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History:

Indus Motor Company (IMC) is a joint venture between the House of Habib , Toyota Motor Corporation Japan (TMC) , and Toyota Tsusho Corporation Japan (TTC) for assembling, progressive manufacturing and marketing of Toyota vehicles in Pakistan since July 01, 1990. IMC is engaged in sole distributorship of Toyota and Daihatsu Motor Company Ltd. vehicles in Pakistan through its dealership network. The company was incorporated in Pakistan as a public limited company in December 1989 and started commercial production in May 1993. The shares of company are quoted on the stock exchanges of Pakistan. Toyota Motor Corporation and Toyota Tsusho Corporation have 25 % stake in the company equity. The majority shareholder is the House of Habib. IMC's production facilities are located at Port Bin Qasim Industrial Zone near Karachi in an area measuring over 105 acres. Indus Motor company's plant is the only manufacturing site in the world where both Toyota and Daihatsu brands are being manufactured. Heavy investment was made to build its production facilities based on state of art technologies. To ensure highest level of productivity world-renowned Toyota Production Systems are implemented. IMC's Product line includes 6 variants of the newly introduced Toyota Corolla, Toyota Hilux Single Cabin 4x2 and 4 versions of Daihatsu Cuore. We also have a wide range of imported vehicles.

Executive Summary:
Indus Motor Company is one of the Automobile Companies which formed with the help if house of Habib, Toyota Motor Corporation, Toyota Tsusho Corporation. It manufactures and Imports Cars and enjoys a healthy share in the market. It is competing with the Honda, Nissan, Suzuki and Mitsubishi. To sustain its lead IMC must maintain Strategic Competitive Advantage which is its Production Strength, Ability to produce Quality cars with respect to low cost and Research and Development in Hybrid and Bio Fuel Cars. But recently Company is in Stabilization mode trying to improve its functional area, consolidation of resources and maintaining SCA. In our Opinion its is the best move made by IMC to Survive the Financial Holocaust.

Company Analysis:

History:
Indus Motor Company (IMC) is a joint venture between the House of Habib, Toyota Motor Corporation Japan (TMC) and Toyota Tsusho Corporation Japan (TTC) for assembling, progressive manufacturing and marketing of Toyota vehicles in Pakistan since July 01, 1990. IMC is engaged in sole distributorship of Toyota and Daihatsu Motor Company Ltd. Vehicles in Pakistan through its dealership network. The company was incorporated in Pakistan as a public limited company in December 1989 and started commercial production in May 1993. The shares of company are quoted on the stock exchanges of Pakistan. Toyota Motor Corporation and Toyota Tsusho Corporation have 25 % stake in the company equity. The majority shareholder is the House of Habib. IMC's production facilities are located at Port Bin Qasim Industrial Zone near Karachi in an area measuring over 105 acres. Indus Motor Companys plant is the only manufacturing site in the world where both Toyota and Daihatsu brands are being manufactured. Heavy investment was made to build its production facilities based on state of art technologies. To ensure highest level of productivity worldrenowned Toyota Production Systems are implemented. IMC's Product line includes 6 variants of the newly introduced Toyota Corolla, Toyota Hilux Single Cabin 4x2 and 4 versions of Daihatsu Cuore. We also have a wide range of imported vehicles.

Goals:
Vision Statement:
To be the most respected and successful enterprise, delighting customers with a wide range of products and solutions in the automobile industry with the best people and the best technology". The most respected. The most successful. Delighting customers. Wide range of products. The best people. The best technology.

Vision Statement & Human Resource Policy: The vision statement of Toyota Indus Motors Company Ltd is clear and powerfully communicates its intentions and motivates the team and organization to realize an attractive and inspiring common vision of the future. It defines the organizational purpose in terms of the organizations values rather than bottom line measures. It seeks to create value for its customers by delighting them. Furthermore t envisions being the most respected, successful, having a wide range of products, and the best people and technology. The mission statement of Toyota Indus Motors Company Ltd, defines the organization's purpose and primary objectives. Its prime function is to provide a safe and sound journey. It provides a reason for being, which is one of the most important aspect of a mission statement. The mission statement is clear and concise and provides focus and a sense of direction. Toyotas focus as mentioned in the mission statement is to develop new technologies and to conserve energy. They also seek to be environment friendly.

