47924195 Toyota Motor cCorporation | Lexus | Toyota

Table of Contents

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INTRODUCTION A BRIEF HISTORY OF TOYOTA STRATEGIC AUDIT 3.1 3.2 PERFORMANCE RESPONSIBILITY AND INTERACTION STRATEGIC POSTURE 3.2.1 VISION 3.2.2 MISSION 3.2.3 OBJECTIVES 3.2.4 STRATEGIES 3.2.5 POLICIES 3.2.6 TOYOTA'S 14 PRINCIPLES: KEY SUCCESS FACTOR 3.2.7 THE TOYOTA PRECEPTS 3.2.8 THE TOYOTA PRECEPTS 3.3 SWOT ANALYSIS of TOYOYA
3.3.1 3.3.2

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INTERNAL ENVIRONMENT: Strengths & Weaknesses EXTERNAL ENVIRONMENT: Threats and Opportunities

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FIVE PORTER¶S FORCES ANALYSIS IN TOYOTA

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CHALLENGES OF TOYOTA CORPORATE GOVERNANCE 5.1 5.2 5.3 BOARD OF DIRECTORS TOP MANAGEMENT CORPORATE CNTRIBUTION & TALENT

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TOYOTA BUSINESS STRATEGY MARKETING STRATEGIES OF TOYOTA 7.1 7.2 7.3 7.4 PRODUCTS
TOYOTA PRICING DECISION STRATEGY

TOYOTA¶S PROMOTION STRATEGY
TOYOTA¶S DISTRIBUTION STRATIES

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OPERATION STRATEGIES HUMAN RESOURCES STRATEGIES FINANCIAL STRATEGY CONCLUSION

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TOYOTA MOTOR CORPORATION: STRATEGIC ANALYSIS 1.0 Introduction

Toyota Motor Corporations (TMC) was established on 28 August, 1937, headquarter located in Toyota City, Aichi, Japan. Producing vehicles in 26 countries and regions and marketing vehicles in more than 170 countries. Toyota Motor Corporation during fiscal year April 2006 ± March 2007 has 299,394 employees and collects net income 1,644 billion yen. In year 2005 International organization of motor vehicle manufactures (OICA) reported that Toyota is still the second largest automaker in the world after General Motors [2], in fiscal year 2006 Toyota¶s global output rose 10 percent to 9.018 million vehicles, while General Motors produced 9.18 million vehicles. This small gap eventually ending in first quarter 2007, Toyota became the number one automaker company in the world surpassed domination of General Motors for since 1931. Toyota succeeded to reach sales 2.35 million cars, about 109.000 more than Generals Motors did in the same period. 2.0 A Brief History of TOYOTA The history of Toyota Motor Cooperation was started from producing model A1 passenger car in May 1935 and G1 truck in August 1935. After a decade offered its product to local market in Japan, Toyota Motor Corporation introduced their products to the world by exporting its product (Toyota Crown) for the first time, to United States in April 1965. To increase production capacity, Toyota affiliated with General Motors under a joint venture relationship called by NUMMI (New United Motor Manufacturing, Inc) in 1984. The NUMMI plant is located in Fremont, California and currently produces Toyota Corolla and Toyota Tacoma. Enlarging market share in European continent Toyota established Toyota Motor Europe Marketing & Engineering (TMME) located in U.K and created joint venture with French and Russia to produce automobiles in Europe Toyota has reputation on making high quality cars with more efficient fuel consumption than other automotive brand. Toyota positioning its product on medium class market and creating separately brand for high class market called by Lexus. Toyota uses distributors and dealers as sales forces to deliver its product to customers. The distributors are under control of Toyota¶s management.

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With a company that is as active in as many diverse projects and interests as The Toyota Motor Corporation, there are numerous objectives and goals, on varying levels, being pursued at any one particular time. The following section outlines some of the most definitive and prominent of TMC's objectives, strategies and policies. A discussion will also ensue as to whether these points correlate, overall, each supporting the promotion of the others, presenting consistency throughout. Unlike other corporations, the promotion of these goals is not just implied or presented on paper, but actually facilitated through practical application, proving that TMC is not a company that is just "all talk", but one that truly aims to achieve its goals, maintain standards, and keep its word. This is evident not only in a fiscal sense, but in the many ethical initiatives and other endeavors presently being executed by the company. Some of these pursuits will be elaborated on in detail later in this report. 3.0 Strategic Audit 3.1 Performance Responsibility and Interaction The performance achievements of Toyota Motor Corporation are a function of employees at all levels. This is due to the reciprocal relationship within the corporation. While the Board of Directors and high level key officials may compose the company laws and guidelines that must be followed to insure success in all areas, it is often the input of other employees, especially management, that determine what guidelines need to be changed and what new ones need to be defined. Further, it is ultimately the compliance of lower level personnel that determine, through their behavior and interactions, whether or not these tenets are applied resulting in either success or failure. Top managers are integral in this process, often acting as a liaison between the guidance of key executives and the input of employees "lower on the ladder". Further, it is the supervisory skills of these managers that monitor adherence to standards of the employee population and the success it yields. In this sense, managers are an absolute key component in the process of strategic management.

3.2 Strategic Posture: 3.2.1 VISION Toyota's vision is ³contributing to the development of a prosperous society through the manufacture of automobiles"

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". maintaining superior quality. business methods and values were simply passed on as implicit knowledge. the overlying mission of The Toyota Motor Corporation is to "develop and provide innovative. In 2001.3 OBJECTIVES In order to uphold the TMC mission. a number of principles and philosophies have been outlined in order to meet the corporation objectives in the most beneficial manner.2..2 MISSION Above all.3. However.2. it became a necessity to define such principles in print. with the increased growth of the employee population and the corporation's international growth. specific goals and objectives have been identified as the aim of the company in keeping with its beliefs and building on its prior sales and financial success. 3. The three main corporate goals are the following: 1) to steadily increase corporate value as a top management priority.5 POLICIES Although realization of Toyota's goals are of the utmost importance. TMC's management philosophies. safe and outstanding high quality products and services that meet a wide variety of customers' demands to enrich the lives of people around the world". and continuing expansion. 2) continue to introduce and produce products that fully cater to customer needs. Overall. TMC recognizes the importance of increasing their feasibility by instituting an underlying set of policies and 3 . The Toyota Way was published as a means of clarifying "the values and beliefs that all employees should embrace in order to carry out the Guiding Principles at Toyota.2. 3..2. demonstrating enhanced efficacy. Prior to this. 3. and 3) to become an even more competitive global company. Toyota Motor Corporation has adopted several strategies in order to implement the objectives above. these intentions translate into increasing sales and profit.4 STRATEGIES Consistent with the overall corporate goals. These include: a unique management system-focused on prompt decision-making and speeding up operations a range of in-house committees a system that emphasizes problem-solving and preventative measures-done by immediately flagging problems and sharing them with the appropriate individuals/departments. In order to insure that each and every segment of TMC excels in this mission.

