MINOR PROJECT REPORT ON

TOYOTA
Submitted in partial fulfillment of the requirements for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION
to

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, DELHI

Ms. AASHIMA SHARMA

SANYAM JAIN III SEM 07117001711

Session 2012-13

Acknowledgement

This project work , which is my first step in the field of professionalism, has been successfully accomplished only because of timely support of my well wishers. I would like to pay my sincere regards and thanks those, who directed me at every step in my project work.

First of all, I would like to express my thanks to R.K. GUPTAgiving me such a wonderful opportunity to widen the horizons of my knowledge. I extend my thanks to my project guide MS. AASHIMA SHARMA for her scholarly guidance, constant supervision and encouragement. It is due to her personal interest and initiative that the project work is published in the present form. Last but not the least, I would also thanks to the staff member of TECNIA, friends and parents who have directly or indirectly contributed in making this project success. it is a tribute for there valuation. Despite all efforts, I have no doubt that error and obscurities remain that seen to afflict all writing projects and for which I am capable.

SANYAM JAIN

CHAPTER- 1 INTRODUCTION

Toyota Motor Corporation is headquartered in Toyota City, Aichi. Its Tokyo office is located in Bunkyo, Tokyo. Its Nagoya office is located in Nakamura-ku, Nagoya. In addition to manufacturing automobiles, Toyota provides financial services through its Toyota Financial Services division and also builds robots. In predominantly Chinese-speaking countries or regions using traditional Chinese characters, e.g. Hong Kong and Taiwan, Toyota is known as In predominantly Chinese speaking countries using simplified Chinese characters(e.g. China), Toyota is known as (pronounced as "Fēngtián" in Mandarin Chinese ). These are the same characters as the founding family's name "Toyoda" in Japanese, which translate to "fertile rice paddies" in the Chinese language as well. The Toyota Company is a leader in the car manufacture, assembly and distribution the world over. A very efficient management style that the company uses has been one of the reasons for the firm’s good performance. There are many other salient factors that have made the company achieve the niche of market leader. The market structure the company operates in cannot be definitely stated. Some may consider it to be a monopoly. This is due to the fact that the company is a dominant market player in car exportation. In fact, its differentiation strategy has made it enjoy an almost monopolistic presence especially in the developing nations of the world. On the other hand, the market structure can be seen as an oligopoly. This is due to the fact that there are other key players like GM who are peer competitors. Toyota is keen to see what these competitors are doing and make sure it reacts to their actions in a way that will guarantee its market leadership. Until recently, Fujitsu employed various strategies to improve productivity and efficiency at its plants and business units. In 2003, however, we introduced the Toyota Production System (TPS) throughout the company

to promote innovative manufactur- ing. This system is intended to achieve company-wide innovation not only at the plant level, but also for product delivery processes from the sales sections to the customers and for processes upstream of design and development. The system is still under construction, and we are now addressing various problems posed at each plant and business unit. This system is also intended to bring innovation to the processes performed between the plants, suppliers, and customers by linking with upstream development sections. This paper examines the progress of introducing TPS, using its introduction at some of our Information and Communication Technolo- gy product plants as examples. 1. Introduction
To overcome the difficulties caused by the deteriorating business environment and to accomplish continuous improvement, Fujitsu has until recently employed various strategies to improve productivity at its plants and business units. In 2003, in response to the need to further implement these activities throughout the whole company, Fujitsu announced a policy of introduc- ing the Toyota Production System (TPS)1),2) as an extensive company-wide activity. First, the manufacturing sites were designated as the starting points, and we started activities that focused on returning to total supply chain management (SCM) of production activities and returning to the upstream design departments. To convert from the staff-led improvement activities approach that had been used to date, we focused on employee consciousness and instruc- tion and started implementing TPS from zero at each plant and manufacturing subsidiary. To introduce TPS, we first sought guidance from well-informed outside consultants and then, in 2004, we stared developing full-scale activities with the ultimate goal of reforming the corporate structure and climate. In this paper, we describe the TPS introduc- tion policy we developed for our production innovation activities and look at its imple- mentation at some of our Information and Communication Technology product plants . We then describe these activities and the results that were obtained. Finally, we describe our plans for future development.

The new headquarters of the Toyota Motor Corporation Opened in February 2005 in Toyota City

Logo and Branding

Employee at Toyota Museum explains development of Toyota name and brand In 1936, Toyota entered the passenger car market with its Model AA and held a competition to establish a new logo emphasizing speed for its new product line. After receiving 27,000 entries, one was selected that additionally resulted in a change of its moniker to "Toyota" from the family name "Toyoda." It was believed that the new name sounded better and its eight-stroke count in the Japanese language was associated with wealth and good fortune. The original logo no longer is found on its vehicles but remains the corporate emblem used in Japan. Still, there were no guidelines for the use of the brand name, "TOYOTA", which was used throughout most of the world, which led to inconsistencies in its worldwide marketing campaigns. To remedy this, Toyota introduced a new worldwide logo in October 1989 to commemorate the 50th year of the company, and to differentiate it from the newly released luxury Lexus brand. The logo made its debut on the 1989 Toyota Celsior and quickly gained worldwide recognition. There are three ovals in the new logo that combine to form the letter "T", which stands for Toyota. The overlapping of the two perpendicular ovals inside the larger oval represent the mutually beneficial relationship and trust that is placed between the customer and the company while the larger oval that surrounds both of these inner ovals represent the "global expansion of Toyota's technology and unlimited potential for the future. Much like the

design of the cars we sell, our logo has undergone a number of refinements and improvements over the years:

COMPANY AT A GLANCE

Type

Public company TYO: 7203 LSE: TYT NYSE: TM
  

Industry

Automotive Robotics Financial services

Founded Founder(s)

August 28, 1937 Kiichiro Toyoda

Headquarter Toyota, Aichi, Japan s Area served Key people Worldwide Fujio Cho (Chairman and Representative Director)

Akio Toyoda (President and Representative Director)

Products Production output Revenue Operating income Profit Total assets

Automobiles Financial Services 7,308,039 units (FY2011)[1] ¥18.99 trillion (FY2011)[1] (US$235.89 billion) ¥468.28 billion (FY2011)[1] (US$5.82 billion) ¥408.18 billion (FY2011)[1] (US$5.07 billion) ¥29.818 trillion (FY2011)
[1]

(US$370.3 billion) Total equity Employees Parent ¥10.33 trillion (FY2011)[1] (US$128.32 billion) 317,734 (2010)[2] Toyota Group

OBJECTIVES
Study any organization in detail. Collect data pertaining to the following: Operations strategy  Financial strategy  HR policy  Marketing strategy

METHODOLOGY
All the analysis is done with the help of secondary data.

Technology

The latest corporate crowd sourcing experiment comes to us from Toyota, which this week launched its "Ideas for Good" initiative--an opportunity for consumers to repurpose Toyota automotive technology to benefit society outside of the automotive space. In return, winners will get to choose from one of three Toyota cars (2011 Prius, 2011 Highlander Hybrid or 2011 Venza) and be part of an "Idea Design Session" event. The campaign, which is being produced in conjunction with Saatchi & Saatchi LA, asks entrants to work with five Toyota technologies: Total Human Model for Safety (THUMS) – An advanced injury-simulation software that measures more than the conventional crash test dummy can. Hybrid Synergy Drive® (HSD) – HSD converts braking energy into electricity. The hybrid system helps lower emissions while raising mpg. Solar Powered Ventilation System – The Toyota Prius offers this system that helps keep the interior air temperature near the outside ambient temperature, when the vehicle is parked in direct sun. Touch Tracer Display – An advanced touch-activated display system that allows drivers to control music, temperature and other features from the steering wheel without taking their eyes off the road. Touch Tracer is the first display system in the world to allow steering wheel controls to read out on the instrument panel. Advanced Parking Guidance System (APGS) – Available on the Toyota Prius, this system utilizes ultrasonic sensors in the front and rear bumpers to detect open parking spaces and helps guide the car into those spaces with only soft driver braking. Some of these technologies are already being used outside Toyota. THUMS, for example, is being used by Wake Forest University to study the effects of tackles and hits on football players. It is also being used by NASCAR to analyze the effects of high-speed impacts. The benefits of Toyota's crowd sourcing experiment are twofold: the brand gains recognition for some of its more innovative technologies, and it gets to leverage the ideas of the crowd, to boot. Toyota is far from the first company to dabble in online crowd sourcing. Pepsi's multimillion dollar Refresh grant program has been wildly successful, and GE's recent $200 million Ecomagination Challenge captured the attention of environmentally-aware Internet

junkies. Toyota's promise of a shiny new car will probably be enough to get a decent number of participants in its contest.