Toyota has kept its identity as a company, including its philosophy and principles, remarkably consistent for many years. Its values of trust and continuous improvement permeate its commitment to long-term thinking, developing people, standardization, innovation, and problem solving. It is a learning organization that literally thrives on its people engaging in identifying and solving problems together and achieving results that will benefit everyone. The Toyota Way culture is the critical ingredient in the company's organizational DNA, and it allows for constructive local adaptation of a global company at the same time that it avoids the potential pitfalls of diluting the Toyota Way. The culture at a Toyota plant in Georgetown, Kentucky is not identical to that of a Cambridge, Ontario, plant, nor is it the same as the culture in Jakarta, Indonesia. Each plant has certain unique cultural elements based on its specific context, as defined by its history, locale, leadership, and people. However, while local culture certainly is a strong influence in the company's widespread global branches, Toyota has developed certain core principles that must be present in every Toyota operation regardless of location.

Employment Planning & Forecasting: Employment, as mentioned earlier is different for different regions in which Toyota is operating. In the same way it is different for Pakistan also. Employment is done through newspapers advertisements. One for the operations of the plant or in the mechanical industry, second for the office management or to do paper work and the third for the employment of local dealerships in other cities of Pakistan. Further more these three teams are managed by a head of HR Department who is the chief HR manager for Toyota Indus Motor Corporation. Next to him three more managers work, one for the Regional recruitment of employees i.e. recruitment of employees at the local dealerships in different cities of Pakistan. The other two mangers are used for recruitment of employees at the Head office; one for the Labor Force to work at the plant; for physical work at the plant such as supervision, helping, assembly line work etc, and the other is used for the recruitment of employees for the office work; in finance department or sales department. The regional HR manager is a kind of on the move manager his/her office is at the head office, but he visits the head offices of different regions for the purpose of his work. For example at Lahore, Toyota

Ravi Motors is the regional head office for Lahore the regional manager will visit the head office and give instructions for the recruitment at other dealerships and he might also take part in recruitment. Note:

The recruitment of employees at the regional offices is only done at high level i.e. for the posts of manager of the whole dealership or showroom, assistant managers and HR managers, the other recruitment of employees at the dealerships, showrooms or local distributors is done by the HR department of the regional head office.

HR Head (head office Karachi)

HR Manager Plant

HR Manager Office

HR Manager Regional

HR Managers Paint job, Assembly line etc.

HR Managers Supervisions

HR Manager Fianace, Sales, Marketing

HR Regional Departments Lahore, Faisalabad, Sargodha

Recruitment Policy & Planning: As mentioned earlier the policies for recruitment are different for different regions, according to he cultures and economic conditions. In Pakistan, mostly the private operating firms recruit their employees on contract basis. In the same Toyota in Pakistan also recruits its employees at contract basis. The recruitment at different levels provides different service tenures. The recruitment of a specific employee for a specific job is done on merit basis, experience gained and specialization in the skill. The job of the employee is accurate to what he is employed i.e. no extra or irrelevant job (more than to what employee is qualified) and lowered job meaning that he/she is qualified for a senior manager and he/she is posted at a lower level. Whereas job enlargements and enhancements are done by the managers looking at the performance of the employee. Mission Statement:

Mission of Toyota is to provide safe & sound journey. Toyota is developing various new technologies from the perspective of energy saving and diversifying energy sources. Environment has been first and most important issue in priorities of Toyota and working toward creating a prosperous society and clean world. [Annual Report, 2007]

Focus:
IMCs vision & mission states that it wants to provide best technology, best products and till now it proved itself. Trough its products and skilled human resource it has done a pretty good job. Company is also changing according to customer need and also exploring new horizon in fuel efficiency. Company is also aware of Depletion of natural Resources and the extent of Damage it causes to the environment trough its corporate social responsibility. It is healing the environment and its countless awards are a testament to its self less efforts.

Culture:
IMC has been working in Pakistan for than 20 years. The company has set up its organizational trends according to the norms, believes and culture of Pakistan.

Strengths:
IMC products are the most reliable, durable and advanced in automobile sector of Pakistan. IMC also shares the largest market share in Pakistan. It has the maximum number of sale & service points spread in more than 150 cities of our country. Moreover its employs are much more loyal towards their company as IMC provides the best healthy working environment for their workers. Other than this most people buy IMCs products as they the most suitable for the roads of Pakistan.

