Toyota Company Study

Company Study
Final Output on International Business and Trade
Arca, Enrique Ricardo B.

Espanola, Honnah R.
Lim, Paula Joy O.
Matias, Kaisher Jaome
Panlilio, Jairus B.
Salalima, Robert Ian K.
Sta. Maria, Ral Milicen
Tacorda, John Glen
February 2022
I. Business Analysis
● History of the company
Toyota Motor Corporation is a Japanese automaker headquartered in Tayofa, Aichi, Japan. The
company was founded by Kiichiro Toyoda in 1937, as a spinoff from his father’s company Toyota
Industries to create automobiles. In 2010 the multinational corporation consisted of 325.905 employees
worldwide and, as of March 2013, is the thirteenth-largest company in the world by revenue. Toyota was
the largest automobile manufacturer in 2012 (by production), and in July of that year, the company
reported the production of its 200-millionth vehicle.
● Vision, mission, and objectives and of the company

VISION
Toyota will lead the future mobility society, enriching lives around the world with the safest and most
responsible ways of moving people.
Through our commitment to quality, ceaseless innovation, and respect for the planet, we strive to exceed
expectations and be rewarded with a smile.
We will meet challenging goals by engaging the talent and passion of people who believe there is always
a better way.
MISSION
To reach environmental leadership through the whole vehicle life cycle. Based on the Toyota
CSR Policy, Toyota Environmental Challenge 2050 and the TGB 5 Year Environmental Action Plan,
members of TGB commit to lead by example to reduce the environmental impact of Toyota's activities.
OBJECTIVES
1. Business Objectives:
>To maximize shareholder’s wealth and give them returns on their capital invested.
>Effective working capital management
>Cost management
>Quality production
>Resources utilization (manpower, capital, assets and other)
>Public image in market (national and international)
>Overcome competition
2. Ethical Objectives:
> No compromise in ethics
>True and fair presentations, comply with law and standards, maintain the highest level of honesty,
integrity, professionalism and ethical behaviors.
3. Cultural social and environmental objectives:
>See foreseeable future needs, company’s responsibilities as a manufacturer company and always take
proactive steps that benefit customers as well as society.
>Proper waste management as a corporate social responsibility
>Protect whistleblowers and have regular meetings and review on social, cultural and environmental
issues.
● Founder, his vision, values, and efforts

Kiichiro Toyoda (JUNE 11, 1894- MARCH 27,1952) was also an innovator, and visits he made
to Europe and the USA in the 1920s introduced him to the automotive industry. With the £100,000 that
Sakichi Toyoda received for selling the patent rights of his automatic loom, Kiichiro laid the foundations
of Toyota Motor Corporation, which was established on August 28, 1937. Kiichiro Toyoda served as
president of Toyota Motor Corporation from 1941 to 1950. His technical skills and leadership forged the
foundations of a company that eventually grew to be one of the most respected corporations in the world.
Cooperated with his father Sakichi to develop automatic looms as well as textile machinery.
Based on the foundations of the loom business, Kiichiro Toyoda devoted himself to the development of
domestic technology in pursuit of mass production of automobiles and built the foundations of the
automobile industry. Here, we trace the course of Kiichiro’s life.
1894
· Kiichiro Toyoda born in Shizuoka Prefecture (113-2, Yamaguchi, Yoshizu-mura, Fuchi-gun)
1924
· Completes non-stop shuttle change automatic loom TypeG
1929
· Patent for automatic loom is transferred to Platt Brothers & Co.,Ltd.of the U.K.
1931
· High-draft spinning frame completed
· Small gasoline engine prototype (with a 4PS output) developed
1934
· Plant for prototype production completed
· Installation of machinery and equipment imported from the West begins
· Steel mill completed
· First Type A engine completed
1935
· First Model A1 passenger car prototype completed
· Decision to double capital and begin full-scale automobile production made at an extraordinary
stockholders’s meeting;burden of capital increase to \3,000,000 taken by Toyoda Bosyoku Shou
· Model G1 prototype truck completed
1936
· Mass production of Model AA passenger cars (improved Model A1) starts
· Kariya Assembly Plant (today’s Kariya Plant at Toyota Auto Body Co.,Ltd.) starts operations
· Toyota logo designed; product name changed from Toyoda to Toyota
· Production of Model GA truck (improved Model G1) starts
1937
· Toyota Motor Co.,Ltd. established
1938
· Construction of Koromo Plant completed
· Koromo Plant starts flow and Just-in-Time production
· Research laboratory for airplanes established at Koromo Plant
1939
· Shibaura Plant established; storage battery research laboratory established at Shibaura Plant
· Prototype Model AE passenger car (“Shin-Nihon”) completed
1940
· Tianjin Plant divided to establish Hokushi Jidosha Kogyo
· Toyoda Steel Works,Ltd. (today’s Aichi Steel Works, Ltd.) established
· Toyoda Physical and Chemical Research Institute established
1941
· Toyoda Machine Works, Ltd. established
1942
· Shanghai Plant divided to establish Kachu Toyoda Jidosha Kogyo
· Airplane Department started
1943
· Tokai Hikoki Co.,Ltd. (today’s Aisin Seiki Co.,Ltd.) established
1945
· Kariya Plant becomes independent; changes to Toyota Shatai Kogyo,Ltd.
1947
· Production of Model SA small passenger car (Toyota’s first small passenger car) started
1948
· Nisshin Tsusho Kaisya Ltd.(today’s Toyoda Tsusho Corporation) established
1949
· Nagoya Rubber Co.,Ltd.(today’s Toyoda Gosei co.,Ltd) established
· Nippondenso Co.,Ltd.(today’s Denso Corporation) established.
1950
· First Model BX truck prototype completed; undergoes 5,000km running test
· Toyota Motor Sales Co.,Ltd. established
· Minsei Spinning Co.,Ltd. (today’s Toyoda Boshoku Corp.) established
1951
· Production of Model BX 4-ton truck (improved Model BM) and the Model BY bus started
1952
· Development of first-generation Crown automobile begins
· Kiichiro dies aged 57; posthumously awarded the Fourth Class Order of the Sacred Treasure
and the Junior Grade of the Fifth Rank of Honor by the Japanese government
● Business in terms of products and services
Toyota Industries Corporation engages in a wide variety of businesses including automobiles

(vehicles, engines, car air-conditioning compressors, and car electronics), materials handling equipment,
and textile machinery.
Toyota Group companies have subsequently been established in integrated automotive industry
areas such as materials, manufacturing equipment, and parts. Indeed, Toyota has grown from its venture
business roots into a variety of other fields beyond automobile manufacturing, including housing,
financial services, communications, marine and biotechnology, and afforestation.
● Success saga of the company and its business

Toyota is one of the largest automobiles companies of the world today in terms of manufacturing
automobiles and revenue collection. Toyota success is largely due to its working culture and continuous
improvement.
The manufacturing and production of Toyota automobiles officially started in 1933 as a division
of Toyoda Automatic Loom Works under Kiichioro Toyoda. The first ever vehicle manufactured by
Toyota were the A1 passenger car and the G1 truck in 1935. Up to 1937, vehicles were sold under the
name Toyoda, so Toyota Motor Company was established as an independent company in 1937.
The Great Kanto Earthquake of 1923 completely destroyed Japan’s railway services. There was
huge demand for vehicles in Japan, so American companies such as Ford and General Motors entered
Japan’s market to enhance their business. The world war brought heaps of changes in Japan. It became
obligatory to use domestic parts in Japan starting in 1938 making it hard for the American Companies.
Till then Toyota had already manufactured its first model vehicles, which increased the problem
for Ford and General Motors forcing them to halt their production. Toyota reaped the benefits of
restrictions imposed by the government and went on to become the largest selling vehicle manufacturer
within a few years and this stat.
Toyota struggled and earned its way to the top; its rise wasn’t quick or inevitable. The company
did not achieve overnight success. Toyota gradually improved over the years to overtake other automobile
manufacturers. Till the early 1980s, Ford and GM made bigger, better looking and better cars than
Toyota. Toyota focused on making reliable and fuel efficient cars during this period and this contributed a
lot in Toyota success.
Toyota closed the gap among its competitors little by little, improvement by improvement.
Toyota’s progression is best captured by the Japanese word jojo: “slowly, gradually, and steadily ” and
this is the success mantra for Toyota.
Toyota cares about everything, they even measure the sound the car makes when its door opens
and closes. Management techniques are totally different from other business schools and multinational
companies. So it’s hard to emulate Toyota. Toyota started making reliable and fuel efficient cars but now
it also tops the list of making luxury cars.
Toyota means strong and reliable cars. That was the brand image of Toyota in its early years and
seed of success for Toyota. Now it is the global leader of automobile manufacturers. Despite all its
success and good works, Toyota has never strayed far from controversy. Toyota had to recall its car and
trucks in several campaigns around the world. Toyota recalled 9 million cars and trucks in 2009 after
several complaints were registered for unintended acceleration of vehicles.Similarly in 2012, Toyota
recalled 7.43 million vehicles worldwide to fix malfunctioning power window switches. Although Toyota
never agreed to be at fault, it agreed to pay a fine of $1.2 billion for concealing information and
misleading the public about the safety issues behind the recalls on Toyota and Lexus vehicles affected by
unintended acceleration.
In 2014 Toyota became the world’s largest automaker. As of September 2018, Toyota is the sixth
largest company in the world by revenue. As of 2017, Toyota consisted of 364,445 employees worldwide.
Started as a single division unit, now Toyota manufactures its vehicles under five brands, including the
Toyota brand, Hino, Lexus, Ranz, and Daihatsu. Toyota is the perfect success example of slow and steady
wins the race.
The list of Key Factors for Toyota Success are as follows:
1. Continuous Improvement
Toyota has been able to make continuous improvement over the years. Some may argue about
being slow in their development. But this slow and continuous improvement has played a critical
role in Toyota's success.
2. Focused strategy
Toyota focused on making fuel efficient and reliable cars. They kept working on that same
strategy for over the years and carried it out successfully. Toyota trains its employees in the
“Toyota Production System” (TPS). This assists them to create the high quality vehicles at the
lowest cost and fastest pace.
3. Research and Development

