TOYOTA

TOYOTA

1. TOYOTA
oDeepa Ram Suthar
oArunSharma
oKalpeshKumar Sharma
oDeepak Lamba
oAvinashMisra

2. •Toyota Motor Corporation is a
Japaneseautomotivemanufacturer headquartered
inToyota, Aichi, Japan.
•As of January 2014, is thefourteenth-largest
company in the world by revenue.
•Toyota was the largestautomobile manufacturerin
2012 (by production).
•Toyota is the world's first automobile manufacturer
to produce more than 10 million vehicles per year.
•The company was founded byKiichiro Toyodain
1937 as a spinoff fromhis father'scompanyToyota
Industriesto create automobiles.
•In 2013 themultinational corporationconsisted of
333,498 employees worldwide.

3. History of Toyota auto Industry
•Established in 1937 out of SakichiToyoda’s weaving machine
company
•Launched first car (SA Model) in 1947
•“Toyota Production System” formed in 1950 based on just in time
principal
•First global expansion in 1959 at Brazil
•In July 2012, cumulative production >200M units

4. Founder & CEO
Founder
kiichiro Toyoda
Chairman
Takeshi Uchiyamada
•CEO
•President
Akio Toyoda

5. 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 deales
•Others
•Industrial vehicles (forklifts, etc.)

6. Toyota Total Sales By Region
Japan, 25%
Oceania, 3%
Asia, 11%
Middle East, 7%
Africa, 4%
Europe, 14%
Latin America, 4%
North America, 32%
SALES

8. Toyota Visionary
Management
Toyota’s Visionary Management concept can be
expressed using the metaphor of a tree. The roots of
the tree are the shared values
that underlie our spirit of monozukuri. The fruit of the
tree is our contributions to “always making better
cars” and “enriching the lives
of communities.” The trunk of the tree is a stable
business foundation that supports products that
please our customers. Henceforth,
we will conduct our business so as to achieve
continuous growth through a virtuous cycle
comprising these three elements.

9. Guiding Principles at Toyota
•Honorthe language and spirit of the law of every nation and undertake open
and fair business activities to be a good corporate citizen of the world.
•Respect the culture and customs of every nation and contribute to economic
and social development through corporate activities in their respective
communities.
•Dedicate our business to providing clean and safe products and to enhancing
the quality of life everywhere through all of our activities.
•Create and develop advanced technologies and provide outstanding products
and services that fulfillthe needs of customers worldwide.
•Foster a corporate culture that enhances both individual creativity and the value
of teamwork, while honoringmutual trust and respect between laborand
management.
•Pursue growth through harmony with the global community via innovative
management.
•Work with business partners in research and manufacture to achieve stable,
long-term growth and mutual benefits, while keeping ourselves open to new
partnerships.

10. Five Main Principles of Toyoda
•Always be faithful to your duties, thereby contributing to the
company and to the overall good.
•Always be studious and creative, striving to stay ahead of
the times.
•Always be practical and avoid frivolousness.
•Always strive to build a homelike atmosphere at work that is
warm and friendly.
•Always have respect for spiritual matters, and remember to
be grateful at all times

11. Toyota Production System
•A production system which is steeped in the philosophy of "the complete
elimination of all waste" imbuing all aspects of production in pursuit of the most
efficient methods.
•TPS Concept
Jidoka
—Highlighting/visualization of problems —
-Quality must be built in during the manufacturing process!-
Just-in-Time
-Making only "what is needed, when it is needed, and in the amount needed!"

12. International Business Strategy
Four international business strategies have been worked out by Toyota:
•Global standardization strategy
•localization strategy
•transnational strategy
•International strategy

13. •Global standardization strategy:
Global standardization strategy focuses on increasing profitability and profit growth by
reaping the cost reductions that come from economies of scale, leaning effect, and location
economies.
•Localization strategy:
A localization strategy practitioner increases profitability by customizing the firm’s goods or
services so they provide a good match to tests and preferences in different national markets.

