1. The history of Toyota


It started in 1933 with the company being a division of Toyoda Automatic Loom Works devoted to the production of automobiles under the direction of Kiichiro Toyoda.Kiichiro Toyoda had travelled to Europe and the United States in 1929 to investigate automobile production and had begun researching gasoline-powered engines in 1930.He was encouraged to develop automobile production by the Japanese government.


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


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


The Crown became the first Japanese car to be exported to the United States and Toyota's America and Brazilian divisions


Toyota Co. was established as an independent and separate company in 1937. Although the company name was changed in order the pronunciation. Toyota is considered luckier than Toyoda in Japan, Toyota began to expand in the 1960s with a new research and development facility, .The first Toyota built outside Japan was in April 1963, at Port Melbourne in Australia, other countries.


2. The origins of Toyota

Toyota Motor Corporation was originally a

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

3. Vision and Mission a. Vision is to be the most respected and successful enterprise, delighting customers with a wide range of products and solutions in the automobile industry with the best people and the best technology". b. Mission of Toyota is to provide safe & sound journey. Toyota is developing various new technologies from the perspective of energy saving and diversifying energy sources. Environment has been first and most important issue in priorities of Toyota and working toward creating a prosperous society and clean world

4 SWOT Analysis a. Strengths: (1) (2) Diversified product range, Highly targeted marketing and a commitment to lean manufacturing and quality. (3) b. # 1 carmaker in 2007

Weaknesses: Company needs to cautiously keep producing cars in order to retain its operational efficiency.



Opportunities: Manufacturers need to make sure that it is their models that consumers want versus competitors


Threats: (1) Toyota has also sold on its technology to other motor manufacturers, for example Ford has bought into the technology for its new Explorer SUV Hybrid (2) (3) (4) Toyota is to target the 'urban youth' market. Toyota faces tremendous competitive rivalry in the car market. Economic instability

5. S B Us a. b. c. d. e. f.

Housing Bio Tech Afforestation Floriculture Business Livestock Biomass business Aerospace Higher education Robotics Finance

h. f.

6. Toyota Home²building 21st century comfort and luxury into houses in Japan. a. Concentrating the knowledge and technology of the Toyota Group to the housing business, Toyota's house making is based on the "Skeleton & Infill" approach. Based on careful consideration of customer lifestyles, three different structures have been developed for the Toyota Home line-up.



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


Free DesignPost and Beam steel frame construction "Espacio GX"



Bio Tech a. Current biotechnology industry can be broken down into three areas: agriculture, medical and chemicals, and the one area Toyota is now focusing on is agricultural biotechnology. The reasons why Toyota has decided to focus on this particular area are: b. c. An increase in world population, mainly in Asia An increase in the amount of food consumption per person due to a rise in the income level d. A decrease in farm and forest areas due to industrialization and urbanization, and food and water shortages due to an increase in water consumption and worsening of the global environment. e. In order to contribute to the mitigation of such problems and to establish a profitable business, Toyota established the Biotechnology and Afforestation Business Department and began research and development in January 1998. And in May 1999, the Toyota Biotechnology and Afforestation Laboratory was established to layout the framework for research and development in the


agricultural biotechnology biotechnology business. f.



to speed



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


Areas of Toyota Activity in Biotechnology




Amid a growing sense of crisis regarding the global

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


Floriculture Business

In order to enter the growing floriculture

business, in 1999, Toyota established Toyota Floritech Co., Ltd. with Hakusan Co.,Ltd., a seeds and seedlings import company, and began full-scale operation.The company's large greenhouse for potted flowers, which is equipped with a highly automated cultivation systems, is one of the largest in Asia, measuring 88 by 231 meters. The company is taking advantage of a climate which surpasses even that of countries like Denmark or Holland, where the flower business flourishes, to produce various types of flowers and sell approximately four millions of mini potted flowers and ornamental plants per year. 11. An Overview of Toyota Floritech Co., Ltd. was established in October 1999. a. Location Toyota Floritech Co., Ltd.

