ACKNOWLEDGEMENT

so many people have helped us in many ways that share their

experience & knowledge with immense gratitude and regard, we would
like to thanks our respected assistant professor sir Saleh Memon for
giving us this golden opportunity of preparing this report through which
we availed the chance of preparing formal report of given company
and getting practical knowledge

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TOYOTA Indus motor co.

1. INTRODUCTION
1.1 VISION AND MISSION:
"IMC’s 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".
 The most respected.
 The most successful.
 Delighting customers.
 Wide range of products.
 The best people.
 The best technology.

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.

1.2 Company profile

Indus Motor Company (IMC) is a joint venture between the House of Habib , Toyota
Motor Corporation Japan (TMC) , and Toyota Tsusho Corporation Japan (TTC) for
assembling, progressive manufacturing and marketing of Toyota vehicles in Pakistan
since July 01, 1990. IMC is engaged in sole distributorship of Toyota and Daihatsu Motor
Company Ltd. vehicles in Pakistan through its dealership network.

The company was incorporated in Pakistan as a public limited company in December

1989 and started commercial production in May 1993. The shares of company are quoted
on the stock exchanges of Pakistan. Toyota Motor Corporation and Toyota Tsusho
Corporation have 25 % stake in the company equity. The majority shareholder is the
House of Habib. IMC's production facilities are located at Port Bin Qasim Industrial
Zone near Karachi in an area measuring over 105 acres.Indus Motor company's plant is
the only manufacturing site in the world where both Toyota and Daihatsu brands are
being manufactured

Heavy investment was made to build its production facilities based on state of art
technologies. To ensure highest level of productivity world-renowned Toyota Production
Systems are implemented.

IMC's Product line includes 6 variants of the newly introduced Toyota Corolla, Toyota
Hilux Single Cabin 4x2 and 4 versions of Daihatsu Cuore. We also have a wide range of
imported vehicles.

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2. Company Operating Performance

The combined sales of Toyota and Daihatsu brands (CKD and CBU) for the
quarter ended March 2011 recorded a growth of 7% to 15,084 units as
compared to 14,145 units sold for the same quarter last year. Ongoing
improvement in all areas of manufacturing enabled the plant to operate
efficiently and at full capacity to meet the market demand. The production of
PC and LCV for the quarter also increased by 5% to 14,969 units as against
14,203 units produced for the same quarter last year. IMC market share for
the quarter ended March 2011 was 32% as compared to 36% achieved for
the same quarter last year.
On year to date basis, the sales volume of Toyota and Daihatsu brands (CKD
and CBU) increased by 7% to 37,987 units from 35,445 units, while the
production at 38,451 units was up by 9% compared to 35,322 units
produced for the same period last year.
The Company's sales revenue for the nine months ended March 2011
increased to Rs 45.3 billion, up 13% as compared to Rs 40.1 billion posted
in 2010, while profit after tax fell by 26% to Rs 1.6 billion compared to Rs 2.2
billion for the same period last year. Decline in the nine months profitability is
mainly attributable to manufacturing operations affected by rising input costs
in international markets further compounded with the deterioration of the
Rupee and other inflationary pressures that the Company has absorbed in
order to cushion the adverse impact on our valued customers.
The Company recently unveiled the new Corolla model 2011. The New
Corolla incorporates an elegant and sporty design in an advanced and
dynamic form, and embodies class-above overall quality. The New Corolla has
a refreshed front end that promotes sleeker look and stable driving
experience. The feedback from our valued customers in the market is positive
we expect the product to perform well.

3. VALUE CHAIN ANALYSIS

OF TOYOTA Indus Motors Co.

The value chain is a systematic approach to examining the development of competitive

advantage. It was created by M. E. Porter in his book, Competitive Advantage (1980).
The chain consists of a series of activities that create and build value. They culminate in
the total value delivered by an organization. The 'margin' depicted in the diagram is the
same as added value. The organization is split into 'primary activities' and 'support
activities.'

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4. Primary Activities

4.1 Inbound Logistics:

Here goods are received from a company's suppliers. They are stored until they are
needed on the production/assembly line. Goods are moved around the organization.
Toyota motors purchase their raw material from all around the world. In order to
maximize their availability of raw material Toyota motors maintain good relationship
with their suppliers. Toyota use JIT (Just In Time) approach for handling of raw material.

4.2 Operations:

This is where goods are manufactured or assembled. Individual operations could include
organizing the parts to make new cars & the final tune for a new car's engine. Toyota
motors are known for their reliability which comes from efficient operations.

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4.3 Outbound Logistics:

The goods are now finished, and they need to be sent along the supply chain to
wholesalers, retailers or the final consumer. Toyota motors manage their own Show
rooms in different countries. Toyota motors make their product easily assessable.

4.4 Marketing and Sales:

In true customer orientated fashion, at this stage the Toyota motors prepares the offering
to meet the needs of targeted customers. This area focuses strongly upon marketing
communications and the promotions mix.

4.5 Service:

This includes all areas of service such as final checking, after-sales service, complaints
handling, training and so on. Toyota value their customers

5. Support Activities
5.1Procurement:

This function is responsible for all purchasing of goods, services and materials. The aim
is to secure the lowest possible price for purchases of the highest possible quality. Toyota
motors will be responsible for outsourcing (components or operations that would
normally be done in-house are done by other organizations), and e-Purchasing (using IT
and web-based technologies to achieve procurement aims).

5.2 Technology Development:

Technology is an important source of competitive advantage. Companies need to

innovate to reduce costs and to protect and sustain competitive advantage. Toyota motors
implemented production technology, Internet marketing activities, lean manufacturing,
Customer Relationship Management (CRM), and many other technological
developments.
5.3 Human Resource Management (HRM):

Employees are an expensive and vital resource. Toyota motors manage recruitment and s
election, training and development, and rewards and remuneration. Toyota motors
consider their employees as HUMAN CAPITAL. The mission and objectives of the
Toyota motor is the driving force behind the HRM strategy.

Toyota motors uses following techniques to retain their employees:

 Recruitment
 Selection
 Training and development

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  Compensation
 Maintenance

6. Firm Infrastructure:

This activity includes and is driven by corporate or strategic planning. Toyota motors
implemented Management Information System (MIS), and other mechanisms for
planning and control in different departments

Marketing Production

R &D Customer

7. FINANCE COSTS
This includes impact of unrealised gain on revaluation of foreign
exchange contracts amounting to Rs. 102.990 million.

8. SUGESSIONS & RECMENDATIONS

1. Toyota motors should use Value Coalitions for better use of their under utilized
recourses. Toyota develops synergies among their recourses

2. Toyota should use design to maximize the performance of their operations. Using the value
chain approach, processes that provide direct value to the customer are modeled first

Derivative processes that support the value chain processes are modeled to support the value
chain.

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9. TOYOTA Company Functional and Process Based Designs

Marketing Finance Sales Engineering Manufacturing Distribution

FUNCTIONAL

DESIGN

PROCESS
Desig Build Marke Delive
DESIGN n Car t r

Car Car Car

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10. Reference

source

http://www.toyota-indus.com/

http://en.wikipedia.org/wiki/Toyota

economist magazine