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Value Chain Analysis of 5 Companies

Submitted to: Dr. Supriti Mishra Prof. C.S.R and B. Ethics IMI Bhubaneswar

Submitted By: Aditya A. Dash Ajeet S. Chauhan Jubin Joseph

Contents 1. Bharti Airtel 2. TCS 3. Mahindra Rise 4. Toyota Corp. 5. Wal-Mart

Bharti Airtel
Bharti Airtel has led from the front and, in turn, been feted by its global peers and the society at large for the positive impact it has brought to bear on peoples lives. Its disruptive innovation of partnering with competitors for sharing passive infrastructure is today the industry benchmark globally. Not only has this made good economic sense but also minimised environmental impact at the design stage itself. Over the last few years, it has driven Its green initiatives further by making a determined move towards renewable energy sources like solar and wind to power Its tower networks. The globally recognised P7 Green Towers project of Bharti Infratel allows for 24,000 tower sites to run on renewable energy, with an expected reduction in GHG emissions by around 150,000 mtCO2 per year. Its green initiatives have resulted in a reduction of 11% in GHG emission/terabyte for its operations in India during the year 2011-12. Similarly, in Africa, a slew of hybrid battery banks have been deployed, reducing diesel dependence in 60% of the tower network. By 2013, this is expected to be 100% for Airtel Africa. Mobile technology has also served as an enabler. Today, its services in the areas of banking, commerce, healthcare and education work to help bridge the Digital Divide as well as support national financial inclusion agendas. IFFCO Kisan Sanchar Limited (IKSL), its joint venture initiative with the worlds largest fertiliser cooperative federation IFFCO, is a great example of farmer empowerment in India. Under this programme, agriculture related information services - weather forecasting, commodity prices, agronomy, dairy farming and forestry - are provided to more than one million farmers to improve farm productivity. A similar project has also been initiated in Kenya. Initiatives like eGram in India have introduced revolutionary changes in governance and delivery of citizen services. I strongly believe its networks will not only speed up the expansion of these services, particularly in rural areas, but also ensure that this is done at a fraction of the cost stakeholders traditionally incurred. Airtel has also partnered with Columbia Universitys The Earth Institute to provide connectivity to eight villages in six countries in Africa. Known as the Millennium Villages Project, this programme facilitates the delivery of improved child and maternal healthcare, helps children bridge access to education challenges and enables a payment mechanism for solar-powered systems through three targeted individual projects enabled by Airtels mobile network.

As it enter the age of data, I see broadband being the next lever that will impact its sustainability footprint. Broadband networks help create a connected economy and transform the way it work and live. In the process, broadband delivers a multiplier and inclusive effect on the economy. The fact that broadband also makes a dramatic reduction in the overall carbonintensity of its lives has generally gone unnoticed. In the deliberations of the UN-sponsored Broadband Commission, my fellow Commissioners and I recognised the urgent need for governments across the world to expand broadband penetration by adopting long-term National Broadband Plans based on universal affordability and accessibility. At the same time, trickle down has just so much impact and, often, those not in the economic mainstream are left out. Education is the singular focus of the Bharti Foundation, the Groups philanthropic arm, as it believe that without this fundamental input, society can never progress. Through its flagship Satya Bharti School programme, the Foundation has set up 253 schools across six states of India. These schools impart quality education, free of charge, to more than 37,000 children, the majority of whom are girls from economically weaker sections of society. Similarly, Airtel Africas Our School programme is a school adoption initiative under which 31 primary schools have been adopted across 17 African countries, catering to more than 16,000 underprivileged children. It has sought to present a glimpse of the various ways that telecom in general, and Bharti Airtel in particular, has in its own small way, tried to touch the lives of millions of people - to make the world a better place. This is its dream, its vision, its journey.

