Company overview
Type : Public Founded: 1937 Founder(s): KiichiroToyoda Headquarters: Toyota City, Aichi,Japan; Area served : Worldwide Key people: Fujio Cho(Chairman) Katsuaki Watanabe (Vice Chairman) Products : Automobiles Financial Services

Toyota in India

Toyota Kirloskar Motor Private Limited, Bangalore

Due to the growing market and increasing competition. ‡ 3) The need to explore new markets and maintain a leading position is extremely urgent. this can hardly become reality. localization is the right move forward. ‡ 2) Domestic sale gone to decline.Rationale behind Toyota s decision to spread its operation ‡ 1) Early 70s prod & sales was behind from Ford and GM. . Without proper localization.

Three different programs adopted ‡ New Global business plan (1955-1998) ‡ Global vision 2005 (1996 2005) ‡ Global vision 2010 (2002 2010) .

. ‡ To increase Toyota's offshore production capacity to 2 million units by 1998 ‡ Mainly focused on overseas production due to location advantage.New Global business plan (1955-1998): ‡ Aimed at advancing localization (of production) and increasing imports ( through collaboration with foreign automobile companies).

Second Phase of Globalization Global vision 2005(1996-2005): ‡ ‡ ‡ ‡ ‡ Focus more on localization Cho def Globalization as Global Localization Localizing design. JIT Management hybrid . PDCA. dev and purchasing Kaizen.

2010 Global Vision:  Aimed at achieving a 15% market share (from the prevailing 10%) of the global automobile market by early 2010.' which focused on four key components: ‡ Recycling based society ‡ Age of information technology ‡ Development of motorization on global scale ‡ Diverse society .  Theme of the new vision was 'Innovation into the Future. exceeding the leader GM.

The organization is split into Primary activities Support activities .VALUE CHAIN ANALYSIS OF TOYOTA The chain consists of a series of activities that create and build value.

Toyota motors are known for their reliability which comes from efficient operations. after-sales service. Toyota motors make their product easily accessible. complaints handling. Marketing and Sales: In true customer orientated fashion. This area focuses strongly upon marketing communications and the promotions mix. Outbound Logistics: Toyota motors manage their own Showrooms in different countries. Operations: Individual operations could include organizing the parts to make new cars & the final tune for a new car's engine. Toyota use JIT (Just In Time) approach for handling of raw material. at this stage the Toyota motors prepares the offering to meet the needs of targeted customers. Service: Includes all areas of service such as final checking. .Primary Activities Inbound Logistics: Toyota motors purchase their raw material from all around the world. In order to maximize their availability of raw material Toyota motors maintain good relationship with their suppliers. training and so on. Toyota value their customers.

Licensed and Contract Factories(8) Czech Republic Japan China Pakistan United States India Vietnam Hino Motors .Toyota Manufacturing Facilities(15) Argentina Australia Belgium Brazil Canada France Indonesia Japan Mexico Portugal Russian Federation Thailand Turkey United Kingdom United States Joint Venture.

Human Resource Management (HRM): Toyota motors consider their employees as HUMAN CAPITAL. Toyota motors uses following techniques to retain their employes: · Recruitment · Selection · Training and development · Compensation · Maintenance Firm Infrastructure: Toyota motors implemented Management Information System (MIS). lean manufacturing. Customer Relationship Management (CRM). and other mechanisms for planning and control in different departments. . and ePurchasing (using IT and web-based technologies to achieve procurement aims). The mission and objectives of the Toyota motor is the driving force behind the HRM strategy.Support Activities Procurement: Toyota motors will be responsible for outsourcing (components or operations that would normally be done in-house are done by other organizations). Technology Development: Toyota motors implemented production technology. Internet marketing activities. and many other technological developments.

.Toyota s International Strategy ‡ Strategy of LEARN LOCAL. ACT GLOBAL -learning about unique local needs and requirements and adapt to them while doing global coordination for the operational excellence. ‡ Innovative International Multi-purpose Vehicles Project (IMVP)-creating new knowledge in Japan and transferring it from the headquarters to subsidiaries and affiliations around the globe to a focus of creating knowledge in foreign markets by local staff.

Competitors ‡ American companies upon which Toyota originally developed many of its own production processes from ± GM ± Ford ± Etc. especially Nissan and Honda . ‡ ‡ Korean companies with planned production Other Japanese companies.



camry. CARS: ‡ YARIS ‡ COROLLA ‡ MATRIX ‡ CAMRY ‡ CAMRY SOLARA ‡ PRIUS ‡ VENZA ‡ AVALON SUVs & VANS : ‡RAV4 ‡FJ CRUISER ‡HIGHLANDER ‡SEQUORIA ‡4 RUNNER ‡ LANS CRUISER ‡SIENNA TRUCKS : ‡ TACOMA ‡ TUNDRA ‡ HILUX (VIGO) Brands HYBRIDS: ‡PRIUS ‡CAMRY HYBRID ‡HIGHLANDER HYBRID . PERSONALITY: People who are in sporty attitude having unique style statement would settle for Toyota Altis sport model or Fortuner which would exhilarate their senses. SOCIAL CLASS: People who belong to upper middle class and higher social status would opt for SUVs/MUV s or sedan likecamry etc. prado. INCOME: People falling in category of upper middle high income group and who have ability and willingness to buy.etc.would go in for Toyota cars like land cruiser .4 P s of Toyota : Product FAMILY SIZE: Large family size as in india would increase opportunities for growth in sales of Innova or Fortuner.