Toyota is never known for making quick moves. They generally take time to make business
decisions and this actually has played a significant role in Toyota success. Before making any
business move and innovation, Toyota works on research. They take time for research and
development and come out with the best.
4. Operational Efficiency
Over the years Toyota has been able to achieve operational efficiency. It has minimized waste
and redundancy and successfully utilized its workforce, technology, business process and to get
the best out of them.
● Failures and risk taken as experience
Toyota Is Fined $1.2 Billion for Concealing Safety Defects
Eric H. Holder Jr., the United States attorney general, said the department’s four-year
investigation of Toyota found that the company concealed information about defects from consumers and
government officials, putting lives at risk because of faulty parts that caused sudden, unintended
acceleration in several of its models.
Prosecutors said that Toyota concealed problems related to floor mats and sticky accelerator
pedals and made misleading statements to consumers in an effort to defend its brand image. Toyota
recalled more than 10 million vehicles in 2009 and 2010 for problems related to unintended acceleration.
The company modified gas pedals and floor mats and made brake-override systems standard on new
models.
While regulators have not given an exact number of deaths associated with the defect, the
company still faces many wrongful death and personal injury lawsuits. The company was fined $1.2
billion and they also paid $66 million in civil penalties. However, after the issue they said that they had
made internal safety changes including starting rapid-response teams to investigate potential defects. And
although Toyota sales fell in the short term during the recalls, the company has recovered most of the
market share it lost in the United States.
Events:
1. Sep. 29, 2009 Floor mat recall:
Toyota recalled 55,000 sets of heavy-duty rubber floor mats from the Toyota Camry and ES 350
sedans. The recalled mats were of the optional "all-weather" type. NHTSA stated that the recall was due
to the risk that unsecured mats could move forward and trap the gas pedal.
2. January 21, 2010 Accelerator pedal recall:
Toyota initiated a second recall, this time in response to reports of accelerator pedals sticking in
cars without floor mats.
3. February 3, 2 2010 Anti-lock brake software recall:
The NHTSA announced that it had received reports from 102 drivers of possible problems related
to the braking system on the MY 2010 Toyota Prius, while an additional 14 such reports had been
received in Japan. Three of these reports claimed that brake problems had led to the car crashing.
● Turnaround performance
Toyota were able to handle the recall crisis they have experienced. Toyota said that recalled cars
will have their gas pedals replaced with the new, redesigned unit. Until their car is serviced, owners are
advised to remove floor mats and to report any problems to their local Toyota dealer. Toyota advises any
driver who finds their vehicle accelerating unintentionally should place the vehicle's transmission in
Neutral, apply the brakes, steer off the road and shut off the engine. Owners of vehicles equipped with a
push-button starter rather than a traditional key should be aware that the button must be depressed for 3
seconds to shut the engine off if the car is not in Park.Furthermore, a leaner Toyota Motor roared back to
health in its fourth quarter as a weaker yen and brisk sales in North America almost tripled its net income
from a year earlier. With this, Toyota announced that it would spend $360 million to expand a factory in
Georgetown, Ky., to bring production of its Lexus luxury sedans to the United States for the first time.
The company has also started to buy more of its parts in the countries where it manufactures, a move
aimed at making its supply chains more resilient after disasters and disruptions.
Despite its rebound, Toyota’s latest earnings remain far below the heights of its financial year
that ended in March 2008, when net profit hit 1.7 trillion yen on record sales of 26 trillion yen. American
consumers riding out the last of the credit boom helped lift global sales to a record 9.37 million cars in
2007. Toyota topped that record in 2012, with global sales of 9.75 million cars.
● Breakthroughs etc.
Toyota Motor Corporation (Toyota) announced last September 27, 2017, some of its progress in
the development of automated driving technology and other project work at the Toyota Research Institute
(TRI).
“In the last few months, we have rapidly accelerated our pace in advancing Toyota's automated
driving capabilities with a vision of saving lives, expanding access to mobility, and making driving more
fun and convenient," said Dr. Gill Pratt, CEO of TRI. "Our research teams have also been evolving
machine intelligence that can support further development of robots for in-home support of people."
Toyota also released a comprehensive overview of its work on automated driving. The white
paper includes the philosophy that guides its approach to the technology, its ongoing research programs,
and its near-term product plans. The white paper reflects Toyota's understanding of the potential for
automated driving to dramatically increase road safety and expand mobility options for people around the
world, helping to create a society where mobility is safe, convenient, enjoyable and available to everyone.
Toyota hopes that the paper will help various stakeholders understand its approach and raise awareness of
issues surrounding automated driving, such as infrastructure development and societal acceptance.
The white paper summarizes the dual concepts of Guardian and Chauffeur that guides Toyota's
automated driving research and the Mobility Teammate Concept which represents Toyota's belief that
interactions between drivers and cars should mirror those between close friends who share a common
purpose, watch over each other, and when in need, help each other out.
"Vehicles with automated driving technology will bring many benefits to society, but one of the top
priorities at Toyota is to help make the traffic environment safer," said Kiyotaka Ise, Chief Safety
Technology Officer and Senior Managing Officer of Toyota Motor Corporation. "By having our vehicle
technologies seamlessly anticipate and interact with human beings and the traffic environment, we will
get closer to realizing a future without traffic injuries or fatalities."
Furthermore, TRI shared the progress it has been made in the following technologies:
AUTOMATED DRIVING
Since unveiling its Platform 2.0 research vehicle in March 2017, TRI has quickly updated its
automated driving technology to Platform 2.1. In parallel with the creation of this innovative test
platform, TRI has made strong advances in deep learning computer perception models that allow the
automated vehicle system to more accurately understand the vehicle surroundings, detecting objects and
roadways, and better predict a safe driving route. These new architectures are faster, more efficient and
more highly accurate. In addition to object detection, the models' prediction capabilities can also provide
data about road elements, such as road signs and lane markings, to support the development of maps,
which are a key component of automated driving functionality.
Platform 2.1 also expands TRI's portfolio of suppliers, incorporating a new high-fidelity LIDAR
system provided by Luminar. This new LIDAR provides a longer sensing range, a much denser point
cloud to better detect positions of three-dimensional objects, and a field of view that is the first to be
dynamically configurable, which means that measurement points can be concentrated where sensing is
needed most. The new LIDAR is married to the existing sensing system for 360-degree coverage. TRI
expects to source additional suppliers as disruptive technology becomes available in the future.
On Platform 2.1, TRI created a second vehicle control cockpit on the front passenger side with a
fully operational drive-by-wire steering wheel and pedals for acceleration and braking. This setup allows
the research team to probe effective methods of transferring vehicle control between the human driver and
the autonomous system in a range of challenging scenarios. It also helps with development of machine
learning algorithms that can learn from expert human drivers and provide coaching to novice drivers.
TRI has also designed a unified approach to showing the various states of autonomy in the
vehicle, using a consistent UI across screens, colored lights and a tonal language that is tied into Guardian
and Chauffeur. The institute is also experimenting with increasing a driver's situational awareness by
showing a point cloud representation of everything the car "sees" on the multi-media screen in the center
stack.
With its broad-based advances in hardware and software, Platform 2.1 is a research tool for
concurrent testing of TRI's dual approaches to vehicle autonomy―Guardian and Chauffeur―using a
single technology stack. Under Guardian, the human driver maintains vehicle control and the automated
driving system operates in parallel, monitoring for potential crash situations and intervening to protect
vehicle occupants when needed. Chauffeur is Toyota's version of SAE Level 4/5 autonomy where all
vehicle occupants are passengers. Both approaches use the same technology stack of sensors and cameras.
The platform includes the ability of the Guardian system to detect distracted or drowsy driving in
certain situations, and to take action if the driver does not react to turns in the road. In such a situation, the
system first warns and then will intervene with braking and steering to safely follow the road's curvature.
Chauffeur test scenarios demonstrate the vehicle's ability to drive itself on a closed course, navigate
around road obstacles, and make a safe lane change around an impediment in its path with another vehicle
travelling at the same speed in the lane next to it. In addition to real-world testing, TRI is using simulation
to accurately and safely test engineering assumptions.
ROBOTICS AND ARTIFICIAL INTELLIGENCE
TRI is also making advancements in robotics and artificial intelligence.
As part of its research into human support robots that can assist with tasks in the home, such as
item retrieval, TRI has pioneered new tools to give future robots enhanced, human-like dexterity in order
to grasp and manipulate objects so that they are not dropped or damaged. TRI is also applying computer
vision and artificial intelligence to robot development, allowing robots to detect the physical presence of
humans and objects, note their locations and retrieve objects for humans when prompted. The robots can
detect when objects have been relocated, update the item's location in the robot's database, and even
detect faces of known people and differentiate individuals.
TRI's progress in robotics has been made possible by its ability to increase the value and accuracy
of simulation to augment physical testing. Since it is impossible to physically test the wide variety of
situations robots may encounter in the real world, the institute uses simulated environments, constantly
adapting them with data collected in real-world testing for greater precision.
Additionally, TRI is pursuing new concepts for applying artificial intelligence inside a vehicle cabin to
keep occupants comfortable, safe and satisfied. The institute has created a simulator showing an in-car AI
agent that can detect a driver's skeletal pose, head and gaze position and emotion to anticipate needs or
potential driving impairments. For example, when the system detects the driver taking a drink and facial
expressions which might indicate discomfort, the agent hypothesizes that the driver might be feeling
warm and can adjust the air conditioning or roll down the windows. If the agent detects drowsiness, it
might provide a verbal prompt in the cabin suggesting that the driver pull over for coffee or navigate the
car to a coffee shop.
● List of CEO’s & their contribution (if information is available)

