WELCOMEWELCOME

PRESENTATION ON

WORLDWIDE OPERATIONS OF TOYOTA Motor Corporation

MOVING FORWARDMOVING FORWARD

Group Members:Group Members:

Md. Mahmudul Hasan(07202022)

Nipu Raj Sen(07202047)

Kazi Khalid Hasan(07202039)

Abeda Sultana(07202050)

Katibur Rahman(07202011)

Headline FactsHeadline 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

3rd largest automobile manufacturer

Headquarter (Toyota City)

About The Toyota Motor CorporationAbout The Toyota Motor Corporation

Established in 1937 out of Established in 1937 out of Sakichi Toyoda’s weaving Sakichi Toyoda’s weaving machine companymachine company

Founder: Kiichiro ToyodaFounder: Kiichiro Toyoda Launched first car (SA Launched first car (SA

Model) in 1947 Model) in 1947 ““Toyota Production System” Toyota Production System”

formed in 1950 based on formed in 1950 based on Just-In-Time principleJust-In-Time principle

First global expansion in First global expansion in 1959 at Brazil1959 at Brazil

HISTORYHISTORY

Toyota started in 1933 as a division of toyoda Toyota started in 1933 as a division of toyoda automatic loom works devoted to the automatic loom works devoted to the production of automobiles under the direction production of automobiles under the direction of the founder's son,kiichiro toyoda. Its first of the founder's son,kiichiro toyoda. Its first vehicles were the a1, passenger car and the vehicles were the a1, passenger car and the g1 in 1935. Toyota motor co. was established g1 in 1935. Toyota motor co. was established as an independent and separate company in as an independent and separate company in 1937.1937.

Principles of ToyotaPrinciples of Toyota

"Five Main Principles of Toyoda":"Five Main Principles of Toyoda": 1. Always be faithful to your duties, thereby contributing to the 1. Always be faithful to your duties, thereby contributing to the

Company and to the overall good.Company and to the overall good.2. Always be studious and creative, striving to stay ahead of the 2. Always be studious and creative, striving to stay ahead of the times.times.3. Always be practical and avoid frivolousness.3. Always be practical and avoid frivolousness.4. Always strive to build a homelike atmosphere at work that is 4. Always strive to build a homelike atmosphere at work that is warm and friendly.warm and friendly.5. Always have respect for God, and remember to be grateful at all 5. Always have respect for God, and remember to be grateful at all times.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.

ValuesValues Its five core values express the beliefs and values shared by the Toyota Group. 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 All Toyota team members, at every level, are expected to use these values in their daily work and relations with others.their daily work and relations with others.

1.1. ChallengeChallenge

2.2. KaizenKaizen

3.3. Genchi Genbutsu Genchi Genbutsu

4.4. Respect Respect

5.5. TeamworkTeamwork

PhilosophyPhilosophy

Long-term thinking as a basis Long-term thinking as a basis for management decisions. for management decisions.

A process for problem-solving. A process for problem-solving.

Adding value to the Adding value to the organization by developing its organization by developing its people. people.

Recognizing that continuously Recognizing that continuously solving root problems drives solving root problems drives organizational learning. organizational learning.

RevolutionaryRevolutionary Production SystemProduction System

Revolutionized Revolutionized manufacturing industrymanufacturing industry

At its core is “lean” At its core is “lean” a relentless drive to a relentless drive to

improve efficiency and improve efficiency and eliminate wasteeliminate waste

Beginnings of TPS were Beginnings of TPS were born out of necessity due to born out of necessity due to lack of resources in post-lack of resources in post-war Japan.war Japan.