14. •Transnational strategy:
a transnational strategy is aiming to simultaneously achieve low costs through
location economies, economies of scale, and learning effects; differentiate their
products offering across geographic markets to account for local differences;
and foster a multidirectional flow of skills between different subsidiaries in the
firm’s global network of operations.
•International strategy:
taking products first produced for their domestic market and selling them
internationally with only minimal local customization.

15. Toyota’s objectives :
1. Business objectives:
•To maximize shareholder’s wealth and giving them returns on their capital
invested.
•Effective working capital management
•Cost management
•Quality production
•Resources utilization (manpower, capital, assets and other)
•Public image in market (national and international)
•Overcome competition

16. 2. Ethical objectives:
•No compromise in ethics
•True and fair presentations, comply with law and standards Maintain highest
level of honesty, integrity, professionalism and ethical behaviours.
3. Cultural social and environmental objectives:
•See foreseeable future needs, company’s responsibilities as a manufacturer
company and always take proactive steps that benefits customers as well as
society.
•Proper waste management as a corporate social responsibility
•Protect whistle blowers and have regular meetings and review on social,
cultural and environmental issues.

17. The Strategic plan for Toyota Company:
The Strategic plan for Toyota is to serve as guideline for conducting and
coordinating development, research, marketing ,and all other business
activities across the motor industry and for increasing the development of
new and exciting efforts based on identification of region in the motor
invention opportunity and challenges. Toyota follow the concept of strategy
can be updated and changed anytime whenever it is in need of that. Strategy
is not any fixed rule that any origination when establishes it can’t change.

18. TOYOTA
A GOOD CORPORATE CITIZEN

19. TOYOTA’s CSR POLICY (2005)
•PURPOSE
•STANCE
•EMPLOYEE PARTICIPATION
•INFORMATION DISCLOSURE
•GLOBAL PERSPECTIVE

21. Environment
Establishing a low carbon society
Establishing a recycling based society
Using Renewable Energy i.e. at Tsutsumiplant
1.Helping to Realize a Sustainable Society through Forestry
Activities ‘Forest of Toyota’: A Model Forest to Vitalize Satoyam
2.Valuing Nature’s Wisdom, Expanding Environmental Programs `
Rooted in the Community ‘Toyota Shirakawa-Go Eco-Institute’
3. Human Development Program ‘Toyomori’ to Restore the
relationship between city and mountainous villages.

22. Education
Toyota’s philosophy says “manufacturing begins with educating people.”
1.In Japan, ‘Toyota Children Meet Artists’ Program —A workshop-style class with
artists, which helps children to discover the diverse ways of thinking and life.
2.In USA, Toyota Family Literacy Program’ Marks 20
th
Anniversary Contributing to
the Development of U.S. Society
3.In Taiwan , Scholarships for the children of model drivers
4.In China, Toyota Study Assistance Fund’ Supports Chinese Students
5.In SA, Increasing Basic Academic Skills by ‘Toyota Teach’

23. Traffic Safety
Toyota promotes initiatives to improve traffic safety,
viewing people, vehicles and the traffic environment as an
integrated whole.
1.Toyota ‘Traffic Safety Campaigns’ Conducted Every Spring and Autumn in Concert with
Japan’s National Traffic Safety Campaigns
2. ‘Toyota Driver Communication’ at ‘mobilitas’ Aims to Raise Awareness of Traffic Safety
3. Hands-on Traffic Safety Events, Held Wherever People Gather, Allowing Them to Understand
Effective Traffic Safety through Various Experiences
4.‘Toyota Safety School Teaches’ Local Children about Traffic Safety

24. Society, Culture and more
Toyota initiatives support various arts and cultural activities with the
emphasis on “fostering culture,” “broadening horizons” and
“revitalizing local cultures”.
In Japan,
1.“KokoroHakobuProject” Disaster Area Recovery Support during 2011 Tsunami.
2.‘Toyota Community Concerts’ Contribute to Promotion of Regional Culture through
Music
3.‘Toyota Choreography Award’ Discovers the Next Generation of Choreographers.
4.In Venezuela, From the ‘PintaTuEscuela’ Program to Building a New School
5.In Philippines, Providing Regular Medical Service in Impoverished Areas
6. In Vietnam,Natural Disaster Relief in Japan and Overseas

25. Motivational Practices in Toyota
1.Maslow’s Hierarchy of Needs
•All employees of Toyota are satisfied in lower level needs.
•The way Toyota promoted a strong team spirit and sense of
belonging is by showing no discrimination between team members
•Toyota also encourages its employees to try to solve challenging
problems to build up their confidence so that they can satisfy their
higher needs in esteem and self-actualization.