Takeshi Uchiyamada
Chairman of the Board of Directors
(Representative Director)
Takeshi Uchiyamada was born on August 17, 1946. He graduated from Nagoya University with a
degree in applied physics in March 1969, and joined Toyota Motor Corporation (TMC) in April the same
year.
In January 1994, Mr. Uchiyamada became project general manager of Vehicle Development
Center 2. In January 1996, he became chief engineer of the center, which developed the Prius―the
world's first mass-produced gasoline-electric hybrid car.
After being named to the Board of Directors in June 1998, Mr. Uchiyamada oversaw Vehicle
Development Center 3. In June 2000, he became chief officer of Vehicle Development Center 2, and in
June 2001, became the managing director and chief officer of the Overseas Customer Service Operations
Center. Mr. Uchiyamada was made a senior managing director (this title was changed to senior managing
officer as of June 2011), and was also appointed chief officer of the Vehicle Engineering Group in June
2003. In June 2004, he became chief officer of the Production Control & Logistics Group, and in June
2005, he became an executive vice president. Mr. Uchiyamada was appointed vice chairman of the board
of directors in June 2012, and then chairman in June 2013.
Shigeru Hayakawa
Vice Chairman of the Board of Directors
Shigeru Hayakawa was born on September 15, 1953. He graduated from the University of Tokyo
with a bachelor's degree in economics in March 1977, and joined Toyota Motor Corporation (TMC) in
April of the same year.
Mr. Hayakawa was appointed department general manager of the International Communications
Department, Public Affairs Division in January 2002. In June 2005, he became division general manager
of the Public Affairs Division. Mr. Hayakawa was then made managing officer in June 2007, and was
appointed president of Toyota Motor North America, Inc. (formerly TMNA) in September of the same
year. In April 2011, he was in charge of the Public Affairs Division and in June, deputy chief officer of
the External Affairs Group. Mr. Hayakawa then became a senior managing officer at TMC in April 2012.
In April 2013, he became the chief officer of the External Affairs & Public Affairs Group. In June 2015,
Mr. Hayakawa was named a member of the board of directors, and became chief communications officer
in July.
In September 2015, he was in charge of the BR Olympic & Paralympic Department, and then of
the Olympic & Paralympic Division in November 2015. In April 2017, Mr. Hayakawa was named vice
chairman of the board of directors of Toyota Motor Corporation. In February 2020, he became chief
sustainability officer. In June 2021, he was appointed chief privacy officer.
Akio Toyoda
President,
Member of the Board of Directors
Mr. Toyoda's career has included postings in every phase of automotive operations, including
production, marketing and product development, both in Japan and internationally. Outside Japan, he
served as an executive vice president and board member at New United Motor Manufacturing, Inc.
(NUMMI), Toyota's production joint venture with General Motors in California, starting in April 1998.
In January 2000, he returned to Japan and was named to TMC's Board of Directors in June. In
that capacity, he took on the creation and supervision of gazoo.com, a website that contains dozens of
virtual shops for consumer goods and services and also provides information about new and used
vehicles. Also during this time, he supervised domestic marketing operations, operations in the Americas,
and production management consulting. In June 2001, Mr. Toyoda became the chief officer of the Asia &
China Operations Center, and then in June 2002, he assumed the position of managing director.
In June 2003, Mr. Toyoda was made a senior managing director (this title was changed to senior
managing officer as of June 2011), and, in January 2005, he became chief officer of both the China
Operations Group and the Asia, Oceania & Middle East Operations Group. In June 2005, he became an
executive vice president and a representative director, where he was responsible for IT & ITS, quality,
product management, purchasing, Japan and overseas sales, and overseas operations. In June 2009, Mr.
Toyoda became president of TMC.
● Technology Adoption
Toyota Motor Corp. is accustomed to being everyone's target, whether it be for quality, customer
satisfaction, manufacturing efficiency or market acumen. But Toshiaki (Tag) Taguchi, president, Toyota
Motor North America Inc., says even Toyota needs to improve and quickly.
Mr. Taguchi says one of Toyota's overriding priorities is to capitalize on fast-moving new
technical advances to help improve its already benchmark products and manufacturing processes. He says
that new technology means the automotive sector must move more quickly than ever before, and admits
that adopting change will be particularly crucial for historically methodical Toyota.
Mr. Taguchi says Toyota is closely examining the implications of new electronic technology and how to
best capitalize on it for the best interests of the company - and its customers.
For example, he says, "When it comes to manufacturing plants, new technology is helping in hundreds of
ways." He believes that despite Toyota's high levels of plant performance, the company's current average
of about one problem per vehicle is "one too many."
New electronic technology, says Mr. Taguchi, is streamlining communications with suppliers to improve
efficiency through the supplier chain. Toyota has adopted innovations like its Worldwide Automotive
Real-Time Purchasing (WARP) system to eliminate wasted time and administrative hassles, allowing
personnel to spend more time on higher-value tasks. WARP creates a "living document" that follows a
component throughout the supply chain and to the assembly plant; any changes are communicated
concurrently to all relevant parties, saving time and wasteful paper trails.
Those sort of innovations, says Mr. Taguchi, are helping Toyota to move fast on the smallest matter,
which has not been a strong point for the enormous company, he admits.
Technology also is bringing efficiency to communication with customers and dealers, says Mr. Taguchi.
He says initiatives like Toyota's new Dealer Daily and the consumer Website www.buyatoyota.com are
improving its relationships at the retail level.
● SWOT & PEST Analysis on the Company and its environment