Toyota Production SystemToyota Production SystemKey Main ConceptsKey Main Concepts

SMED SMED Single Minute Exchange of Dies Single Minute Exchange of Dies Promoted flexibility of production runsPromoted flexibility of production runs

JIT JIT Just In Time manufacturingJust In Time manufacturing Small batches which reduced inventory costs, Small batches which reduced inventory costs,

tightened relationship with suppliers and improved tightened relationship with suppliers and improved quality controlquality control

““5 Whys” Quality5 Whys” Quality Asking “Why?” 5 times to locate source of problemsAsking “Why?” 5 times to locate source of problems Stopping the production line whenever there are Stopping the production line whenever there are

quality problems to ensure they are not repeatedquality problems to ensure they are not repeated Low cost supplier Low cost supplier

Long term supplier relationshipsLong term supplier relationships

Production GrowthProduction Growth

Growth by Region 1998-2006

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Asia-Pacific

EastEurope

NorthAmerica

WestEurope

SouthAmerica

Africa /MiddleEast

% o

f G

ro

wth

The Toyota Product Development System'sThe Toyota Product Development System's

implementation challengesimplementation challenges

Toyota Product Development System challenges involveToyota Product Development System challenges involve ::

* A new approach to engineering leadership -- A rethinking of engineering management roles * A new approach to engineering leadership -- A rethinking of engineering management roles and skill sets.and skill sets.

* A new approach to knowledge management -- New systems for storing, accessing and using * A new approach to knowledge management -- New systems for storing, accessing and using engineering data.engineering data.

* A new approach to design variations -- Implementation of set-based concurrent engineering.* 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 * A new approach to the development process -- Less focus on process standards and more focus on product standards and design results.focus on product standards and design results.

* A new organizational design -- Creation of the "Big Room" and use of visual management * A new organizational design -- Creation of the "Big Room" and use of visual management for the development process.for the development process.

Toyota’s StrategyToyota’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 Expanding the value chain—becoming the Total Total Mobility Services ProviderMobility Services Provider

Marketing Strategy (Offensive)Marketing Strategy (Offensive)

Toyota aggressively marketed their cars to Americans as being fuel-efficient, Toyota aggressively marketed their cars to Americans as being fuel-efficient, environmentally friendly, small sizeand having better build quality than other environmentally friendly, small sizeand having better build quality than other Brands.Brands.

In the 1980's they had people tell the story of hitting 100,000 miles in their Toyota 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 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 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).didn't even cost much money. (Building a Quality Brand Strategy).

Now TOYOTA team is improving by concentrating on being a "green" company Now TOYOTA team is improving by concentrating on being a "green" company that cares about the environment.that cares about the environment.

Diversity in their products which maximize market share, profitability of the Diversity in their products which maximize market share, profitability of the company as all the society sectors (Youth, Men/Women, rich) are being served company as all the society sectors (Youth, Men/Women, rich) are being served with products that are under their convenience.with products that are under their convenience.

Marketing Strategy (Defensive)Marketing Strategy (Defensive)

Overseas production for reducing labor cost.Overseas production for reducing labor cost. Building a Huge Dealers network overall the world, that’s made their products Building a Huge Dealers network overall the world, that’s made their products

reachable for all around the world.reachable for all around the world. Built the best system (TOYOTA Production system-TPS) that organizes Built the best system (TOYOTA Production system-TPS) that organizes

manufacturing and logistics for their automobile manufacturer, including manufacturing and logistics for their automobile manufacturer, including interaction with suppliers and customers. Their system has proven its effectiveness interaction with suppliers and customers. Their system has proven its effectiveness through thepast and present. And Now TPS system being studied & followed by through thepast and present. And Now TPS system being studied & followed by other automakers.other automakers.

After many years of the excellence, TOYOTA brand become known in selling a After many years of the excellence, TOYOTA brand become known in selling a high quality, low maintenance, reliable and fuel efficient vehicles with widely high quality, low maintenance, reliable and fuel efficient vehicles with widely available spare parts. available spare parts.

By the excellent reputation that TOYOTA has built through the past, their cars 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 have got the best resale value. This participates in “Captives Customer”and maximizes customer retention, market share, profitability and maximize Net maximizes customer retention, market share, profitability and maximize Net marketing contribution.marketing contribution.

In the past TOYOTA MOTOR COMPANY has lunched “Scion”for youth market, 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 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).younger person has more car purchases in his future than does the older one).

