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TOYOTA

1. The history of Toyota

a. It started in 1933 with the company being a division of Toyoda

Automatic Loom Works devoted to the production of automobiles
under the direction of Kiichiro Toyoda.Kiichiro Toyoda had travelled
to Europe and the United States in 1929 to investigate automobile
production and had begun researching gasoline-powered engines in
1930.He was encouraged to develop automobile production by the
Japanese government.

b. In 1934, the division produced its first Type A Engine, which was
used in the first Model A1 passenger car in May 1935 and the G1
truck in August 1935.

c. After the world war II, commercial passenger car production started
in 1947 with the model SA

d. The Crown became the first Japanese car to be exported to the

United States and Toyota's America and Brazilian divisions

e. Toyota Co. was established as an independent and separate

company in 1937. Although the company name was changed in order
the pronunciation. Toyota is considered luckier than Toyoda in
Japan, Toyota began to expand in the 1960s with a new research
and development facility, .The first Toyota built outside Japan was in
April 1963, at Port Melbourne in Australia, other countries.
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2. The origins of Toyota Toyota Motor Corporation was originally a

machine manufacturing company called Toyoda Automatic Loom Works,
Ltd. and was owned by Sakichi Toyoda. But it was his son, Kiichiro
Toyoda who branched out into automobile manufacturing. The first type A
engine was created in 1936 and the rest as I said in history.

3. Vision and Mission

a. Vision is to be the most respected and successful enterprise,

delighting customers with a wide range of products and solutions in
the automobile industry with the best people and the best
technology".

b. Mission of Toyota is to provide safe & sound journey. Toyota is

developing various new technologies from the perspective of
energy saving and diversifying energy sources. Environment has
been first and most important issue in priorities of Toyota and
working toward creating a prosperous society and clean world

4 SWOT Analysis

a. Strengths:

(1) Diversified product range,

(2) Highly targeted marketing and a commitment to lean

manufacturing and quality.

(3) # 1 carmaker in 2007

b. Weaknesses: Company needs to cautiously keep producing cars in

order to retain its operational efficiency.
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c. Opportunities: Manufacturers need to make sure that it is their

models that consumers want versus competitors

d. Threats:

(1) Toyota has also sold on its technology to other motor

manufacturers, for example Ford has bought into the
technology for its new Explorer SUV Hybrid

(2) Toyota is to target the 'urban youth' market.

(3) Toyota faces tremendous competitive rivalry in the car

market.

(4) Economic instability

5. S B Us

a. Housing
b. Bio Tech
c. Afforestation
d. Floriculture Business
e. Livestock Biomass business
f. Aerospace
g. Higher education

h. Robotics
f. Finance
6. Toyota Home—building 21st century comfort and luxury into houses
in Japan.

a. Concentrating the knowledge and technology of the Toyota Group

to the housing business, Toyota's house making is based on the
"Skeleton & Infill" approach. Based on careful consideration of
customer lifestyles, three different structures have been developed
for the Toyota Home line-up.
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b. House building based on the "Skeleton & Infill" Approach

Flexible infill combined with a long-lasting skeleton structure are
used to create spacious, long-lasting and flexible houses.
The development of housing-related equipment that incorporates
high level automobile technology is firmly supported by the Toyota
Group Housing and the Related Products Development Committee.
Earthquake-resistant rigid steel frame construction "Sincé RAISON

c. Free DesignPost and Beam steel frame construction "Espacio GX"

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7. Bio Tech

a. Current biotechnology industry can be broken down into three

areas: agriculture, medical and chemicals, and the one area Toyota
is now focusing on is agricultural biotechnology.
The reasons why Toyota has decided to focus on this particular
area are:

b. An increase in world population, mainly in Asia

c. An increase in the amount of food consumption per person due to a

rise in the income level

d. A decrease in farm and forest areas due to industrialization and

urbanization, and food and water shortages due to an increase in
water consumption and worsening of the global environment.

e. In order to contribute to the mitigation of such problems and to

establish a profitable business, Toyota established the
Biotechnology and Afforestation Business Department and began
research and development in January 1998. And in May 1999, the
Toyota Biotechnology and Afforestation Laboratory was established
to layout the framework for research and development in the
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agricultural biotechnology field and to speed up Toyota's

biotechnology business.

f. The environmental problem is one of the biggest obstacles any

company must deal with, but Toyota is positively undertaking this
challenge as an opportunity to achieve further growth and is aiming
to balance environmental protection and economic growth by
developing technologies, including biotechnology and afforestation.