SWOT Analysis
Strengths:
· Strong market position and brand recognition: Toyota has a strong market position in different
geographies across the world. The company's market shares for Toyota and Lexus brands, (excluding
mini vehicles) in Japan was 45.5% in FY2012. Similarly, Toyota has a market share of 12.2% in North
America, 13.4% market share in Asia (excluding Japan and China), and 4.3% market share in Europe. In
addition, the company holds a 7% share of the Chinese market and a significant market share in South
and Central America, Oceania, Africa and the Middle East regions. Such strong market position allows
the company to gain competitive advantage and also expand into international markets. In addition,
Toyota holds a portfolio of strong brands in the automotive industry. Thus, the company's strong market
position gives it significant competitive advantage and helps it to register higher sales growth in domestic
and international markets.
· Strong focus on R&D: Toyota has a strong focus on R&D to expand its product portfolio and improve
the functionality, quality, safetyFZ BB and environmental compatibility of its products. The company's
R&D efforts are directed at developing new products and processes and improving the capabilities of
existing products. The company conducts its R&D operations at 14 facilities worldwide. Strong focus on
R&D has helped the company in incorporating newer features to its existing range of products and also in
bringing out latest technologies in the varied areas. The company's strong focus on R&D allows it to
uphold the technological leadership in most of its product segments. It also enables Toyota to develop
innovative products, leading to strong sales.
· Extensive production and distribution network: Toyota has an extensive production and distribution
network. Toyota and its affiliates produce automobiles and related parts and components through more
than 50 manufacturing companies in 27 countries and regions besides Japan. During FY2012, the
company produced 7,435,781 vehicles, including 3,940,000 vehicles in Japan and 3,495,000 vehicles
across all other manufacturing locations. In addition, Toyota has an extensive distribution network. While
the company’s geographically well spread production base diversifies business risks, its extensive
distribution network provides a wider reach, thus boosting revenues.
Weaknesses:
· Product recalls could affect brand image: Toyota has conducted a number of product recalls in the
recent past, which could affect the brand image and overall sales of the company. For instance, in 2011,
Toyota recalled 111,000 models of Toyota and Lexus brands’ vehicles due to the damage to elements of
the substrate and potential shutdown of the hybrid system. Further in the year, Toyota recalled 181,000
vehicles in Japan in relation to abnormal noise and oil leakage that Analysis of Toyota Motor Corporation
by Thembani Nkomo may have resulted from slack of bolts in the sub transmission and the rear wheel
differential. In addition, the company was involved in government investigations related to product
recalls. For instance, in February 2012, the National Highway Traffic Safety Administration initiated a
preliminary investigation of a potentially faulty power window master switch in the driver-side doors in
model year 2007 Camry and RAV4 vehicles. This could also result in significant penalties, which could
affect the operational margins.
· Declining sales in key geographic segments: Toyota witnessed a decline in its sales in key geographic
segments. In FY2012, the company witnessed declining sales across North America, Asia, Europe and
other geographic reasons, which together accounted for 60.8% of the total revenues of the company.
Thus, a continuous decline in the company's key geographic segments could put pressure on the profit
making segments and the overall revenues of Toyota.
· Poor allocation of resources as compared to peers: Toyota has low return on equity (ROE) and return
on assets (ROA) compared to its peer companies. The company's competitors such as Honda Motor and
Nissan Motor have more ROE when compared to Toyota. Honda Motor's ROE was 4.8%, while Nissan
Motor's ROE was 8% in FY2012. In contrast, Toyota's ROE was 2.7% in FY2012. Lower ROE and ROA
compared to its peers indicates that the company is not using the shareholders' money efficiently and that
it is not generating high returns for its shareholders. Thus, poor allocation of resources could hurt
shareholder's value and confidence in the long term.
Opportunities:
· Growing global automotive industry: The global automotive industry was severely affected by the
economic downturn, with a decline in revenues being recorded in 2008 and 2009. However, 2011 saw a
strong rebound which has continued into 2012. According to MarketLine, the global automotive
manufacturing industry grew by 8.9% in 2012 to reach a value of $1,563.9 billion. The recovery of the
global automotive industry thus provides Toyota an opportunity to gain more customers and increase
revenues.
· Toyota poised to benefit from growing partnership with BMW: Toyota is poised to benefit from the
growing partnership with BMW. In June 2012, BMW and Toyota signed a memorandum of
understanding aimed at long-term strategic collaboration on technological fields. As part of the
agreement, the two companies will partner for the joint development of a fuel cell system, joint
development of architecture and components for a future sports vehicle, collaboration on power-train
electrification and joint research and development on lightweight technologies. The growing partnership
between the two companies is expected to boost the technological know-how of the companies and may
result in the development of new products thus increasing revenues in the long run. Also, in the short run,
the combined partnership will result in significant synergies and cost-savings, boosting the operational
margins.
· Strong outlook for the global new car market: The global new cars market has experienced moderate
growth during 2008-2012. However, forecasts suggest this will accelerate to strong double digit growth
during the 2012-2016 periods. Thus, the strong outlook for the global new car market coupled with the
company’s new product launches provides a growth opportunity for the company.
Threats:
· Intense competition: The worldwide automotive market is highly competitive. Toyota faces strong
competition from automotive manufacturers in its various markets. The competition among various auto
players is likely to intensify in light of continuing globalization and consolidation in the worldwide
automotive industry. The factors impacting competition include product quality and features, the amount
of time required for innovation and development, pricing, reliability, safety, fuel economy, customer
service and financing terms. Increased competition may lead to lower vehicle unit sales and large
inventory, which may result in downward pricing pressure, thus impacting the financial condition and
results of operations of the company.
· Appreciating Japanese Yen as a major concern: Toyota is sensitive to the fluctuations in foreign
currency exchange rates and is principally exposed to fluctuations in the value of the Japanese Yen, the
US dollar and the Euro. The strengthening of the Japanese Yen against the US dollar and fluctuations in
foreign exchange rates would have a material adverse effect on Toyota's reported operating results, which
in turn would impact the valuation of the company.
· Natural disasters could impact production structure: Toyota is subject to disruption of production
due to natural disasters such as earthquakes, floods, among others. Toyota primarily operates in Japan
which is the highest earthquake prone region in the world. The country has witnessed many devastating
earthquakes in recent years which seriously disrupted the economy. In 2011, the country witnessed one of
the worst hit earthquakes in its history in the form of 2011 Tohoku earthquake, which led to a temporary
production halt at its domestic auto manufacturing facilities. In the same year, major floods occurred in
Thailand which halted its operations and production of about 150,000 Toyota automobiles. Such natural
calamities, if occur frequently, could severely influence the production output of the company due to
work stoppages and in turn impact the overall revenue base and profitability.
PEST ANALYSIS
Political factors: Moving into the right countries at the right time
Toyota has expanded into several countries to meet the demand for their vehicles. In 1992,
Toyota began manufacturing in the United Kingdom. During this time, the entirety of the European
market essentially became one, giving Toyota a much bigger market to offer, make, and sell their
products. Plants were set up in the UK where the company employed locals, allowing expensive tariffs to
be avoided. Because the European market was about to boom, and political parties were stable, Toyota
made the right decision to expand into the UK market. But when the political situation is less sturdy,
Toyota doesn’t make the mistake of pushing forward, as seen with Thailand five years ago.
Toyota considered increasing car development in Thailand. They were willing to invest over 20
billion baht (or more than $69 million USD) in 2014. However, Thailand’s political situation became
questionable. So questionable in fact, that Toyota lost faith in Thailand and didn’t believe the country’s
demands would be high enough to offset the price invested. And if a country is either in political turmoil
or has a stand-offish relationship with certain countries, a company shouldn’t expand into it. Initially,
before the political troubles, the expansion into Thailand could’ve been a smart decision for Toyota.
However, once the problems began, the right choice was to hold off.
Economic factors: The need to adapt to new technology
The automobile industry is a competitive landscape these days. Toyota competes with not only
other brands from their home country Japan, but also worldwide brands too, such as Ford and BMW. It’s
a constant battle of price, performance, customer satisfaction, and research and development. And then, of
course, there’s demand. What cars do people want and need? It depends on location, income, and desire.
When the recession hit, Toyota suffered just as any other company did. People weren’t in a
position to be buying cars, much less luxurious cars, while they scrambled to pay for rent and food. Sales
decreased. And there wasn’t much Toyota could do. Although the recession seems like a nightmare from
the past, it does still affect certain brands. Toyota is one of those brands. Add in the many laws and
restrictions about importing foreign vehicles, and it’s that much harder for Toyota to stand out.
Changing oil prices cause people to want smaller, more fuel-efficient cars. For those consumers
who are fuel conscious, they may shift towards the newly built electric cars. It seems electric and hybrid
cars are the future of driving; automotive companies need to invest into this technology. Otherwise,
they’ll be left behind by the companies who aren’t shy about adopting this new type of vehicle. Toyota
isn’t shy and doesn’t plan to be.
And then there are problems more native to Japan, such as the strength of the Japanese dollar,
exchange rates, and natural disasters that regularly affect the Japanese people. Each of these things
directly affects sales, whether it’s in Japan, or related to selling and exporting cars to other nations.
Social factors: A malfunction ruined Toyota’s brand image
Toyota isn’t free from manufacturing debacles. The company has had to recall vehicles, as well
as pay penalties and fines, because of car malfunctions. Specifically, passengers reported that their
automobiles were going out of control. Something that affects millions of people worldwide can destroy a
company.
Toyota barely made it out of this error in one piece. The company did accept fault and vowed to
investigate what went wrong (later, they found the problem was with the pedals and acceleration). Toyota
paid out billions of dollars for this error. But that wasn’t enough. People became less likely to buy a
Toyota vehicle because they felt unsafe. They couldn’t trust the vehicles any longer. And, unfortunately,
Toyota isn’t the only car manufacturer available these days.
So, when the negative opinions by his customers reached the president of Toyota, his lackluster
response worsened the company’s public opinion. Instead of dedicating a PR team to handle this fallout
delicately, the company stepped back and let the media do as they wished. Again, this bit them in the
shin, and made everything that much worse. Once the public has soured, it’s hard for any company to
change their opinion. Hindsight is 20/20, but Toyota should’ve been more active. Instead of sitting back
and watching, the company should’ve soothed public concern, defined a plan of action to prevent this
type of automobile malfunction from happening again, and promised to do better.
Technological factors: The first hydrogen car
Toyota is the first company to launch a hydrogen car. The company puts massive emphasis on
research and development, looking for ways to offer vehicles with alternative fuel options. Not only
because of oil scarcity, but also because energy vehicles face similar problems as well. Energy density
stands in the way of electric cars being the leading fuel method for vehicles. While this is being sorted,
we’re seeing an abundance of hybrid cars. Toyota is in on this trend, and often leads by tinkering with
engine modifications. Innovation is critical for automobile industries and Toyota refuses to be a brand
who plays catch-up while all others are paving the way into the future.
II. Stakeholder Analysis
● Suppliers/Vendors
Supplier/Vendors Location Commodity Award
Aisin Light Metals, LLC. London, Ky. Bumper reinforcements Excellent
American Fine Sinter, Co. Ltd. Tiffin, Ohio Valve seats Excellent
DENSO International America,Southfield, Mich. Multiple commodities Superior

Inc.
DTR Tennessee, Inc. Midway , Tenn. Anti-Vibration Rubber Excellent
Franklin Precision Industry, Inc.Osceola , Ark. Engine Plastics Excellent

(Systex Products Arkansas Corp.)
Intat Precision, Inc. Rushville , Ind. Iron Castings Excellent
International Crankshaft Inc Georgetown , Ky. Forged Crankshafts Excellent
Jernberg Division of HHI Forging Chicago , Ill. Wheel hubs Excellent

MAHLE Engine ComponentsFarmington Mills,Multiple commodities Superior
USA, Inc. Mich.
Mitchell Plastics Kitchener, OntarioStampings, brackets, oil pans,Excellent

Canada fuel tank straps & hinges
OTICS USA Inc. Morristown, Tenn. Camshaft bearing caps, fuelExcellent

pipe, value rockers
U.S. Engine Valve Westminster, S.C. Intake/exhaust valves Excellent
● Customers
The target customers of Toyota are in the age group of 30-50 years old with middle-range income and
looking for automotive vehicles with good value for money.
● Investors/shareholders
Number of Percentage of
Name of Shareholders
shares(Thousands shares) Shareholding(%)
TOYOTA MOTOR 76,368 21.69

CORPORATION
The Master Trust Bank of Japan, 47,736 13.56

Ltd. (Trust Account)
TOYOTA INDUSTRIES 39,365 11.18

CORPORATION
Custody Bank of Japan, Ltd. (Trust 15,787 4.48

Account)
MUFG Bank, Ltd. 8,098 2.30
Sumitomo Mitsui Banking 4,249 1.21

Corporation
Nippon Life Insurance Company 3,522 1.00
STATE STREET BANK WEST 3,426 0.97

CLIENT TREATY 505234
Custody Bank of Japan, Ltd. (Trust 3,410 0.97
Account 9)
Custody Bank of Japan, Ltd. 3,280 0.93

(Securities Investment Trust
Account)
● Collaborators
Toyota and BMW collaboration – fuel cell tech

The companies are convinced that fuel cell technology is one of the solutions necessary to
achieve zero emissions. BMW Group and TMC are to share their technologies and to jointly develop a
fundamental fuel-cell vehicle system, including not only a fuel cell stack and system, but also a hydrogen
tank, motor and battery, aiming for completion in 2020.
BMW and Toyota will also work together to assess development of a hydrogen fueling network
and in creating codes and standards necessary for the popularisation of fuel cell vehicles.
BMW and Toyota Sports car collaboration

The companies agreed to set-up a feasibility study to define a joint platform concept for a mid-
size sports vehicle that is to be completed by the end of 2013. The two companies aim to combine each
other’s technology and knowledge at a high level to maximise customer satisfaction. Both companies are
to share the vision to further collaborate in the field of sports vehicle development.
The companies are also to begin joint research with a goal to develop a lithium-air battery, with
‘energy density greatly exceeding that of current lithium-ion batteries’.
Research for lightweight Technology Saving