PEST analysis

Customers 'Customer First' approach is deeply embedded in its work culture. It actively engages with its customers and creates sustainable value for them through provision of innovative services, while protecting their interests. Its approach ensures that it meet the diverse expectations of its urban, rural and multinational enterprise customers. Connecting customers in the way they want, with what they want and when they want is of paramount importance to us. Some innovative approaches to connect to its customers include: Reaching out to its rural customers: Rural and emerging markets contribute to approximately 60% of its customer base. Rural users commonly depend more on mobile communications to stay connected. In a consistent effort to bring the technological revolution to remote areas, its rural Airtel Service Centres (ASC) sell ~248 million mobile, internet and SMS packs on an annual basis. It conducts around 5000 Service Camps to help service rural customers who have a need for face-to-face interaction. At Airtel, it Innovate and deliver a wide range of cost effective, secured, ontime and customised services using the best-in-class technology for its customers. It also ensure that customer service and delight is engraved in every employees' DNA to add value to every moment of the customers time. It

aim to be a part of the lives of all customers thus making them advocates of brand Airtel. 73% of its postpaid and 32% of its prepaid customers use some form of selfservice. It currently manage around 550 million transactions every month on self-care channels Its Facebook interactions doubled and Twitter followers tripled in the past 2 years Active presence on 114 online websites, including Grahak Sewa. 20% of its postpaid payments are through online bill payment Airtel online recorded approximately 50% increase in visits between July 2011 and March 2012. Its self-care portal, Enterprise Central, enables its customers to seamlessly complete all transactions, view performance reports, analyse bills and usage patterns online and view details of all its services. Empowering customers through self-care: The nature of customer interactions has changed dramatically in the past few years. Customers find more value in the online experience in comparison to live interactions. Recognising this, it ventured into unconventional territories like IVR, USSD, online presence, web-based applications and SMS, which enables us to connect with its customers in real time. Nearly 27,000 Airtel Service Centres to service around 83,000 villages. Nearly 10 million customers are serviced every month from these centres, which sell, recharge and handle customer service, supported by a staff of around 800. Over 1000 vans equipped with cameras, photocopiers and scanners to service rural and distant locations. 14 contact centre partners with a team of over 20000 executives interact in 18 regional languages, handling over 50 million calls per month. More Smiles per Cubicle for its Enterprise Customers: Its Global Service Operations Centre (GSOC) is always on a mission to provide reliable, secure, proactive 24x7 monitoring, and Q4 '10-11

For the financial year 2011-2012, Airtel registered approximately 50% reduction in VAS and data complaints. For the last two quarters of the financial year 2011-2012, Airtels mobile internet customer satisfaction scores surged upwards by 57% for postpaid customers and by 40% for prepaid customers. Enabling freedom for the customer through My Airtel My Offer (MAMO). Personalised offers based on the customers need and usage Offering enhanced data experience through superior internet experience for broadband customers by providing speeds up to 8mbps, consolidation of all Dedicated Accounts (DA) of a single customer into one account, and up gradation of Airtel Live platform with additional features such as federated search, editorial content, social objects and prepaid self-care integration for enhancing usability and discoverability. Enabling choices for the customer through Value Added Services (VAS). The pioneering service provider in India to provide a single platform which empowers customers to access, including customised talk-time, validity, data services, roaming, ISD and VAS offers through a 360-degree approach via multiple channels.

Technology It work hard to provide its enterprise customers with the best technology available at affordable prices through leading innovations such as: MATE Mobile Application Tool for Enterprise, an integrated telecom and IT application enabling enterprises to port Business and CRM applications on mobile devices and extend MAMO: Customer Accessibility on Multiple Channels call centre subscription TrackMATE - Airtel Business was the first telecom operator to launch a GPSbased tracking solution. TrackMATE is helping organisations increase productivity with faster delivery of goods and reduce fuel consumption by monitoring vehicle routes. The vehicle tracking application is available through mobile phone as well as the computer, thus allowing fleet managers to keep track of all the vehicles, even when on the move.

Cloud offerings - Cost effective solutions for customers which curtail costs on infrastructure, space, power and server management with guaranteed availability and round the clock support. Airtel offers both private and public cloud offerings to suit the requirements of its customers, even supporting the growth visions of organisations that do not want to make large capital investments in infrastructure. International roaming offerings - Cost-effective voice and data packages for enterprise customers' employees. It offer frequent travellers a suite of valueadded services that redefines their roaming experience across its membernetworks.