8. Areas of Toyota Activity in Biotechnology

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9. Afforestation Amid a growing sense of crisis regarding the global

environment, Toyota established Australian Afforestation Pty. Ltd. in August 1998
in order to alleviate the pulp shortage that had resulted from the restriction placed
on felling natural forests and to contribute to the resolution of the environmental
issue concerning how to absorb a greater amount of CO2. The company has
completed the planting of 1,763ha of eucalyptus trees in the states of Western
Australia and South Australia to be sold as pulp material, and the business is
steadily growing.

10. Floriculture Business In order to enter the growing floriculture

business, in 1999, Toyota established Toyota Floritech Co., Ltd. with Hakusan
Co.,Ltd., a seeds and seedlings import company, and began full-scale
operation.The company's large greenhouse for potted flowers, which is equipped
with a highly automated cultivation systems, is one of the largest in Asia,
measuring 88 by 231 meters. The company is taking advantage of a climate
which surpasses even that of countries like Denmark or Holland, where the
flower business flourishes, to produce various types of flowers and sell
approximately four millions of mini potted flowers and ornamental plants per year.

11. An Overview of Toyota Floritech Co., Ltd. Toyota Floritech Co., Ltd.
was established in October 1999.

a. Location Rokkasho-Mura, Kamikita County, Aomori Prefecture

b. Business Production and sales of potted flowers and ornamental
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plants.
c. Capital 100 million yen (50% by TMC, 50% by Hakusan
Co.,Ltd.)
d. President Teruo Takatomi (President of Hakusan Co.,Ltd.)
e. Number of 12 employees and 37 part-time workers (as of the end
Employees of July 2008)
f. Sales 430 million yen (FY2008)
Target

12. Floriculture Business

In order to enter the growing floriculture business, in 1999, Toyota

established Toyota Floritech Co., Ltd. with Hakusan Co.,Ltd., a seeds and
seedlings import company, and began full-scale operation.The company's large
greenhouse for potted flowers, which is equipped with a highly automated
cultivation systems, is one of the largest in Asia, measuring 88 by 231 meters.
The company is taking advantage of a climate which surpasses even that of
countries like Denmark or Holland, where the flower business flourishes, to
produce various types of flowers and sell approximately four millions of mini
potted flowers and ornamental plants per year.

13 An Overview of Toyota Floritech Co., Ltd

Toyota Floritech Co., Ltd. was established in October 1999.

(a) Location Rokkasho-Mura, Kamikita

County, Aomori Prefecture
(b) Business Production and sales of potted
flowers and ornamental plants.
(c) Capital 100 million yen (50% by TMC,
50% by Hakusan Co.,Ltd.)
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(d) President Teruo Takatomi (President of

Hakusan Co.,Ltd.)
(e) Number of Employees 12 employees and 37 part-time
workers (as of the end of July
2008)
(f) Sales Target 430 million yen (FY2008)

14. The loss of vegetation in urban areas has resulted in serious

problems such as the heat-island effect, air pollution, drought, and
flooding. Due to difficulties in the greenification of urban areas at the
ground level, a lot of attention has been focused on ways of greening
buildings.
By adding greenery to the enormous areas made up of city building
rooftops and walls, it is possible to greatly contribute to the improvement
of the urban environment.
Toyota established the Toyota Roof Garden Corporation in December
2001 as part of an effort to achieve sustainable urban greenification by
making buildings greener and developing trees that improve the
environment by utilizing both engineering technologies (e.g., simulation
technology) and natural science technologies, which improve the innate
ability of plants to purify the air as well as enhance positive climatic effects
through transpiration and providing shade

15 An Overview of Toyota Roof Garden Corporation

Toyota Roof Garden Corporation was established in December 2001.
(a) Location Headquarters in Miyoshi-City, Aichi Prefecture
A branch office in Chuo Ward, Tokyo
(b) Business a) Planning, designing, and implementation of
greenification for rooftops, walls and exteriors
b) Production and sale of new types of products
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developed by TMC, such as the Cherry Sage

shrub (for improving the environment) and
easy-care slowgrowth Zoysia Grass (TM9)
c) Manufacture and sale of materials used in the
composting process (resQ45) for the livestock
industry
(c) Capital 55 million yen (70% by TMC, 30% by Ohshima
Landscape Construction Co., Ltd.)
(d) President Takehito Sato