They will also jointly develop lightweight technologies for vehicle bodies using cutting-edge
materials such as reinforced composites, with an eye to utilise these technologies in the development of a
jointly developed sports-vehicle platform as well as other BMW and Toyota vehicles.
Akio Toyoda, President of Toyota Motor Corporation, said: “It is just over a year since we signed
our collaborative MoU, and with each day as our relationship strengthens, we feel acutely that we are
making steadfast progress. Now, we are entering the phase that promises the fruit. While placing
importance on what we learn from the joint development, we will work hard together in reaching our
common goal of making ever-better cars.”
Norbert Reithofer, Chairman of the Board of Management of BMW AG said: “TMC and the
BMW Group share the same strategic vision of future sustainable mobility. In light of the technological
changes ahead, the entire automotive industry faces tremendous challenges, which we also regard as an
opportunity. This collaboration is an important building block in keeping both companies on a successful
course in the future.”
BMW Group and Toyota first agreed to a medium-to-long-term working relationship to develop
new environment-friendly vehicles and technologies in December 2011. As long-term strategic partners,
the brands have since continued their joint efforts in making mobility sustainable in the future.
● After sales support

1. Long lasting quality
One thing that starts bothering people after buying a car is its diminishing value as years roll by.
However with a Toyota, you will enjoy 68 percent resale value even after 5 years. It’s as if the car
continues to stay as good as new despite being in use for 5 years.
2. Value For Money

If you think the yearly servicing of a car is an expensive affair, get ready to be proven wrong.
With a Toyota, you will be able to service your car at Rs 3500 per year. Just for comparison purposes:
that’s roughly what you and your friend would end up spending in one night if you hang out over dinner,
drinks and a movie. While this is for the Yaris, the service cost for other models will be as competitive.
So say hello to the good life and stop stressing over exorbitant service costs.
3. Warranty
Every Toyota car comes with a 3-year/100,000 km warranty that is further extendable for up to 7
years . Once you’ve bought a Toyota, you can rest assured that you are in safe hands in the event any
repair or replacement work comes up. So drive as much as you want because for everything else Toyota
has you covered.
4. Service
What would you do if you want to service your car but don’t have much time on hand? Cancel
other plans and get your car serviced or postpone your servicing? Well, with Toyota you won’t be in any
such dilemma, thanks to their 1-hour express service. Drop your car for servicing, watch a short movie or
spend some time at a mall and come back to collect your car. Yes, it’s that easy and simple!
By now we know that you’ve already made up your mind to buy a Toyota. What are you waiting
for then? Bring home a Toyota car and let the good times roll.
● Customers ratings
Quality. Year after year, customers find that the overall quality of Toyota is tops in the industry.
Continually high numbers with JD Powers and Kelly Blue Book for quality ranking make Toyota your
best bet for a new Toyota or used cars, trucks and SUVs.
For 2021, Toyota reigns supreme as the overall most searched car brand. It was the top-searched
car brand in 47 out of 154 countries, representing 31 percent of the sample. BMW comes in second as the
most searched car brand in 29 territories, while Mercedes-Benz comes in a close third at 23.
● Employees morale & commitment

Toyota's culture encourages front-line workers to suggest local improvements and help make
them. Management has established a relationship of mutual trust and respect with the workforce.
Managers and workers can improve part of their jobs without fear because streamlining work won't
eliminate their jobs.
Toyota Benefits include Employee Stock Purchase Plan, Unique Office Space, and Tuition
Reimbursement, along with 9 other unique benefits in categories such as Health & Wellness and Paid
Time Off. Employees score their Perks And Benefits an average of 71/100.
In Toyota Motors Corporation there are several communication methods by which employees
share their ideas, information, opinions and feelings. The following are some of the methods of internal
communication: news-letter, face to face, notice board, memo, e-mail, telephone, text messages, and
instant messaging.
● Government Policies etc.

Based on “Mutual Trust and Mutual Responsibility”, TOYOTA endeavors to improve its
business performance in order to make it possible to provide equal employment opportunities and to
maintain fair and stable working conditions. TOYOTA strives to create a safe and harmonious work
environment for its employees.
Toyota provides support for natural disasters such as torrential rains and earthquakes by
dispatching employee volunteers and providing vehicles. In recent years, in addition to evacuation
centers, many people in disaster-stricken areas have been using their cars as shelters.
III. Competitor Analysis

Mercedes Benz is a worldwide vehicle manufacturer that is a
strong competitor to Toyota. It is also a subsidiary of the
German corporation Daimler AG. The majority of well-known
Mercedes Benz names are associated with this brand, which is also one of the
most luxurious in the automotive industry.
Buses, lorries, coaches, and luxury vehicles are all part of its
product line. It is the world's largest luxury automotive and
commercial vehicle manufacturer, founded in 1886 by Gottlieb
Daimler and Carl Benz. They have a broad product line
ranging from sedans to SUVs, with manufacturing facilities in
around 26 countries.
Their strategy is to focus on winning where it matters:

dedicated electric vehicles and proprietary automotive
software, rather than non-core operations. They take steps to
reduce costs and achieve long-term profitability. They are
declaring the firm commitment to fully electrifying their
product portfolio and ensuring that the business is totally
carbon-neutral, in accordance with the Ambition 2039
ambition, with this new plan.
BMW (Bayerische Motoren Werke) is a German

BMW multinational automaker with headquarters in Munich.
The production of bikes and automobiles is the
company's principal business.
Their operations are spread all over the world. BMW is

the world's 12th largest manufacturer of automobiles.
BMW M stands for high-performance vehicles, BMW I
is for electric vehicles, and BMW Motorrad stands for
motorbikes. Automotive, motorbikes, and financial
services are just a few of the industries in which they
operate.
The BMW Group's business strategy is built on

establishing a strong brand image. The basis of the
BMW Group's success is built on this strategy.
Technology, innovation, performance, quality,
reliability, exclusivity, and customer pleasure are all
core characteristics that the BMW Group believes in.
Ford Motor Company is a vehicle manufacturer that
Ford designs, manufactures, sells, and maintains a
comprehensive line of Ford trucks, SUVs, and luxury
cars, as well as Lincoln premium cars. Automotive,
Mobility, and Ford Credit are the three segments in
which the company operates. Ford and Lincoln
automobiles, parts, and accessories are developed,
manufactured, distributed, and serviced by the
Automotive segment.
One of America's most well-known firms is Ford Motor

Company. Ford is well-known for bringing mass
production to the auto industry, and its blue oval
emblem is well-known all over the world. The tagline
"Creating Tomorrow, Together" encompasses Ford's
present business strategy.
Nissan is a Japanese automaker with a global

Nissan headquarters in Yokohama, Japan. The company's most
well-known brands include Nissan, Datsun, and Infiniti.
It is also the world's largest manufacturer of electric
vehicles. Their vehicles are made with utmost care and
attention to detail, with a focus on the environment,
technology, and safety. They don't have a single brand
that caters to a specific market. Among their products
are zero-emission passenger cars, compact automobiles,
sport utility vehicles (SUVs), luxury cars (Luxury Cars),
and many others. They also sell marine items like
engines, pontoons, and cleaning boats. Nissan is
regarded as one of Toyota's top competitors due to their
diverse goods and focus on a variety of automotive
domains.
To make its products available to end customers, Nissan

employs a multi-level distribution strategy. Products are
made available to customers through channels such as
company-owned showrooms, dealerships, DSA (direct
selling agents), authorized service centers, resellers, and
e-commerce sites.
Honda Motor Company, Ltd., headquartered in

Honda Minato, Tokyo, Japan, is a public multinational
conglomerate that manufactures automobiles,
motorbikes, and power equipment. Honda also makes
garden tools, marine engines, personal watercraft, and
power generators, among other things, in addition to its
main automotive and motorbike industries. Honda's key
goal is to retain a global perspective by providing high-
quality products at a fair price to ensure global
customer pleasure. In addition, there are management
goals such as the following: - Always pursue your goals
with zeal and youthfulness.
Volkswagen is an automotive manufacturing company