26. 2.Goal Setting Theory
•Goal specificity: Toyota required goals must be clear and defined.
•Goal difficulty: One of the challenging goal found in Toyota is that managers even
challenged workers to find solution to make things one Yen cheaper.
•Goal acceptance: At Toyota, an “community of fate” ideology was developed.
•Performance feedback: If performance feedback is clear, employees are more
motivated. Toyota uses visual management systems.

27. STP segmentation, targeting and positioning
4Psof TOYOTA
SWOT Analysis
Flower ofservices
Other Services
Marketing Strategies

28. MARKETING
•Toyota'smarketingefforts focused on emphasizing the positive experiences of ownership
and vehicle quality
The ownership experience has been targeted insloganssuch as
•"You asked for it! You got it!" (1975–1979)
•"Oh, what a feeling!" (1979 –September 1985, in the US)
•"Who could ask for anything more?" (September 1985 –1989)
•"I love what you do for me, Toyota!" (1989–1997)
•"Everyday" (1997–2001)"
•"Get the feeling!" (2001–2004)
•"Moving Forward" (2004–2012)
•"Let's Go Places" (2012–present)

29. LOGO & BRANDING
The logo made its debut on the 1989 Toyota Celsior
The three ovals in the new logo combine to form the letter "T", which
stands for Toyota.
The overlapping of the two perpendicular ovals inside the larger oval
represent the mutually beneficial relationship and trust between the
“customer and the company”
The larger oval surrounding both of these inner ovals represents the "global
expansion of Toyota's technology and unlimited potential for the future."

30. Toyota’s segmentation and target market is guided by its philosophy of
‘right car in the rightplace’:
It has segmented all thecountries across the globe as its market
All of toyota's vehicles speak to a different consumer segmentation.
Based on income, gender, life cycle stages, needs/desires, etc.
Vehicles are designedso as to attract on the basis of lifestyle choices and specific
attitudes.
Toyota uses a psychographic and behavioral approach to segmenting the market

31. The prius:
•targets on conscious consumers who place an importance on the environment
•targets individuals that want to save at the gas pumps.
•targets individuals that care about safety, family, quality, etc.
The tundra:
•Targets on consumers interested in functionalityand recreation.
The lexus:
•targets a more sophisticated, "classy" consumer, individuals interested in style, luxury,
comfort, status etc.
•targets the middle aged consumer who care about family, safety, security, prestige....all
wrapped up in a stylish bow.
Trucks:
•truck lovers or professional who need trucks

33. The manufacturer'ssuggested retail price(MSRP), list priceor recommended retail price(RRP) of a
product is the price which the manufacturer recommends that the retailer sell the product.

36. 70 different models sold under its name TOYOTA
•VANS: Sienna, Previa, Tarago, Estima
•TRUCKS: T100, Tacoma(4x2&4x4), Tundra CrewMax(4x2&4x4), Tundra Double Cap(4x2&4x4), Tundra
Regular Cap(4x2&4x4)
•SEDANS: Avalon, Camry, Corolla, ECHO,
•SUVs:4Runner, FJ Cruiser, Highlander, Highlander hybrid, Land cruiser, RAV4, Venza, etc.
•WAGONS: Prius plug-in, Prius V, Pruis C, etc.
•Tercel, Supra, Yaris, etc....

37. TOYOTA uses:
•show room,
•advertisement,
•free drive plan,
•special offer and exhibitions,
•after sales services,
•Toyota’s blog: (http://blog.toyota.com)
•TV programme,
•Websites(www.toyota-global.com)
as a means of promotional strategy.