Weaknesses:
A big weakness taken in count for Toyota Indus Motor Corporation is that it has only one manufacturing plant in the country, which is situated in Karachi at Port Qasim, although it has been operating in Pakistan for more than 20 years. The manufactured vehicles are to be loaded

on freight and container trucks and then distributed to the sale points. This creates a huge problem for the customer as the customer has to pay thousands of rupees for freight charges and if something goes wrong during the transportation of the vehicle, the company is not responsible for the damage. Another weakness counted is the delay in delivery of vehicles and sometimes it takes a period of 4 to 5 for the delivery of a booked vehicle.

Competitor Analysis:
Market Position of Competitors:
Toyota Indus Motor Corporation faces a heavy competition with Honda Atlas Motor Company and Pak Suzuki Motors. It also shares a little competition with Mitsubishi, Nissan and other imported vehicles. Toyotas market s much stronger than its competitors because the after sale value of its products is much higher than its competitors.

Market Shares:
According to a report of Pakistan Auto Mobile Organization till 2008 TIMC has a market share of 45%, HAMC has a share of 9%, Pak Suzuki has a 44% market share and rest of the market is shared by Mitsubishi, Nissan and other imported vehicles.

Climate:
Political and Legal Environment:
Every organization has to cope up with the Political and Legal Constraints of the country in which it is working. TIMC fully supports and works according to the economic policies of Pakistan. The prices of vehicles are set according to the policies. The company also gets affected

by the political situation of the country, continuously changing policies and terrorist activities have affected the economy in a worst manner. Due to current recession the prices of vehicles are raised up to 25%.

Economic Environment:
Following the current exchange rates and world recession the automobile sector of Pakistan has been severely affected. The prices of automobiles in Pakistan have been raised up to 25%. This raise in prices reduced the sales of almost all the companies of Pakistan. But still, as TIMC providing best quality and customer satisfaction still hold the Worlds Best Selling award for the year 2008.

Social and Cultural Environment:


None of the environment in the world can succeed in its business until and unless it copes up with the cultural and social environment of the region in which it is operating. Toyotas products and its internal and external environment both enhance the cultural and social environment of Pakistan. The staff and workforce of the organization are trained specially for this purpose.

Technological Environment:
Toyota Indus Motor Corporation is striving hard to provide the best technological advancement with low prices in its products. The company is producing environment friendly vehicles which emit less smoke in the air. The company has now introduced the VVTi engine technology, these engines are much more fuel efficient than the older ones.

SWOT Analysis:
Strengths:
Production Strength:Indus Motor Company production facilities are located at Port Bin Qasim Industrial Zone near Karachi in an area measuring over 105 acres. It started of the with a Distributor business but after

acquiring the expertise and technical skill to convert into manufacturing and achieved one of the biggest car manufacturing facilities in Pakistan. Production facility has state of the art manufacturing equipment Such Car Frame Assembler, Rust Protection Paint Vicinity, Engine Assembly and Installation, Interior Manufacturing Facility, Interior Installation. Because of State of the art Facility of the company has established Born to Last attitude.

Marketing Strength: Toyota marketing strength is there market share and customer loyalty but Toyota is also awarded The marketing award 2008 for the customer attraction advertisements.

Human Resource: IMC is one of the best employers in country from management to manufacturing team, very employee is satisfied & Motivated with Salary and Benefit Packages and try to deliver there optimum performance. Consistent with its philosophy of The Toyota Way of Human Resource Management and to remain current and aligned to the best in the industry, The Company continues to fine tune its HR policies and procedures to best serve the organization's present needs and growth initiatives. Employees tenure in company is very pleasant and they call this Experience the Indus Experience. IMC is Awarded best employer in 2005 there Slogan is Action, commitment, Teamwork. Such beliefs made IMC a Titan in Automobile Industry.

Customer Satisfaction and trust: One of the Strengths of IMC is its Customer Satisfaction & trust. The slogan born to last is not just another catch phrase instead they deliver Born to last quality; this ensures Customer Satisfaction & trust. IMC makes sure that its Dealers provide the same Customer Care IMC conducts workshops and seminar for Dealer Staff so that the interaction with the customers shall be a pleasant one. This Customer care leads to Customer Loyalty thats why Toyota sales were through the roof in 2007. (18.2% to 42,406 units)

Weaknesses:

Competition is on the rise Honda arch rival of Toyota is coming up with new models with sleek shape, better mileage and high performance. Other competitor Like Chevrolet & Jaguar also decided to enter Pakistani market but IMC is still producing new Models with old shape. If IMC wants to remain Market leader it must come up with new Shape for cars which look more desirable to Customer. Protectionism will no longer provide safety with up coming Ruthless competitors. If IMC didnt prepare it self for this competition this weakness could prove to be Fatal.