Volkswagen world famous, headquartered in Germany. Design and
manufacturing of automobile vehicles are their main
focus. Along with it, they even provide financial
services.They produce both commercial and passenger
vehicles. They have various brands supporting the
Volkswagen group. It is a well-structured brand which
is the most highlight of the company. The company is
dedicated to producing safe and environmentally-
friendly, and technology-driven vehicles. Due to their
global presence and great brand value, Volkswagen is
considered as top Toyota competitors. VW's business
strategy focuses on growing EV market share, as well
as software, autonomous tech and Mobility as a Service
(MaaS).
IV. Financial Performance Analysis
Toyota Motors is a successful Japanese firm that has demonstrated its global dominance as a
major automotive manufacturer. It has been on the market for over 84 years, demonstrating how
successful they are. However, the epidemic did wipe off the world's market in one fell swoop, and Toyota
Motors is no exception. In this chapter, we'll look at the company's financial performance over the last
three years and how the pandemic has affected them. According to macrotrends.net, the income statement
and balance sheet of Toyota Motors over the last three years are presented below.
Revenue and Profits
Revenue
Toyota revenue growth rate and annual revenue history from 2018 to 2021. The amount of money
a firm receives from its consumers in exchange for the sale of goods or services is known as revenue. On
an income statement, revenue is the top line item from which all expenditures and expenses are removed
to arrive at net income.
• Toyota's yearly revenue in 2021 was $255.817 billion dollars, down 7.1 percent from 2020.
• Toyota's annual revenue in 2020 was $275.356 billion, up 1.22 percent over 2019.
• Toyota's yearly revenue in 2019 was $272.031 billion, up 2.88 percent from 2018.
As a result, the pandemic's impact on the company's sales was felt in 2020, but it is slowly
gathering traction for 2021.
Gross Profit
From 2018 to 2021, Toyota's annual/quarterly gross profit and growth rate are shown. The profit
a corporation makes after removing the variable costs directly associated with creating and selling its
products or providing its services is known as gross profit.
• Toyota's yearly gross profit for 2021 was $45.424 billion dollars, down 8.7% from 2020.
• Toyota's yearly gross profit for 2020 was $49.75 billion, up 1.54% over 2019.
• Toyota's yearly gross profit for 2019 was $48.995 billion, down 0.85% from 2018.
Net Income
From 2018 to 2021, Toyota's annual net income and growth rate are shown. After all revenues,
income items, and expenses have been accounted for, net income is defined as the company's net profit or
loss.
• Toyota's yearly net income in 2021 was $21.105 billion, up 10.49 percent from the previous year.
• Toyota's net income for 2020 was $19.101 billion, up 12.72 percent over 2019.
• Toyota's yearly net income in 2019 was $16.946 billion, down 24.5 percent from 2018.
Following a sharp drop in net income in 2019, the corporation is gradually increasing profits in
the coming years.
Assets, Liabilities and Shareholder Equity
Total Assets
Toyota total assets from 2018 to 2021. Total assets can be defined as the sum of all assets on a
company's balance sheet.
· Toyota total assets for 2021 were $585.311B, a 20.77% increase from 2020.
Therefore, we can assume that the sudden increase of assets in 2020 is may be due to a buying of
inventory or non current assets or cash loan on credit
Cash on hand
Toyota cash on hand from 2018 to 2021. Cash on hand can be defined as cash deposits at
financial institutions that can immediately be withdrawn at any time, and investments maturing in one
year or less that are highly liquid and therefore regarded as cash equivalents and reported with or near
cash line items.
· Toyota cash on hand for 2021 was $87.573B, a 67.07% increase from 2020.
· Toyota cash on hand for 2020 was $52.417B, a 0.07% decline from 2019.
· Toyota cash on hand for 2019 was $52.454B, a 1.86% increase from 2018.
Long Term Debt
Toyota long term debt from 2018 to 2021. Long term debt can be defined as the sum of all long
term debt fields.
· Toyota long term debt for 2021 was $126.407B, a 28.5% increase from 2020.
Total Liabilities
Toyota total liabilities from 2018 to 2021. Total liabilities can be defined as the total value of all
possible claims against the corporation.
· Toyota total liabilities for 2021 were $357.001B, a 21.48% increase from 2020.
Shareholder Equity
Toyota shareholder equity from 2018 to 2021. Shareholder equity can be defined as the sum of
preferred and common equity items
· Toyota shareholder equity for 2021 was $228.31B, a 19.67% increase from 2020.
Margins and Other Ratios
Profit Margin
Current and historical gross margin, operating margin and net profit margin for Toyota (TM) over
the last 3 years. Profit margin can be defined as the percentage of revenue that a company retains as
income after the deduction of expenses. Toyota net profit margin as of March 31, 2021 is 8.25%.
Gross Margin
Current and historical gross margin for Toyota (TM) over the last 3 years. The current gross
profit margin for Toyota as of March 31, 2021 is 17.76%.
Current ratio
Current and historical current ratio for Toyota (TM) from 2018 to 2021. Current ratio can be
defined as a liquidity ratio that measures a company's ability to pay short-term obligations. Toyota current
ratio for the three months ending March 31, 2021 was 1.06. That being the case, it's quite solid and shows
that there are more than enough current assets to cover current liabilities. If the ratio was down near 1.0, it
would indicate that the company may have issues meeting short-term obligations, and that they may have
issues paying off these obligations in the near future.
Debt/Equity Ratio
Current and historical debt to equity ratio values for Toyota (TM) over the last 3 years. The
debt/equity ratio can be defined as a measure of a company's financial leverage calculated by dividing its
long-term debt by stockholders' equity. Toyota debt/equity for the three months ending March 31, 2021
was 1.56.
Return on Equity
Current and historical return on equity (ROE) values for Toyota (TM) over the last 3 years.
Return on equity can be defined as the amount of net income returned as a percentage of shareholders
equity. Return on equity measures a corporation's profitability by revealing how much profit a company
generates with the money shareholders have invested. Toyota ROE for the three months ending March 31,
2021 was 9.33%.
Return on Assets
Current and historical return on assets (ROA) values for Toyota (TM) over the last 10 years.
Return on assets can be defined as an indicator of how profitable a company is relative to its total assets.
Calculated by dividing a company's operating earnings by its total assets. Toyota ROA for the three
months ending March 31, 2021 was 3.85%.
V. Strategy Analysis
The company analysis case study may include discussion on various strategies adopted and being
adopted in order to fulfill the objectives, solve the problems towards maintaining sustainable profit.
Some of such strategies to be analyzed are:
● Various Corporate Strategies
The Toyota company's corporate strategy is built on reducing waste by reducing the distance
between plants. Toyota's strategic management philosophy is built on maximizing the potential of
employees' abilities. 'Never fail to praise merit, but never allow a flaw go unnoticed,' says Seise Kato's
leadership approach.
● Global Strategies
Toyota's global strategy includes a steady, steady, and steady entry into the international market
that is growing (the European market case). Toyota also took advantage of the prospects presented by
expanding economies, cheaper worker costs, and more flexible marketplaces in new EU member
countries.
● Digital Strategy like usage of information communication technology
Toyota has actively propelled growth and innovation in its information systems by incorporating
new information processing technologies while responding to various changes in the external
environment, including rapid globalization of development, manufacturing, and sales operations;
advancements in car electronics technologies; compliance with global environmental standards; and
changes in the Japanese and global economy.
Growth and innovation of information systems at Toyota in the second half of the 1980s to first
half of the 1990s saw advances in office automation and in the globalization of corporate systems in the
commercial systems of business application systems. In the engineering systems of business application
systems, Toyota applied in-house-developed CAD/CAM systems to broader areas of activity and also
extended them to supplier operations.
From the second half of the 1990s to the early 2000s, advancements in administrative systems
made information systems more globally adaptable and also brought about reform of Toyota's overall
management structure. Innovations in the engineering system made engineering data more integrated and
more usable on a global basis.
From the early to late 2000s, Toyota sought to globally standardize all business application
systems and make better use of information. Even such IT infrastructure as IC network systems were
globally standardized and shifted to TCP/IP-based systems in Japan and overseas. The economic crisis
that shook the world from 2008 to 2009 also had a major impact on Toyota's information divisions. Since
then, Toyota has sought to improve the efficiency of system development and maintenance and has
instituted structural reform of its system development and maintenance organization.
● E-Commerce Strategy to decrease the cost and increase the business share
Toyota's e-commerce trades are based on vertical marketplaces as they are dealt with only in
the automotive industry. In the year 2000, Toyota Motor Corporation announced that they would not
conduct affiliated e-commerce practices.
● Research & Development Strategy to develop new products, processes, services, business
models
Toyota simply is tops in quality, production, and efficiency. From its factories pour a wide range
of cars, built with unequaled precision. Toyota turns out luxury sedans with Mercedes-Benz-like quality
using one-sixth the labor Mercedes does. The company originated just-in-time production and remains its
leading practitioner. It has close relationships with its suppliers and rigid engineering specifications for
the products it purchases
Toyota’s worldwide leadership in the automotive industry was built on its competitive advantage
across the supply chain. Between 1990 and 1996, Toyota reduced part defects by 84 percent, compared to
47 percent for the Big 3. It also reduced the ratio of inventories to sales by 35 percent versus 6 percent.
These reduction advantages occurred despite the fact the Big 3 relied on identical suppliers. A study by
Jeff Dyer of The Wharton School of the University of Pennsylvania and Kentaro Nobeoka of Kobe
University attributed Toyota’s success partly to its implementation of bilateral and multilateral,
knowledge-sharing routines with suppliers that result in superior Interorganizational or network learning.
Toyota uses six approaches to facilitate knowledge sharing: (1)a supplier association;(2) teams of
consultants;(3)voluntary study groups;(4)problem-solving teams;(5)interfirm employee transfers; and
(6)performance feedback and monitoring processes. This effort also involves intense levels of personal
contact between Toyota and its suppliers.
Toyota pioneered quality circles, which involve workers in discussions of ways to improve their
tasks and avoid what it calls the three Ds: the dangerous, dirty, and demanding aspects of factory work.
The company has invested $770 million to improve worker housing, add dining halls, and build new
recreational facilities. On the assembly line, quality is defined not as zero defects but, as another slogan
puts it, “building the very best and giving the customer what she/he wants.” Because each worker serves
as the customer for the process just before hers, she becomes a quality control inspector. If a piece isn’t
installed properly when it reaches her, she won’t accept it.
Toyota’s engineering system allows it to take a new car design from concept to showroom in less
than four years versus more than five years for U.S. companies and seven years for Mercedes. This cuts
costs, allows quicker correction of mistakes and keeps Toyota better abreast of market trends. Gains from
speed feed on themselves. Toyota can get its advanced engineering and design done sooner because, as
one manager puts it, “We are closer to the customer and thus have shorter concept time.” New products
are assigned to a chief engineer who has complete responsibility and authority for the product from
design and manufacturing through marketing and has direct contacts with both dealers and consumers.
New-model bosses for U.S. companies seldom have such control and almost never have direct contact
with dealers or consumers.
The 1999 Harbour Report, a study of automaker competencies in assembly, stamping, and
powertrain operations, stated that the top assembly facility in North America (based on assembly hours
per vehicle) is Toyota’s plant in Cambridge, Ontario. In this plant, a Corolla is produced in 17.66 hours.
Toyota was also rated number one in engine assembly, taking just 2.97 hours to produce an engine.
In Toyota’s manufacturing system, parts and cars don’t get built until orders come from dealers
requesting them. In placing orders, dealers essentially reserve a portion of factory capacity. The system is
so effective that rather than waiting several months for a new car, the customer can get a built-to-order car
in a week to 10 days.
Toyota is the best carmaker in the world because it stays close to its customers. “We have learned
that universal mass production is not enough,” said the head of Toyota’s Tokyo Design Center. “In the
21st century, you personalize things more to make them more reflective of individual needs.”
In 1999, Toyota committed to a $13 billion investment through 2000 to become a genuinely
global corporation without boundaries. In this way, it will be able to create worldwide manufacturing
facilities that produce cars according to local demand. Its goal is to achieve a 10 to 15 percent global
market share by 2010.
Why the drive towards customization of vehicles? Part of this is due to fierce competition that
provides consumers with a multitude of choices. The Internet enables consumers to be more demanding
and less compromising. They now have access to the lowest prices available for specific models of
vehicles with all of the bells and whistles they design. From the comfort of their homes, they are able to
bypass dealers and still find the vehicle of their dreams.
Senior management at Toyota believes that kaizen is no longer enough. The senior vice president
at the Toyota USA division, Douglas West, states that his division is committed to both creating and
executing a new information system to drive the fastest, most efficient order-to-delivery system in the
North American market. Toyota management has come to realize Kaizen alone can no longer predict
business success. The sweeping changes taking place in the business environment can no longer rely on
the kaizen philosophy of small, sustained improvements. In fact, one expert in the industry believes that
“pursuing incremental improvements while rivals reinvent the industry is like fiddling while Rome
burns.” Competitive vitality can no longer be defined by continuous improvement alone.
● Marketing Strategy to enhance the demand
A mix of Demographic, Geographic and Psychographic segmentation strategies is used by