Sustainability at Airtel begins with the protection of interests of its customers and other stakeholders, and remains at the heart of all its business operations. There have been several measures undertaken to secure customer interests: Bill Protection and Bill Shield - a default inbuilt feature for all post paid plans with a maximum limit that can be incurred on a customers bill to ensure a 'no surprise' data usage. Responsible data usage on international roaming- Its awareness drives on responsible data usage during roaming and continuous reminders during roaming with the usage details to safeguard customers from excessive usage without knowledge. Robust process of VAS consent management State-of-the-art data centres providing a secure environment for customer data. Special attention is given to efforts that safeguard sensitive information and individual privacy. Airtel has a highly trained team of security professionals to take care of information security, people and infrastructure safety, business continuity and compliance. Its structured security-training programme encompasses all domains of ISO 27001 across the organisation and is conducted annually. Airtel has adopted a number of policies and procedures to ensure security and data privacy.

Supplier Ecosystem Ensure that the outsourcing contract motivates the partner to come up with innovative products and/ or services that support its sustainability initiatives Implement outstanding contract governance and ensure trust, transparency and involvement of the partner at all stages Create an ethical and sustainable supply chain. Recognising the socioeconomic benefits of local procurement, it encourage sourcing from within the regions economy. It have also started an exercise in consolidating its supplychain base to make its engagement more focused and meaningful. Next in line is Airtels plan to adopt a framework honoring its commitment to sustainable procurement procedures. This is aimed at promoting underprivileged groups in society with a special focus on promoting women entrepreneurs and small businesses.

Sustainable supply chain One of the important parameters of supplier selection at Airtel is the suppliers achievement of management certifications such as TL9000, ISO 9001, ISO27001, ISO 14001, OHSAS18001 and RoHS. It believe that organisations that follow accepted practices and procedures are more likely to create reliable products in an environmentally and socially responsible manner. Suppliers with certifications for high standards in their areas of expertise are preferred, and those seeking certification are assisted in undergoing a certification programme within a defined period. Its Business Standards of Conduct includes (but is not limited to) such areas as compliance with applicable laws, ethical competition, nondiscrimination against employees, prohibition of child and forced labour, safe working conditions, compliance with environmental laws, accuracy of financial records, and avoidance of conflicts of interest. Airtel encourages its partners to publicly disclose their performance on environmental, social, and governance measures. It are also working with its procurement team to embed corporate responsibility clauses in its contracts. Standard conditions of contract require supplier adherence to laws relating to human rights, forced and child labour which are also periodically monitored for compliance and necessary action.

Planet Its planet has never needed a more focused and enduring effort at preservation as it needs today. Increased use of telecommunications technology presents a number of opportunities to reduce emissions and waste. At Airtel it continuously evaluate the impact of the services offered by us, and its infrastructure partners, on resource and energy consumption, greenhouse gas (GHG) emissions and waste handling procedures. This helps us in developing innovative solutions that minimise negative environmental effects. It encourage its employees to reduce energy consumption and waste. Its commitment to the environment, energy efficiency and concern for the planet goes all the way back when a decade ago when Airtel promoted the concept of telecom passive Infrastructure sharing to the world. The formation of various telecom service providers like Indus, Infratel and others resulted in a reduction of the collective carbon footprint of the entire industry. Currently over 70 percent of the mobile towers face grid outages or erratic power quality in excess of 8 hours a day leading to network outages. To address this demand-supply gap, telecom tower operators currently use diesel generators, batteries, and a variety of power management equipment. This has an adverse affect on the climate as well as hits the profitability of the operators. This challenge re emphasises the need to increase focus on usage of renewable energy. With this approach it have worked with its partners to successfully transition around 2000 tower sites to solar energy. It are also exploring the possibility of using renewable energy solutions such as solar, wind and biomass-based energy in areas with technical feasibility. The largest rooftop solar power plant in the Indian telecom industry at Gangaganj, Lucknow, is with an aim to save 26,000 litres of diesel per annum. Some of the planned interventions in this area include: Powering of switching centres with renewable energy solutions - Currently it have commissioned one solar plant of 100KWP at one of our main switching centres (MSC), resulting in a significant reduction in energy consumption of 0.15 million units per annum. It are planning to replicate this in its other MSCs with 300 KWP solar power plants.

