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Arif Jabbar 103510482

Value Creation Survey


1. What type of organization do you have exposure or experience with? Toyota Indus Motor Company, Pakistan. For-profit public organization

2. What is the industry focus of this organization? Manufacturing

3. Within this industry, where does this organization rank in terms of market leadership or position? What is the trend in this market position? Three Automotive companies in Pakistan - Suzuki, Honda and Toyota Toyota has largest market share (66%) for the cars equal or above 1300cc. Its known for its durability, resale value and customer service. Suzuki has largest market share among the cars below 1300cc.

4. How would you define value creation? The firms total value created is equal to the sum of customer value, supplier value, and the value of the firm. Thus to compete effectively, the firm must deliver greater customer value, supplier value and value of the firm than its competitors. To achieve this means that the firm must create greater total value, which is the difference between customer willingness to pay and the cost of inputs obtained from suppliers or supplied by the firm itself. Managers must consider these three components of value jointly, not separately. The difference between the value created by the company and its competitors is the firms competitive advantage. 5. Is value creation a concept that the organization should be concerned with? If not, which process helps the organization focus on its mission, mandate or communicated strategy? I believe value creation is an essential and vital concept an organization should be focusing on. It facilitates a company to foster the mission, goal and allows developing strategies directed towards mission. How to create value helps a company to focus on creating competitive advantage through product differentiation, cost advantage and transaction advantage. 6. Are the organizations value creation strategies stable, evolving or erratic? Why? Organizations value creation strategies are often evolving as innovation is required to meet new challenges. The mission of the company remains the same but the way to acquire that mission changes as time brings new challenges. Toyota fosters the innovation by the slogan ConstantlyIs there 7. Who are the key stakeholders that the organization is concerned with? innovating to create new value

Arif Jabbar 103510482

7. Who are the key stakeholders that the organization is concerned with? Is there are a dominant stakeholder? The key stakeholders that the Toyota is concerned with are; Customers, Employees, Business partners, Global Society/local Communities, Shareholders. Toyota Pakistan is more concerned with Customers and Business partners for long term sustainable growth. 8. What are the key drivers or deliverables that support value creation within the organization? Innovation, Sustainable growth, Delight customers, Safety and Quality

9. What process does this organization have in place to develop a value planning strategy? Does it encompass financial and non-financial matters? Example: SWOT, Brainstorming, Consensus, Focus groups, Feedback _______________________________________________________________________ ________________________________ 10. How is the organization structured to support value drivers? Examples: Brand focus, Function focus, Cross-Functional teams, Top down targets, Bottoms up targets, Pay for performance Cross Functional teams Product development department consisted of development, quality, procurement and costing teams for safety and quality drivers. Sales and marketing department consisted of sales, marketing and corporate planning teams for innovation, sustainable growth and customer satisfaction value drivers. Top down targets Top management make sure that safety and quality are the priority and pushes the lower management to focus on these values especially when cost cutting activities 11. Are there key metrics or targets that support value creation in the organization? Examples: Market share, Revenue growth, Costs efficiencies, Growth via acquisitions, Cash, Credit rating, Reputation, Liquidity Cost efficiency, Liquidity and Market share

12. How do you know if the organization is off-target and, if so, what is the timing of recognition? Daily actual versus targeted production shows whether Toyota Pakistan is off target. On average, the company produces 230-240 vehicles a day and any number less than 200 is considered as alarming sign for the company.

Arif Jabbar 103510482 13. What value creation processes or drivers does the informal network at the organization think are missing? Why do you think these value drivers do not attract focus? _______________________________________________________________________ ________________________________ 14. Is there a benchmark firm or operation the organization views as outstanding in value creation and sustainability? If so, why? Do specific metrics drive your yes answer? Concept: The organization seeks out other business models that are highly profitable, successful and stable for benchmarking value creation. _______________________________________________________________________ _ 15. What is an example of a value creator, driver and measurement?