About the Technologies

T.H.U.M.S. 1. Solar Powered Ventilation System 2. Hybrid Synergy Drive® 3. Advanced Parking Guidance System 4. Touch Tracer

T.H.U.M.S.
T.H.U.M.S. (Total Human Model for Safety) is an advanced injury-simulation software that measures injury to parts of the body not measurable with conventional crash test dummies. T.H.U.M.S. (Total Human Model for Safety) is an advanced injury-simulation software. T.H.U.M.S. has two million distinct parts, including bones, ligaments, tendons and the muscular systems, enabling Toyota to better understand injury mechanisms in crashes that have historically been difficult to analyze with current crash test dummies. Toyota is using T.H.U.M.S. to better understand the mechanisms that cause injuries to vehicle occupants and pedestrians in car crashes, using the data collected to help develop advanced safety technologies for airbags, seatbelt systems and vehicle body structures. In one case, T.H.U.M.S. was used to study low-speed rear impacts to help reduce the risk of whiplash injuries. Internal organs are particularly vulnerable during collisions, with injuries to them accounting for approximately half of all injuries sustained during automobile collisions. T.H.U.M.S. provides Toyota with more data than ever before to help them create the next generation of safety features on their vehicles.

Engines
Toyota's new-generation engines combine driving pleasure and environmental responsibility

Award Winning Engines
Toyota prizes itself for its advanced and intelligent engines. Its VVT-I engine won "Engine of the Year 2000" and recently the VVTL-I has won a similar award for its revolutionary "lifting" valve control technology. And

the developments go on: At Paris Motor Show 2002 Toyota will launch its new D-CAT clean diesel technology.

Engines - VVT – I
VVT-I (Variable Valve Timing with intelligence)

Why VVTI In contrast to the fixed valve timing of conventional engines, the VVT-I system is an computer controlled mechanism that continually varies the timing for opening and closing the intake valves in accordance with the vehicle's operating conditions. BY determining the level of performance that is demanded of the engine at a given time by way of the driver's accelerator operation and the engine rpm, the VVT-I enables the overall performance of the engine to be enhanced all the way from the low to the high rpm range.

Design
VVT-I is comprised of three major components 1.The electronic control unit(ECU), which calculates optimum intake valve timing based on engine operating conditions. 2. The oil control valve (OCV), which controls hydraulic pressure under the ECU's instruction and 3.The VVT pulley, which continuously changes the intake valve timing using hydraulic pressure. The VVT-I is an engine control system that has achieved high levels of the seemingly opposing performances of Higher power out-put, Lower fuel consumption, Cleaner exhaust gases.

D-4D

D-4D High technology, clean diesel
Originally introduced in Europe in the top selling Avensis range, D-4D is widely recognised as one of the most advanced diesel technologies on the market today. Toyota D-4D engines are available on select models of Yaris, Yaris Verso, Corolla Verso, Innova, Avensis, Avensis Verso, RAV4, Land Cruiser and Prevail models. Until recently, diesel engines relied on relatively simple technology with a low-pressure mechanical injector delivering fuel to a pre-combustion chamber in the cylinder head, where a single ignition - fired by the intense heat of high compression - takes place. The system was reasonably fuel efficient but lacked precision and refinement, leading to vibration and noise. Fuel combustion can be incomplete, allowing smoke and other emissions to pass into the exhaust.

D-4D components
Toyota's common rail system makes use of a high pressure pump and intelligent, computer controlled injectors to deliver precisely the right amount of fuel, at precisely the right time, directly into the centre of the combustion chamber.

Safety
While you're getting out of your car, we're thinking about how to keep you in.

The most important aspect of protecting passengers in a collision is to minimize collision forces transmitted to them. At Toyota, we design automobile bodies with crumple zones to absorb collision energy, and we have put a great deal of work into designing ever more efficient passenger restraint systems such as seatbelts and head restraints. We search for improved webbing elongation characteristics, improved ways of clamping the webbing, and improved pretensioners. Passenger safety begins with buckling up. And at Toyota, we are working hard to make seatbelts more comfortable and easier to wear. In addition, we are making significant progress with airbags as supplemental restraint systems (SRS). In a collision, seatbelts are the primary safety device that helps protect the occupants. During the development of a new automobile, Toyota uses dummies of several different sizes to make sure the seatbelts, anchors, and buckles are positioned for a safe and comfortable fit. While roadtesting prototypes, real people use the seatbelts and report on their fit and comfort. Adjustable shoulder anchor are provided for wearers to change the height of the belt for additional comfort and safety. Toyota continually strives to design new and better seatbelts that make the most of the ride-down effect of our automobiles' crumple zones and enhance the deceleration effects. Toyota even designs the structure and shape of the seats in its cars to complement the restraint of the seatbelts. Making the shape of the seats and the position of the anchors to ensure that the belts fit low across the pelvis. Depending upon the seating configuration, some of our vehicles have 3point belts for the passenger sitting in the middle of the back seat. Our Tension-Reducing Emergency Locking Retractor (ELR) automatically locks when you pull on the belt to ensure its secure enough to work, yet loose enough to feel comfortable. And some of our vehicles have Pre-Tens ioner Sensors which quickly pull the seatbelt back at the first shock of a severe head-on collision, while the Force Limited keeps that tension from injuring you. It all works to keep you safe and secure in the event of an accident.

Brakes
Our brakes allow you to do something you never thought possible

Toyota has developed new electronic control systems that make the most of the basics and add to overall performance. These electronic systems include ABS for the brakes and TRC for traction control. ABS helps prevent wheel lock. When the brakes are applied, the tyres begin to slip. ABS measures the degree of slip to determine when wheel lock will occur from the degree of slip, and reduces hydraulic pressure to prevent it. Because ABS allows the wheels to roll - albeit at a slower speed than the vehicle velocity - the vehicle maintains directional control and steerability. A cars wheels may tend to spin when starting off or accelerating. In some cases, loss of traction can cause the tyres to lose their grip and allow the vehicle to slide sideways. Toyota's TRC system regulates engine and brakes to help provide as much control of wheel slip as possible during start-off or acceleration. If a wheel loses traction, the wheel speed sensor detects a sudden increase in wheel rotation speed. This information goes to the TRC electronic control unit (ECU), which commands the engine to reduce torque. At the same time, the ECU commands the brake actuator to engage the brakes on the affected wheel until it regains traction. Obviously, driver awareness of road hazards and appropriate response is also required to avoid dangerous situations and to give the various systems time to operate. Toyota's TRC system uses components of ABS and engine management systems, as well as components designed specifically for TRC. The system helps the driver maintain control of the automobile and optimizes traction, even on slippery surfaces.

Operation Strategy of Toyota
Toyota is Japan's biggest car company and the second largest in the world after General Motors. It produces an estimated eight million vehicles per year, about a million fewer than the number produced by GM. The company dominates its home market, with about 40% of all new cars registered in 2004 being Toyotas. Toyota also has a large market share in both the United States and Europe. It has significant market shares in several fast-growing South East Asian countries. The - 1 -company produces a large range of vehicles which are highly regarded for their quality, engineering, and value; their designs set global standards for safety, reliability and ease of maintenance. The Company Philosophy "Do the right thing for the company, its employees, the customer and the society as a whole."

Origins
The story of Toyota Motor Corporation began in September 1933 when Toyoda Automatic Loom created a new division devoted to the production of automobiles under the direction of the founder's son, Kiichiro Toyoda. Soon thereafter, the division produced its first Type A Engine in 1934, which was used in the first Model A1 passenger car in May 1935 and the G1 truck in August 1935. Production of the Model AA passenger car started in 1936. Although the Toyota Group is best known today for its cars, it is still in the textile business and still makes automatic looms (fully computerized, of course), and electric sewing machines which are available worldwide. During the Pacific War, the company was dedicated to truck production for the Imperial Army. Because of severe shortages in Japan, military trucks were kept as simple as possible. For example, the trucks had only one headlight in the centre of the hood. Toyota earns $1250 per vehicle produced while GM loses $2311 per vehicle produced.