it becomes clear why Toyota has succeeded as it has. Foster a corporate culture that enhances individual creativity and teamwork value 6. even at the expense of short term goals 2.2. which dictate the manner in which all transactions should occur. Honor the language and spirit of the law of every nation 2. Respect the culture and customs of every nation and contribute to economic and social communities 3.2.principles that must be considered in all activities in order to meet these objectives. Create and develop advanced technologies 5. 3. The first is a set of Guiding Principles that outline the policies and philosophy by which all transactions should take place.6 GUIDING PRINCIPLES 1. The 14 principles are known as the "Toyota Way" and are listed below: 1. Create continuous process flow to bring problems to the surface 3. Provide clean and safe products 4. Base your management decisions on long term philosophies. 7. Use pull systems to avoid over production 4. Level out the workload 4 . Pursue growth in harmony with the global community through innovative management. The second is a set of behavioral guidelines. What these principles are and how they are implemented within the Toyota Corporation can certainly help the automakers of the United States and indeed the world achieving the same success. Achieve long-term growth open to new partnerships 3. Both of these are summarized in the tables below. When these 14 principles are listed and compared with some of the strategies that United States automakers have employed.7 TOYOTA'S 14 PRINCIPLES: KEY SUCCESS FACTOR Toyota is clearly a dominate leader in automobile manufacturing today. The principles employed at every level of the company have certainly led to a standard of quality that no one in the automotive industry can argue with. known as The Toyoda Precepts.

environmental friendly (greener). thoroughly consider all options.3%. 5 . customized range.1 INTERNAL ENVIRONMENT: Strengths: 1. Use only reliable. implement decisions rapidly 14. Become a learning organization through relentless self examination and continuous improvement 3. Respect your extended network of partners and suppliers by challenging them and helping them improve 12.Toyota is the World¶s second largest car manufacturer. with a strong international position in 170 countries worldwide.. it is classified as a global organization. Use visual control so no problems are hidden 8.3 SWOT ANALYSIS of TOYOYA 3. 2.511 million). live the philosophy and can and do teach it to others 10. sales turnover. surpassing Ford. Standardized tasks provide the foundation for continuous improvement and employee empowerment 7.5. Build in a method to stop and fix problems when they are discovered.. sales growth of 29. Biggest Japanese car manufacturer. Make decisions slowly by consensus. this ensures quality the first time 6. Grow leaders who thoroughly understand the work. 3. strong brand image based on quality. thoroughly tested technology that serves you people and processes 9.High financial strength (1997.2.3. Develop exceptional people and teams who follow your company's philosophy 11. 3. £131.Reliable and High Quality Image.8 THE TOYOTA PRECEPTS  Be contributive to the development and welfare of the country by working together  Be at the vanguard of the times through endless creativity & inquisitiveness  Be practical and avoid frivolity  Be kind and generous  Be reverent and show gratitude. Go and see for yourself so that you completely understand the situation 13.

3% higher at 18.g.85bn).8% to 1. Therefore it is exposed to fluctuating economic and political conditions those markets.Some criticism has been made due to large-scale re-call made in 2005. The company also maximizes profit through efficient manufacturing approaches (e. 7. 20 million units to date.55 trillion yen. EMEA). innovative. quality issues. 5. Perhaps that is why the company 6 . from the small Yaris to large trucks. 3. is bestselling car. Industry leader in manufacturing and production. New investment by Toyota in factories in the US and China saw 2005 profits rise against the worldwide motor industry trend. The company makes a large range of vehicles for both private customers and commercial organization. Toyota knocked its rivals Ford into third spot.seen as a foreign importer. Maximizes profit through efficient lean manufacturing approaches (e. Total Quality Management).Corolla. Toyota produces most of its cars in US and Japan whereas competitors may be more strategically located worldwide to take advantage of global efficiency gains. This is an example of very focused segmentation. targeting and positioning in a number of countries. Its brand is a household name.17 trillion yen ($11bn.Production capacity. biggest spend amongst car manufacturers. other strong brands. Its strong industry position is based upon a number of factors including a diversified product range. while sales were 7.59 million units in the same period. net profits rose 0. Commentators argue that this is because the company has the right mix of products for the markets that it serves.Lexus brand. In 2003. Toyota markets most of its products in the US and in Japan. £5. The world market for cars is in a condition of oversupply and so car manufactures need to make sure that it is their models that consumers want.78 million units. The company uses marketing techniques to identify and satisfy customer needs.R&D. China.Japanese car manufacturer . 6.g.Excellent penetration in key markets (US. The company is still behind rivals General Motors with 8. Toyota also holds various other strong brands in many segments. highly targeted marketing and a commitment to lean manufacturing and quality. to become the world¶s second largest car market with 6. 2. Total Quality Management) and JIT (Just in Time) manufacturing and first mover in car research and development. Being big has its own problems.4. - Weaknesses: 1.

e. This is a typical problem with high volume car manufacturing. their findings indicated that in N. Movements in exchange rates could see the already narrow margins in the car market being reduced. the company could see over capapacity.is beginning to shift its attentions to the emerging Chinese market. So if the car market experiences a down turn. then the company may miss out on potential sales due to under capacity i. The company needs to keep producing cars in order to retain its operational efficiency. for the auto manufacturers. The first of these is the issue of Excess Capacity.. Despite this. This is because foreign auto manufacturers who are setting up shop in the United States (often 7 . However. If on the other hand the car market experiences an upturn. This is an area of concern that can certainly be considered a detriment to any auto corporation. while this is certainly another issue of concern within the industry.. that have been the catalyst for such an event. Addressed by CSM Worldwide. it is foreign companies. as well as the high costs of training and retaining labour. as a whole. America and Europe (the two localities where the majority of revenue and profits are earned) ".. a firm specializing in auto industry research.3. translating into a "buyer's market". Car plants represent a huge investment in expensive fixed costs. excess production of vehicles (as alluded to above) has caused the need for lower prices in order to liquidate product that is overstocked.. perhaps the most significant are those of an economic nature.. such as Toyota. This has caused a pricing competition between manufacturers.. (and that).excess capacity was an estim ated 17% and 14%. respectively. The result is a benefit for the consumer. However. Of the various potential influencers. pressure to continually lower prices to generate sales is resulting in significantly lower profit margins. Toyota may actually find such an occurrence to be an advantage.2 EXTERNAL ENVIRONMENT: Threats and Opportunities Societal Environment:  Excess Capacity Numerous variables are presently factoring into the present and future sustainability of the Toyota Motor Corporation and the auto industry. each attempting to drop their prices lower or offer better rebates and lower-rate financing than the next. Undoubtedly. America could continue for several more years but could be mitigated by the capacity reductions announced by Ford and GM"  Pricing Pressure Another influencing factor is Pricing Pressure.excess capacity conditions in N.it takes time to accommodate. 3.

