Professional Documents
Culture Documents
TABLE OF CONTENTS
INTRODUCTION ……………………………………………………………………………….5
VISION-MISSION ……………………………………………………………………………..21
SWOT ANALYSIS
SPACE MATRIX
BCG MATRIX
I-E MATRIX
2|Page
GRAND MATRIX
SUMMARY OF MATRIXES
QSPM
BIBLIOGRAPHY ………………………………………………………………………………75
3|Page
EXECUTIVE SUMMARY
Toyota Motors Corporation is the main and the biggest car producing organization in the
Philippines with most extensive variation of lineup vehicles compared with the top player
in the deferential business. The merchant outlet across the country was 53 stores as of
February 2016. Toyota was granted Triple Crown from 2002-2013 being the No. 1 in
Commercial Vehicle Deals, Traveler Auto Deals, Fair size Auto Deals and Aggregate
Deals. In light of the development of the car business rivalry is high. Toyota Engines
concentrates on item advancement to have an upper hand. Toyota is outstanding for its
quality and incredible incentive for cash in view of Toyota is the ruler of the Aggregate
Quality Administration. The Toyota Engines was delegated one of the 10th most vital
organizations on the planet on the grounds that TQM won't be that successful and
proficient. Toyota built up the lean creation framework that will make the generation at
Administration is about the idea of shopper first framework as a result of that Toyota
builds up a framework that is called "The Toyota Way". The Toyota Way just means
constant change for them to support their upper hand and the bureaucratic arrangement
of Toyota is to regard individuals. Indeed, even Toyota Engines has the most elevated
merchant outlet number across the country; the organization ought to build the store in
other distinctive territories in each locale. Toyota must execute a retrogressive and level
technique to consistently rule the business by purchasing its providers for more sorted
out and adequate supplies and it is additionally conceivable to enter little auto
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concentration in performing new systems with a specific end goal to have a higher
focused edge against the contenders of Toyota. The contenders of Toyota Philippines
are Honda Philippines and Mitsubishi Engines in which the opposition is truly extreme
not just with the three organizations that are specified however together with whatever
I. INTRODUCTION
built up by GT Capital Hanging on August 3, 1988 in the Philippines. In the year 1995
Santa Rosa Laguna has been pronounced to be Uncommon Financial Zone for
Universal brand to have chance to produce locally. Toyota Engines was given 82
Toyota Philippines raised its piece of the overall industry up to 43% for the year 2016.
TMP is the biggest car in the Philippines since it provides for an expansive variation
display line contrasted with other significant contenders. Toyota deals circulation is
made out of 28 stores everywhere throughout the Philippines. The line of the vehicle are
Hilux, Vios, Altis, Yaris Camry, Fortuner, Avanza, Prius, Rav4, Hiace, Innova, Napkin,
Alphard, Prado LC200 and Previa. In the year 2011 Toyota sold its 700,000th vehicle
that made Toyota piece of the overall industry 33.4% that came about for them to have
the biggest piece of the pie in the business. The Toyota Engines has a standard
operation deliver that underlies in two ideas. These are Ceaseless Improvement of unit
and Regard for the general population that Toyota called it The Toyota Way. Toyota is
the main player in his separate industry of car that gives advantage bundle and high pay
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with other remuneration. In the given information of the business of car, Toyota has an
Data and Information: The gathered data and information used in this strategic
Mr. Angelo Jomar C. Dela Cruz, Sales Executive Representative, Toyota Pasig Branch
Mr. Rod Allan P. Lindo, Senior Service Consultant, Toyota Commonwealth Branch Mr.
Philippines Honda Car Philippines Diamond Motors LAOS Group of Companies Car
Mitsubishi Motors Corporation Annual Report 2016 Honda Car Philippines Annual
Report 2016.