Rokkasho-Mura, Kamikita County, Aomori Prefecture


b. c. d. e. f.

Business Capital President Number of Employees Sales Target

Production and sales ornamental plants.





100 million yen (50% by TMC, 50% by Hakusan Co.,Ltd.) Teruo Takatomi (President of Hakusan Co.,Ltd.) 12 employees and 37 part-time workers (as of the end of July 2008) 430 million yen (FY2008)


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

established Toyota Floritech Co., Ltd. with Hakusan Co.,Ltd., a seeds and seedlings import company, and began full-scale operation.The company's large greenhouse for potted flowers, which is equipped with a highly automated cultivation systems, is one of the largest in Asia, measuring 88 by 231 meters. The company is taking advantage of a climate which surpasses even that of countries like Denmark or Holland, where the flower business flourishes, to produce various types of flowers and sell approximately four millions of mini potted flowers and ornamental plants per year. 13 An Overview of Toyota Floritech Co., Ltd

Toyota Floritech Co., Ltd. was established in October 1999. (a) Location Rokkasho-Mura, Kamikita County, Aomori Prefecture


(b) (c) (d) (e)

Business Capital President Number of Employees


Sales Target

Production and sales of potted flowers and ornamental plants. 100 million yen (50% by TMC, 50% by Hakusan Co.,Ltd.) Teruo Takatomi (President of Hakusan Co.,Ltd.) 12 employees and 37 part-time workers (as of the end of July 2008) 430 million yen (FY2008)


The loss of vegetation in urban areas has resulted in serious

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










Toyota Roof Garden Corporation was established in December 2001. (a) Location Headquarters in Miyoshi-City, Aichi Prefecture A branch office in Chuo Ward, Tokyo (b) Business a) Planning, designing, and implementation of greenification for rooftops, walls and exteriors b) Production and sale of new types of products developed by TMC, such as the Cherry Sage shrub (for improving the environment) and easy-care slowgrowth Zoysia Grass (TM9) c) Manufacture and sale of materials used in the composting process (resQ45) for the livestock industry (c) Capital 55 million yen (70% by TMC, 30% by Ohshima Landscape Construction Co., Ltd.) (d) President Takehito Sato


Livestock Biomass business

a. Domestic Japan total amount of livestock discharge (manure) in Japan is approximately 89million MT. This huge amount of waste causes bad influences on the environment such as offensive odors and groundwater pollution. Also, it became a legal requirement that livestock farmers must properly dispose the discharges, by the enforcement of ³Act on the Appropriate Treatment and Promotion of Utilization of Livestock Manure´ which took effect in November, 2004. The Open-air piling and the burying discharges became prohibited. This gives the livestock farmers very heavy burden.

b. To cope with the problems relating to livestock discharges, Toyota has developed environmentally friendly quick composting system ³resQ45´ through the collaboration with Menicon Corporation. Toyota Roof Garden, one of TMC¶s subsidiary companies, is in charge of the production and sales of ³resQ45´. Through the network of Toyota Tsusho Corporation¶s Livestock food sales business, the sales activity had started from July, 2006.



As with conventional composting, livestock manure example has

spontaneous fermentation mainly introduced, using sawdust as the moisture conditioner. It takes long term (90-180 days) to properly compost the manure, especially for the decomposition of the cellulose which is contained in the moisture conditioner. We developed the new system of composting ³resQ45´, by applying Menicon¶s technology of the enzyme and the thermophile, as well as utilizing the know-how for the fermentation obtained through field tests. This system consists of two items, ³TokubetsuKyuko´ the enzyme which promotes the composting and ³Thermo-master´ the This system can shorten the composting thermophile. term greatly (90-



45days). Also, according to Menicon¶s research, this system can

reduce offensive odors, as well as greenhouse gas such as Nitrous oxide(N2O), methane gas(CH4) and nitrate nitrogen(NO3 N ) .This system can be also effective for the disposal of poultry and swine. This system is highly regarded among many livestock farmers.