the result of an increased number of women working over the past decades has been elevated household incomes.  Socio-cultural From a socio-cultural perspective.referred to as "transplants") are the cause of this pricing environment.  Energy Costs This discussion of influential economic factors could not possibly be complete without mentioning the inflating cost of energy. specifically. specifically the diminished exchange rate of the U. as well as the rest of the industry. bode well for TMC. have also affected the "bottom line". For 8 . but a perpetrator. and even increasing overall sales. The lower prices that they can offer with the construction of new. has "created downward margin pressure on auto manufacturers that have U. efficient production plants in The States has forced American automakers to follow suit or lose sales. this appears to surprisingly be an asset. as a whole. resulting in the diminished sales of vehicles requiring larger amounts of fuel to run and exhibiting less fuel efficiency-. such as The Lexus. dollar revenue with foreign currency cost". it seems that Toyota is not a victim. increasing production costs and shrinking profit margins across the market. is an enhanced awareness of spending behavior patterns. allowing for more frequent purchases of new vehicles. current trend projections have identified a spending pattern that is predicted to persist for at least the next ten years by marketing research data. This is the more frequent purchase of the upper scale clients who are purchasing high.end models at significant price points.  Rising Commodity Prices Rising prices of commodities used in vehicle production. These frequent sales of high-end vehicles.  Rate of Currency Exchange Fluctuations in the exchange rate of currency.S. Despite the competition to lower prices. Presently. the increasing gas prices over the past few years have undoubtedly made it more expensive to operate vehicles. but the industry. dollar as compared to most other world currencies. TMC. in this case. huge. based on targeted populations for different vehicle models.most specifically SUVs and other full-sized vehicles. off -setting any deficits due to lower economy class prices. Therefore. such as certain resins and steel.S. Another example of a socio-cultural factor affecting not only the Toyota Motor Corporation.  Consumer spending The spending trends of consumers are yet another variable that affects the success and sustainability of. With little explanation needed.

specifically. Some of these. economic issues. promoting their development of such vehicles. This is partly a function of TMC's increased growth and production of significant manufacturing plants (such as in Texas). forcing the dominant American companies (their fiercest competitors) to diminish prices in an attempt to solidify sales. and production costs. allowing the previously considered "underdog". weakens the profit margin that these companies previously enjoyed. Fortunately. are the pressure to lower prices due to excess capacity. TMC. As discussed above. GM and Chrysler.  Immediate Environmental Influences A majority of the immediate influences that have the capacity to currently affect operations or performance at The Toyota Motor Corporation have been addressed prior. TMC is in a position to benefit from some of these. TMC is the part of the catalyst in this situation. While there are overlying external factors that inevitably affect the sustainability and performance of the industry. Toyota must consider such factors when marketing their own product lines. as a whole. to now gain momentum in catching up to "the Big Three": Ford. inflated prices of gas and commodities. lower pricing and excess capacity has generated a buyer's market and a rivalry between autos dealers not present to such an intensive extent prior. which allow them to provide more cost-efficient manufacturing. while sports models will be marketed to single purchasers with more of an expendable income. and buyer-biased market conditions. This. Task Environment:  Industry Competition Competition within the industry is a major influential factor for any auto manufacturer. Naturally. Future Threats & Opportunities: Toyota Motor Corporation is in a unique position compared to its rival American auto manufacturers. such as competition. This market demand is further supported by the necessity to find alternate means of fuel as an alternative to gas and the rising prices associated with it. 9 .  Technological: The Toyota Motor Corporation has been affected by the environmentally-friendly demand for hybrid technology. middle-income families will be the market focus of SUV's. in turn.example.

00 sports utility vehicles and pickup trucks due to faulty front suspension systems. The company has launched its new Aygo. Lexus has RX 400h hybrid. In a selling environment that is presently diminishing the "bottom line" for others. as well as their ability to capitalize on consumer patterns and concerns to promote sales is evidently paying off. Toyota did not give details of how much the recall would cost. while the rest were sold in Japan. Complimenting this. Toyota has also sold on its technology to other motor manufacturers. for example Ford has bought into the technology for its new Explorer SUV Hybrid. Product recalls are always a problem for vehicle manufacturers. Rocketing oil prices have seen sales of the new hybrid vehicles increase. Overall. In 2005 the company had to recall 880. with models extending at their rear! The narrow segment is notorious for it narrow margins and difficulties for branding. Both are based upon advance technologies developed by the organization. it appears that in an auto market that is presently falling victim to less than satisfactory selling conditions. The vehicle itself is a unique convertible. TMC has become a front-runner in the new environmentally conscious market. their strategic marketing and management practices. the ability to overcome such obstacles is perhaps one of TMC's greatest strengths. The growth figures presented in the first part of this analysis are indicative of TMC's ability to conform to adversity and take advantage of otherwise negative influences when more dominant industry competitors could not. and Toyota has it Prius.In addition. The majority of affected vehicles were sold in the US. which is targeted at the streetwise youth market and captures (or attempts to) the nature of dance and DJ culture in a very competitive segment. the aggressive promotion of their Lexus line caters to the current economic buying behavior pattern of higher income consumers who are making more frequent and more expensive purchases. Their strengths of smart and costefficient production (including avoidance of producing excess product. the Toyota Motor Corporation has evaded the detrimental impact. Europe and Australia. 10 . Such moves can only firm up Toyota's interest and investment in hybrid R&D. Toyota is to target the 'urban youth' market. researching and manufacturing hybrid vehicles that address both the issues of environmental concern and gas inflation. Lexus and Toyota now have a reputation for manufacturing environmentally friendly vehicles. which will be elaborated on in detail later).

In addition to rivalry among existing firms and the threat of new entrants into the market. 1998) were based on the idea that competitive advantage came from the ability to earn a return on investment that was better than the average for the industry sector (Thurlby. there are also the forces of supplier power. 1998). steel and fuel. the power of the buyers. and the threat of substitute products or services. the US and Europe also experience slowdowns. Toyota faces tremendous competitive rivalry in the car market. These economic factors are potential threats for Toyota. with new entrants coming into the market from China.As with any car manufacturer. The company is also exposed to any movement in the price of raw materials such as rubber. contending that the competitive environment is created by the interaction of five different forces acting on a business. The key economies in the Pacific. The ideas and models which emerged during the period from 1979 to the mid-1980s (Porter. A business has to understand the dynamics of its industries and markets in order to compete effectively in the marketplace. particularly those that can be used to provide competitive advantage. 11 . South Korea and new plants in Eastern Europe. 3. Porter (1980a) defined the forces which drive competition. Porter suggested that the intensity of competition is determined by the relative strengths of these forces. Competition is increasing almost daily.4 FIVE PORTER¶S FORCES ANALYSIS IN TOYOTA Five forces analysis is an analysis of the factors that impact on an organization.

they have cornered the market on hybrids and gained a significant advantage that boosts sales. Overall. Toyota puts an emphasis on using smaller businesses for suppliers in order to gain a competitive advantage.Figure 1 ± Explanation of Porter¶s 5 Forces Analysis Industry analysis by Porter's five forces can be said that 1. the use of smaller businesses as suppliers allows Toyota to protect themselves from pricing shifts. 12 . Also. Toyota has done an excellent job following Porter's five forces model for gaining a competitive advantage. Via this database. Toyota keeps a large database of small business suppliers for their operations in North America.Threat of new entrants is low due to huge capital and cutting-edge technology. By using is Hybrid Synergy Drive in their revolutionary hybrid vehicles.Suppliers are weak because they are spread all over the world and cannot easily forward integrate in addition to the frequent financial crises. Moreover. To stay competitive in this area. Toyota's addition of the Highlander Sport Utility Vehicles (SUV) to the hybrid drive market has successfully maintained their advantage. 2.