16. Livestock Biomass business

a. Domestic Japan total amount of livestock discharge (manure) in

Japan is approximately 89million MT. This huge amount of waste causes
bad influences on the environment such as offensive odors and
groundwater pollution. Also, it became a legal requirement that livestock
farmers must properly dispose the discharges, by the enforcement of “Act
on the Appropriate Treatment and Promotion of Utilization of Livestock
Manure” which took effect in November, 2004. The Open-air piling and the
burying discharges became prohibited. This gives the livestock farmers
very heavy burden.

b. To cope with the problems relating to livestock discharges, Toyota has

developed environmentally friendly quick composting system “resQ45”
through the collaboration with Menicon Corporation. Toyota Roof Garden,
one of TMC’s subsidiary companies, is in charge of the production and
sales of “resQ45”. Through the network of Toyota Tsusho Corporation’s
Livestock food sales business, the sales activity had started from July,
2006.

c. As with conventional composting, livestock manure example has

spontaneous fermentation mainly introduced, using sawdust as the
moisture conditioner. It takes long term (90-180 days) to properly compost
the manure, especially for the decomposition of the cellulose which is
contained in the moisture conditioner. We developed the new system of
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composting “resQ45”, by applying Menicon’s technology of the enzyme and

the thermophile, as well as utilizing the know-how for the fermentation
obtained through field tests. This system consists of two items, “Tokubetsu-
Kyuko” the enzyme which promotes the composting and “Thermo-master”
the thermophile.

d. This system can shorten the composting term greatly (90-

180days→45days). Also, according to Menicon’s research, this system can
reduce offensive odors, as well as greenhouse gas such as Nitrous
oxide(N2O), methane gas(CH4) and nitrate nitrogen(NO3‾N ) .This system
can be also effective for the disposal of poultry and swine. This system is
highly regarded among many livestock farmers.
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17. Aerospace

Toyota is a minority shareholder in Mitsubishi Aircraft Corporation, having

invested US$67.2 million in the new venture which will produce the
Mitsubishi Regional Jet, slated for first deliveries in 2013.[76] Toyota has
also studied participation in the general aviation market and contracted with
Scaled Composites to produce a proof-of-concept aircraft, the TAA-1 in
2002.[77]

18. Higher education

Toyota established the Toyota Technological Institute in 1981, as Sakichi

Toyoda had planned to establish a university as soon as he and Toyota
became successful. Toyota Technological Institute founded the Toyota
Technological Institute at Chicago in 2003. Toyota is supporter of the "Toyota
Driving Expectations Program," "Toyota Youth for Understanding Summer
Exchange Scholarship Program," "Toyota International Teacher Program,"
"Toyota TAPESTRY," "Toyota Community Scholars" (scholarship for high
school students), "United States Hispanic Chamber of Commerce Internship
Program," and "Toyota Funded Scholarship." [79] It has contributed to a number
of local education and scholarship programs for the University of Kentucky,
Indiana, and others.[79]

19. Robotics (Toyota Partner Robot)

In 2004, Toyota showcased its trumpet-playing robot. [80] Toyota has been
developing multitask robots destined for elderly care, manufacturing, and entertainment.
A specific example of Toyota's involvement in robotics for the elderly is the Brain
Machine Interface. Designed for use with wheelchairs, it "allows a person to control an
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electric wheelchair accurately, almost in real-time", with his mind. [81] The thought controls
allow the wheelchair to go left, right and forward with a delay between thought and
movement of just 125 milliseconds

.[8 1]

Toyota trumpet-playing robot

20. Finance

Toyota Financial Services Corporation provides financing to Toyota customers.

21. Global

a. Four geographical markets

b. Four regional headquarters
c. Vehicles sold in 170 countries
d. 52 bases in 27 different countries

22. Global Strat Distribution channels

a. Regional bases

b. Dock-based operations

c. Port facilities
d. 5 major U.S. ports
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23. Marketing Toyota motors uses the four p’s of marketing for better
results.

a. Products: The products offered-unique, superior AND sound

quality.

b. Price: Toyota Motors Corporation keep in mind the value for

customers.

c. Promotion: The effective techniques are used to communicate to

customers.

d. Place: The business location and methods for distribution of products.