Toyota for customer profiling and understanding different customer groups. Toyota uses differentiated
targeting strategy for manufacturing and selling its offerings as per the customer segments and improves
the customer satisfaction.
● Customer Retention & New Customer Strategy to expand business
It is not often that we find Toyota grabbing headlines for all the wrong reasons, but that is what
Toyota has been suffering in the last year or so. With a total recall count of about 8 million vehicles,
Toyota sales have taken a hit in the U.S. and customers are moving over to Honda, Ford, and Hyundai.
However, the company can still boast of one of the most loyal customer bases which has been built with a
series of high-quality products and exceptional service. As a recent survey found out, Toyota owners are
not wavering in their support or satisfaction towards the company.
The company's sales declined in the month of January, and analysts predict that its vehicle sales
may decline further in the next few months. However, Toyota is confident that more incentives and an
increase in warranties will be able to win back customers. Following through with the recall and
admitting that it should have acted faster on the prior recalls acted as the first step towards appeasing
customers and building a successful retention plan.
The company itself turned aggressive in March 2010, with a series of promotional incentives
aimed at retaining customers. The company hopes that with the promotional campaign, it would be able
to regain its reputation which was negatively affected due to the recall issues. The promotional offers
include 0 percent financial for 60 months, low APR offers, no-cost 24-month maintenance plan for all
current customers, and one of the most comprehensive leasing programs ever offered by the company.
The company claims that Toyota engines reliability has recently improved by 30%, so it was
decided to extend the warranty repair period. A senior Toyota executive explained that the incentives
were designed exclusively to retain existing customers, and any other plan for new customers would be
launched later.
Toyota has always been included among those categories of vehicles, which attracted loyalty and
trust. The high quality of its vehicles and an excellent support network for its existing customers were
Toyota’s primary retention tools. This in turn generates positive word-of-mouth feedback resulting in
more customer wins for the company. Another strategy which Toyota adopted was to offer a wide range
of vehicles, which enabled the company to cater to the needs and desires of a majority of its customers as
they moved up in their career and life.
The company's success has also been built on its favorable reputation in the market. It was able
to attract customers based on economical and high value cars which also enjoyed high resale value in the
market. In the past, the company was able to attract six new customers for every customer lost, which
helped Toyota in maintaining its high retention rates.
Despite the negative publicity surrounding Toyota currently, the company expects support from
its customers. It is also employing its resources to address the issues in the best possible manner. For
instance, the dealerships are open for longer hours and television campaigns are reiterating Toyota’s
strong quality record. Moreover, the company has made a straightforward apology with a commitment to
correct things as soon as possible.
● Business Expansion Strategies
The intensive growth strategies used by Toyota Motors include market penetration, market
development, and product development. The company has used these strategies to grow its international
customer base and market share in the automobile industry.
Market Penetration:
The market penetration strategy implies selling more of your products in your existing markets.
Toyota sells in 190 countries which shows its high level of market penetration. The leading two markets
of Toyota Motors are North America and Japan. The US is the leading market for Toyota in North
America. In 2019, the company sold 10.6 million vehicles in North America and 9.5 million vehicle units
in Japan. Coupled with its cost leadership strategy, deeper market penetration in the key automobile
markets and the overall automobile industry has helped the brand achieve a very high level of sales and
find profitable growth. This has been Toyota’s strategy since its foundation and the company has
established a large and efficient global distribution network to sell its products all around the globe.
Market penetration is one of the key intensive strategies used by global brands to grow their market share
and expand the customer base.
Market Development:
Market development is the strategy of entering new markets and adding new customers to your
existing customer base. However, Toyota has already achieved global expansion and therefore it used the
market development strategy during its initial phases of growth. However, the market development
strategy has remained key to ensuring the success of its overall business strategy. Some of the leading
markets of the world where Toyota has achieved extensive penetration are its domestic market Japan, the
US, and China as well as India, Malaysia, and the leading European automobile markets. Now that the
company has achieved its market development objectives, it mainly relies on the other two intensive
strategies to secure growth and grow sales throughout the world.
Product Development:
Toyota is known worldwide as an innovative brand of automobiles. Apart from innovation in

production and supply chain, the company also focuses on rapid product innovation to bring more fuel-
efficient and safer vehicles to the market. Therefore, the company continuously invests in research and
development so that its product portfolio continues to stand out amid the heavy competition. Apart from
improving passenger safety, the company is also investing in automated driving technology. Through
product development, the company has continued to evolve its product range and business model to
achieve superior growth in a highly challenging industry environment.
● Acquisition & Managing of Human Resource Strategies
Toyota Motor Corporation uses the Kaizen method of production which is commonly referred to
as the Toyota Way. This method focuses on increasing productivity and minimization of cost through
continuous improvement. The business processes of Toyota Motor Corporation are labor intensive and
this makes human resource a key factor in the organization.
The Kaizen system and the just in time production system that have been adopted by Toyota
Motor Corporation require the organization to have a good human resource strategy. Employees in an
organization which uses the Kaizen method of production should have relevant skills, they should be able
to identify and solve problems and they should be well motivated (Schuler & Jackson, 2007).
The organization has been able to meet its business objects with the help of strategic human
resource planning and strategic recruitment and selection which form core components of the overall
strategic human resource management. The main business objectives for Toyota Motor Corporation are to
minimize costs, increase productivity, enhance quality of its products and enhance efficiency in
production.
These objectives have been attained by ensuring that the company has a good knowledge of
employee requirements and that the recruitment process is aimed at filling the gaps that exist in the
human resources of the company
VI. Conclusions and Recommendation

● Conclusions for each analysis conducted
Business Analysis
In conclusion, it was evident that Toyota is a global leader in the automotive industry in terms of
quality and low-cost products. Additionally, the analysis above indicates that Toyota has the potential to
grow more than its present state if it maximizes the opportunities availed by external factors.
It was also clear that Toyota has maintained its position as a dominant player in the automobile
industry. Indeed, Kiichiro Toyoda’ vision and efforts bore fruit. Toyota's performance despite the various
obstacles that have afflicted the sector indicates that the corporation has a solid business strategy capable
of withstanding unfavorable pressures. Nonetheless, in order for the company to remain at the top of the
market, it must use technology on a continual basis in order to achieve the essential competitive
advantage over other competitors in the global automotive industry. Lastly, Toyota should maintain
persistent efforts to develop its management platform and increase business value.
Stakeholder Analysis
Toyota’s ratings to its customers around the world are most excellent in automobiles. Toyota
aims to achieve long-term, stable growth in harmony with the environment, the global economy, the local
communities it serves, and its stakeholders, that's why many people and stakeholders as well trust toyota.
In manufacturing to suppliers. High quality materials and promising service to the people and the
employees itself. Toyota believes that they can and will do great things. They are a company driven by
imagination, experimentation, humility, respect and innovation. And they believe it is people, their
people, who will go the extra mile to deliver to their customers all that Toyota promises to be, today and
into the future.
Competitor Analysis
For the last 75 years, Toyota has developed from a small division of the Japanese weaving
industry into one of the most respected and trusted automobile brands worldwide .Toyota's success is no
accident. High-quality design, continuous innovation, and bold actions have all contributed to its
development. Ford, Volkswagen, Hyundai, GM, and Nissan are the top five direct Toyota competitors.
Toyota employs only 359 thousand people and is ranked first among Toyota's Top 5 competitors,
compared to these corporations employing 1 million people worldwide. On average, the top five
competitors have around 211 thousand employees. Toyota has demonstrated that it is a trustworthy firm.
They've also denominated and outperformed their competitors. They've paved the way for automobiles
aimed at middle-class families and drivers who are in their mid-thirties. They've also been pioneers in the
field of technology. They have been able to outsource their technology to other automakers because of
their Hybrid Synergy and EDR technologies. SUVs, hybrids, automobiles, and 4WDs are among their
offerings. Their annual car output is anticipated to be in excess of 10 million. Globally, the corporation
has a strong brand image as well as a lot of people power. People buy their automobiles because of their
distinctive appearance and designs, as well as the fact that they are equipped with cutting-edge
technology.
Financial Performance Analysis
Taking everything into account, Toyota is still on its post recovering from the year 2019 decline
in income. That was the biggest decline in the company with a 24.5 % decrease from 2018. It surely stabs
the company to the bone. However, the following year creates a rise of 13% in 2020 and 10% in 2021.
The steady increase in income will surely make the company prosper again due to the pandemic. As of
the first quarter statements of the company, the profit margin is at 8.25% that shows what remains after
decreasing the expenses to the profit. Its liquidity ratio for its short-term debt is at 1.06 which is quite
solid and shows that there are more than enough current assets to cover current liabilities. If the ratio was
down near 1.0, it would indicate that the company may have issues meeting short-term obligations, and
that they may have issues paying off these obligations in the near future. While its debt ratio or
company’s financial leverage is at 1.56. In addition, the company’s profitability with how much profit a
company generates with the money shareholders have invested was at 9.33%. Therefore, we can say that
Toyota is still in the race for the leading vehicle producer in the world.
Strategy Analysis
● Recommendations on issues and problem identified such as

1. How will an idea, good, or service fit into the international market?
I believe that an idea, good, or service can fit into the international market if it has a domestic
foundation, which means it has already established its name, product, or business in its local society
and/or country of origin, and second, it is internationally aligned to a large group of known products,
which means it competes with products or services with similar specifications, such as smartphones and
other machinery. Toyota established its global market by first establishing its name in its home country
and then competing with other car manufacturers on a global scale. Having the name and trust of local
consumers gives them a leg up in the event of rejection or acceptance by international consumers.
Ideas, goods, and services that fit into the international market by expanding the idea and
breaking down boundaries; learning new ideas from global awareness of international markets such as
global competition, competitors, investors, the market, and customers. Other countries will be aware of
the goods and services. This will serve as a springboard for future commercial success, but first we must
examine the steps and events in the international market.
2. Should trade or investment be used to enter a foreign market?