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

18. Higher education Toyota established the Toyota Technological Institute in 1981, as Sakichi Toyoda had planned to establish a university as soon as he and Toyota became successful. Toyota Technological Institute founded the Toyota Technological Institute at Chicago in 2003. Toyota is supporter of the "Toyota Driving Expectations Program," "Toyota Youth for Understanding Summer Exchange Scholarship Program," "Toyota International Teacher Program," "Toyota TAPESTRY," "Toyota Community Scholars" (scholarship for high school students), "United States Hispanic Chamber of Commerce Internship Program," and "Toyota Funded Scholarship."[79] It has contributed to a number of local education and scholarship programs for the University of Kentucky, Indiana, and others.[79] 19. Robotics (Toyota Partner Robot)
In 2004, Toyota showcased its trumpet-playing robot.[80] Toyota has been developing multitask robots destined for elderly care, manufacturing, and entertainment. A specific example of Toyota's involvement in robotics for the elderly is the Brain

13 Machine Interface. Designed for use with wheelchairs, it "allows a person to control an electric wheelchair accurately, almost in real-time", with his mind.[81] The thought controls allow the wheelchair to go left, right and forward with a delay between thought and movement of just 125 milliseconds



Toyota trumpet-playing robot



Toyota Financial Services Corporation provides financing to Toyota customers.


Global a. b. c. d. Four geographical markets Four regional headquarters Vehicles sold in 170 countries 52 bases in 27 different countries Distribution channels


Global Strat

a. Regional bases b. Dock-based operations c. Port facilities d. 5 major U.S. ports


23. Marketing Toyota motors uses the four results. a. quality. b.

p¶s of marketing for better

Products: The products offered-unique, superior AND sound

Price: Toyota Motors Corporation keep in mind the

value for

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

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

24. Strategic Objectives in Pakistan a. Achieving Market leadership by delivering value to customer Bringing Toyota quality to Pakistan Respecting our people b. Becoming a good corporate citizen

25. Toyota Prices

Toyota Corolla 1.3L XLi Corolla 2.0D Corolla 1.3L GLi Altis 1.8L M/T Corolla 2.0D SALOON Altis 1.8L CRUISETRONIC Altis 1.8L M/T SR

Price Rs. 1,325,000 Rs. 1,400,000 Rs. 1,450,000 Rs. 1,740,000 Rs. 1,740,000 Rs. 1,830,000 Rs. 1,830,000

Updated On Sep 16, 2010 Sep 16, 2010 Sep 16, 2010 Sep 16, 2010 Sep 16, 2010 Sep 16, 2010 Sep 16, 2010


Corolla 2.0D SALOON SR Avanza 1.5L M/T STD Altis 1.8L CRUISETRONIC SR Avanza 1.5L M/T Up Sepcs Hilux 4x2 D/C (LAN-05) Hilux 4x4 S/C (LAN-03) Hilux 4x4 S/C A/C (LAN-04) Hilux 4x4 D/C (LAN-07) Hilux 4x4 D/C A/C (LAN08) Hilux 4x4 D/C F/L (LAN-09) Camry 2400 CC Petrol M/T Camry 2400 CC Petrol A/T Fortuner 2.7 A/T (TGN51RNKPSKD) Prado 3.0L N-turbo

Rs. 1,830,000 Rs. 1,900,000 Rs. 1,920,000 Rs. 2,100,000 Rs. 2,750,000 Rs. 2,850,000 Rs. 3,000,000 Rs. 3,100,000 Rs. 3,250,000 Rs. 3,499,000 Rs. 6,700,000 Rs. 6,900,000 Rs. 7,500,000 Rs. 9,700,000

Sep 16, 2010 Apr 09, 2010 Sep 16, 2010 Apr 09, 2010 Apr 09, 2010 Apr 09, 2010 Apr 09, 2010 Sep 10, 2010 Apr 09, 2010 Apr 09, 2010 Apr 09, 2010 Apr 09, 2010 Apr 09, 2010 Apr 09, 2010