24. Strategic Objectives in Pakistan

a. Achieving Market leadership by delivering value to customer

Bringing Toyota quality to Pakistan
Respecting our people
b. Becoming a good corporate citizen

25. Toyota Prices

Toyota Price Updated On

 Corolla 1.3L XLi Rs. 1,325,000 Sep 16, 2010

 Corolla 2.0D Rs. 1,400,000 Sep 16, 2010

 Corolla 1.3L GLi Rs. 1,450,000 Sep 16, 2010

 Altis 1.8L M/T Rs. 1,740,000 Sep 16, 2010

 Corolla 2.0D SALOON Rs. 1,740,000 Sep 16, 2010

 Altis 1.8L CRUISETRONIC Rs. 1,830,000 Sep 16, 2010

 Altis 1.8L M/T SR Rs. 1,830,000 Sep 16, 2010

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 Corolla 2.0D SALOON SR Rs. 1,830,000 Sep 16, 2010

 Avanza 1.5L M/T STD Rs. 1,900,000 Apr 09, 2010

 Altis 1.8L CRUISETRONIC
Rs. 1,920,000 Sep 16, 2010
SR

 Avanza 1.5L M/T Up Sepcs Rs. 2,100,000 Apr 09, 2010

 Hilux 4x2 D/C (LAN-05) Rs. 2,750,000 Apr 09, 2010

 Hilux 4x4 S/C (LAN-03) Rs. 2,850,000 Apr 09, 2010

 Hilux 4x4 S/C A/C (LAN-04) Rs. 3,000,000 Apr 09, 2010

 Hilux 4x4 D/C (LAN-07) Rs. 3,100,000 Sep 10, 2010

 Hilux 4x4 D/C A/C (LAN-08) Rs. 3,250,000 Apr 09, 2010

 Hilux 4x4 D/C F/L (LAN-09) Rs. 3,499,000 Apr 09, 2010

 Camry 2400 CC Petrol M/T Rs. 6,700,000 Apr 09, 2010

 Camry 2400 CC Petrol A/T Rs. 6,900,000 Apr 09, 2010

 Fortuner 2.7 A/T (TGN51R-

Rs. 7,500,000 Apr 09, 2010
NKPSKD)

 Prado 3.0L N-turbo Rs. 9,700,000 Apr 09, 2010

26. Micro environment The Micro environment consists of those

components of the macro environmentwhich are directly relevant to an
individual’s organization. An organization’s microenvironment includes

a. Customers
b. Suppliers

c. Internal Public
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d.. Competitors
e. Intermediaries
27. The boundary between an organization’s Macro and Micro
environment should notbe viewed as static. Changes in the former will
inevitably redefine the latter.The various components of micro environment
for Toyota have direct influence onits performance. Moreover components of
Toyota’s micro environment are alsorelated to its macro environment.
.
28. Customers
Toyota aims at developing loyal customers relationship. For this reappoint tries
itsbest to understand who its buyers are and what are their needs. It tries to listen
to its customers, realizing that they may be their best collaborators. Customers
feedback drive their product development.To be the market leader and satisfy
the requirements of its customers, the company has set certain objectives.
These are
a. Improve Quality
b. Enhance Efficiency
c. Minimize Cost
d. Increase Productivity
29. Over the previous years the company has put in its best efforts to
manufacture quality cars designed for its customers. In Pakistan, more and more
people want to experience the unique pleasure of motoring. Exhaustive, in-depth
research and consumer surveys conducted over the past years revealed trends
of customers and the environmental factors relating to use.
30. Toyota’s Marketing Policy
Toyota’s slogan “Reliability n Motion” represents its emphasis son strong
trustworthy and life-long automobiles. It has many brand loyal customers and is
considered as market leader. In Pakistan, it has aimed at various segments with
their variety of models in Toyota Corolla, so customers in every segments can be
satisfied.
31. Different classes of Toyota Corolla Introduced in Pakistan are;
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Model Description Segments

 SE Saloon 1600CC  Industrialists,
 Well established
 Businessman,Professionals.