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III. EXTERNAL ANALYSIS
PEST Analysis
POLITICAL
As per Republic act no. 8749, Philippine clean air demonstration of 1999 all vehicles
observed on the off chance that it will maintain a perfect motor execution. The persistent
Fortune Worldwide 500, Toyota Engine is the ruler of the aggregate administration
quality that implies Toyota vehicles can manage a perfect motor execution.
Transportation Office (LTO) a fresh out of the box new auto can't go without an enrolled
plate number. The arrival of an enlisted plate number is 7 to 14 days working days. No
purchase since buyers are disallowed to utilize the new vehicle to be obtained by the
customers.
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C. Rally Against Uber, Grabcar, GrabTaxi (Threat)
Taxi drivers calls out to the government to pull out all issued vehicles that are being
used as PUV (grabcar,uber,grabtaxi). If this happends, Toyota may lose profit because
for the past year their product Toyota Vios was the highest sold due to the new
ECONOMIC
A. Revenue (Opportunity)
By having the largest market share of 43% for the year 2016, toyota has a bigger
revenue which can help the company to be more aggressive in penetrating the market
more and distributing their product. As indicated by Toyota Gather Speculations, they
contributed Php 35.5 Billion from 1988 to 2012. The administration incomes from Toyota
Engine Philippines have summed Php 136 Billion from 1988 to 2012. The higher income
Toyota will make the greater chance of helping the monetary execution of the
Philippines.
About the human asset, Toyota Esteem Chain Work, they have 42,000 Representatives
as of December 2012 across the nation. It is an open door since it will help the
business having a major organization to supply. It Netted Php 95 Billion from 1989 to
2012.
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C. Global Exportation (Opportunity)
As indicated by Toyota Assemble Parts Sends out, they likewise fabricated worldwide to
that permitting them to gain US$ 9.2 Billion since 1997 to 2012. The US $963 Million is
a 26% of aggregate car parts and segments send out in the market.
Toyota Motor Philippines has produced 524,419 units since 1989 up to 2012 (CKD:
SOCIO-CULTURAL
As indicated by Philstar, Philippine movement is the ninth most noticeably awful on the
planet. The Philippines' has 202.31 focuses in the movement file, positioning it simply
above neighboring Thailand with 200.79 calls attention to of the ideal score of 1.
Bangladesh, in the interim, has the most noticeably bad activity in Asia with a score of
280.43. The long drive in the Philippines additionally goads a disappointment rate of
3,724.39 on the list, which expect that discontent increments exponentially with every
moment after one-way drive time is longer than 25 minutes. Workers are experiencing
serious difficulties a taxi due to the movement issue LTFRB ceased the creation of the
establishment to PUV but since of Snatch Auto private vehicles can be open utility
vehicles. Snatch Auto is an auto booking application that alters the way you move by
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sending a private vehicle along your way at the tap of a catch. In light of Get Auto
Toyota will expand their chance since more units will be sold in the market.
TECHNOLOGICAL
innovation, lessening lighting power prerequisite by half. The concentrated light from the
catch gadget offers luminance amid sunshine with no vitality cost. Additionally, Sun
based boards are used to supply energy to TMP's games office and representative's
stopping region.
Threats: Absence of Unit Vehicle Control, Fuel controlled autos are path quicker than
electric auto.
apps (Grabcar, GrabTaxi,Uber) can boost TMP sales because of its high demand. Not
only that its more convenient and preferred by customers, but also its can be used as a
ECOLOGICAL ASPECT
Administration Framework is TMP's Waste Water Treatment Plant (WWTP) which can
treat 840 cubic meter of modern and clean waste water every day.
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Opportunity: This P140M speculation will clearly clean the Laguna de sound and
inprovced the water framework in the region This venture will help the CSR of TMP on
wastewater, however, is that the way toward infusing it underground. Researchers trust
that the vast measure of water that is infused into the ground after a well is fracked can
pesos to advertise their company and introduce a certain model. Each month they have
pages on a certain magazine, new commercials, social media ads, just to make sure
that their products will not only be seen but also noticed by their target market.