Pricing StrategyPricing Strategy

Traditional Pricing StrategyTraditional Pricing StrategyCost Cost plusplus Profit = Selling Price Profit = Selling Price

When costs increase, raise the selling price to pass on the higher costs When costs increase, raise the selling price to pass on the higher costs to the customer – and maintain the desired profit margin to the customer – and maintain the desired profit margin

Some manufacturers feel that the profit margin should be a hedge against Some manufacturers feel that the profit margin should be a hedge against poor sales, to cover potential lossespoor sales, to cover potential losses

Toyota Pricing StrategyToyota Pricing StrategySelling Price minus Cost = ProfitSelling Price minus Cost = Profit

Markets and customers determine selling price Markets and customers determine selling price

Profit is what’s left after subtracting the cost Profit is what’s left after subtracting the cost

Continuously reducing cost results in continuous profit growth Continuously reducing cost results in continuous profit growth

Cost reduction through waste elimination is given the highest priorityCost reduction through waste elimination is given the highest priority

Products & ServicesProducts & Services

Automobile:Automobile:

Materials handling equipment:Materials handling equipment:

Logistics:Logistics:

Textile machinery:Textile machinery:

WORLD WIDE OPERATIONSWORLD WIDE OPERATIONS

In the beginning of 2007, Toyota has grown to a large multinational corporation 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 from where it started and expanded to different worldwide markets and countries by becoming the largest seller of cars.becoming the largest seller of cars.

As of the end of March 2008, Toyota conducts its business worldwide with 56 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 overseas manufacturing companies in 27 countries and regions. Toyota's vehicles are sold in more than 170 countries and regions.are sold in more than 170 countries and regions.

Toyota has a balanced scorecard Toyota has a balanced scorecard which notes specific outcomes and measures of notes specific outcomes and measures of environmental action, and uses a plan-do-check-act cycle to carry them out.environmental action, and uses a plan-do-check-act cycle to carry them out.

Business segmentsBusiness segments

AutomotiveAutomotive Design, manufacture and sales of passenger cars, Design, manufacture and sales of passenger cars,

recreational vehicles, SUVs and related partsrecreational vehicles, SUVs and related parts

Financial services Financial services Provisions of loans to car buyers and car dealersProvisions of loans to car buyers and car dealers

OthersOthers Industrial vehicles (forklifts, Industrial vehicles (forklifts, etc.etc.)) Pre-fabricated housingPre-fabricated housing

Worldwide SalesWorldwide Sales

Japan 25%Japan 25%Oceania 3%Oceania 3%Asia 11%Asia 11%Middle East 7%Middle East 7%Africa 4%Africa 4%Europe 14%Europe 14%Latin America 4%Latin America 4%North America 32%North America 32%

S.W.O.T. AnalysisS.W.O.T. AnalysisStrengths Strengths

Brand image Market Leadership Easy availability of spare parts Dealership network

Suitable for rural

WeaknessWeakness Always charge the premium price Management Control by local partner Toyota produces most of its cars in US and Japan whereas competitors may be more strategically located worldwide to take advantage of global efficiency gains.

Opportunities Opportunities

Switching diesel market toward petrol and CNG marketFailure of competitor model Unacceptability of competitor modelPrice increase in 1000cc

Threats Threats

Government reducing the excise duty on imported carIR interest rate HigherReduction in Diesel pricesEntrance of the new Firms

Target AudienceTarget Audience Investment ManagersInvestment Managers

Venture CapitalistsVenture Capitalists

Management ConsultantsManagement Consultants

Research CompaniesResearch Companies

Other Industry Professionals Other Industry Professionals

InnovationInnovation

Toyota has introduced new ideas & technologies which enable them to lead the Toyota has introduced new ideas & technologies which enable them to lead the innovation among others competitors. innovation among others competitors.

Example Example 1.1. Hybrid gas-electric vehicles.Hybrid gas-electric vehicles.2.2. Advanced Parking Guidance System.Advanced Parking Guidance System.3.3. Eight-speed automatic transmission. Eight-speed automatic transmission. 4.4. Four-speed electronically controlled automatic with buttons for power and Four-speed electronically controlled automatic with buttons for power and

economy shifting.economy shifting.