 Xli 1300cc  Middle-level Executives,

 Government Departments &
Organizations,
 Professionals,
 Armed Forces
 2.0D / 2.0D Saloon  Professionals,
 Business Executives who are
fuel cost conscious

32. Toyota Dealer

Toyota has got an effective Nationwide dealer network comprising of 25 dealers at
Karachi, Lahore, Faisalabad, Mirpur, Islamabad, Peshawar, Sialkot, DI Khan,
Multan,Quetta and Larkana. This spread of network shows not how Toyota is
sincerely busyin developing a company’s customer relationship and winning the
hearts of brand loyal as well as ttracting potential customers.
33 Suppliers
Suppliers constitute a second component in a typical organization’s micro
environment. Toyota has to respond not only to the customers they supply, but
also to the sources from which they receive supplies. Suppliers are given
importance and
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respect by Toyota. It continuously aims at developing a strong relationship with

its suppliers. This is done to ensure that Toyota suppliers provide quality
materials which is the most important factor for Toyota vehicles. Japan, is the
major supplier of CBU or completely built up vehicles. AlsoCKD kits or
completely Knocked down Kits are supplied from Japan. CKDkits mainly
comprise of the engine of vehicles. The vehicles which areassembled in
Pakistan comprise of 65% locally manufactured parts.Toyota Indus aims for
good relations with both the local and foreignsuppliers. “To achieve
maximum level of customer’s satisfaction” is Toyota’smission. This can be
proved by the fact that dealership is authorized to theseselective people
who offer 3 S’s. That is sales, services, spare parts. This isdone to ensure
convenience for its customers. They are offering the followingservices to
cater to the needs of their customers:
a. One year free servicing from any Toyota service center all over
Pakistan.
b. Free checkup camps are set annually.
c. Spare parts easily available all over Pakistan.
d. The dealership network comprises of seventeen dealerships all
offering sales, services and spares.
e. The customer retention department at the dealerships is also
mprovedand consolidated periodically.
34. The company believes on the fact that favorable supplier relations lead to
improve quality, better shipping arrangements early warming of major price
changes and dvance information about technological or marketplace
developments. So, the aim is to develop friendly, professional relations with
suppliers in which both will profit.
35. Internal Public
It is the action, of employees by which a company’s objectives are accomplished.
In order to achieve its goals and objectives Toyota makes sure that highly
competent and skilled people are employed. Emphases is laid to ensure that the
person being hired meet the criterion for the respective departments.Training is
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an integral part in Toyota’s various departments. Training wasintensified and

various courses were conducted through the previous year.Technicians at the
dealers’ service departments underwent extensive by IMCservice
departments to improve their skills. Moreover, periodic training ofmanagers is
also conducted. This include training camps, short courseconducted in
various well-known universities, training programs conductedabroad and
lectures of foreign exports.
36 .Competitors
Market competition is the cornerstone of managerial capitalism. The five forces
that shape the degree of market competition operating within an organization’s
micro environment are
a. Rivalry among existing organization.
b. Relative power of customers.
c. Relative power of suppliers.
d. Threat of new entrants.
e. Threat of new substitutes.
37. Presently Toyota is proud to have the most market share. Honda
standssecond followed by Suzuki and Nissan. Since its start it was only in
95-96that Honda managed to sale 200 more units of vehicles than Toyota.
Still,Toyota is proud to be in a strong position. However to the spirit
ofcompetition is strong and this has lead Toyota to continuously try to
improveitself, at all levels. Continuous emphasis is laid on to attract more
customers,maintains healthy relations with its suppliers and makes efforts to
improvetechnology. Careful strategic planning at al levels has enabled
Toyota toachieve the highest market share and have an edge over other
automobilecompanies.
38. Intermediaries
Banks, Leasing companies and car agents are some of the intermediaries for
Toyota. These intermediaries basically giving the boost to the sales of Toyota,
by offering the cars to the consumers, in easy installments and making the cars
affordable for the customers to the higher extent.
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39 Conclusion

Toyota cares so about their customer and Quality, that's why Toyota is
very famous , and made its brand name. Toyota has created a new dimension
in the field of automobile business. It has understood the needs of the
customers and has made a mark for itself by manufacturing small, high
performing, defect free cars. The story of Toyota is one of an extraordinary
group of entrepreneurs and engineers who believed in the power of innovation
and in making miracles everyday