JUST IN TIME (JIT)
Just-In-Time (JIT) is a Japanese manufacturing management method that was developed in the 1970’s. It was first adopted by Toyota manufacturing plants by Taiichi Ohno. One motivated reason for developing JIT was a

need of a better production technique after World War II. Japanese people had a very strong incentive to develop a good manufacturing technique to help them rebuild the economy. They also had a strong working ethnic which was concentrated on work that caused continuous improvement. These kinds of motivation had driven Japanese economies to succeed. Because of the natural constraints and the economy constraints after World War II, Japanese Manufacturers looked for a way to gain the most efficient use of limited resources. The Toyota Company implemented this into their plant and turned the management and accounting principles around to effectively and efficiently move inventory in and out very quickly while also concentrating on the manufacturing aspects of their cars. After the first introduction of JIT by Toyota, many companies followed up and around mid 1970s’and it gained extended support and widely used by many companies around the world. Just in Time is an inventory strategy implemented to improve the return on investment of a business by reducing in-process inventory and its associated carrying costs. JIT can lead to dramatic improvements in a manufacturing organization's return on investment, quality, and efficiency. Just-in-time means, quite literally, that an assembler on a line receives his consignment of parts "just in time" to use them. The system is based on an ideal situation in which a part arrives just in time to be used. The system also operates on the strength of very small lot quantities of replacement parts. This type of system produces only quantities necessary to fulfill the demands of the next operation. The quantity is pulled when it is needed, where it is needed, and in the exact quantity which is needed. The company will also need to ensure that the process has adequate response time to maintain an uninterrupted schedule. Companies can make great strides in JIT by reducing setup and changeover times for machinery. JIT recognizes that any motion which does not add value to a product increases the no value added cost of the product. Reduction of setup and changeover time reduces the no value added costs attached to a product. With Just in Time management, a company can dramatically improve its product quality. Using JIT, a company only holds enough inventories for current production, zero defects must be maintained. Once parts are put into production, attention to quality must continue since no finished goods inventory will be held. JIT is generally recognized that the implementation of JIT will result in significant reduction in inventory. Inventory levels are a key measurement of the JIT process. The JIT philosophy on inventory management is simple. It includes: strive for a level of zero inventories, produce items at a rate required by the customer, eliminate all unnecessary lead times, reduce setup costs to achieve the smallest economical lot size, optimize material flow from suppliers through the production process to the point of sale of the finished product, so that inventories are minimized, ensure high quality just-in-time delivery from suppliers, minimize safety stocks, implement a total quality control program which will minimize scrap, rework, and resultant delays in

production. In the JIT manufacturing environment, inventory is "demand" pulled into and through the process on a part-by-part basis in small quantities. The movement of inventories is no longer from the storeroom to a work centre, to a storeroom, to another work centre and so on. JIT accounting systems are similar to process costing; the vehicle for collecting costs is the time in the system, not a work order. There was a major need for this process because before the introduction of JIT, there were a lot of manufacturing defects for the existing system at that time. This included inventory problem, product defects, risen cost, and large lot production and delivery delays. The inventory problems included the unused accumulated inventory that was not only unproductive, but also required a lot of effort in storing and managing them. Other implied problems such as parts storage, equipment breakdowns, and uneven production levels. For the product defects, manufacturers knew that only one single product defects can destroy the producer’s creditability. They must create a "defect-free" process. Instead of large lot production - producing one type of products, they awarded that they should produce more diversified goods. Lastly, the system before JIT did not manage well for fast delivery request, so, there was a need to have a faster and reliable delivery system in order to handle customers’ needs. Thus, JIT manufacturing management was developed based on these problems. JIT was highly needed especially in the automotive industry that’s why Toyota was the first company to use it. In order to have an efficient production system in the automotive industry, there were many issues that needed to be solved. The first main problem was that the automotive industry is a typical mass production assembly type where each vehicle is assembled from several thousand parts that have undergone numerous processes. Therefore, a trouble in any of the processes will have a large overall effect. The second issue was there are very many different models with numerous variations and with large fluctuation in the demand of each variation. The last issue is every few years, the vehicles are completely remodelled and there are also often changes at a part level. The ordinary production control system in such an industry consists of fulfilling the production schedules by holding work-in-process inventory over all processes as a means of absorbing troubles in the processes and changes in demand. However, such a system in practice often creates excessive unbalance of stock between the processes, which often leads to dead stock. On the other hand, it can easily fall into the condition of having excessive equipment and surplus of workers, which is not conformable to Toyotas' recognition. In order to avoid such problems as inventory unbalance and surplus equipment and workers, Toyota recognized necessity of schemes adjustable to conform to changes due to troubles and demand fluctuations. For this purpose, they put their efforts in development of a production system which is able to shorten the lead time from the entry of materials to the completion of vehicle. This is where Just in Time was needed. The just-in-time production is a method whereby the

production lead time is greatly shortened by maintaining the conformity to changes by having “all processes produce the necessary parts at the necessary time and have on hand only the minimum stock necessary to hold the processes together". In addition, by checking the degree of inventory quantity and production lead time as policy variables, this production method discloses existence of surplus equipment and workers. This was the starting point of the Toyota Production System. There are many advantages in using the Just in Time inventory. One major benefit of JIT is the elimination of separate raw materials and work-inprocess inventory accounts. These accounts are replaced by one account called Raw and in-Process Inventory. All materials and conversion costs are charged to this account. Due to the reduction of in-process inventories, the computation of equivalent units of production is simplified. Some other advantages include minimizing raw material, minimize defects goods, simplify the production process, and create a timely, multi-skilled work force. By using the JIT production planning approach, managers reduce inventory to a minimum level, keeping on hand only the amount needed in production until the next order arrives. This approach eliminates the double handling of products which occurs when storage is relocated to the work area or shipping area. The JIT production stage is driven by having continuous delivery of items. The use of production planning eliminates the need for material requirements planning (MRP) as a production planning tool. In contrast to the JIT system, a MRT system is a "push-through" system driven by forecasted demand. It examines the finished goods requirements before determining the demand for raw materials, components, and subassemblies. JIT is an attempt to change the manufacturing process and to eliminate non-value-added activities in order to judge the cost high or low. This method can also help organization tremendously. There are also some disadvantages that JIT can bring. The JIT systems can be disastrously affected by outside forces. September 11, 2001 caused massive amount of financial damage to companies operating JIT Inventory or Production systems because so many large transport systems like FedEx, United Parcel Service (UPS), and the Post Office could not get the goods delivered. It also affected the other transportation industries. With the increased security at the U.S. border crossings with Canada and Mexico as well as at U.S. ports, trucks reportedly waited 18 to 20 hours at some crossing points. Not only did crossing times increase but, more importantly for JIT systems, they became unpredictable problems and increased financial losses especially in perishable products. There is a definite downside to JIT. In the JIT system often a sole supplier is used for products for the manufacturing process. A company becomes vulnerable if that sole supplier shuts down for some reason. The General Motors Corporation recently faced such a problem. When the Lordstown body stamping and fabrication plant went on strike, the GM Saturn division was forced to shut down. Lordstown is the sole supplier for about 300 Saturn parts. Eight more GM plants followed suit within days, at a daily

cost to GM of between $8 and $10 million in pretax profits. It is easy to see that a JIT inventory management system intensifies the impact of a strike. General Motors plight painfully illustrates the risk of a JIT strategy: It puts a company at the mercy of its key suppliers. Companies that use JIT principles are frequently used by large regional companies, or companies that expand nationally or even globally. Take for instance Sears Department store. Whenever a sale is made, that information is transferred to the computer and stored, to later be submitted to various computers that use the information to update inventory, calculate sales and create other statistical reports. Another example would be a restaurant such as Applebee’s. When food is ordered, the waiter submits this into a computer. At the present time, the information is used for the cooks and for check calculation. Later, the stored information is used in reports for management to clearly see what items have been sold and need to be reordered. The uses span far, as management can also use this data to see sale progressions of certain items and to see what sells the most at various times of the day, week or month. Other companies such as, The Quincy, Ill., plant of Quincy Compressor, Inc. has reduced its inventory to $4 million from $21 million over 10 years. Quincy uses JIT techniques to speed up delivery time for its large industrial air compressors, used in service stations, factory machinery, and climate-control systems. "We are producing more than we ever did, with less people," says David Irick, traffic manager. "When I started here 13 years ago, if you called for a basic air compressor, we quoted you nine months' delivery time. Now we quote 10 days, and we are averaging about five. That's just the way the market is. Nobody carries any inventory." The JIT inventory method is now being used just about anywhere. It is a common practice that many companies have adopted and many more are realizing the need to pursue the concept. This method is becoming the most effective and efficient in operations today. Eliminating waste, which is the most of important in JIT, can be used for all levels of operation in a company, not just inventory. More and more uses of JIT will be introduced and implemented as businesses seek to maximize the quality of their operations.