Micro environment

The Micro environment consists of those

components of the macro environmentwhich are directly relevant to an individual¶s organization. An organization¶s microenvironment includes a. b. Customers Suppliers


c. d.. e. 27. The

Internal Public Competitors Intermediaries boundary between an organization¶s Macro and Micro

environment should notbe viewed as static. Changes in the former will inevitably redefine the latter.The various components of micro environment for Toyota have direct influence onits performance. Moreover components of Toyota¶s micro environment are alsorelated to its macro environment. . 28. Customers Toyota aims at developing loyal customers relationship. For this reappoint tries itsbest to understand who its buyers are and what are their needs. It tries to listen to its customers, realizing that they may be their best collaborators. Customers feedback drive their product development.To be the market leader and satisfy the requirements of its customers, the company has set certain objectives. These are a. b. c. d. 29. Improve Quality Enhance Efficiency Minimize Cost Increase Productivity Over the previous years the company has put in its best efforts to

manufacture quality cars designed for its customers. In Pakistan, more and more people want to experience the unique pleasure of motoring. Exhaustive, in-depth research and consumer surveys conducted over the past years revealed trends of customers and the environmental factors relating to use. 30. Toyota¶s Marketing Policy Toyota¶s slogan ³Reliability n Motion´ represents its emphasis son strong trustworthy and life-long automobiles. It has many brand loyal customers and is considered as market leader. In Pakistan, it has aimed at various segments with their variety of models in Toyota Corolla, so customers in every segments can be satisfied.



Different classes of Toyota Corolla Introduced in Pakistan are;

Model Description y SE Saloon 1600CC y y y

Segments Industrialists, Well established Businessman,Professionals.


Xli 1300cc

y y

Middle-level Executives, Government Departments & Organizations,

y y y 2.0D / 2.0D Saloon y y

Professionals, Armed Forces Professionals, Business Executives who are fuel cost conscious


Toyota Dealer

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




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


person being hired meet the criterion for the respective departments.Training is an integral part in Toyota¶s various departments. Training wasintensified and various courses were conducted through the previous year.Technicians at the dealers¶ service departments underwent extensive by IMCservice departments to improve their skills. Moreover, periodic training ofmanagers is also conducted. This include training camps, short courseconducted in various well-known universities, training programs conductedabroad and lectures of foreign exports. 36 .Competitors Market competition is the cornerstone of managerial capitalism. The five forces that shape the degree of market competition operating within an organization¶s micro environment are a. b. c. d. e. 37. Rivalry among existing organization. Relative power of customers. Relative power of suppliers. Threat of new entrants. Threat of new substitutes.

Presently Toyota is proud to have the most market share. Honda

standssecond followed by Suzuki and Nissan. Since its start it was only in 95-96that Honda managed to sale 200 more units of vehicles than Toyota. Still,Toyota is proud to be in a strong position. However to the spirit ofcompetition is strong and this has lead Toyota to continuously try to improveitself, at all levels. Continuous emphasis is laid on to attract more customers,maintains healthy relations with its suppliers and makes efforts to improvetechnology. Careful strategic planning at al levels has enabled Toyota toachieve the highest market share and have an edge over other automobilecompanies. 38. Intermediaries Banks, Leasing companies and car agents are some of the intermediaries for Toyota. These intermediaries basically giving the boost to the sales of Toyota,


by offering the cars to the consumers, in easy installments and making the cars affordable for the customers to the higher extent. 39 Conclusion Toyota cares so about their customer and Quality, that's why Toyota is very famous , and made its brand name. Toyota has created a new dimension in the field of automobile business. It has understood the needs of the customers and has made a mark for itself by manufacturing small, high performing, defect free cars. The story of Toyota is one of an extraordinary group of entrepreneurs and engineers who believed in the power of innovation and in making miracles everyday