Because automobile companies produces cars that does not differ from one another not
just by models, but also in pricing customers now have a strong bargaining power
because they have many options to choose from in terms of pricing and models.
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Supplier Bargaining Power [LOW]
Car companies not just Toyota itself, have many options when looking for alternative
suppliers of raw materials especially in other country. That’s why they have the power to
bargain with their suppliers to get the lowest price of raw materials as possible because
they have options in case the company encounter problems dealing with their suppliers.
family or company wishes to purchase a passenger car, AUV, light CV or CV, there are
no other options aside from those already in the industry for private transportation.
Alternative means such as motorcycles and public transportation are not true
players example are Chinese cars like Cherry Cars low cost but very affordable,
Malaysian cars like Tata Motor are low cost but fuel efficient and Korean cars like
Hyundai has already awarded to have a European standard the potential of new entrant
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EXTERNAL FACTORS EVALUATION
SCORE
Emission
Monitoring
the vehicle to
maintain good
result of higher
value to the
consumers.
friendly products
because it comply
law.
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developing
the automotive
industry to
innovate their
product and
units.
high usage of
cars.
higher value to
the consumers
high.
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result to higher
market share in
the automotive
industry.
lead a conversion
of hybrid cars or
interest in hybrid
cars because it is
more efficient
compare to a pure
gasoline or diesel
powered vehicle.
interest in electric
car because
public
transportation in
the Philippines.
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Electric vehicle is
more effective
compared to
hybrid cars.
trending
applications such
as Grabcar, Uber,
and Grabtaxi
helps customers
and drivers by
connecting them
simply by just
booking a ride
using mobile
phones. It is more
convenient to the
consumer and
the driver.
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SCORE
reaches hole
the demand of
unit in light of
buying
influence will be
lesser
bureaucratic
formality.
These
principles
imperative time
with regards to
developments
of new tasks,
deferring
conceivable
benefit.
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generation of
vehicles since
producers are
increment
volume for
them to expand
benefit.
sudden
unintended
acceleration of
SUVs.
TOTAL 3.67
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COMPETITIVE PROFILE MATRIX (CPM)
and Sales
Performance
Relationship
Position
dealers
Share
range
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IV. COMPANY ANALYSIS
COMPANY’S VISION: “To be the number one automotive company where great
people work as a team to provide the best products and service to our customers.”
it is likewise motivational to
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powerful urge be the main
car organization.
be achieved.
MISSION STATEMENT:
- To dominate our markets through dynamic selling and timely delivery of attractive
effective financial and resource management for the collective gain of the Toyota Family
- To sustain Team Member's morale and productivity by developing their full potential
and total well-being, and by establishing mutual trust, mutual responsibility, and
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PARAMETER YES/NO EVALUATION
segments of extraordinary
innovation, ceaselessly
condition agreeable
Philippines statement of
existing to be the
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foundation of how to
picture.
conveyance of appealing
item change.
efficiency by building up
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their maximum capacity
correspondence.
segments of extraordinary
innovation, ceaselessly
condition well-disposed
Philippines specified
survival development
Organization's soundness,
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by taking part in viable
IFE CHECKLIST
MANAGEMENT ASPECT
FACTORS TOYOTA
How do you manage your employees Managing our employees aren’t difficult,
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accommodate the union of the company.
ordinarily well.
Do you require skills in hiring employees Most of our job vacancies are coming from
for a certain department the sales department and yes, the most
Do managers delegate obligations and There are times that we can’t control our
disseminated.
What are your feed backs about your They are very well motivated if they have
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attendance. But for the other departments,
mechanism effective?
MARKETING ASPECT
FACTORS TOYOTA
sales force.
good?
Does the firm have an effective Yes. But compared to our competitors, we
Are the product/services of the company Not quite. The company lacks
does the firms marketing managers have Absolutely. We provide trainings and
Is the organization positioned well among We always get the chance to offer first
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competitors? among our competitors but it can’t be fully
OPERATIONS ASPECT
FACTORS TOYOTA
Are facilities, equipment, machinery, and Yes. We make sure that all of our
them.