Conversion of over 5000 additional sites to solar power, 100 sites to Biomass and 50 sites to Hybrid battery solutions. These initiatives upon implementation are expected to save energy consumption, grid or diesel, by approximately 25 million KWH Conducting trials to tap wind energy at various sites. In addition to this, various energy saving initiatives were undertaken by its infrastructure partners over the years and in 2011 in particular these included; Green shelter: This unique shelter with optimal cooling, power and thermal management systems minimises the running of back-up systems like DG sets, reducing energy consumption by up to 40% Reduced power consuming BTS: We, along with its telecom equipment manufacturers, have been working to develop BTS with reduced power consumption (1 to 1.2 kW from 2 to 3 kW) which, apart from energy saving, enables the usage of renewable energy such as solar energy, which would have been difficult to implement due to high load. Its concerted efforts, in the last 5 years have enabled us to reduce power consumption per BTS by 60%. Network deployment with Outdoor BTS: An outdoor base station does not require air-conditioning which typically accounts for 35.

TATA CONSULTANCY SERVICES TCS embodies the Tata groups philosophy of building sustainable businesses that are firmly rooted in the community and demonstrate care for the environment. Towards this, TCS has adopted the 'triple bottom-line' approach and recognizes that People, Planet and Profit as the central pillars of corporate sustainability. People: Sustainable Internal and External Communities More than 250,000 employees are the backbone of TCS, who are actively engaged with to drive sustainability initiatives. Externally, TCS conducts a diverse range of CSR initiatives in the areas of education & skill building, health environment and affirmative action using volunteering, sponsorships and pro bono leveraging of our IT capabilities as the modes of engagement. In addition initiatives focused at promoting supply promoting supply chain and procurement sustainability ensure the alignment of that our vendors and suppliers to the sustainability objectives.

Planet: Environmental Sustainability From designing sustainable infrastructure, running efficient operations, to engaging with our supply chain partners in green procurement and disposal activities; TCS takes a holistic approach towards reducing its energy, water, material, waste and carbon footprint. TCS offices as well as IT infrastructure are sustainably designed and built for maximum resource efficiency.

Profit: Sustainable Marketplace In addition to ensuring sustainability of the Companys business performance, a dedicated eco-sustainability team works across industry verticals with an aim to provide next-generation sustainability services to customers. Integrating sustainability into business strategies and unlocking environmental efficiencies in the entire value chain is a significant value add.

The TCS Quality Management System (TQMS) is a complete set of documents, tools, methods and practices built on and around the business model, with a focus on service & solution delivery, customer management, security management and people processes. It also includes suitable measurement

protocols to continuously monitor the effectiveness of the quality system. TQMS focuses on all aspects of project management, knowledge management, technology management, customer management, product and service delivery, security management, business continuity, career development and competency management, associates and other parameters of diversity; thus, ensuring that customers experience a level of certainty that no other organization can match. Project Management Reviews (PMR) are conducted every quarter by senior managers to check the overall health of the project and identify potential risks. Project audits are performed by an external quality controller (representative of TCS Quality Assurance Group or a senior team member from another project) to verify compliance with customer-specific processes and TCS Integrated Quality Management System (iQMS). Information Security and Data privacy

Information Information security and data privacy is critical to the business. The Companys Security Vision statement is: To make TCS reliable, resilient and immune to the existing and evolving volatile environment of constant changes, accidents, attacks and failures so as to enable all our stakeholders experience certainty. In pursuit of this vision, TCS has implemented a comprehensive Information Security Management System (ISMS) framework based on the globally recognized ISO 27001:2005 ISMS standard, covering network controls, network privacy, internet security, patch management system and controls against malicious software. The Information Security is managed by a team of security professionals having industry-recognized credentials such as the CISA, CISM, CISSP, CEH, CBCP etc. These are professionals from various backgrounds and with a variety of experience, including those from application development, Infrastructure services, Networking, Forensics, Legal and Compliance.

Innovation TCS has established a strong organizational locus for innovation - the Corporate Technology Organization (CTO) which governs innovation processes, sets benchmarks, guides creation of Intellectual Property and facilitates Innovation diffusion. Innovation is delivered through: Structured Innovation Engine: TCS Innovation Labs Innovation Ecosystem: Co-Innovation Network, (COIN) Culture of Innovation: Knowledge Portals, Awards and People Practices Apart from bringing big benefits to customers, TCS has, in the last couple of years, created over a hundred product patents and its innovative products have won several awards from industry. TCS R&D continues to attract top research talent from India and across the world. The Company continues to support sabbaticals, internships and PhD sponsorships in research areas relevant to the Company as well as in premier academic institutions. Research based competencies have been introduced in the Companys learning portal. Details of the Companys focus areas for R&D are provided on Page 25 of the Annual Report. In addition, TCS has been innovating in its service and product offerings as described on Page 28 of the Annual Report. In FY 2013, TCS filed 425 patent applications and got 9 patent grants. Cumulatively, TCS has filed 1,280 patent applications, of which 81 have been granted.

