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Business Enviornment of Toyota (Japan)

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Business Enviornment of Toyota (Japan)

  1. 1. Toyota Motors
  2. 2. Vision & Mission O Through improvements of conventional technology, as well as pioneering efforts in the application of new technologies, Toyota is taking great steps to develop eco-cars which will help us become a low carbon society. O Statements to activities relating to the development of key technologies. SMART MOBILITY SOCIETY, Environmental Technology, Safety Technology, Quality Durability Reliability, Intelligent Transport Systems, Smart Grid, Personal Mobility ,Partner Robot,
  3. 3. Company Profile O Company Name : Toyota Motor Corporation O President and Representative Director : Akio Toyoda O Date founded: August 28, 1937 O Capital : 397.05 billion yen (as of May 2014) O Shareholders : Shareholder Composition O Operations in North America, Latin America, Europe, Africa, Asia, Oceania and Middle East O Main Business Activities : Motor Vehicle Production and Sales O Number of employees (consolidated) : 338,875 (as of March 31, 2014) O Main Competitors : Bayerische Motoren Werke AG, Chrysler Group LLC, Daimler AG, Ford Motor Co., General Motors Company, Honda Motor Company, Nissan Motor, Tata Motors, Volkswagen AG and many other
  4. 4. Worldwide Presence (Operations) As of the end of Dec. 2013, Toyota conducts its business worldwide with 52 overseas manufacturing companies in 27 countries and regions. Toyota's vehicles are sold in more than 170 countries and regions.
  5. 5. Toyota Motors : 9th rank in Fortune 500 global companies
  6. 6. Global Presence (Geographically) Red: Presence in Japan, Green : Official Dealership, Blue: Local Plant, L Blue: Regional HQ
  7. 7. Steps involved in Globalization Establish a local sales network and launch brand promotion Build Auto parts manufacturing bases Establish JVs with local players and build automobiles there
  8. 8. Globalization Efforts…. O Domestic Problems O excessive capacity, choosy customers, surplus workforce and intensified competition within Japan. O In 1998, Japan sales accounted for a mere 38% of the company's total sales, as compared to 52% in 1990 O In June 1995, Toyota announced the 'New Global Business Plan’ aimed at O advancing localization (of production) O increasing imports (through collaboration with foreign automobile companies) over a three year period. O A major objective of this plan was to increase Toyota's offshore production capacity to 2 million units by 1998. O Toyota focused on increasing overseas production significantly by establishing new plants and expanding the capacity of the existing plants
  9. 9. Scale Of Our Operations: Vehicle Manufacturing Press Weld Paint Plastics Assembly Quality Assurance
  10. 10. Scale Of Our Operations: Engine Manufacturing Casting & Machining Assembly Quality Assurance
  11. 11. Production History [1992-2013]
  12. 12. Toyota’s Key Philosophies & Practices: Toyota Way CHALLENGE KAIZEN GENCHI GENBUTSU CONTINUOUS IMPROVEMEN T TEAMWORK RESPECTRESPECT FOR PEOPLE
  13. 13. Sales Volume By Country
  14. 14. Production
  15. 15. Why they are globally top? People Work style Product Quality Customers
  16. 16. USP’s of Toyota O1. Safety O2. Resale Value O3. Maintenance O5. Technology O6. Affordability
  17. 17. SWOT analysis of Toyota
  18. 18. Current Economy and its Effect on Toyota O Toyota became world’s largest automaker by units sold from 2008 to 2010 as the US market collapsed and G.M slid toward its 2007 bankruptcy. O Following this disaster which was the worst since World war II to bridge the gap Toyota concentrate in manufacturing Prius and luxury-brand Lexus hybrids. O In 2011 Toyota ceding its title as the world’s largest automaker to G.M following a natural disaster in Japan i.e. Earthquake/Tsunami and flooding in Thailand which saw a number of plants closed.
  19. 19. Cont…. O The Japanese car company saw profits increase by 57% in its fiscal year 2014, earning $18.2 billion compared with $11.6 billion the previous year, thanks partly to a weakening yen. Sales were also up, with 10.1 million units sold compared with 9.7 million in fiscal year 2013. Sales are expected to slow next year, however, as the yen is expected to strengthen and taxes are expected to rise.
  20. 20. Cont… O Divorce ownership from control O Perfect/Imperfect Competition O Price elasticity of demand O Trade Blocs O Potential effects of climate change Degree of Rivalry Threat of Substitute Barrier of Entry Power of Buyers Power of Suppliers
  21. 21. Conclusion O In general the economic situation at the moment is uncertain not only for Toyota but the whole automobile Industry due to instability of economy. O However still there is as huge chance for Toyota to bounce back to World number one. By sticking to its culture of doing things i.e. Kaizen and TPS including examining price and income elasticity demand Toyota can carry the Company through the current economic downturn.
  22. 22. Recommendation & Suggestion O Technological innovation including R&D on hybrid cars can enable Toyota to gain advantage in these rare opportunities. O Toyota need to adjust with the changing of tastes and environment concern as it is doing now to maintain its position in the industry, its sound financial muscle and expertise of its workforce can make this possible.
  23. 23. My Contact Details O Name: Sambit Biswal O Edu Qualification: B.tech ,PGDM O Specialization: Operation and Logistics Mngt. O Hometown: Bhubaneswar O State: Odisha O Mobile no: 9439762322 O Email: sambit.biswal@hotmail.com

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