Therefore the executives fingered out the achievements of the Information system as following: - Failed to respond clearly revealing their outcomes Matching Business needs with Information System performance Information System did not know their financial outflow due to the weaknesses in capital budgeting. Toyota currently is adding Sport Utility Vehicles (Toyota Highlander) to their line of vehicles using the HSD in order to still dominate the market for hybrid vehicles because Honda and Nissan do not have a significant impact on the market yet. they have currently protected their competitive advantage from substitute products. intensity of rivalry is strong because of major players are dominant in the market by nearly same technology and manufacturing processes. Toyotas 13 . suppliers relationship and distribution systems. 4. In fact. - Lack of implementing the predetermined business goals Mismanaged expectations and splintered placements of business. By being the first to add SUV's to the hybrid market. 4. Nissan and Honda have developed similar technologies for their sedan models.0 Challenges of TOYOTA Problems Faced by Toyota Information Systems Department and Causes of the Problems: The major problems faced by Toyota information system department are the isolation and the vagueness¶s scattered around IS operations due to the absence of collaboration and lack of understanding and correlation with Toyota business needs. Other companies could potentially enter the hybrid market by developing a similar drive and neutralizing Toyota's advantage. 5.Substitutes are moderately strong due to different and less-expensive transportation facilities. However.On the other hand. Toyota continues to dominate the market for hybrid vehicles. moreover.Buyers are weak due to low demand for non-consumer goods (automobile) and high switching costs.3. Toyota¶s vice president of Customer Services Bob Daly pointed that the business disappointed with the outcomes of Information system even Toyotas expended a huge amount of money on IT projects ³less outcome and enormous financing´. buyers are not able to backward integrate.

Also other four new systems such as: - Order management Parts forecasting Advanced warranty Financial document management The other problems of information system department noticed by Cooper since her arrival that the employee did not clue on technology and behaving like primitive also there were isolated she described it as almost 1970s-like since business units were buying their own Information Technology systems because in-house Information Technology couldn't deliver. Hence the Information System staff was sunken under the weight of six enterprise wide projects called the Big Six and this cause Information System to become tireless and overwhelmed but without their consciousness they created an oversight of not explaining to the business all the things it was doing and how much it all cost. In fact Information system carried a huge tasks over the capacity and failed to mention and identify their main problems to the executive also they did not reveal their obstacles and challenges that why they put themselves in the table of suspiciousness from Toyota executives and received enormous complains from and others in Toyota. The big Six operations of information System included: - A new extranet for Toyota dealers The PeopleSoft ERP rollout. The most of all is that even no one understood the cost of delivering Information Technology. The main reason of this is that the information system employee did not understand the objectives of technology very well and they have a narrow image and vision about it.Information system failed to handle effectively the projects therefore there was a delay in People Soft Enterprise Resource Planning (ERP) implementation and a protracted parts inventory initiative. There were no computers or network management and basic Information Technology disciplines-such as business relationship management and financial management-were largely absent. 14 .

- EMPLOYEE INTEGRATING: Cooper merged information system employees jobs also forced her staff into business offices by doing so she can address and manage business expectations. Even though it was more difficult task and big challenge but there was no any alternatives Barbara did endless efforts to restore back the reputation of Information System departments and to gain the trust of business therefore she take a long time in analyzing and deeply observing the issue before coming up with new vision and strategies. 15 .The solutions and challenges taken by Barbra Cooper & the potential benefits of each solution Barbara Cooper succeeded within six month to entirely make a radical changes is the structure of Toyota's Information System department in order to compromise Information Technology functions to become more closely into the daily business operations. Because the staff who joined the Information System department can exactly mach between Information system performance and business needs since the employee already familiar with the business expectations from Information system. Also the one who transferred from information system can easily translate structure and combine information system performance with business wants after understanding the exact way of business operations and this can be reached only through mixing the employee of both parts. Here are the main solutions implemented by Barbara Cooper and the benefits of each solution to the enhancement of the information¶s system department and overall reaching the Toyata objectives. - HIRING CONSULTANCY: initially cooper exposed there was poor communication and education from the side of information system department which finally leads to the accumulation of projects so she started to congregate casual comments and feedbacks from a wide range of business people after that she hired a consultancy from outside the company to interview Toyotas Motor Sales top 20 executives and main purpose from this was to get straightforward ideas about how information system was doing. The main benefits is the business are now standing shoulder-to-shoulder when planning and implementing IT projects and also exposing all of Information Systems¶ shortcomings.

The main benefits from the survey was she become able to determine and clarify the hot spots of information system therefore the process of handling and solving become easily since the main cause of the problem was effectively and efficiently identified - FORMULATING NEW VISION FOR INFORMATION TECHNOLOGY: cooper succeeded to develop a strategy that orient the decentralized and transparent Information System organization to focus all of its potential power on business segment then she called senior Information System staffers into discussion room and presented her vision as following:  Setting up the action plan for Toyota Value Program.  Establishing a team consist of eight members who were responsible to interpret her vision into actionable acts  The team prepared a list down to 18 initiatives by Using the executive's survey results and Cooper's direction. - EMBEDDING DIVISION INFORMATION OFFICERS (DIOS): the DIOs embedded in all of the business units and are accountable for Information Technology strategy. The DIOs' goal is to forge relationships with tierone execs (Daly. making process improvements. for example) and tier-two execs (VP-level). Goltara. The main benefits from this is that business operation managers and relationship managers from Information system sat alongside the business folks then incumbent Information Technology into the businesses. At the heart of this new effort would be a revamped Office of the CIO structure-with new roles. Hence the most significant benefit of this stage was the improvement alignment with the business side. ridding IS inefficiencies and implementing a metrics program Each initiative got a project owner and a team. reporting lines and responsibilities. and they sit on the management committees headed by top business executives. now heads up a smaller group of internal physically distribute of 16 . for instance. Hence the new DIOs have complete accountability and responsibility for the vertical area they serve. gaining cost savings.  Finally creating a mechanism standard to check the success. the list including increasing employee training and development. development and services.