Sustainability as a mainstream business metric Driven by the cost and scarcity of resources, rapidly changing country and industry regulations, transformation in the competitive landscape, and increasing investor interest, boardrooms and chief executives recognize that sustainability is important for the future success of their businesses. This is resulting in sustainability practices moving towards the core of the business, in the following three areas: 1) Managing sustainability-based risk to brand and reputation corporations are moving towards streamlining their compliance management processes and systems, and extending this into their supply chain and sourcing decisions. Corporations are also enhancing and customizing sustainability

communications to their various stakeholders to better manage their reputation and mitigate any risks 2) Increasing business profitability through sustainability practices organizations are employing sustainability practices, such as energy, water, and waste management, while actively engaging their supply chain to ensure a sustainable value chain. 3) Driving sustainability-led business growth and innovation - significant R&D budgets are being invested in creating sustainable products and services, identifying new markets and creating differentiation strategies.

TCS Eco-Sustainability Solutions To take advantage of these trends, TCS has set up a dedicated EcoSustainability Unit with a primary objective of identifying and developing solutions which would help our clients drive their sustainability agenda effectively and efficiently. TCS provides the following solutions:

1) Sustainability Performance Management: Defining processes and systems to optimally manage sustainability performance of companies 2) EHS Compliance Management: Defining processes and systems to optimally manage compliance requirements of companies 3) Energy Management: Integrated energy management across the entire energy management lifecycle diagnostics, metering and monitoring, energy efficiency implementation, tracking reporting and verification 4) Supplier Sustainability Management: Designing supplier sustainability strategies and implementing systems to manage supplier sustainability information and to create visibility for driving product stewardship 5) Product Sustainability: Lifecycle assessments and product engineering, based on Design for Environment (DfE) principles

Mahindra & Mahindra


Introduction
Mahindra & Mahindra Limited (M&M) is engaged in financial services, tourism, infrastructure development, trade and logistics. It operates in nine segments: Automotive, which consists of sales of automobiles, spare parts and related services; Farm Equipment, which consists of sales of tractors, spare parts and related services; Financial Services, which consists of services relating to financing, leasing and hire purchase of automobiles and tractors; Steel Trading & Processing, which consists of trading and processing of steel; Infrastructure, which consists of operating of commercial complexes, project management and development; Hospitality, which consists of sale of timeshare; IT Services, which consists of services rendered for information technology (IT) and telecom; Sys-tech, which consists of automotive components and other related products and services, and Others, which consists of logistics, after-market, two wheelers and investment. Mahindra embarked on its journey in 1945 by assembling the Willys Jeep in India and is now a US $7.1 billion Indian multinational. It employs over 1,00,000 people across the globe and enjoys a leadership position in utility vehicles, tractors and information technology, with a significant and growing presence in financial services, tourism, infrastructure development, trade and logistics. The Mahindra Group today is an embodiment of global excellence and enjoys a strong corporate brand image. Mahindra is the only Indian company among the top tractor brands in the world. It is today a full- range player with a presence in almost every segment of the automobile industry, from two- wheelers to CVs, UVs, SUVs and sedan. Mahindra recently acquired a majority stake in REVA Electric Car Co Ltd. (now called Mahindra REVA), strengthening its position in the Electric Vehicles domain. The Mahindra Group expanded its IT portfolio when Tech Mahindra acquired the leading global business and information technology services company, Satyam Computer Services. The company is now known as Mahindra Satyam.

Mahindra is also one of the few Indian companies to receive an A+ GRI checked rating for its first Sustainability Report for the year 2007-08 and has also received the A+ GRI rating for the year 2008- 09.

