
A tragic event: a family dies in their 2009
Lexus ES350.
Accelerator issues are uncovered.
Company deflects blame.
Company concealments become
evident.
Eventual admission of fault.
Customer & investors trust is shaken.
8. 2009 Aftermath
Financials all plummet in 2009.
All aspects suffer
Competitors take advantage of downfall
Company struggles to recover
Toyota works to regain trust
9. Ratio Rankings
Colleen Israel
Toyota GM Ford Honda Nissan
Profitability Ratios:
RANKINGS Best =1
worst = 5
Compared to one another
Return on Investment
Return on Assets (ROA) 5 2 1 4 3
Return on Equity (ROE) 5 2 1 4 3
EBITDA 4 5 1 3 2
Earnings Before Interest
and Taxes Depreciation
and Amortation
Liquidity Ratios
Quick Ratio 4 3 5 2 1
Current Ratio 4 3 5 2 1
Debt Management
Total Debt to Equity 3 5 1 4 2
Asset Management
Total Asset Turnover 5 1 3 4 2
Inventory Turnover 4 3 5 1 2
total score 34 24 22 24 16
lower = better