- TYING MANAGER¶S BONUSES: for the first time cooper tied part of the senior Information System managers' bonuses to their success in meeting the goals of each of their annual plans. logistics and dealer portals. - CHARTING EXECUTIVE STEERING COMMITTEE (ESC): Cooper established this committee to further strengthen the Information System business bond and to approve all major Information Technology projects. Within all of the above challenges Cooper did not forgive up but she spent a lot of time and efforts in fostering a new attitude about the change in order to convince the employee to cope with the changes. Senior Vice President and Treasurer 17 . Also Information System senior management held a town-hall meeting to announce the changes and deal with questions then staff members did express some concerns at that meeting and subsequent monthly staff meetings. on budget) and operational goals (implementing new governance and portfolio management processes). Since Cooper changed the tasks of fifty percent of her employees within six months and some took on new responsibilities while others took on expanded or completely new roles. The main benefits for Cooper by making such great efforts to convince the employee to cope with the change was she knew that unless they think and understand of what it means to change they will never make it happen.customers-which includes Toyota. Hence the committee consists of Cooper. She dragged them into the conversations kicking and screaming. Senior Vice President and Planning and Administrative Officer Dave Illingworth. meeting project-based goals (whether the project was done on time. These managers are judged on 10 areas and on how well they meet the objectives in those areas-for example. Cooper's boss.and upper-level employees were initially uncomfortable with their new roles. especially during a disturbance of an entire 400-person Information System department. Therefore some mid. Lexus and Scion-as well as the entire vehicle ordering systems. - COPING WITH THE CHANGE AFTER KICKING AND SCREAMING: Change is scary for anyone since the unknown is always a concern.

Now they know how much IS costs per vehicle. The main benefits of this are the smoothness of tackling all issues and problems and enhancement of Toyota business reputation. The main benefits of this new transparency are to lessen Information Systems¶ role on Information Technology project selection and monitoring also increasing business's responsibility. Information System has also won more fans in corporate headquarters because of the new metrics. and it releases funds for each project as each phase of the project's goals are achieved. the pool's administrators can sweep unused funds out. Also when any problem emerge all Toyota¶s executives. Barbra's stock is high and reports that the Japanese parent company is interested in her revamped IS model and wants to apply some of the techniques over there. the executive steering committee now controls all of the project funds in one pool of cash. Information System staffers now spend a huge time crossing the courtyard between Toyota Motor Sales' business offices and the Data building hence it's a change that the business side welcomes. And there are no more spending swings. employees do their endless efforts to settle the problem.Mikihiro Mori. One industry metric all the business execs understand is how much each Toyota vehicle costs to manufacture. 18 . projects are regularly paced throughout the year. - STRENGTHEN TOYOTAS TEAM COLLABORATION: There was lack of partnership relationship and the business managers played the role of "order taker´ rather than "let's build the solution together" Cooper succeeded to strength the relation and the cooperation among business people the Toyota Customer Services and Toyota Motor Sales. Toyota Motor Sales' board was particularly delighted and was able to give back to TMS 16% of the costs of running Information Technology projects. Everyone in the company can look at which dollars were (and were not) going to be spent. and Senior Vice President and Coordinating Officer Masanao Tomozoe. and other projects can go after those funds. By exposing its inner workings to the business side at Toyota Motor Sales. and each division head also knows how much all of his IT costs him. Finally.

Press. enhanced work environment and improve production methods. Unlike the turnover rate and attrition of many corporations. However. including founding President and Board Member: Katsuaki Watanabe.A. these corporate characteristics will be discussed in later pages of this analysis. In turn. James E.1 Board of Directors. share many of the personal traits. the appropriate executives welcome such critique and utilize this constructive criticism to create a better product. Also both notable and impressive is the level of participation demonstrated by executives. some of the most significant members of this prestigious group are as follows: Yukitoshi Funo. Several additional Board Member and Executive Vice Presidents also reside in posts pertaining to different factions of the corporation. Vice Chairman. Skills that they may not already possess are fostered 19 . while always promoting the underlying ethical tenets of the corporate philosophy.0 CORPORATE GOVERNANCE: 5. Undoubtedly. this is at least in part. team-driven. as their mentors on the board discussed above. Fostering a genuinely reciprocal dynamic. but are instead encouraged and even expected to engage in input and create improvements.2 TOP MANAGEMENT..S. Toyota Motor Sales . Katshuhiro Nakagawa. often presiding over many facets.U. top officials are highly involved in all aspects of the company. even at the highest level. Most notable of these is Takeshi Suzuki of the Finance and Accounting Group. 5.. In addition. and Hiroshi Okuda as a Senior Advisor and Member of the Board. as well as industry expertise. Top Players and Expertise Just below the Board of Directors exist several key management personnel. U. Managers and personnel below the Board of Directors are not known to simply "rubber stamp" the decisions passed down to them. Vice President and General Manager of The Lexus Group. and finally. Chief Operating Officer. fellow board members and key personnel include: Fujio Cho. Too numerous to name each and every one of them. Bob Carter. Key Players The Toyota Motor Corporation has several key members. a function of the familyoriented. as well as several Senior Managing Directors. Other individuals earning mention are Honorary Chairman: Shoichiro Toyoda. Chairman and CEO Toyota Sales. as well as their counterparts. ethically-motivated environment that Toyota emulates.S.A.5. These particular employees. key executives at Toyota seem to make it a lifetime investment. Chairman.

Employing high level executives in both Japan and the United States.3 CORPORATE CONTRIBUTION & TALENT In relation to corporate contribution. working in the Toyota environment nurtures continued understanding of the benefits of these assets through the strict adherence to the Toyoda Precepts expected of all.through the corporation. additional training and mentoring is an integral component of TMC. In addition. TMC has also established a committee specifically for the purpose of insuring appropriate management in all of these areas that is commonly referred to as the IAB. it is absolutely imperative for such a company to possess within it the knowledge. In addition to addressing the cross-disciplinary needs of such a large business entity.0 Toyota Business Strategy: Toyota has been working on a new cost-saving strategy called "VI" for Value Innovation since 2005. and consistently growing. Toyota's long-term strategy involves developing both global and regional car models in order to compete worldwide with a full line of products 20 . while all new hires are screened for the ethical and personal qualities that are consistent with the company's ideal. 6. While they all possess the qualifications and skill sets to perform in their respective functions. those who hold the most power within TMC are well-versed and educated in both business and cultural issues. A vast array of skills is necessary to address the many diverse facets of such a large corporation. international presence. marketing at an international capacity presents its own set of challenges pertaining to cultural issues and foreign business practices. This strategy aims to combine its thousands of components in a car into modules and systems. in an effort to cover all bases. However. Toyota Motor Corporation has a significant. cultural expertise and a broad spectrum of other talents essential to successfully functioning at its optimal potential. Because of this. 5. skills. both domestic and foreign.