Pestle analysis
Political The agriculture and farm equipment sector has been recently liberalized fully. The foreign trade regulation by the World Trade Organization (WTO) calls for a policy of 100% foreign direct investment. The government of India offers incentives on R&D expenditures and promotes and encourages exports in the segment. In the recent Taxation policy introduced by the government the Custom duty in import of tractor has been reduced from 67 to 62.8 percent which has progressively reducing fiscal burden. Economic The Pricing of tractors is done from the Indian farmers perspective who are usually poor and very price sensitive. The Disposable income of farmers is quite less in the majority of India. In the current business cycle of recession the availability of credit has gone down. Even though subsidized lending rate have been provided to farmers by the Indian government. This has also caused the entry of private banks in the rural market quite difficult. Socio-cultural The size of irrigated land holdings in India has come down due to division of land among younger generations. This has also caused the buying capacity of the farmers to decrease. The levels of education of farmers have comparatively increased in the past 5 to 10 years especially because of the education programs introduced by the Indian government. There has been a reduction in availability of cheap farm labour. Technological NATRIP (national automotive testing and R&D infrastructure project) has been setup. There has been increased application of electronics on agricultural

tractors like GPS and auto cruise systems. The company has increased Implementation of scientific farming practices such as irrigation. There has been Increase usage of haulage and non-agricultural applications. There has been increased movement towards secondary mechanization leading to use of attachments like reaper, combine or seed drills. The High yielding seed varieties and fertilizers facilitates farm mechanization. The Engine performance has increased because of power train research and development. Accelerated testing techniques have reduced the development lead- time to help industry to introduce new models in shorter periods. Rapid prototyping also helps in accelerated development. Legal There has been tightening safety and performance regulations in the recent years. M&M has to confirm to emission norms in near future-Bharat TREM IV/EURO3/US TIER 3. New regulations noise/safety-NVH centre of excellence have come up. M&M does Testing and certification as per OECD. Environmental There has been increased focus on Agri based energy policy in near future. There has been increased focus on production of fuel oil and bio mass power. The cumulative average monsoon in India has increases 5%. The irrigation water stock has reduced in the past years.

Sustainability in Value Chain


In year 2012-13 Mahindra has emphasised on water conservation in its sustainability report. The drive is termed as changing the water equation H2O to H2Infinity. They have categorised their drive in three parts i.e. Profit, People, Planet.

Profit
Green Buildings Risk Analysis Green Paint Technology Xeriscaping and Drip Irrigation System at MWC Micro-irrigation services 40% reduction in water consumption

Mahindra First Choice automated the Underbody Washing Process which cuts water consumption by 50% It is cost competitive, safe & fast

People
40 parched villages Refurbishment of a water reservoir at Wagholi, Maharashtra, Construction of a Check Dam Rainwater Harvesting Plants

Planet
343 acre green belt Comprehensive Water Strategy Regular monitoring of wastewater Groundwater Recharge Centralised control instead of individual plant control a reduction of 75% in specific water consumption Grey water for Gardening

Toyota Motor Corporation


Introduction
Toyota Motor Corporation is a Japanese automaker headquartered in Toyota, Aichi, Japan. In 2013 the multinational corporation consisted of 333,498 employees worldwide and, as of March 2013, is the thirteenth-largest company in the world by revenue. Toyota was the largest automobile manufacturer in 2012 (by production), and in July of that year, the company reported the production of its 200-millionth vehicle. As of November 2013, it is also the largest listed company in Japan by market capitalization. The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota Industries to create automobiles. Three years earlier, in 1934, while still a department of Toyota Industries, it created its first product, the Type A engine, and, in 1936, its first passenger car, the Toyota AA. Toyota Motor Corporation group companies are Toyota (including the Scion brand), Lexus, Daihatsu, and Hino Motors along with several "nonautomotive"

companies. TMC is part of the Toyota Group, one of the largest conglomerates in the world.