Toyota adopting three-stage plan
The Japanese carmaker was a latecomer to the China market. Within its global strategies, North America is the top priority, followed by its home country Japan.

China has been included in Toyota's top development strategy in recent years with its first China-made VIOS sedan produced in Tianjin in October 2002. Considering China is an immature auto market, the company has adopted a three-stage development plan -- first to establish a local sales network and launch brand promotions, then to build auto parts manufacturing bases, and, finally, to establish joint ventures (JVs) with local players and produce automobiles. About 57 per cent of respondents said Toyota adopted the right strategy for expansion in China and avoided possible risks. Although a latecomer, Toyota has jumped to the front in terms of imported car volume -- 50,000 units annually. It has 57 JVs and wholly funded auto parts companies scattered across China. Now, the company is stepping into the most important and critical stage -speeding up the localization of its products, since its rivals, such as Honda and General Motors, are accelerating their penetration into China. After the market entry of the Prado and Land Cruiser with China's First Automobile Works, its new product with Guangzhou Automobile Manufacturing Co -- Camry, which was a great success in the United States -- is also being developed. About 80 per cent of the respondents predicted Toyota will continue its brilliant performance in the US market, since the company has established a far-reaching sales network (35.6 per cent) and its product brands are highly recognized by Chinese customers (52.9 per cent). However, there are also unsatisfactory results of the development strategy. Seventy-five per cent of the 104 senior company managers surveyed said Toyota only wants to sell cars in China, but does not want to share technological know-how. Some 40.4 per cent of respondents said the company does not give enough attention to China market. Forbes magazine commented on Toyota's success in the US auto market, saying that once the company sets goals, it will manage to exceed the targets. What is more challenging to its rivals is Toyota's strategy to realize these goals. That assessment may well apply to its China expansion. Although Toyota missed the first opportunities, it will likely catch up if it pays more attention to the China market and introduces high-end brands.

Toyota Motor Corporation - SWOT Framework Analysis
SWOT Analysis, is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favourable and unfavourable to achieving that objective. The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. SWOT analysis groups key pieces of information into two main categories: Internal factors - The strengths and weaknesses internal to the organization. External factors - The opportunities and threats presented by the external environment The internal factors may be viewed as strengths or weaknesses depending upon their impact on the organization's objectives. What may represent strengths with respect to one objective may be weaknesses for another objective. The factors may include all of the 4P's; as well as personnel, finance, manufacturing capabilities, and so on. The external factors may include macroeconomic matters, technological change, legislation, and socio-cultural changes, as well as changes in the marketplace or competitive position. The results are often presented in the form of a matrix. SWOT analysis is just one method of categorization and has its own weaknesses. For example, it may tend to persuade companies to compile lists rather than think about what is really important in achieving

objectives. It also presents the resulting lists uncritically and without clear prioritization so that, for example, weak opportunities may appear to balance strong threats.

Toyota production system
Harmonizing with the Environment Globally, Toyota has indicated a strong and diverse commitment to the pursuit of harmonious growth through its technically advanced and environment-friendly products. There have been relentless efforts in the crucial fields of mobility, city transportation, resources, society and environment, through research & development. Protecting the environment has always been a priority at TKM, starting with the eco-friendly engines that are manufactured for the Toyota vehicles, to the advanced technology that is used for purification or recycling of waste water at the plant. Apart from this, the plant at Bidadi, Karnataka, is surrounded by a green belt, meets high environmental standards and has achieved the ISO 14001 certification in its very first year of operations.

Setting benchmarks for Production Excellence Quality is ensured in every vehicle that rolls out of Toyota Kirloskar Motor, through in-built audits at every process of the system. The company's operational excellence is based on the improvement tools and methods developed by Toyota under the Toyota Production System (TPS), greatly emphasizing superlative quality and minimal waste. In line with Toyota's growing comfort with its India operations, the company set up Toyota Kirloskar Auto Parts (TKAP), which commenced production of transmissions in May 2004, for its global requirements. Another initiative is the Toyota Techno Park India (TTPI), a non-profit industrial infrastructure company aimed at boosting local industries and related job opportunities. Setting benchmarks for the automobile industry, the manufacturing facility consists of 4 divisions (shops) – Press, Weld, Paint and Assembly.

Production System
A production system which is steeped in the philosophy of "the complete elimination of all waste” imbues all aspects of production in pursuit of the most efficient methods. Toyota Motor Corporation's vehicle production system is a way of "making things" that is sometimes referred to as a "lean manufacturing system" or a "Just-in-Time (JIT) system," and has come to be well known and studied worldwide. This production control system has been established based on many years of continuous improvements, with the objective of "making the vehicles ordered by customers in the quickest and most efficient way, in order to deliver the vehicles as quickly as possible." The Toyota Production System (TPS) was established based on two

concepts: The first is called "Jidoka" (which can be loosely translated as "automation with a human touch") which means that when a problem occurs, the equipment stops immediately, preventing defective products from being produced; The second is the concept of "Just-in-Time," in which each process produces only what is needed by the next process in a continuous flow. Based on the basic philosophies of Jidoka and Just-in-Time, the TPS can efficiently and quickly produce vehicles of sound quality, one at a time, that fully satisfy customer requirements.

TPS Concept
Jidoka — Highlighting/visualization of problems
-Quality

must be built in during the manufacturing process

If equipment malfunction or a defective part is discovered, the affected machine automatically stops, and operators cease production and correct the problem. For the Just-in-Time system to function, all of the parts that are made and supplied must meet predetermined quality standards. This is achieved through Jidoka. Jidoka means that a machine safely stops when the normal processing is completed. It also means that, should a quality / equipment problem arise, the machine detects the problem on its own and stops, preventing defective products from being produced. As a result, only products satisfying quality standards will be passed on to the following processes on the production line. Since a machine automatically stops when processing is completed or when a problem arises and is communicated via the "andon" (problem display board), operators can confidently continue performing work at another machine, as well as easily identify the problem's cause to prevent its recurrence. This means that each operator can be in charge of many machines, resulting in higher productivity, while continuous improvements lead to greater processing capacity.

Just-in-Time
— Productivity improvement

- Making only "what is needed, when it is needed, and in the amount needed!" Producing quality products efficiently through the complete elimination of waste, inconsistencies, and unreasonable requirements on the production line. In order to deliver a vehicle ordered by a customer as quickly as possible, the vehicle is efficiently built within the shortest possible period of time by adhering to the following: 1. When a vehicle order is received, a production instruction must be issued to the beginning of the vehicle production line as soon as possible. 2. The assembly line must be stocked with required number of all needed parts so that any type of ordered vehicle can be assembled. 3. The assembly line must replace the parts used by retrieving the same number of parts from the parts-producing process (the preceding process). The preceding process must be stocked with small numbers of all types of parts and produce only the numbers of parts that were retrieved by an operator from the next process.

MARKETING STRATEGY
Strategic Focus and Plan
There are three aspects of the existing corporate strategy that are developed in relation to their overall impacts caused to the marketing plan of Toyota Company. These are;

Mission Statement of the Company
Toyota seeks to create a more prosperous society through automotive manufacturing (Hiroshu, 2003). Therefore, the Company is aimed at achieving a stable and long-term growth in future, and this is supposed to be in synchronization with a number of factors: the significant environment, global economy, local communities served, and the Internal Environment of stakeholders.