7. Toyota have taken full-scale marketing of scion vehicles and local production of full-size pickup truck in 2006 in North America. electronics. for example to take steps to tap local demand in markets worldwide. High class vehicles: For example the Lexus IS series. Since that time Toyota Industries has promoted diversification and expanded the scope of its business domains to include textile machinery. and expanded to different worldwide markets and countries by becoming the largest seller of cars in the beginning of 2007. the operations of the Toyota Industries Group span the globe. the United States. the most profitable automaker along with increasing sales in. We remain committed to the further development of our businesses and the unwavering pursuit of sustained innovation and creativity. high quality manufactured cars/long life cars and relatively low prices.Toyota Industries Corporation was founded in 1926 by Sakichi Toyoda to manufacture and sell the automatic looms which he had invented and perfected. 7. In November 2006. Toyota sales are booming because of its good image around the world about reliability and ecological technology. as well as a worldwide sales network. car air-conditioning compressors.). it is a Lexus line up which is intended to compete against the BMW 3 series and Mercedes-Benz C-Class and Nissan 21 . 1 Prod ucts : Brand strategies of Toyota is creating global product that reflect local needs and market environments. 7. Toyota Motor Corporation creates separate brand for high prices automobiles and luxury cars (the Lexus series) and using µToyota¶ brand for non-luxury cars. Toyota Industries celebrated its 80th anniversary. etc. and materials handling equipment.1 Positioning product through quality/prices discrimination Toyota¶s product ranges from high fashion/quality and high price to relatively low price with good value.1. Toyota had reputation in making efficient-fuel vehicles. among other countries.0 Marketing Strategies of TOYOTA: Toyota has grown to a large multinational corporation from where it started. Europe. Toyota brands include scion and lexus and the corporation is part of the Toyota group. and logistics solutions. With production bases in North America. automobiles (vehicles. engines. and Asia (China and India). centered around our Materials Handling Equipment and Textile Machinery Segments.

3 D-CAT Price: 46.000) Price for Medium class vehicles USA Type: Corolla LE Price ($15.000*) Type: Lexus IS 250 Price ($65.Skyline/Infiniti G35 sports sedans. a full-size luxury sedan that serves as the flagship of Lexus brand. Another example of high price and high quality Toyota products is The Lexus LS series.4 D-4D Price: 29.000) Type: Camry CE Price ($19.000) Type: Yaris S Price ($12.422 22 .000*) Type: Lexus GS 450 H Price ($54.507 Type: Avensis 2.2 D-4D Price $49. Price for High class vehicles USA Type: Lexus LS 460 Price ($71.000) Netherlands Type: Auris 2.870 Type: Yaris 1.

The president of Toyota motor corporation.1.620.90 RM 72.or in the U.. pickup.Malaysia RM 141. Hiroshi Okuda in year 2000 said that ³Our other challenge is increasingly heated competition worldwide. SUV PICK UP TRUCK MPV COMPACT CAR TOYOTA Toyota 4 Runner Toyota Dyna Toyota Alphard Toyota Corolla 7.2 POSITIONING PRODUCT BASED ON USE OR APPLICATION TOYOTA Motor Corporation also classifies their product in ter ms of use or application: the sport utility vehicle (SUV).990. Toyota realizes that competition in automotive business is so tight. In the past.10 RM 167..00 7. truck and s edan.109. But now competition will heat up in 23 . multipurpose vehicles (MPV). we thought of competing in Japan. compact car.2 TOYOTA PRICING DECISION STRATEGY Toyota¶s pricing decision mainly directed by competitive behavior and market demand. the lower price with high quality product will be effective strategy to attract customers.S.

and Southeast Asia. Fig ure Toyota¶s Formula One team Sport sponsorship: Toyota are active in a wide variety of motor sport event. ³ Statement from president of Toyota above indicated that Toyota¶s price decision is influenced by market condition. we can't fail to produce high quality cars at low prices.com 24 . online ads. Because the competition is spreading.3 Toyota¶s promotion strategy Toyota use several approach in promotion including trade show. The profit can be gained trough continuously reducing the cost.2 Millions in 2006 to purchase TV advertising spot and recorded as the top five TV advertisers in United States during 2006. TV advertising: Toyota motor sales USA dealer associations spent $ 384.Australia. Nielsen net ratings reported that Toyota Motor Corporation is top 2 advertisers in internet among automotive industries after DaimlerChrysler Corporations. Europe. 7.forbes. their strategy on producing high quality cars with lower prices can be superior competitive advantage for Toyota Motor Corporation. Selling the product with relatively low prices doesn¶t mean loosing the profit. Toyota became main sponsor for Valencia football club. Web ads: Toyota also promote its product through internet media. since session 2006/2007 as reported by www. the Toyota motorsport participated in motor sport since Australian rally 1957 and now Toyota is one of the Formula one teams affiliated with other partner such as Panasonic. public relation TV advertising. social activities and sponsorship. the Middle East. Denso and Bridgestone¶s. a Spanish football club.

4. 7.1 Distribution in Japan In Japan. in Moscow in June and July 2007.700 sales outlets (including used car outlets) throughout Japan. The Toyota way in Japan Sales and Marketing. Toyota supports its sales network in various ways to enhance customer satisfaction with the network. Figure: Distribution channel Toyota 7. dealers and point of contact with end customers). adopted in 2000. sets forth fundamental principles as putting the 25 . the world's most prestigious classical music competitions.4 TOYOTA¶S DISTRIBUTION STRATEGY The distribution channel in Toyota uses direct involvement strategy by selling the products directly to customer by using owns sales networks (distributor.Art exhibition: Toyota also became sponsorship in social activities such as to be the general sponsor of the 13th International Tchaikovsky competition. Toyota Motor Corporation concludes contract directly with 300 dealers operates in 5.

this technology identifies a malfunction or a defective part immediately at its time of production. public relation. but the strategy and awareness by which they conduct all business. The machine involved is programmed to recognize this deficiency and automatically stop. 8.³Customer first.. Utilizing state of the art equipment. and survey activities throughout North America and in April 2006 Toyota set up a The Toyota Motor Engineering & Manufacturing North America. only products satisfying the quality standards will be passéd on to the next process on the production line" (TMC. forcing the operators to address the problem.2 Distribution in Europe Concerning with cost reduction policy Toyota always seeks for the new strategy to reduce fix cost (transportation cost and operational cost).4.2 million vehicles in the European market by 2010. 8. To achieve this target Toyota increases production capacity. One of the alternatives is by producing automobiles near the marketplaces. dealer second.0 OPERATION STRATEGIES : Jidoka and "Just-in-Time" Operational Systems Consistent with Toyota's philosophy-oriented environment the corporation has established an operations system for production that is tailored to not only their goals. while ensuring an absolute standard of quality at all 26 . Such a process promotes cost efficiency within the corporation. Inc (TEMA) which handles research and development activities and manufacturing support.(TMA) in 1996 with activities such as Liaison. 7. Inc. "As a result. It is a "system that is steeped in the philosophy of the complete organization and imbues all aspects of production. 2006). Toyota¶s target is selling 1.4. 7. and localization strategy.3 Distribution in North America To manage market in North America region Toyota established Toyota Motor North America. manufacturer third´ and promotes mutually beneficial relationship between the manufacturer and dealer based on the ³Customer firs´ policy.it has come to be well known and studied worldwide" It is primarily based on two principles: Jidoka and "Just in Time" manufacturing. sales capabilities.1 JIDOKA Jidoka is a concept that highlights the visualization of problems and identifies them before manufacturing is completed..