38. SWOT Analysis
Location of Factor TYPE OF FACTOR
Favorable Unfavorable
Internal
Strengths
Strong financial performance
Brand image
Strong performance in Asia region
Research and development activities
Toyota production system
Weaknesses
The company recalled 9 million vehicles in 2009-2010 and
7.43 million cars in 2012
An increase in recalls not only results in losses but also
harms the brand image of the company
External
Opportunities
Increasing demand for hybrid electric vehicles like prius
Opportunities in Asian market
New models like Toyota Aygofor youth
Threats
Economic slowdown
Competition in the global automotive market
Tightening emission standards
Appreciating Japanese Yen against US Dollar

39. Increase competitive strength through advanced technology:
Environmental technology(fuel consumption, emission, recoverability)
Hybrid vehicles and next generation fuel cells
Cost-reduction(discontinuation, integration of older models )
•Increased emphasis on financial services and information communication system

40. •Financial services:
Car loan and car leasing including Classic or Choices finance, operating leases,
Vantage leases, Driveway & Toyota Payment
Protection products including car insurance, vehicle warranties and servicing into
one easy monthly payment.
Payment Protection Insurance, a quick, easy and affordable way to make sure
you can keep up your payments in the event of an accident, illness or death.

41. •Continuous improvement.
•Customer Satisfaction.
•Quality Products.
•Unique Production System
•. Respect for people.
•segmentation, targeting, and positioning nurtured by its variety ofoffers and product
attributes.

42. Financial
Highlights of
Toyota Motor
Corporation

43. Production History
Revenue ¥22.064 trillion (FY 2013)
[2]
Operating income ¥1.320 trillion (FY 2013)
[2]
Profit ¥962.1 billion (FY 2013)
[2]
Total assets  US$ 377.281billion (2013)
[3]
 US$ 372.928billion (2012)
[4]
Total equity ¥12.773 trillion (FY 2013

44. Consolidated Financial Highlights (U.S. GAAP –Generally Accepted Accounting Principles) *Fiscal
years ended March 31
Financial Highlights
Net Revenues Operating Income Net Income and ROE
(Return on Equity)

45. Capital Investment*and R&D
(Research & Development)
Expense
Vehicle Production Vehicle Production by Region
*Excluding vehicles and equipment
on operating leases

46. Vehicle Sales Vehicle Sales by Region

47. Securities code7203 (Japan)
Number of shares issued3,447,997,492 shares
Number of shareholders628,902 shareholders
Fiscal year endMarch 31
Dividend payout
confirmation date
March 31
*When interim dividends are
declared, the dividend payout
confirmation date is September
30.
Number of shares per unit100 shares
Transfer AgentMitsubishi UFJ Trust Bank Limited
Stock listings
Japan: Tokyo, Nagoya, Osaka,
Fukuoka, Sapporo
Overseas: New York, London
Corporate Stock Summary
Stock Overview
(As of March 31,
2013)

48. Names
Number of shares held
(thousands of shares)
Japan Trustee Services Bank, Ltd. 328,913
Toyota Industries Corporation 218,515
The Master Trust Bank of Japan, Ltd. 185,036
State Street Bank and Trust Company 132,366
Nippon Life Insurance Company 129,455
The Bank of New York Mellon as
Depositary Bank for Depositary Receipt
Holders
82,399
Trust & Custody Services Bank, Ltd. 75,309
Mitsui Sumitomo Insurance Co, Ltd. 66,063
SSBT OD05 OMNIBUS ACCOUNT -
TREATY CLIENTS
61,752
DENSO CORPORATION 58,903
Major Shareholders (Top 10 Largest Shareholders) (As of March 31, 2013)

49. Share Price Transition
Toyota's share price and trading volume on the Tokyo stock exchange

50. References
•Liker, J. K. (2004). The Toyota Way: 14 Management Principles from the
World’s Greatest Manufacturer. Madision, Wisconsin, USA: McGraw-Hill.
•Bodek, N. (2008). Toyota managers know the road to Lean is by way of
motivation.
•Besser, T. (1995, May). Rewards and Organizational Goal Achievement: A
Case Study of Toyota Motor Manufacturing in Kentucky. Journal of
Management Studies, 383-399
•A Brief Understanding of International Business Strategy --A Case Study of
Toyota by Peter LIU
•http://www.toyota-global.com

51. Thank You…….