The Company’s Goals
The company has committed itself to offering of hybrid alternatives for every model that is sold in the market. This is aimed at enabling the Company to make a total sale of 1 million hybrid vehicles within a year, and this goal has been set to have been achieved by the year 2012. Toyota Company has improved its 2011 Environmental Action Plan and it is committed in six different key areas, which are: the Environmental Management; changes in Energy and Climate; the Quality of Air; concerned Substances; the aspects of Recycling and Improved Resource utilization; and Societal Cooperation. The Company is committed to reduce carbon dioxide emission and it is believed to take combined actions of ensuring that the environment is kept clean all the time by observing the stated fuel economy values.

Core Competency and Sustainable Competitive Advantage
Toyota Company is working towards the achievement of a better and more sustainable economy by having a stable global market. With advancement in new technology and other related matters, the Company is investing in

various strategies that will enable it to realize its set goals and objectives over a period of time. The Company has a well developed and equipped network of expertise that are into research and development over aspects that are to keep the Company on top in product and service delivery to its global market..

Situation Analysis
Toyota’s capacity to stay on top of productivity efficiency and quality rankings can be credited to its internal environment. This entails the way production process is managed by the top management who are famous for their competency. The production team has an insatiable obsession to improve the efficiency and effectiveness of its manufacturing operations. Therefore, to fully understand the situation analysis of Toyota Company, a SWOT analysis is determined and it mainly consists of the Company’s strength, weaknesses, available opportunities, and finally the threats that the Company is experiencing or projected to go through.

SWOT Analysis
Strength and weaknesses are referred to as internal factors of the Company as their impact starts from within the Company, while opportunities and threats normally originates from outside of the Company, hence referred to as external factors. Figure 1: SWOT Analysis of Toyota Company (Internal Factors)
Internal Factors Management Strengths Having competent and experienced management team and board members Weaknesses Large size of management team reduces chances of moving fast into the targeted market, because of slow rate in decision making Expensive in proofing the market that are right products for them Expensive in establishing this distribution network The gap will be big if the employees left the Company Limited workforce and material may slow down the growth of the Company in relation to competitors

Offering

Hybrid products that are customer friendly Distribution of products into the market through wide range of identified branches Have good skilled workforce who are relied upon Improved revenues from sales made in the global market

Marketing

Personnel Finance

Manufacturing

Main supplier of material ensure fast and quality material Quality of products delivered is enhanced through out the period of doing business

Different supply interests among the Company suppliers and other competitors.

R&D

Figure 2: SWOT Analysis of Toyota Company (External Factors) External Factors Consumer/social Opportunities Stability of the upcoming market is highly projected Differentiated products and prices make the Company to be quite distinctive in the market Break-through in technological standings is a better course for the Company to improve on the quality of its products Improved consumer income has made it convenient for the Company to get deep into the market Regulatory measures ensuring fairness in the market and avoid over-exploitation by other competitors Individuals opting for other products since they have enough disposable income Threats Low priced products may proof that the quality of the products is quite low Products of high technology are being introduced into the market by other competitive companies

Competitive

Technological

Economic

Legal/Regulatory

Figure 3: The SWOT Analysis Matrix

Strengths: •investment in new factories •diverse range of products •improved marketing techniques

Opportunities: •hybrid cars •selling technology •rising urban youth population

Weaknesses: •Maintaining client base •Maintaining production

Threats: •Faulty products •Upcoming manufacturers

Industry Analysis
Toyota Company is able to apply its strengths and opportunities it has to create a competitive edge in the industry. For instance, the widely differentiated product line is helping the company to have more global presence. This can also be achieved through entering new markets like China and Europe. Toyota has previously concentrated on the Japan and American markets and it needs to setup strategies to penetrate the other markets as well. Toyota has taken a good position as far as sustainable development is concerned. With the fear of depletion of the fossil fears coupled with the global warming effects, there is a ready market for the Toyota’s hybrid car. The company can also use this opportunity t sell its technology to other firms

Company analysis
Toyota Company is one of the world’s leaders in car export and it appears to literally be living its mission, which is to be the world leader in the creation of automotives that are best in terms of value. The company is working towards the end of creating a society that is prosperous by providing their clientele with the best value for their money. They believe in giving the best prices for the client yet still deliver a vehicle that is at per with those being offered by their other major competitors. This could be the reason why their products are having a very good market in the developing nations. The Company is also conscious about sustainable development, and this can be clearly seen in its different corporate social responsibilities as well its

sustainable development initiatives aimed at reducing the pollution of the environment.

Customer Analysis
Toyota’s customers are very diverse and they range from the low income earners to the very rich. They are widespread around the world. Toyota has catered for all car needs that may arise for any individual with their wide range of motor vehicles. They range from small sports cars to big family vehicles and trucks as well as vans. The customers comprise a varied group of people, with differing ages, incomes, geographical locations, and social and cultural statuses. Customers go for Toyota products to satisfy different wants and needs. Low income earners are provided with a basic mode of transportation that is both within their price range and efficient. Clients going for class and elegance are also catered for. Customers purchase Toyota products on individual basis according to their specific needs. In some cases we have organizations purchasing cars for their firm’s usage or for their employees. In such a case, the product buyer and purchaser is not actually the product user. Once individuals purchase the company’s product, there is an increased exposure to its other products. Product awareness is enhanced through advertisements, newsletters, website information, and other informational sources. The opportunity for Toyota to generate income from complimentary products such as books and seminars by members is very big.

Where do they Purchase?
Most of Toyota’s products are sold through retail distributors located all over the world. Purchase can also be made directly from the factories, as is the case with limited edition models. The increase in the use of electronic commerce, Toyota as well, that is, purchasing products on-line. Majority of the advertising materials can be obtained in full, on-line view over the Internet. On-line publications diminish paper waste while giving existing and direct availability of the product to clients. Customers are able to order a product in stores and with a toll-free number directly from the company as well (Booz, 2007). This grants customers around the world access to the company’s products.

When do they Purchase?
Individuals can purchase the company’s products anytime that they like, at any time of the year. This is because Toyota sells its cars all year round, except for the limited editions which are purchased directly from the factories. New users often purchase cars after acquiring a driver’s licence in the case of some countries when going to high school or to college in others. Other users usually purchase a new car when the old one breaks or gets too old or when they want to trade in for a newer car or a different model.

Why do they Purchase?
Customers select Toyota products over other manufacturers primarily because of their comprehensive, yet specialized, nature. Toyota offers a diverse range of cars that encompass all needs of the clients. They are focussed on building and maintaining high standards when it comes to the products. They offer cheaper alternatives to the clients for the same products from other manufacturers that are quite expensive. Toyota has also invested heavily on safety in their cars. As the globe goes green and clients call for an appropriate response from their car manufacturers, Toyota have responded by investing in hybrid cars, the Prius. This may be the future of the motor industry. The high quality products make it all that easy for a customer to go back to the shop and purchase another Toyota product (Flanagan, 2007).

Why Potential Customers Don’t Purchase?
As is the case for many large organizations, Toyota’s target market defines a much wider population than their customer base actually reflects. There are many car manufacturers who have come up and the motor industry is currently flooded with many products. Many of these products are similar, often differing due to one or two features that may or may not be significant. In this case, it comes down to personal like and dislike. The other reason is the issue of class and social status. Toyota products do not always give the implication of a high social standing. A customer may choose to buy a car from a competitor and not from Toyota simply because of that, and yet the car is the same.

Product-Market Focus
In this section, the Company three year development projections is clearly explained in various categories, which are developing of a strategic focus; marketing goals and objectives; target market; and the Company position in the market.

Developing a Strategic Focus
Toyota has already embraced product differentiation as a major strategy in market penetration and the strategy is working well. It is determined to use a pricing mechanism that will give it a competitive edge over its main competitors. The cost of production of a unit for Toyota is projected to be large but due to possible mass production plants, the overall cost will not be a huge issue in this case. This means the company will be able to sell its products at an even lower price yet still remain profitable. The company is taking an advantage of this and using it to penetrate the markets of emerging economies with affordable products.