and all other issues pertaining to maintaining satisfied employees and an environment conducive to this goal. By adhering to such a system.0 HUMAN RESOURCES STRATEGIES Human Resources at Toyota Motor Corporation serve to meet the needs of all employees. Toyota's HR department is fully aware that happy employees translate into better job performance. continued training of existing employees. how well Human Resources addresses the needs of the employee population and how well they maintain an emotionally intelligent workplace environment directly correlates to Toyota's "bottom line" and overall financial success. Ultimately. This involves several areas of the employee experience that Human Resource Managers must attend to. resolution of disputes. while profit can still be maximized avoiding the necessity of selling at a loss just to move aging product. conforming to requirements not previously met and changing to better the entire operation. as well as create an environment that is both productive and conducive to employee satisfaction. It is this system that has. These include: hiring quality individuals that possess characteristics consistent with company standards. Undoubtedly. providing an example of the company's pursuit to address a prior weakness and transform it into a positive strength. 9. which declares that products or vehicles are produced only as consumer orders and demand require. This process also exemplifies the corporation's ability to adapt. 8. This equates to the kind of increased production and quality that renders satisfied customers. in part. maintenance of an overall system of positive reinforcement. allowed Toyota to evade the issues of excess capacity that Ford and GM have encountered. executing standards of evaluating job performance.times. this is also a response to TMC's earlier litigious problems resulting from safety defects. promotion of diversity. costs can be kept at a minimum. 27 .2 JUST-IN-TIME The second concept inherent in the Toyota manufacturing system is that of "Just-in-Time" manufacturing.

However. has created an overall smooth flowing process that yields consistently positive results. missions. energy. especially in a financial sense. but this consistency creates an environment conducive to growth and profit. local communities. a company that was not enjoying a significant amount of financial success would not be in a position that would allow such a variety of projects of a varying scope.10. These include endeavors in the areas of biotechnology.289.353. Other sales and financial figures have already been discussed throughout the prior aspects of this review. culture and the arts. probably the most telling indicator of TMC's success is the numerous additional business ventures it is continuing to support and develop. international exchange and.0 Cost of Revenue. every new program. Highlighting five major areas of contribution. Not only are all aspects of the organization consistent with the ultimate goal of positive fiscal realization. the complementary nature of all facets of the corporation has been responsible for TMC's growing "bottom line".036 Billion dollars!(Toyota. the environment. The meticulous attention paid to the interdependence of all company areas. Toyota was reporting a net revenue of $21. aerospace and entrepreneurial promotion. However. wellness. the Toyota Motor Corporation financially supports causes pertaining to education. Total Gross Profit 18. Certainly.800. strategies and policies. Income Statement 03/31/2009 Total Revenue 03/31/2008 20.455. 2006. 2006).0 4.520. the environment. of course.073. Hoover. despite all of the above-every figure.768. every growing trend and statistic that confirms it-the single most significant confirmation of Toyota's impressive and continuing financial success is in the amount of philanthropic activities they engage in yearly and in an ongoing capacity.770.0 FINANCIAL STRATEGY Toyota's increasing financial success is certainly a function of the successful execution of its objectives.240.570.0 21. Quite simply. marine related projects.887. As of November.529. TMC.0 26.0 28 .0 2.

939. GAAP Adjustment 24.375.278.Selling/General/Administrative2.0 Other.525.0 38.0 Income Tax ± Total Income After Tax -56.0 0. Total Research & Development Depreciation/Amortization 0.781.437.727.0 Operating Unusual Expense (Income) Other Total Operating Income Operating 0.962.0 -503.270.0 -461.0 0.0 -436.495.717.0 42.0 911.0 Items Total Extraordinary Items Net Income 0.937.-436.0 2.0 Net Income Before Extra.0 0.0 1.0 0.381.0 0.0 Minority Interest Equity In Affiliates U.0 Expenses.114.0 Total Adjustments to Net0.0 0.0 1.0.112.0 270.512.0 2.879. Net Income Before Tax 0.0 Expenses.0 Non-Operating Gain (Loss) on Sale of Assets 0.0 0.0 -189.0 2.0 0.534.0 0. Net0.011.S.937.717.879.442.498. Net0.724.140.0 29 .222.0 -560.0 -77.0 Interest Income (Expense).0 0.0 Interest Expense (Income).0 1.0 0.

510.939.0 Normalized EBITDA Normalized EBIT Normalized Tax Normalized Taxes Income Income 1.0 Before-560.011.44 Extraordinary Items Dividends per Share -100.0 3.170.0 443.44 Extrordinary Items Diluted EPS Including-139.159.0 Expense.0 1.140.65 Extraordinary Items Diluted Shares Diluted Weighted Average3.0 Normalized Income Available-436.879.178.45 EPS Excluding-139.495.727.13 540.Income Basic Shares Basic Weighted Average3.135.0 -461.0 2.491.375.113.46.Common313.381.437.13 540.0 46.717.222.0 140.0 2.65 Extraordinary Items Basic EPS Including-139.0 After-503.034.0 Stock Interest Supplemental Depreciation.0 Common Stock Primary Issue Gross Dividends .761.42 3.882.551. Supplemental 1.0 1.525.13 540.66 EPS Excluding-139.140.270.199.177.13 540.0 to Common 30 .937.42 3.0 1.

13 -139.0 Note Receivable .331.0 1. 7.794.0 526.320.249.0 12.984.0 Term Other Long Term Assets.765.543.825.0 Total .0 Total Other Assets.459.394.002.062.Long 5.0 Other Current Assets.812.0 03/31/2008 Investments Total Receivables.65 540.299. Net Total Inventory Prepaid Expenses 5.401.0 2.0 0.853.44 Balance Sheet Statement Assets 03/31/2009 Cash and Short Term2.0 Liabilities Shareholders' Equity Accounts Payable Payable/Accrued and 1.068.864.527.616.Basic Normalized EPS Diluted Normalized EPS -139.0 6.0 632.227.707. Total Total Assets 0.0 Total Current Assets 11.Net Goodwill.908.037.0 563.0 Property/Plant/Equipment.929.0 1.0 5.877.530.0 0.0 0.532.0 6.681.298.455.305.0 31 .212. Net Intangibles.0 2.458.0 3.0 29.110.13 540.784.0 7.0 0.0 986.045.725.220.716.0 0.0 0.929.773.0 32. Net Long Term Investments 0. Total 605.086.

408.721.006.0 497.892. Total Total Liabilities 6.88 3.0 -1.0 3.0 Redeemable.0 20.205.964.28 32 .0 1.0 539.0 32.0 Redeemable Stock Preferred Stock Preferred0.0 Treasury Stock .062.192.0 11.940.675.0 10.0 928.431.0 Shareholders¶ Equity Total Common Shares3.0 397.149.135.0 11.681.050.0 19.0 Debt Current Port.0 Additional Paid-In Capital 501.0 1.Accrued Expenses 1. Net Common Stock 397.301.293.037.667. Total Total Equity -1.0 656.0 5.245.320.447.0 Total Liabilities &29.099.588.211.781.981.0 -241.437.617.458.699.527.931.0 Total Long Term Debt Deferred Income Tax Minority Interest Other Liabilities.552.672.0 2.742.293.000.0 Other Equity.0 Debt/Capital Leases Other Current Liabilities.895.569. of LT2.540.0 0.512.0 Retained (Accumulated Deficit) Earnings11.431.869.0 Notes Payable/Short Term3.207.973.050.0 Non0.260.0 1.793.0 12.107.531.0 642.853.830.550.589.606.Common -1.0 Total Total Current Liabilities 10. 1.530.0 0.469.061.0 910.622.