According to international entry mode, it is stated that exporting is typically the easiest way to
enter an international market, and therefore most firms begin their international expansion using this
model of entry. Exporting is the sale of products and services in foreign countries that are sourced from
the home country. Another way to enter a new market is through a strategic alliance with a local partner.
A strategic alliance involves a contractual agreement between two or more enterprises stipulating that the
involved parties will cooperate in a certain way for a certain time to achieve a common purpose. To
determine if the alliance approach is suitable for the firm, the firm must decide what value the partner
could bring to the venture in terms of both tangible and intangible aspects.
Both countries will benefit from investment, exporting, and importing, which will be used to gain
access to international markets. Using this form of entry, trading with other countries provides a doorway
to worldwide expansion, but it requires assurance and alliance. The countries involved in the structural
agreement require a strong bond alliance to cooperate for a certain aim in order to achieve its goal, but
what are the recommendations? In terms of the challenges raised by international entry, exporting and
importing goods can be extremely costly when other countries impose tariffs. With this problem, every
company needs to look for ways to save shipping costs. Exporting has become easier because of the
internet. Small firms may easily obtain information about overseas markets in order to assess the target
market, possible clients, and current competitors. Apart from learning, the corporation can employ the
tactics of other countries by focusing on adjacent countries first to save money on transportation. Due to a
lack of control and the likelihood of a partner with a different point of view than the firm's purpose,
investing in another country might be risky. It is suggested that before entering into a contract, both
parties consult with each other.
Businesses can choose from a variety of organizational structures when expanding internationally. They
can expand organically or by acquiring assets or capabilities in the international markets they want to
enter. They can also form an alliance or partnership with other local businesses that have similar
objectives. Alliances continue to be an important part of corporate strategy, particularly in high-risk
markets or where there are potentially lucrative growth opportunities that a company does not want to
pursue alone. Alliances can be an effective way to spread the cost of new technology investment, manage
the risks associated with emerging markets, and maintain flexibility by pursuing divergent strategic paths
at the same time.
3. Should supplies be obtained domestically or abroad?
Many factors influence whether supplies should be obtained domestically or internationally. First,
consider the cost of the supplies used; the cost of production is a major issue in sourcing. It should not be
more than the expected expense to be used, but it should also be able to fulfill the desired product to be
produced. Second, supply availability; supplies should be available whenever they are needed. Finally,
the supply quality should be good or the best in the market for the product to be of high quality. After
weighing the previously stated factors, we can determine where to obtain supplies.
Outsourcing supply should be done overseas for one reason: it is less expensive.Manufacturers in
other countries offer their services at a competitive price, particularly in low-cost locations. It is beneficial
to a company, particularly one with a limited budget. This could be a terrific strategy for them to increase
their profits. However, difficulties such as expensive international administration, communication, and
transportation expenditures must be considered. The company must take steps to ensure that it fully
comprehends all of the complexity involved.
4. What product adjustments are necessary to be responsive to local
conditions?
Breaking down barriers and sticking to standardized customization to match the standards of
other countries is a method we call the Global Business Strategy, which is a balance between global
integration and local responsiveness. Global integration refers to a company's product and processes
being used in other countries, whereas local responsiveness refers to a company's product and methods
being customized to match conditions in other nations. To stay current on the standard circumstances of
other countries, a thorough review and study is required.
Product adaptation for local consumption is always based on the culture of the country in which it
is sold. Minor changes to products and services may be made in different markets, but a global strategy
emphasizes the importance of gaining economies of scale by offering essentially the same products or
services in each market. Microsoft, for example, provides the same software programs all over the world
but adapts them to local languages. Other adjustments are made depending on the product, such as
Toyota, which sells automobiles. Some countries have left-hand steering wheels, while others have right-
hand steering wheels. These changes are required to attract local customers.
5. What are the threats from global competitors, and how can these threats be
counteracted?
New rivals, the possibility of new firms competing for your clients, new products, new business
models, substitutes, pricing, customer experience, promotion, and talent are all risks. Competitors have a
technique of edging out threats because of this issue. We cannot focus on the same consumer with a
narrow range of numbers in order to locate a new target audience. Release a new product that is unique to
the customer's eye in order to encourage them to support the aforementioned idea. Do not rest on your
laurels when it comes to product or service quality; you must continue to improve it. Make adjustments to
your pricing. Set a pricing that most
customers can pay. Improve customer service by experimenting with a fresh marketing campaign.
The global automobile market is fiercely competitive. Toyota confronts stiff competition from
automakers in its various markets. Because of the ongoing globalization and consolidation in the global
automobile sector, rivalry among various car manufacturers is anticipated to heat up. Product quality and
features, the amount of time necessary for innovation and development, pricing, reliability, safety, fuel
economy, customer service, and financing arrangements are all elements that influence competition.
Increased competition may result in reduced car unit sales and a high inventory, which may result in
downward pricing pressure, affecting the company's financial situation and results of operations.
To counteract this, as immediate tasks, Toyota should promote business and cost structure
reforms to realize a solid management platform so that it can respond quickly to the changing market
circumstances. Specifically, Toyota should maintain a streamlined structure through the reduction of
fixed costs and enhance its business in established markets in developed countries. Toyota should
accelerate its business expansion into rapidly growing emerging countries by thoroughly and
meticulously monitoring market conditions in respective regions and introducing products suited to the
characteristics and needs of each market. Toyota should also strive to establish production and supply
structures to realize optimum product pricing and delivery, and to enhance the value chain to provide a
wide range of customer services in each country and region. To support consolidated management on a
global scale, Toyota should enhance the power of the workplace and diversity in the use of human
resources, and strive to nurture global human resources. Lastly, Toyota should aim to support industries
and social infrastructures around the world by continuously supplying products and services that
anticipate customers’ needs in order to contribute to engendering a compassionate society.

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Company Study

Final Output on International Business and Trade

Arca, Enrique Ricardo B.

● Vision, mission, and objectives and of the company

● Founder, his vision, values, and efforts

● Business in terms of products and services

Toyota Industries Corporation engages in a wide variety of businesses including automobiles

● Success saga of the company and its business

The list of Key Factors for Toyota Success are as follows:

3. Research and Development

● Failures and risk taken as experience

Toyota Is Fined $1.2 Billion for Concealing Safety Defects

1. Sep. 29, 2009 Floor mat recall:

2. January 21, 2010 Accelerator pedal recall:

3. February 3, 2 2010 Anti-lock brake software recall:

ROBOTICS AND ARTIFICIAL INTELLIGENCE

TRI is also making advancements in robotics and artificial intelligence.

● List of CEO’s & their contribution (if information is available)

● SWOT & PEST Analysis on the Company and its environment

Economic factors: The need to adapt to new technology

Social factors: A malfunction ruined Toyota’s brand image

Technological factors: The first hydrogen car

II. Stakeholder Analysis

Supplier/Vendors Location Commodity Award

Aisin Light Metals, LLC. London, Ky. Bumper reinforcements Excellent

DENSO International America,Southfield, Mich. Multiple commodities Superior

DTR Tennessee, Inc. Midway , Tenn. Anti-Vibration Rubber Excellent

Franklin Precision Industry, Inc.Osceola , Ark. Engine Plastics Excellent

Intat Precision, Inc. Rushville , Ind. Iron Castings Excellent

International Crankshaft Inc Georgetown , Ky. Forged Crankshafts Excellent

Jernberg Division of HHI Forging Chicago , Ill. Wheel hubs Excellent

Mitchell Plastics Kitchener, OntarioStampings, brackets, oil pans,Excellent

OTICS USA Inc. Morristown, Tenn. Camshaft bearing caps, fuelExcellent

U.S. Engine Valve Westminster, S.C. Intake/exhaust valves Excellent

TOYOTA MOTOR 76,368 21.69

The Master Trust Bank of Japan, 47,736 13.56

TOYOTA INDUSTRIES 39,365 11.18

Custody Bank of Japan, Ltd. (Trust 15,787 4.48

MUFG Bank, Ltd. 8,098 2.30

Sumitomo Mitsui Banking 4,249 1.21

Nippon Life Insurance Company 3,522 1.00

STATE STREET BANK WEST 3,426 0.97

Custody Bank of Japan, Ltd. 3,280 0.93

Toyota and BMW collaboration – fuel cell tech

BMW and Toyota Sports car collaboration

Research for lightweight Technology Saving

● After sales support

2. Value For Money

● Employees morale & commitment

● Government Policies etc.

III. Competitor Analysis

Their strategy is to focus on winning where it matters:

BMW (Bayerische Motoren Werke) is a German

Their operations are spread all over the world. BMW is

The BMW Group's business strategy is built on

One of America's most well-known firms is Ford Motor

Nissan is a Japanese automaker with a global

To make its products available to end customers, Nissan

Honda Motor Company, Ltd., headquartered in

Volkswagen is an automotive manufacturing company

IV. Financial Performance Analysis

Assets, Liabilities and Shareholder Equity

Long Term Debt