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4/2/2012

INDUSMOTORS

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Contents
1.

Introduction...................................................................................................................................... 3

2.

History .............................................................................................................................................. 4

3.

Management Policy ....................................................................................................................... 5

4.

Company Strategy ......................................................................................................................... 6

4.1. Vision Statement ............................................................................................................................ 6


4.2. Mission Statement .......................................................................................................................... 6
5.

SWOT Analysis............................................................................................................................... 7

5.1. Weaknesses & Strength ................................................................................................................ 7


5.2. Threads & opportunities ................................................................................................................ 8
5.3. Success key Factors ...................................................................................................................... 9
13. Strategy Formulation ................................................................................................................... 10
13.1.

Input Stage ............................................................................................................................ 10

13.1.1.

EFE Matrix ......................................................................................................................... 10

13.1.2.

IFE Matrix .......................................................................................................................... 10

13.1.3.

CPM.................................................................................................................................... 10

13.2.

Matching Stage ..................................................................................................................... 10

13.2.1.

BCG Matrix ........................................................................................................................ 10

13.2.2.

IE Matrix ............................................................................................................................. 10

13.2.3.

Grand Strategy Matrix...................................................................................................... 10

13.3.
13.3.1.

Decision Strategy ................................................................................................................. 10


QSPM ................................................................................................................................. 10

14. Implementation Strategy ............................................................................................................. 10


14.1.

E1 ............................................................................................................................................ 10

15. Evaluation Strategy ...................................................................................................................... 10


15.1.

E1 ............................................................................................................................................ 10

1. Introduction

2. 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.

3. Management Policy
We as a team at Indus Motor Company are committed to comply with the requirements of
our Integrated Management System and to endeavor to continuously improve upon it in
order to:

Manufacture high Quality Products.


Generate Customer Satisfaction.
Provide Service to the Society.
Maintain Market Leadership.

Identify and avoid/mitigate those environmental aspects which have negative environmental
impacts. Comply with all applicable legal, regulatory and other requirements related to
Environment, Health and Safety,
Assist society by making the environment more friendly.
Design and maintain facilities, establish systems, provide training and conduct operations in
a manner that safeguard people and property.
Identify, evaluate & mitigate health risks related to our operations that potentially affect our
employees, contractors and the public.

4. Company Strategy
4.1. Vision Statement
"IMC's Vision is to be the most respected and successful enterprise, delighting
customers with a wide range of products and solutions in the automobile industry with
the best people and the best technology".

The most respected.

The most successful.

Delighting customers

Wide range of product

The best people.

The best technology.

4.2. 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.

5. SWOT Analysis
5.1. Weaknesses & Strength

WEAKNESSES

1. Their dealership network is weak


2. all major decisions are made in Japan by
the holding company
3. Availability Of Genuine Spare Parts
4. Limited Product Range
5. Focus on Selective Segment
6. High Price
7. Inflexible business/Manufacturing Process
8. Ignore Light Commercial Vehicle
9. Expensive spare parts
10. Over look used car business
11. Vendor dependency
12. Sold imported cars
13. Labour Union Issues
14. Japanese car manufacturer - seen as a
foreign importer.

STRENGTHS

1. Global organization, with a strong


international position in 170 countries
worldwide.
2. Technology
3. Indus Motor Has Set Up A Paint System,
Which Is Considered No 3 In Asia
4. Recognized As Market Leader In The
Industry
5. Household Product
6. Brand Loyalty
7. Production Capacity
8. Satisfy the customer each & every
segment of Market.
9. Efficient And Well Trained Staff
10. Low Employee Turnover Rate [3%]
11. Low Absent Rate [5%]
12. Product Differentiation
13. Well Defined And Bureaucratic
Organizational Structure
14. Leading Position In 1300 & 1600 Cc
15. Quality Product
16. New look & design
17. Kaizen Culture
18. Resale Value
19. After Sales Service
20. Financial Stability
21. Establish Brand In Government Sector
22. Increase product line
23. Concern beyond car
24. Global organization, with a strong
international position in 170 countries
worldwide.
25. Strong brand image based on quality,
environmental friendly (greener),
customized range.

5.2. Threads & opportunities

THREATS

1.
2.
3.
4.
5.
6.
7.
8.
9.

Government tax policies


The law and order situation
political instability
The increasing inflation rate
Exchange rate
Predictions of a downturn in the economy
Financial crisis
increasing price of global fuel prices
Rising oil prices (fuel costs) and the costs
of maintaining cars
10. Lower cost competitors or imports
11. Saturation and increased competition
12. Shifts in the exchange rates affecting
profits and cost of raw materials.
13. Changing demographics e.g. number of
large families is declining
14. Changing usage - families using the car

OPPORTUNITIES

1. Continued global expansion


2. Increase demands
3. Continued global expansion - especially in
the emerging markets e.g. China and
India, Russia, where population and
demand is accelerating.
4. collaborations
5. Acquisitions and joint venture
6. Innovation -first to develop commercial
mass-produced hybrid gas-electric
vehicles
7. Product and services expansion
8. Targeting Higher Middle Class
requirements
9. To expand more aggressively into new
segments of the market.
10. To produce cars which are more fuel
efficient, have greater performance and
less impact on the environment.
11. To develop new cars which respond to
social and institutional needs and wants.
The development of electric cars, hybrid
fuels, and components reduces the impact
on the environment. Toyota's Eco-Vehicle
Assessment System (Eco-VAS) has
helped in production,
12. To expand more aggressively into new
segments of the market. The launch of
Aygo model by Toyota is intended to take
market share in youth market.

5.3. Success key Factors

Success Key Factors

1. High Price
2. Product Quality
3. Technology
4. Brand Loyalty
5. Global organization
6. Recognized As Market Leader
7. New look & design
8. Resale Value
9. Increase product line
10. After sale service
11. Establish brand
12. Imports
13. Financial Stability
14. Spare Parts
15. Production capacity
16. Integrated Management Policy

13. Strategy Formulation


13.1.

Input Stage

13.1.1.

EFE Matrix

13.1.2.

IFE Matrix

13.1.3.

CPM

13.2.

Matching Stage

13.2.1.

BCG Matrix

13.2.2.

IE Matrix

13.2.3.

Grand Strategy Matrix

13.3.

Decision Strategy

13.3.1.

QSPM

14. Implementation Strategy


14.1.

E1

15. Evaluation Strategy


15.1.

E1