Are suppliers of raw materials, parts, and Yes. We have managers who takes care
subassemblies reliable and reasonable? with dealing with our suppliers and
negotiating.
effective?
FINANCIAL ASPECT
FACTORS TOYOTA
Are the firm’s financial managers are well We only hire competitive and experienced
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proper training and seminars for them.
capital
capital?
Can the firm rise needed long-term If needed a long-term capital the firm can
Does the firm gives promotion and Yes. The firm is very fair when promoting
Do all managers come and work together Yes. All managers collaborate with one
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INTERNAL FACTORS EVALUATION
Response
SCORE
Concepts Concepts
Toyota is the
leading brand
in making new
technology
Production Production
first to
automotive
company to
assemble their
and Innova
cars
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Brand International 10% 4 0.4
reputation Brand
Reputation The
Toyota Motors
has establish
worth of its
value and
known
worldwide
management Management
Toyota
management is
well known to
its Toyota
Quality Control
System
range of variant
compared to its
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competitors
Government
Vehicle Toyota
number of used
public
transportation
and
government
vehicle
Relationship Customers
Toyota has
captured the
taste of the
consumer that
result to repeat
purchased
Value Production
Capacity
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Toyota can
produced large
quantity of unit
production
compared to
other
competitors
resale value
compared to its
competitors
SCORE
of parts
because of
large
production
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Fast Fast Turnover 5% 2 0.1
release new
model that
causes
consumer to
have a waiting
time period
Fixed Cost A
high volume of
production is
needed to hit
the breakeven
point
Toyota vehicle
interior has
poor quality
compared to
other
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competitors
marketing Promotions
promotions Weak in
Promotion
strategy
compared to
other
competitors
V. STRATEGY FORMULATION
SWOT ANALAYSIS
advantage of the review due to the Emission Monitoring hole can bring down
market share to disappointment of System will help the the request of unit in
maximize sales by other provider of vehicle to keep up light of the fact that
developing parts in view of vast great condition that the buying influence
of higher incentive to
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automobiles.Toyota the buyers
making new
innovation.
The Vios and purchaser have a to clean air clean imperative time with
age developments of
conceivable benefit.
has set up the generation is help the car producers are high
its esteem and breakeven point enhance their item increment volume
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S4- Strong Team W4 Average Quality O4- Economic T4- Porter's Five
notable to its Toyota compared with influence the cost of of the quantity of
Quality Control different contenders oil in the market that industry players
Malaysian autos
caliber
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of utilized open
transportation and
government vehicle
immaculate fuel or
diesel controlled
vehicle.
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resale esteem electric auto since
in the Philippines.
Electric vehicle is
more successful
O10- Technological
Mobile innovation
advanced mobile
phone to be
associated
effortlessly to auto
a similar telephone
and other
application
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STRENGTH – OPPORTUNITY STRATEGY
cars
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mobile apps. Also clients can use this as a
business.
created by Toyota.
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of the GDP of the country.