Toyota Motor Corporation today Toyota Motor Corporation today

In April 2002, Toyota adopted the 2010 Global Vision, a vision for meeting 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 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.' 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 Four key themes based on trends seen as developing from 2020 to around 2030 are:2030 are:

Toward a recycle-oriented society Toward a recycle-oriented society Toward the age of IT and ubiquitous networks Toward the age of IT and ubiquitous networks Toward a mature society (the decline of nationalism and war and the rise of Toward a mature society (the decline of nationalism and war and the rise of

respectful exchange of ideas) respectful exchange of ideas) Toward motorization on a global scale (societies with little private transport Toward motorization on a global scale (societies with little private transport

gaining more) gaining more)

Four key components for ToyotaFour key components for Toyota

These are linked to the pursuit of a new These are linked to the pursuit of a new global image with :global image with :

kind to the earth,kind to the earth, comfort of life, comfort of life, excitement for the world, excitement for the world, and respect for all people. and respect for all people.

The encompassing motto of ToyotaThe encompassing motto of Toyota"innovation into the future" is "working "innovation into the future" is "working

with passion and dedication to create with passion and dedication to create a prosperous society."a prosperous society."

Achievements by ToyotaAchievements 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 Achievements by Toyota From a Sustainable

Point of ViewPoint of View Some key achievements include:Some key achievements include:

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

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

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

• • A comprehensive dealer environmental management programme since 2005.A comprehensive dealer environmental management programme since 2005.

• • Top 5 listing in Massey University's Corporate Environmental Responsiveness Survey Top 5 listing in Massey University's Corporate Environmental Responsiveness Survey since 2007.since 2007.

• • Strong engagement with employees through our annual ‘Environment Month' activities Strong engagement with employees through our annual ‘Environment Month' activities and promotion and promotion

Toyota Success TodayToyota Success Today

Toyota participates in community activities, sponsoring educational and Toyota participates in community activities, sponsoring educational and cultural programs as well as research.cultural programs as well as research.

Toyota is the world's second or third largest manufacturer of automobiles Toyota is the world's second or third largest manufacturer of automobiles in both unit sales and in net sales,.in both unit sales and in net sales,.

The #1 seller of retail vehicles in the US.The #1 seller of retail vehicles in the US. In the United States, Toyota has roughly double the sales of Honda, and In the United States, Toyota has roughly double the sales of Honda, and

has replaced Chrysler Group as the #3 seller. has replaced Chrysler Group as the #3 seller. It produces over 5.5 million vehicles per year, equivalent to one every six It produces over 5.5 million vehicles per year, equivalent to one every six

seconds. seconds. 

ChallengesChallenges Industry overcapacityIndustry overcapacity

Economic downturnEconomic downturn

GlobalizationGlobalization

Environmental concernsEnvironmental concerns

The IT revolutionThe IT revolution

Diverse and shifting consumer Diverse and shifting consumer demanddemand

Outcomes of ToyotaOutcomes of Toyota

RevenueRevenue USD $203.26 billion (2009) USD $203.26 billion (2009)

Operating IncomeOperating Income USD $-4.56 billion (2009) USD $-4.56 billion (2009)

Net IncomeNet Income USD $-4.33 billion (2009) USD $-4.33 billion (2009)

Total EquityTotal Equity USD $-5.54 billion (2009) USD $-5.54 billion (2009)

International Presence and Position in the International Presence and Position in the Domestic MarketDomestic Market

GM

Ford

TOYOTA

VWDaimlerChrysler

Fiat NissanPSA

HondaRenault

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Int’l Market (2000) Japan Market (2000)Japan Market (2000)

Communication Skills within Toyota Communication Skills within Toyota CorporationCorporation

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 PlanAction Plan

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

Introduce vehicle technologies, which support the diversification of energy and fuel Introduce vehicle technologies, which support the diversification of energy and fuel sources.sources.

Promote the development of clean-energy vehicles and ensure wider market acceptancePromote the development of clean-energy vehicles and ensure wider market acceptance Reduce water consumption.Reduce water consumption. Enrich stakeholder communicationsEnrich stakeholder communications . . Actively contribute to sustainable development efforts.Actively contribute to sustainable development efforts.

Market PositionMarket Position

Market Capturing 14'945'390 Market Share 16%

Relations With CustomersRelations 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.

ConclusionConclusion

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

THANKS FOR YOUR ATTENTIONTHANKS FOR YOUR ATTENTION