Marketing Goals and Objectives
Toyota’s enormous size and capacity is a great advantage in meeting industry growth. The number of clients in need of cars is constantly increasing, thus creating a bigger market for Toyota and requiring more of their products. The perceived importance of owning a car due to increased travelling needs in today’s largely corporate world is constantly increasing as well. Toyota’s great size will enable them to successfully meet the needs of this growing population of customers in need of cars (Dobbin, 2002, p.41). The company keeps making quality product and make it a rule not compromise on this, and not to give in to the competitors’ pressure and raise their prices then clients will remain loyal to the company (Armstrong & Kotler, 2002). Then, everyone has a chance to know the real values behind Toyota’s past, current, and hopefully future existence (Armstrong & Kotler, 2003). Toyota is in the process of engineering lesser platforms to be used in the assembly of its different models. This is as a cost cutting measure; they intended to compress their platforms from 20 to ten in the ambitious exercise. This is especially important since their chief rivals; GM and Ford have made notable improvements in their production process. Toyota is also thinking twice about its bloated assembly points. It is thinking of best ways to reduce them without hindering its efficiency (Mullins, Walker & Boyd, 2010).

Target Market
Each of Toyota’s products is designed to target a specific market. The design criteria range from top speed, capacity and exterior appearance like colour and shape. There is a high speed, small, two-seat model cars for the relatively younger and single people who are adventurous to the big five-seat models for the family set up. Demographically, they also target situations on the smooth tarmac road as well as the rough and rugged off road terrain. Toyota has been previously blamed by the American Markets that their products are lacking in flair and design unlike those of GM and Ford. This has led the company to be more attentive to its American designers to make sure this needs are met. The V8 pickup which was launched recently was as a result of this ambitious. The hybrid model, Primus, has also been transformed since at its inception, it didn’t hit the American market. When they made it look more futuristic, it resulted in big volumes of sales. Overly, the Toyota Company is giving its competitors a hard time. Even though it has experienced challenges like the recent recalls, it is still notable in market leadership position. If the current impressive results and

global positioning of the company is anything to go by, then this is a position Toyota is not likely to lose any time soon.

Company Position in the Market
Toyota Company has been producing vehicles and significant products that are not expensive and readily available. This has been a significant factor that has enabled the Company to have a major cut in the market , and it is projecting to have most of the market by the end of 2013, as it has put a cross a number of strategies to enable it reach the set target.

Market Program
This consists of the four marketing mix elements that are designed to fit the market in terms of their needs and ability to access such products and services.

Product Strategy
The Company is believed to be moving with a strategy of mass production of which it has enabled it to sell widely in the global market. It has also included the strategy of hybrid product, where it can double the amount of production for the arising needs in the market.

Price Strategy
The reputation of the Company has been developed by producing high quality vehicles that can be bought at a reasonable price. The Company has also been using tactful pricing strategies through price differentiation so that they are different from other automobile producers.

Location Strategy
Being a global producer and supplier of Toyota automobiles and their components, Toyota Company has positioned itself all over the world giving it a clear cut within the market. Within three years to come, it is working towards the achievement of about 35 percent of the market share, and this will make it to be best and top supplier of automobile products.

Promotion Strategy
The Company is determined to use a pricing mechanism that will give it a competitive edge over its main competitors. This is a mechanism that it is using to market itself so that it can get hold of market share that will see it better in achieving the highest level in the market.

Marketing Implementation Analysis
Toyotas main focus will be in reaching the new markets of China and Europe. It will also be concerned about the competition from other firms like Ford and GM. An advantage the company has is the widely differentiated product range. Establishing new factories in these new markets as well as opening up new franchises will help the company in getting an ease of penetrating the new markets Human resource is one of the most important aspects in this plan. The company should always make sure they have highly motivated staff as this is directly proportional to good production both in the qualitative and quantitative aspects. Toyota can do this by coming up with schemes of rewarding their employees like helping them own cars subsidized rates. The company should also make sure the personnel are the best in terms of technical know-how. The company needs to carry out frequent training towards this end.

Financial data and Projections
The previous years have seen Toyota’s profit grows each year with an exception of 2009 due to the economic downturn as well as the recalls. The figures below illustrate this Figure1: Toyotas impressive performance in the last four years (Johnson, 2009)

With the advent of more efficient production technologies coupled with the entrance into the new markets, it is expected that the increase in profits will continue for the next five years. Below are the projections for the next five year period

Figure2: Projected financial returns for the next five years (Johnson, 2009) Sales Forecast Millions of Yen Year 2009 2010 Net Sales 1,243,445 1,455,650 Operating income 54,120 65,023 Ordinary 70,912 80.636 Income 46,123 47,999 Net Income 30,051 32,051 Research 32 44 Dividends/yen 2011 2012 2013

1,900,340 1,957,879 2,000,534 89,954 108,484 60,231 30,051 50 98,0530 125,444 81,234 20,051 60 99,760 14,343 57,576 30,051 78

Tactical Marketing Activities
Toyota has taken a bold step in being a leader in sustainable development. This position will need some innovations which translate to expenditure. They are however necessary as a way of staying ahead of competition. The activities the company will embark on are given in figure 3 Figure 3: Tactical Marketing activities Person/Depa rtment Responsible Required Budget millions of yen Completi on Date 2011

Specific Tactical Activities

Product Activities 1.Car air conditioning compressor 2.DC-DC converters for fuel efficiency 3.Low Exhaust Emission Engine Pricing Activities 1.New Technologies 2.Compression of Production platforms 3.Merger of Assembly points

Production 30.45 engineers and Product management

Operations 15.25 management

2012

Distribution Activities 1. Opening up of new factory in America and china 2. Machine handling 3.Logistical operations IMC (Promotion) Activities 1.Concerts 2.Volunteer 3Youth Invention club

Logistics 21.40 management

2010

Marketing manager

9.20

2012

Implementation Plan
There are a number of activities that have been projected within a life span of three years and the following representation shows the aspects that have been targeted and within what strategic period of time. Year To be Achieved New Targeted Markets (millions) 250 Cumulative Targeted Markets (millions) 250

Today (2010)

Working towards hybrid products Introduction of pricing mechanism and price differentiation strategies.

1st Year (2011)

320

600

2nd Year (2012)

Enhancing 370 hybrid products by use of new technologies Product differentiation to meet the needs of the market 420

970

3rd Year (2013)

1320

Evaluation and Control
There is a monitoring and evaluation team that will be set to watch over the progress of the company in realizing the strategic goals. The short term goals will be clearly watched and corrections put in place where targets are missed for they are the keys to fulfilling the long term goals. Currently, the Company has made a clear step forward in ensuring that hybrid vehicles are being produced, and so far the market has started improving in terms of overall reception of these brands of vehicles. Another aspect that is supposed to be considered here is the speed of the roll-out program of pricing mechanism introduced. Currently, it has taken the market by surprise as most of Toyota products are found to be customer friendly. The Company has been able to come up with a differentiation program for its products and this has helped it to have a huge market share. It is projects to improve and reach the target within three years and this will be determined by the rate of growth and the total number of market reached.

FINANCIAL SOLUTION
Income Statement
View: Annual Data Period Ending Total Revenue Cost of Revenue All numbers in thousands 31-Mar31-Mar31-Mar2011 2010 2009 229,171,00 202,814,00 207,852,00 0 0 0 200,474,00 178,551,00 186,856,00 0 0 0 28,696,000 24,263,000 20,996,000

Gross Profit

Operating Expenses Research Development -

Selling General and Administrative 23,046,000 22,685,000 25,663,000 Non Recurring Others Total Operating Expenses -

Operating Income or Loss

5,650,000 1,579,000

(4,668,000 )

Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops Non-recurring Events Discontinued Operations Extraordinary Items

1,500,000 7,150,000

1,898,000 3,477,000

(531,000) (5,199,000)

354,000 358,000 475,000 6,796,000 3,119,000 (5,674,000) 3,774,000 992,000 (571,000) (691,000) (372,000) 246,000 4,925,000 2,242,000 (4,424,000)

-

-

-

Effect Of Accounting Changes Other Items

-

-

-

Net Income Preferred Stock And Other Adjustments

4,925,000 -

2,242,000 -

(4,424,000 ) (4,424,000 )

Net Income Applicable To Common 4,925,000 2,242,000 Shares Currency in USD.