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SPACE MATRIX
5 FP
2 AGGRESIVE
5 4 3 2 1 0 1 2 3 4 5
CP 1 IP
SP
The graph above shows a positive result of the firm’s Space Matrix. Aggressive
Strategies are applicable to the company and they can use the following strategies:
penetration, product and marker development. Based from the IFE and EFE , these
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BCG MATRIX
TOYOTA
Toyota falls under quadrant I of the Boston Consulting Group Matrix. Under this
Horizontal Integration, and Related diversification. Based on the data of 2015 to 2016
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the Toyota Motors Philippines Corporation has the biggest market share of 43% which
INTERNAL-EXTERNAL MATRIX
EFE = 3.67
IFE = 3.03
IV V VI Medium 2.0-2.99
Toyota fall under the Quadrant I of I-E matrix which shows a position for the company to
grow and build. Product and market development, Market Penetration, Horizontal,
Backward, and Forward integration strategies are more appropriate according to the
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GRAND STRATEGY MATRIX
QUADRANT I QUADRANT II
TOYOTA
Conclusion: Toyota landed in the Quadrant I because of high market rapid growth and
Toyota has a strong competitive position as shown by its market share which reached
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SUMMARY OF MATRIXES
INTEGRATION
STRATEGY
Forward Integration X X X X X 5
--
Backward
Integration
-- X X X X X 5
Horizontal
Integration
X X X X X 5
INTENSIVE
TRATEGY
Marketing X X X X X 5
Penetration
--
Market
development X X X X X 5
--
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Product
Development X X X X X 5
DIVERSIFICATION
STRATEGY
Related X X 2
diversification
--
Unrelated
diversification X 1
DEFENSIVE
STRATEGY
Retrenchment
--
Divestiture
--
Liquidation
QSPM
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concepts
Production
brand reputation
management
choices
used
Customers
production
capacity
recall
Turnover of
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models
fixed cost
materials
promotions
continuous
emission
monitoring system
vehicle to
maintain good
will result to
higher value to
the customers
government
friendly products
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because it comply
law.
Rapid growth of
developing
the automotive
industry to
innovate their
product and
units
Gradual growth of
Weaker Philippine
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Dollar will result to
higher value to
the consumers
high quality
Increasing
to higher market
share in the
automotive
industry
can lead a
conversion of
hybrid cars or
Increasing interest
in hybrid cars
because it is more
efficient compare
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to a pure gasoline
or diesel powered
vehicle.
Increasing interest
in electric car
because electric
transportation in
the Philippines.
Electric vehicle is
more effective
compared to
hybrid cars
Technological
Mobile technology
smart phone to be
connected easily
consumer to
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function the
feature of the
call, messaging
and other
application.
Widening wealth
demand of unit
because the
purchasing power
will be lesser.
Government
regulations are a
bureaucratic red
constraint time
when it comes to
constructions of
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new projects,
delaying possible
profit.
much production
of vehicles
because
manufacturers our
high automated.
They increase
to increase profit.
Forces
Automotive
manufacturer
competition is
increasing due to
the number of
industry players
example are
Chinese cars,
Malaysian cars
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and Korean cars
scandal like
sudden
unintended
acceleration of
SUVs
conveyance of alluring items, with brilliant client benefit and constant item
change.
taking part in powerful money related and asset administration for the aggregate
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- To maintain Team Member's assurance and profitability by building up their
innovation, persistently
enhancing techniques
up safe working
conditions.
Philippines expressed
Philippines statement of
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purpose possible and
existing to be the
foundation of how to
Philippines expressed
open picture
Philippines expressed
auspicious conveyance of
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Member's assurance and
profitability by building up
open correspondence.
exceptional quality,
utilizing advance
innovation, consistently
enhancing techniques
up safe working
conditions.
Philippines specified
survival development
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benefit by maintaining the
Company's steadiness,
efficiency and
development by taking
Philippines idea is to
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RECOMMENDED VISION STATEMENT: “To maintain market share as top automobile
manufacturer by year 2020 where great people work as a team to provide the best
it is likewise motivational to
car organization.
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Does it give clear indication YES The Toyota Engine
manufacturer of
automobiles in the
Philippines.
Toyota Philippines is as yet the top player in their industry and the development of the
procedures with a specific end goal to keep up its upper hand among its rivals. The
procedures, particularly the retrogressive joining technique. Looking for control and
control over its providers to modify the low quality and to have the capacity to screen
and create great quality vehicles that are profitable for the clients. The contenders of
Toyota Philippines are Honda Philippines and Mitsubishi Motors in which the opposition
is truly intense not just with the three organizations that are specified yet together with
providers for more composed and adequate supplies and it is likewise conceivable to
enter little auto producing organizations for a lesser competition in the business.