SWOT Analysis
Strength Toyota has many strategies which behave as its strength such as its strong Production system which is constantly being simplified and improved, which results in successful product development. Toyotas innovation of Hybrid technology has made it market leader and it is also its main strength. Being market leader with largest sales of 9.97million vehicles has made Toyota a strong brand. Toyota has partnerships around the world to develop new vehicles as well as manufacture existing products gives it strength to compete in the region with its competitors. Weakness Being largest automobile company has its own weaknesses. Toyota markets its most of products in Japan and USA and therefore it is exposed to economic and political fluctuations in those regions. Perhaps this is why company has to shit its attentions to emerging markets such as china and Asia. Further movement in exchange rates has already left narrow margins in car market. Further Toyota needs to keep producing cars in order to retain its efficiency. Car plants represent huge investments in expensive fixed cost, as well as high cost of training and retaining labour. So in case of downturn in market company will see an overcapacity and vice versa in case of upturn demand. Opportunity Automobile industry is growing every day so the technology is improving due to change in economic environment international oil prices are soaring and affecting fuel prices so demand for hybrid and electric vehicles is rising due to their fuel efficiency. Still there are opportunities to be explored in emerging markets such as in South Asia and in Africa due to rate of inflation fuel efficient cars are high in demand but lack of service bases and marketing is keeping those markets off road. There are many hybrid drive vehicles are available in market but still opportunity is there to produce Hydrogen fuelled and Compressed Natural Gas powered vehicles although they are ultra-fuel efficient vehicles but not produced on mass scale around the world. Threats

Technology used in vehicles is subject to failure which result in massive recalls of products and could cost millions to companies. Recall of products is one of threat which most companies cannot avoid as it cannot be predictable but this could result in losing customer confidence in brands. Rising prices of fuel is threating the sales around the world with addition to economic down turn is also a threat to sales.

PEST analysis
Political Politics of any region around the world has very extensive impact on any industry as well as automobile industry. In UK Eco-friendly vehicles which produce carbon emissions less than100g/Km are exempt from congestion charges in Central London area and subject to low road tax charges. But in the mean while conventional vehicles are subject to high charges of taxes. In one way producing environmental friendly cars are advantage in some countries but in others this has not any affect because absence of any such law which privilege them over others. High duties in some countries on vehicles are up to 200% which decrease attractiveness of driving and is one of biggest threat to sales and act as a barrier to reach most potential customers. Political stability of region also decides fate of automobile industry as instability in governments are threats to previously made contracts and laws which benefits industry. Automobile Industry cannot provide services bases all around the country in some regions due to safety and security of its engineers which is a threat e.g., Potential Customer demand for Hybrid and fuel efficient vehicles are high in many African and Asia countries but due to absence of proper service and inspection bases companies do not market those products. Economic Automobile industry survives in any region of world on the bases of economy of native country or region. Economic recession around the world in 2009 has deeply impacted automobile industry as sales gone down for few and in meanwhile many have to file bankruptcy. In meanwhile in regions where economic condition is not very good therefore government has placed many barriers on new cars such as increased taxes or most importantly high and keep rising fuel prices are biggest threat to automobile industry.

Social Local culture and social life is also very important roles or public preference travel. In many countries and region People prefer to use public transport due to its efficiency and fare prices which is threat for automobile industry in that country and countries like china bicycle is one of preferable source of short travel distances. Many groups who aggressively who opposes automobile industries due to in harmfulness to environment also is a threat to industry. Technological Today technology plays very basic and important role in successfulness of any industry including automobile industry. New technological inventions have plays very positive impact on sale of vehicles around the world such as launch or fuel efficient vehicles and intelligent driving features. Technological failures also mean while become a threat to automobile industry because of public trust on those technologies. Furthermore, developing new technologies is time taking and long process which is also believed to be a threat to sales for automobile industry

Toyotas Sustainability in Value Chain


Toyotas Approaches to the Creation of a Sustainable Value with Regard to Cars, Local Communities, and Management. Some of their steps to create sustainability are as follows New collaboration between Tahoka, Toyotas third manufacturing hub in japan, and local communities Contributing to sustainable development through initiatives based on three priority themes Monozukuri Developing people and region Contributing to sustainable development through initiatives based on three priority themes o Contribution to a low-carbon society o Contribution to a recycling-based society o Environmental protection and contribution to a harmony with nature society Contributing to society in collaboration with business partners Business continuity management at Toyota

o Humanitarian aid o Early recovery of the affected areas o Restoration of company operations and production