ANNUAL DATA OF INCOME STATEMENT

Balance Sheet
View: Annual Data Period Ending Assets Current Assets Cash And Cash Equivalents Short Term Investments Net Receivables Inventory Other Current Assets Total Current Assets All numbers in thousands 31-Mar-2011 31-Mar-2010 31-Mar-2009

25,105,000 17,246,000 78,403,000 15,737,000 6,243,000

19,967,000 23,394,000 75,859,000 15,222,000 5,472,000

24,748,000 5,472,000 62,997,000 14,776,000 6,404,000

142,734,000 139,914,000 114,396,000

Long Term Investments 132,933,000 105,241,000 97,746,000 Property Plant and Equipment 76,124,000 71,820,000 74,939,000 Goodwill Intangible Assets Accumulated Amortization Other Assets 7,985,000 7,823,000 7,159,000 Deferred Long Term Asset Charges Total Assets Liabilities Current Liabilities Accounts Payable Short/Current Long Term Debt Other Current Liabilities Total Current Liabilities Long Term Debt Other Liabilities Deferred Long Term Liability Charges 359,775,000 324,800,000 294,240,000

40,892,000 78,803,000 10,506,000

41,159,000 64,966,000 8,240,000

29,274,000 70,748,000 7,189,000

130,200,000 114,364,000 107,212,000 77,814,000 10,229,000 9,775,000 75,079,000 9,674,000 8,703,000 63,799,000 9,398,000 6,503,000

Minority Interest Negative Goodwill Total Liabilities Stockholders' Equity Misc Stocks Options Warrants Redeemable Preferred Stock Preferred Stock Common Stock Retained Earnings Treasury Stock Capital Surplus Other Stockholder Equity Total Stockholder Equity

7,090,000 -

6,108,000 -

5,462,000 -

228,018,000 207,822,000 186,912,000

4,791,000 4,249,000 4,020,000 142,805,000 123,808,000 116,752,000 (15,219,000) (13,489,000) (12,766,000) 6,102,000 5,365,000 5,075,000 (13,812,000) (9,063,000) (11,216,000) 124,667,000 110,870,000 101,865,000

Net Tangible Assets Currency in USD.

124,667,000 110,870,000 101,865,000

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CASH FLOW OF TOYOTA MOTORS
View: Annual Data |
Period Ending All numbers in thousands

Net Income

31-Mar31-Mar31-Mar2011 2010 2009 4,925,000 2,242,000 (4,424,000)

Operating Activities, Cash Flows Provided By or Used In Depreciation 14,184,000 15,139,000 15,138,000 Adjustments To Net Income (1,260,000) 1,408,000 2,919,000 Changes In Accounts Receivables 5,085,000 (6,172,000) 8,013,000 Changes In Liabilities (2,504,000) 10,325,000 (11,452,000) Changes In Inventories 625,000 600,000 1,948,000 Changes In Other Operating Activities 2,675,000 3,468,000 3,056,000 Total Cash Flow From Operating Activities 24,421,000 27,382,000 14,953,000

Investing Activities, Cash Flows Provided By or Used In Capital Expenditures (7,593,000) (6,470,000) (13,816,000) Investments (18,561,000) (24,594,000) 880,000 Other Cash flows from Investing Activities 619,000 562,000 480,000 Total Cash Flows From Investing Activities (25,535,000 (30,503,000 (12,455,000 ) ) )

Financing Activities, Cash Flows Provided By or Used In Dividends Paid (1,703,000) (1,846,000) (4,455,000) Sale Purchase of Stock (345,000) (110,000) (715,000) Net Borrowings 7,288,000 (1,019,000) 12,245,000 Other Cash Flows from Financing Activities Total Cash Flows From Financing Activities 5,240,000 (2,975,000) 7,075,000

Effect Of Exchange Rate Changes Change In Cash and Cash Equivalents

(1,533,000) 2,594,000

(95,000)

(1,314,000)

(6,192,000) 8,259,000

Toyota Motor Corporation Common
(NYQ: TM ) Last 67.34 Trade: Trade 10:39PM Time: 1.11 Change: (1.62%) Prev. 68.45 Close: Open: 68.03 Bid: 67.35 x 200 Ask: 67.38 x 300 1y Target 57.34 Est.: Day's 67.00 - 68.14 Range: 52wk 60.37 - 93.90 Range: Volume: 149,117 Avg. Vol. 539,989 (3m): Market 105.58B Cap: P/E (ttm): 40.87 EPS (ttm): 1.65 Div & 0.95 (1.40%) Yield: Quotes delayed, except where indicated otherwise. Currency in USD.

FINANCIAL DATA

Capital investment and R&D

Vehicle production

Vehicle production by region

Vehicle sales

Vehicle sales by region

Net revenues

operating income

Financial Performance (Consolidated)
Financial Indicator Fiscal Operating Year income return on revenues Pretax Pretax Return on Return on Shareholders' return on return on assets equity equity ratio revenues capital (R.O.A.) (R.O.E.)

FY201 2.5% 1 FY201 0.8% 0 FY200 2.2% 9 FY200 8.6% 8 FY200 9.3% 7 FY200 8.9% 6 FY200 9.0% 5 FY200 9.6% 4 FY200 8.2% 3 FY200 7.7% 2 FY200 6.1% 1

3.0% 1.5% 2.7% 9.3% 9.9% 9.9% 9.5% 10.2% 7.9% 6.9% 8.5%

1.9% 1.0% 1.8% 7.5% 7.8% 7.9% 7.6% 8.4% 6.2% 5.4% 6.6%

1.4% 0.7% 1.4% 5.3% 5.4% 5.2% 5.1% 5.5% 3.8% 3.1% 4.0%

3.9% 2.1% 4.0% 14.5% 14.7% 14.0% 13.6% 15.2% 10.4% 7.8% 9.6%

34.7% 34.1% 34.6% 36.6% 36.3% 36.8% 37.2% 37.1% 35.3% 37.6% 41.6%

*Financial figures are based on U.S. GAAP (Generally Accepted Accounting Principles)

Dividend Policy (As of March 31, 2011)

TMC (Toyota Motor Corporation) deems the benefit of its shareholders as one of its priority management policies, and it is working to improve corporate structure towards the realization of sustainable growth in order to enhance its corporate value. TMC will strive to continue to pay dividends while giving due consideration to factors such as business results for each term, investment plans and its cash reserves. In order to survive stiff competition, TMC plans to utilize its internal funds for the early commercialization of technologies for the next-generation environment and safety, giving priority to customer safety and sense of security. TMC pays dividends twice a year — an interim dividend and a year-end dividend. In order to secure an opportunity to directly seek shareholders' opinions, TMC treats payments of year-end dividends as a matter to be resolved at the General Shareholders' Meeting, even though TMC's articles of incorporation stipulate that retained earnings can be distributed as dividends pursuant to the resolution of the board of directors. Considering these factors, an annual dividend of 50 yen per share was paid for fiscal 2011, consisting of a year-end dividend of 30 yen per share and an interim dividend of 20 yen per share. Note: The Board of Directors determined the interim dividend for the last term on November 5, 2011. Dividends per share

Notice Concerning Distribution of Interim Dividends from Surplus At a meeting held on November 8, 2011, the Board of Directors of Toyota Motor Corporation ("TMC") resolved to distribute dividends from surplus, with record date dated September 30, 2011. In relation to the above, we hereby inform you of the following: 1. Details of dividends Interim dividend for Most recent

FY 2012 Record Date Dividend per share Total amount of dividends Effective date Source of dividends September 30, 2011 20.00 yen

dividend forecast September 30, 2011 Not reported

FY 2011 September 30, 2010 20.00 yen

62,713 million yen November 30, 2011 Retained earnings

-

62,719 million yen November 26, 2010 Retained earnings

-

2. Reason for the dividend amount TMC deems the benefit of its shareholders as one of its priority management policies and strives to continue to pay stable dividends while giving due consideration to factors such as business results for each term, investment plans and its cash reserves. In order to successfully compete in this highly competitive industry, TMC will focus on the early commercialization of technologies for the nextgeneration environment and safety, giving priority to customer safety and sense of security. Based on the foregoing, TMC's interim dividend for the year is 20 yen per share.