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performing new systems keeping in mind the end goal to have a higher focused edge
DEPARTMENTAL PROGRAMS
Strategic Issues
Objectives
able to offer products at a lower price compared to competitors since Toyota has the
biggest market share for 2016 they have the capacity to outsource supplier and be more
aggressive in sales.
Tap more into social media advertisement since everyone has an easy access to
internet nowadays. There are more people seeing add that is on social media.
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Recommended Business Strategies
Assessing all the matrixes performed in this strategic paper, it is concluded that Toyota
From the QSPM Matrix’s total attractiveness score, Backward Integration got the
Strategy Recommendation
Assessing all the matrixes performed in this strategic paper, it is concluded that Toyota
integration and Product development. From the QSPM Matrix’s total attractiveness
score, market penetration got the highest among the three. It clearly states that Toyota
Philippines does not have enough power to control its suppliers to hold and maintain the
Market Penetration
Since TMP is ranked #1 in the Philippines and has the biggest market share of 43% for
the year 2016, they can be more aggressive in penetrating the market to either maintain
or increase their market share for the year 2017 compared to the previous year. Using
Backward Integration
TMP can buy or merge with their suppliers to they can get their raw materials at a lower
cost. And by that they can sell their products at a cheaper price compared to other
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automobile companies and will surely gain them the advantage when it comes to sale.
Product Development
Despite having the biggest marketshare in the automobile industry and being ranked #1
in the Philippines, Toyota can still improve their products especially the interioir of their
automobiles. They can produce new product and introduce them to the market and
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STRATEGY MAP
FINANCIAL Profits
PERSPECTIVE
PERSPECTIVE
PROCESS
GROWTH
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TOYOTA PHILIPPINES CORPORATION FINANCIAL POSITION PROJECTION
ASSETS
Current Assets
Non-Current Assets
Equipment, net
Current Liabilities
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Other Payables 9,305,184 10,689,002 12,278,615
Non-Current Liabilities
SHAREHOLDER'S EQUITY
OPERATING EXPENSES
Logistic Cost
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Advertisement and 225,189,135 204,190,560 286,714,177
Commercial
Administrative Cost
Renovation
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Insurance 1,247,288 1,247,288 1,247,288
Finance Cost
EXPENSES
TAX
OTHER COMPREHENSIVE
INCOME
INCOME
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TOYOTA PHILIPPINES CORPORATION CASH FLOW PROJECTION
OPERATING ACTIVITIES
Adjustments for:
Amortization
changes
Changes in operating
receivable
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operation
operating activities
(DECREASE) IN CASH
DEPARTMENTAL PROGRAMS
Management
sales of the
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company
to innovate the
cars.
maintain the
stability of their
market share as
the industry.
change the
standard of
Toyota
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Entertain Weekly Listen to the Sales Consultant
knowledge on the
of Toyota.
Integration Department
strategies to be
of Toyota.
market
loyalty
experts
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Learning & Growth Empowerment Employee’s work ethics
improvement
BIBLIOGRAPHY
http://www.gtcapital.com.ph/component-partners/toyota/
http://www.gmanetwork.com/news/story/316535/economy/companies/toyota-toincrease-
local-parts-of-cars-made-in-santa-rosa
http://www.toyotaglobal.com/company/vision_philosophy/toyota_production_system/orig
in_of_the_toyota_production_system.html
http://www.toyotafinancial.ph/about/annual_report
http://www.businessmirror.com.ph/toyota-corners-43-market-share-as-it-dominates-phl-
vehicle-sector/
http://www.toyotafinancial.ph/uploads/51065ec92e803_TFSPH_AFS_March2012.pdf
http://www.toyotafinancial.ph/about/annual_report
http://www.toyotafinancial.ph/uploads/57aa921659846_TFSPC_FS0316_Toyota_Finan
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http://www.toyotafinancial.ph/uploads/57aa91f8662ea_TFSPC_FS0315_Toyota_Financ
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http://pacci.ph/the-philippine-automotive-industry/
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