0 1.717.209.667.094.0 2.716.0 -288. Total Cash from Investing Activities 1.0 Capital Expenditures - - 2.911.0 Net Cash from Financing Activities 698.0 0.886.Outstanding Total Preferred Shares0.968.624.448.0 33 .905.0 3.0 -84.0 Financing Cash Flow Items Total Cash Dividends Paid Net 0.0 Outstanding Cash Flow Statement 03/31/2009 Net Income/Starting Line Depreciation/Depletion Amortization Deferred Taxes Non-Cash Items 03/31/2008 -436.0 81.874.456.170.981.0 0.879.306.937.0 -311.897.491.759.0 Other Investing Cash Flow 1.0 706.392.0 750.0 Operating1.189.0 2.0 Foreign Exchange Effects -129.0 - 1.0 1.135.677.0 1.860.0 1.0 Items.230.975.0 Changes in Working Capital Cash Activities from -137.0 -20.0 -430.419.114.991.990.759.0 -194.0 0.587.458.324.841.0 0.1.495.-70.0 Issuance (Retirement) of Stock.0 -439.0 Issuance (Retirement) of Debt.220.476.793.

0 By analyzing these financial statements we can come out with efficiency and how effective Toyota runs its business. but we want to make the entire life-cycle of a car more environmentally friendly.Ending Balance 1.628.280.0 2.547.01503.0 1. minimizing the impact cars have on environment is a top priority. because it is only for one year.547.061.062.900.0 -271.379. 34 . This technology can help you to keep the environmental impact of your company fleet to a minimum.444.733. but this consequence does not express the whole activity.937 / 10.628.469 = -0.037 = -0.301. but in addition it can also save costs through lower fuel consumption and make a clear statement towards environmental protection. Toyota has been taking a leading role in developing advanced environmental technology.937 / 29. For example: Return on investments = net income/investments Net income / total equity + Total Long Term Debt -436.Net Change in Cash 815. Our aim is not only to reduce emissions from our vehicles. Return on total assets = Net income / Total assets -436.0 1.Beginning Balance Net Cash .832.0267 This ROI reflects how good Toyota uses its finance either from shareholders or from creditors. A Green Advantage Aim: Zero Emissions For Toyota.207 + 6.0 Net Cash .

their unique concepts of Jidoka and Just-in-Time have allowed them the speed and precision in manufacturing vehicles that has afforded them the opportunity to increase production profits and close the gap between themselves and their American based rivals. Of the many qualities that are conducive to making such an accomplishment possible. TMC must be cautious not to spread itself too thin. and the manner in which management is executed. One significant weakness of the corporation is its prior litigious issues and the claims of inadequate safety standards brought against them. and then lose sight of their fundamental area of 35 . the memory of the public is often unforgiving and opinionated. such as Ford and GM. Toyota recognizes the value in valuing employees. it has the sustainability to remain a dominant entity and not just a periodic success. the Toyoda Precepts. Through the Guiding Principles. and appreciated. Toyota has undoubtedly turned this weakness into a lesson learned and implemented a standard of quality and safety that is now hard to match. employees at Toyota are aware of their unique. Seemingly enjoying exploration into areas other than the auto industry. The first of these strengths is TMC's all encompassing emphasis on the value of humans and the necessity of instilling within them a sense of value. position within the company. Despite these most recent accomplishments. This is the downfall of many a corporation who enjoy success. like any company. Toyota may also face future challenges as a function of its diverse expansion. One of the first to execute such a system. Toyota.0 CONCLUSION Overall. seize the opportunity to expand into broader areas. However. Toyota Motor Corporation is a corporation that has the potential to become the frontrunner of the auto manufacturing industry. Quite impressively. another of TMC's strengths is in its application of technology and the utilization of machinery to aid in the manufacturing process. Ironically. there are a few that seem to have the most significant impact in this area. In addition.11. TMC must also work diligently to promote sustainability within The States. despite the current trend reflected by the mantra "Buy American". making it difficult for Toyota to overcome the preconception of negativity that such prior publicity may have instilled in some consumers. has not been without its disadvantages. Unlike many American based companies.

it appears that this would not be an issue at this time or any time in the near future. but more possibly set the standard by which all future manufacturers will follow. However. it is hereby a safe assumption that Toyota will be the driving force in the auto industry before long--a force with the sustainability and feasibility to drive both American and international culture into the next era of mobility and convenience.expertise. The price strategy of Toyota is directed by competitive behavior and market demand. TMC will continue to be a pioneer in the realm of improved transportation. While the corporation has already proven themselves with their Prius. the value it places on human resources and the technological advances that are not only conducive to. Toyota uses cost leadership strategy to stay competitive in automotive market. Not only does it possess the ability to make fiscal gains. as well as the historical patterns of TMC. in light of TMC's continual growth. 36 . the manner in which it executes its business. it is fairly safe to assume that the results of their research and design team will not only set trends. the first mass-marketed hybrid vehicle. zero waste manufacturing process. however Toyota always positioning the price as lower as possible and they expect to gain the profit from cost reduction strategy. In consideration of Toyota Motor Corporation's continued growth. producing cars close to the market Toyota can reduce fix cost and eventually increase profit margin. Through its continued emphasis on environmentallyfriendly research and alternative designs. itself. their present technological projects will certainly set future trends. Toyota has the unique opportunity to play a role in the overall advancement of culture. In light of the information presented in this report. Lastly. as a whole. but also the potential to actually change the future of mobility. Through lean manufacturing. but aimed at the improvement of culture.

com/article/251336/an_evaluation_of_toyota_motor_co mpany_pg4. Wikipedia. (2006).toyota. Open Employee Reviews and Comments on the Toyota Motor Corporation. New York: Free Press.html 5. M. (2006). Porter.yahoo.REFERENCE 1. Hoover. http://business-strategy-case. the Toyota Motor Corporation Off icial Website.com/finance 7. 11.mobilitytrends. Thurlby B (1998) ³Competitive forces are also subject to change´. (2005).franteractive. http://www. TMC.com/2007/12/toyotas-new-cost-saving-strategyccc21. (2006). Management Decision London 3. (1998) Competitive Strategy: Techniques for Analyzing Industries and Competitors. A Brief Overview of Toyota and Its Historical Roadblocks. Hoover's Sales Performance Center. The Vault. The Toyota Motor Corporation: Multinational Corp.net/Porter-Five-Forces. 2.html 37 .net 6. http://wiki. (2006).jp 10. http://www.co.html 4. www.Hoover. www. Info.(2006).answers. The Mobility Trends Conference..blogspot. www.associatedcontent. Yahoo. www. Yahoo! Financials Page. Public Bonds Online Magazine.com/Q/What_is_the_swot_analysis_of_Toyota 12.com 8.wikipedia. www.com 9. www..com/AutoMobility Trends.publicbonds. (2006). Public Bonds.

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