Details of Dividends through the fiscal year

Dividend per share (yen) Record date Dividends for FY2012 (ending March 31, 2012) Dividends for FY2011 (ended March 31, 2011) End of interim period End of fiscal period Total

20.00

-

-

20.00

30.00

50.00

.

.

GROWTH OF TOYOTA MOTORS IN 5 YEAR PRICE CHART

HR POLICIES
PURPOSE:
Embodiment of management that respects people to create perpetual prosperity for the company.

BASIC PRINCIPLE:
Establishment of relationship of mutual trust and respect.

BY:

- Building a relationship, in which, employee him/herself takes up part of responsibility in corporate activities. - Contributing to self realization of employees through continuously exercising their facilities through the job

The Eight HR Processes That Contributed to Toyota’s Success
1.

Rewards and recognition — The purpose of any corporate reward process is to encourage and incant the right behaviours and to discourage the negative ones. It’s important for the reward process to incant the gathering of information about problems. It’s equally important to reward employees who are successful in getting executives to take immediate action on negative information. Training — The purpose of training is to make sure that employees have the right skills and capabilities to identify and handle all situations they may encounter. Toyota is famous for its four-step cycle — plan/do/check/act — but clearly the training among managers now needs to focus more on the last two. In addition, in an environment where safety is paramount, everyone should have been trained on the symptoms of “groupthink” and how to avoid the excess discounting or ignoring of negative external safety information. Hiring — The purpose of great hiring is to bring on board topperforming individuals with the high level of skills and capabilities that are required to handle the most complex problems. Poorly designed recruiting and assessment elements can result in the hiring of

2.

3.

individuals who sweep problems under the rug and who are not willing to stand up to management.
4.

The performance management process — The purpose of a performance management process is to periodically monitor or appraise performance, in order to identify problem behaviours before they get out of hand. If the performance measurement system included performance factors to measure responsiveness to negative information, Toyota wouldn’t be in turmoil today. The corporate culture — The role of a corporate culture is to informally drive employee behaviours so that it closely adheres to the company’s core values. Because these errors occurred under difficult driving conditions, it’s hard to blame the production group, which has a well-known reputation for Six Sigma quality in its construction. The negative reports came to functions like government, risk analysis, corporate and customer satisfaction. As a result, it is the culture within the corporate offices that need to be more closely monitored rather than assuming that the culture was aligned. It appears that the corporate culture created leaders so concerned with “saving face” and so adverse to negative publicity, that they for years postponed making the announcement of a massive recall. Leadership development and succession — The purpose of leadership development and succession planning processes are to ensure that a sufficient number of leaders with the right skills and decision-making ability are placed into key leadership positions. It is likely that the leadership development and the promotion process both failed to create and promote leaders who were capable of confronting problems and making difficult decisions. Retention — The purpose of a retention program is to identify and keep top performers and individuals with mission-critical skills. Risk assessment — Most HR departments don’t even have a risk assessment team whose purpose is to both identify and calculate risks caused by weak employee processes. Clearly HR should have worked with corporate risk management at Toyota in order to ensure that employees were capable of calculating the long-term actual costs of ignoring product failure information.

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Selection
Selection is defined as the process of differentiating between applicants in order to identify (and hire) those with a greater likelihood of success in a job.

Selection is basically picking an applicant from (a pool of applicants) who has the appropriate qualification and competency to do the job.

Role of selection:
Selection is crucial for the organizations effectiveness for 2 reasons: 1) Work performance: Performance of the organization is very important to the success of the Company. So the organization always employs people who are well qualified and competent. 2) Cost incurred: Cost incurred while selection process also plays an important role.

Need for training:
The need for training of employees is universally accepted and practical training in the form of information, instructions and guidance is given to all categories of employees. It is a must for raising efficiency of employees. Training is necessary in present competitive and ever changing Industrial world. The following points (reasons) justify the need for training: o Training is needed as a good supplement to school/college education. Training at the Industry level is practical and is needed for creating confidence among employees. It is also needed for personal growth and development of employees. o Training is needed due to continuous changes in the field of science and technology. o Workers can work as per new methods or can use new machines only when suitable practical training is given to them. Training is the only method by which the knowledge and skills of workers are updated. o Training is needed in order to introduce modern methods or for the introduction of rationalization and computer technology in the industrial units. o Training is needed for raising the efficiency and productivity of industrial employees. o It is needed for improving the quality of production and also for avoiding accidents and wastages of all kinds in the industrial units. o Training is needed for personal safety of employees and also for avoiding damage to machines and property of the company. o Training is needed as it creates highly skilled manpower in an organization. Such skilled manpower is the real asset of an industrial unit.

o Training is needed for preventing manpower obsolescence, for improving health and safety of workers, for improving organizational climate and finally for meeting future personnel needs of the organization.

PERFORMANCE APPRAISAL:
In simple terms, performance appraisal may be understood as the assessment of an individual’s performance in a systematic way, the performance being measured against such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgment, versatility, health and the alike. Assessment should not be condensed to past performance alone. Potentials of the employee for future performance must also be assessed.

Objectives of Performance Appraisal:
Data relating to performance assessment of employees are recorded, stored, and used for several purposes. The main purposes of employee assessment are: 1. To effect promotions based on competence and performance. 2. To confirm the services of probationary employees upon their completing the probationary period satisfactorily. 3. To assess the training and development needs of employees. 4. To let the employees know where they stand insofar as their performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development. 5. To improve communication. Performance appraisal provides a format for dialogue between the superior and the subordinate, and improves understanding of personal goals and concerns. 6. Finally, performance appraisal can be used to determine whether HR programmers such as selection, training, and transfers have been effective or not. 7. Broadly, performance appraisal serves four objectivesI) Development uses, ii) Administrative uses/decisions, iii) Organizational maintenance/objectives, and iv) Documentation purposes.

MOTIVATION:
Toyota gives both financial as well as non financial motivator to their employees. What type of motivational tool given in Toyota? · Annual Salary Revision. · Promotion · Job Enrichment · Delegation & authority · Telephone Facility · Bonus · Quarters ·Toyota’s share etc

CONCLUSION
Toyota is making a product that is both good for the society/environment and practical at the same time. It is practical in that there is a demand for it and that Toyota presumably is making money or will make money on the product. Toyota is also looking towards further development of the engine, possibly combining an alternate fuel source other that gasoline with the electric component. We believe that Toyota is acting as a social entrepreneur with these lines of cars. They are providing a service to humanity and the environment while also presumably sustaining a business. According to James Brook of the New York Times, Toyota has claimed that it reached the break-even point for its profitability on its hybrid models, but industry experts in Tokyo find it impossible to know exactly how profitable these cars have been for Toyota so far. i Even if they are losing money, I think in the long run it will be where all auto production is headed, evidenced by the fact that oil is a limited resource and by the increased competition in the hybrid sector (while Toyota and its competitors do not disclose how much they put into research and development of these cars, Toyota, Nissan, and Honda all raised their budgets for R&D by ten percent). Toyota was the one to first mass-market and produces these cars with the Prius and deserves much of the credit for leading the way.

BIBLIOGRAPHY:
BOOK REFERENCE:OPERATION RESEARCH – J.K. SHARMA FINANCIAL MANAGEMENT- I. M. PANDEY MARKETING MANAGEMENT- PHILIP KOTLER WEBSITE REFERENCE:WWW.TOYOTA.COM WWW.TOYOTABHARAT.COM WWW.TOYOTA.CO.JP WWW.ERE.NET WWW.RESEARCHANDMARKETS.COM WWW.THEPENSTERS.COM WWW.MANAGEMENTPARADISE.COM

CONTRIBUTION OF TEAM MEMBERS:-

AMARJEET KUMAR: Interpretation, H.R & Operation Strategy. ASHISH KR. SINGH: Marketing Strategy , Editing ABHISHEK PATEL: Financial Solution

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