Opportunities:
Although Global Economy is hit by recession but fortunately Pakistans Economy is not that much affected because of this pandemic. IMC market share can increase if it works on Cars which provide more mileage on less costly Fuel. Toyota is already working on efficient fuel cars and if this technology enters in Pakistani market then Toyota can go beyond its market share.

Threats:
THREAT OF NEW ENTRANT: Although Pakistani Market is dominated by protectionism but because of financial crisis a lot of Automobile companies have there eyes on South East Asia as a dumping site Indus motor company must gear up for fierce competition. These new Entrants have sufficient capital and guts to start a price war among the local industry. THREAT OF SUBSITUTE PRODUCTS America is the biggest victim of economic Rescission and the biggest car consumption country is America.American People has taken a Saving Stance now the American car manufactures have there eyes on India,China, and Pakistan as a dumping sites so some time in up coming years IMC can face fierce Competition andhave to step up for the competition because Pakistani people have a lot of options.

Selection Process: A good selection process helps to "thin the crop" to identify the people that will best fit your culture and needs. You may look at this section and think, "We already have all our people, and we are stuck with some bad ones and there is nothing that we can do." Take heart. Even the best selection process in the world will allow some bad seeds to pass through. In the end you must work with what you have and make the best of that. The skills and traits that are targeted

during the selection process are skills that can be developed. But every company has people who leave and must be replaced. Spending time up front with the selection process can help to reduce the time needed to develop these skills later. The selection process used at the Toyota plant in Georgetown is based on the idea that a person's past behavior is a good indicator of future behavior. The selection process is long and provides many opportunities to see potential candidates in various situations so that their behavior can be evaluated. These situations include simulated work activities, and an interview that concentrates on actual experience. As discussed in The Toyota Way it is a multi-step process beginning with weeding out hundreds or thousands of applications and then conducting an aptitude test. We will focus here on the later stages of interviewing once a smaller subset has been identified. The selection process targets the following skills for team associates: 1. Job-fit motivation- Does the individual's personal motivation fit well with the companies? Will the work and the environment provide them with personal satisfaction? You may find that this person would be better suited for other jobs or tasks. 2. Meeting membership- Does the person have the ability to work with others, to participate but not dominate, and to gain cooperation and support of others? 3. Meeting Leadership- This trait may not be as important for team associates, but it includes the ability to convey ideas to others and to get support when needed. Toyota does like to grow leaders (chapter 10) so potential leaders are sought out. 4. Initiative- Is this person someone who will initiate action, and go above the minimum necessary to achieve goals, or do they wait to be told what needs to be done? Do they initiate action beyond their boundaries without approval? 5. Ability for the work- Has the person ever performed this type of work? If not, do they have similar experience such as home repairs, or publishing the newsletter for a church or civic group? 6. Adaptability- The Toyota Way is founded on continuous improvement, which means continuous change. People need to be able to handle various situations, tasks, and people. 7. Problem identification and problem solving ability- Many people can spot problems. Are they able to provide solutions? Do the expect others to solve the problem for them? 8. Work Tempo- Toyota assesses work tempo using a simulated work experience. This allows the candidate to understand the future work requirement to make sure they know what they are in for, and Toyota can assess whether the person has aptitude for the work. 9. Communication skills- Does the person speak clearly? Do they communicate ideas effectively? Are they able to understand questions and answer specifically?

After a long selection process Toyota Way, if the employee is fit for the job, he/she works for the Toyota on a provisional period of three months. In which further his skills are checked up to the experience level. Training & Development: Employees recruited at TIMC are then trained to work at the specific field for which they are recruited. For this purpose different training programs are designed. Employees recruited at the head office are trained in the different training schools made in the head office Karachi. These schools include different Plant job training schools in which employees are practically trained for the job they have to do. In these schools the basics of the practical job is taught to the employees and also they are trained that they have to maintain the quality assurance for making the product. These schools also train the employees to improve their personal skills and how to work in a specific condition i.e. in a group or under a specific situation. Development of the employee during the job tenure is subjected to experience and qualification of the employee. At higher levels of job the promotions are done on the basis of passing tests or qualifying to interviews whereas at lower job levels or in the plant job sections the promotion is subjected mostly to experience of the practical work. Where as at regional head offices employees are mostly recruited on experience basis and their promotion is subjected to experience only.