Wal-Mart Retail Chains Wal-Mart Stores, Inc. is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores. The company is the world's second largest public corporation, according to the Fortune Global 500 list in 2013, the biggest private employer in the world with over two million employees, and is the largest retailer in the world. WalMart remains a family, as the company is controlled by the Walton family, who own over 50 percent of Wal-Mart. It is also one of the world's most valuable companies. Wal-Mart has 8,500 stores in 15 countries, under 55 different names. The company operates under the Wal-Mart name in the United States, including the 50 states and Puerto Rico. It operates in Mexico as Walmex, in the United Kingdom as Asda, in Japan as Seiyu, and in India as Best Price. It has wholly owned operations in Argentina, Brazil, and Canada. Wal-Marts investments outside North America have had mixed results: its operations in the United Kingdom, South America, and China are highly successful, whereas ventures in Germany and South Korea were unsuccessful. Wal-Mart is an international store that offers working families with the items they require at prices which are quite competitive. In each of their worldwide markets, they make use of their strengths as a worldwide corporation to meet the regional needs of their consumers, and offer assistance to communities through their corporate social responsibility drives.

SWOT Analysis Strength Wal-Mart is the largest wholesaler in the globe. It was ranked number one in 2011 by Fortune 500, among the largest companies in America (DATAMONITOR, 2011). The wide spread of its operations is exceptional and there is no comparable competitor of such size. It has been increasing its influence in international operations. By it being a market leader, it is capable of replicating its best strategies regularly on an unrivaled scale across the globe. Wal-Marts market dominance leads to advantageous terms on everything ranging from the goods on its shelves to stock leases. This competitive

advantage has generated its positive economic proceeds and market share advantages. On the other hand, Wal-Mart stores provide a large variety of generally known products. Additionally, it provides personal label retail across a number of categories, which comprise of entertainment, grocery, home wares and apparel. Moreover, its dominant position and the variety of products that it offers permit it to quickly vary its products. This enables it reap the benefits of economies of scale. For instance, by shifting floor space share, Wal-Mart can gain from low-income customers growing wish for 3 consumable staples as an alternative of discretionary items. This sort of flexibility and influence enables it to maintain its marketplace position. Weaknesses Wal-Mart is a big box vendor and runs supercenters which necessitate large area for every new stock. This limits its expansion in urban places where the space available is limited. Studies show that store sales at Wal-Mart in America have reduced for eight repeated quarters due to its market place space limitations and costs. Thus, it has become more crucial for Wal-Mart to come up with a new set up that accommodates its limitations and which is more apt to the urban areas. This is because its competitors like Costco and Tesco are also aiming to come up with new workable setups. Therefore, if they manage to be successful then Wal-Mart will have a competitive disadvantage.

Opportunities Wal-Mart has been increasing its existence in a number of developing economies like Mexico, South Africa and Brazil. These economies have been described as some of the fasting growing economies in the globe. By establishing in these places, thus, Wal-Mart is guarantee on increased volume of sales as time progresses.

Threats There has been a high increase of employees which indicates a possibility of increase in payroll expense and health care benefit expenses. The labor expenses for corporations in the

United States have been increasing as the health care charges and wages rose in the recent times. According to business estimates, health care prices for the US workers are estimated to rise by 8 percent in 2010 and 8.5 percent in 2012. The rise in medical charges continues to outdo inflation and pay rise. One of the basic drivers that are likely to cause the rise in medical charges in 2012 is that, employees are worried about losing their positions and possibly their health cover. Thus, they make use of their health care excessively while they still contain it. PEST Analysis for Wal-Mart PEST analysis presents an evaluation of macroeconomic framework that affects a particular industry or firm. Currently, the understanding of continuously changing environment, technology, and competition compels Wal-Mart to think strategically and to decide pretty fast. Its strategic plans take the place of long term plans. Wal-Mart has been at times subjected to political actions and law suits. For instance, it has been subjected to the law suit for gender and racial discrimination. In the economic side of it, the US has its plan to moderate the increase of supercenters in order to leverage capital assets through a plan which is designed to increase returns and sales in U.S. stores. On the part of social analysis, consumers in US who want one stop service go to Wal-Mart as their first choice. Wal-Mart retail uses modern technologies for the core purpose of marketing. This is because in the recent business situations adopting the modern marketing strategies is essential. For instance, reliance on the internet and social media for advertising and selling is vital for the companys development. Similarly, technology is among the foremost concerns on the agenda of marketing in Wal-Mart as this leads to productivity, creativity, and sustainability.

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