‡ PROMOTINAL PRICING: 1. an Innova customer can order mud flaps. Low Interest Financing: This technique is for short period and is mainly used in festive seasons. 2. .g.PRICING STRATEGY ‡ OPTIONAL-FEATURE PRICING: e. Longer Payment Terms: The company stretchers loans over longer period and thus lower the monthly payments. side steppers or other accessories.

. The commercials mainly target at youth and young executives. power.PROMOTION TOYOTA uses many different techniques of advertising as most of print advertisement of TOYOTA COROLLA is individually targeted at factors like comfort . leg room and driving pleasure. styling. performance.

. Similarity of consumer demand around the world. ‡Access to cheaper labour and resources. it is believe that factors such as: ‡Trade liberalisation. and advances in technology and communication has widened the market and consumption. investment as well as production on a global scale.INTERNAL AND EXTERNAL FACTOR OF INTERNATIONAL HUMAN RESOURCE MANAGEMENT OF TOYOTA The rapid pace of globalization has led to a change in global economy during the past several decades.

. and every employee (called a team member) is vigorously working on achieving the annual plan of the company. From the finding of Toyota loom works in the 1920s to the creation of toyota motor co. company executives anticipate long-term trends and have clear strategies. in the 1940s. chief engineers developing cars deeply understand the customer. The toyota culture has evolved since the company¶s founding and is the core competence of the company. It is the reason why operations are lean .INTERNATIONAL JOURNAL OF HUMAN RESOURCE DEVELOPMENT AND MANAGEMENT ‡ TOYOTA CULTURE«. its leaders believed that the key to success was investment in its people. cars hit the market on time and on budget.

Supply chain concept.Toyota production system ‡ ‡ ‡ ‡ ‡ ‡ ‡ Just in time. Pulled system. Judoka(Error detection system) High standards . Kaizen(improvement). Focus on flexibility.


Suppliers ± Lean Production Supply Chain ‡ Organized suppliers into functional tiers ± First-tier suppliers: worked together in a product-development team ± Second-tier: made individual parts ‡ ‡ Encouraged cooperation and communication among first-tier suppliers In ±house supply operations turned into a network of ³quasi-independent first-tier supplier companies´ .

Suppliers (cont. and gradual mutual improvement.) ‡ Substantial cross-holdings between Toyota and suppliers. rather than price through bidding as a way to choose a supplier ‡ . as well as among suppliers themselves even though each supplier is an independent company Cross. not ³supplier cost plus´ system ± Value analysis reduces costs ± Declining prices over life of model due to learning curve ‡ Production smoothing enables suppliers to maintain a constant volume of business Focus is on long-term relationships that underscores cooperation. teamwork. or kanban ³market price minus´ system.sharing of personnel through ± Toyota sending personnel to suppliers to compensate for greater workload ± Toyota transferring senior managers to suppliers for top positions ‡ ‡ ‡ Developed the ³just-in-time´ (JIT) system.

Consumers ‡ The market began to fragment in the 1960s as cars increased in popularity and became essential household goods. Vista. ± Distributors with a ³shared destiny´: wholly owned companies or ones in which Toyota held equity ± ³aggressive selling´: promoted long-term relationship between assembler. Auto. and buyers ‡ ‡ ‡ ‡ ‡ Dealer => production system => build-to-order system Buyers => product development process Direct calls to households with large database of households and buying preferences Focus on repeat buyers Also focus on brand loyalty => ³Toyota family´ ‡ ‡ ‡ ‡ 5 distribution channels in Japan: Toyota. Marketing executive Shotaro Kamiya focused on building a sales network modeled after Toyota¶s supplier network. dealer. and Corolla Closer and more familiar relationship between buyer and salesperson Focus on customer-specified order . Toyopet.

.PESTEL ANALYSIS ‡ Political  National Traffic and Motor Vehicle Safety Act forced manufacturers to improve the safety for the passengers.  In 1992.  The Energy Policy and Conservation Act of 1975 stated that all automobiles must meet a certain mileage per gallon. the driver visibility.  The Clean Air Act passed demanded a 90% decrease in automobile emission within the next six years. the Intermodal Surface Transportation Act required the installation of front airbags. and the braking of the car.

7% of the nation's gross domestic product. ‡ The study also showed that for every autoworker there are seven other jobs created in other industries. ‡ In 2001. This percentage works out to be $ 375 billion dollars in sales. .‡ECONOMIC ‡ The automobile industry has a huge impact on the U.S. economy. the total sales of automobiles were 3. ‡ These industries include anything from the aluminums to lead to vinyl.

Many environmentalists are worried about the impact that the gas cars have on the environment .Socio-cultural ‡ Anyone who drives a nice vehicle is thought to be wealthy. if makes them feel better about themselves. ‡ Another aspect of the sociocultural is the environmental concerns for the need of fuel efficient vehicles. Consumers also just feel better when they are driving a nice or new car.

‡ At the end of the 1990's manufacturers was coming up with the technology to produce internal combustion engine with an electric motor to make the fuel efficient cars. . such as more efficiency and lower cost. Business -to-business marketplaces have given the industry many opportunities because of the internet .Technology ‡ Internet had a huge impact on the automobile industry.

SWOT ANALYSIS  STRENGTH       WEAKNESS  Always charge the premium price  Management Control by local partner Brand image Market Leadership Easy availability of spare parts Dealership network Suitable for rural area  OPPORTUNITY  Switching diesel market toward petrol and CNG market  Failure of competitor model  Unacceptability of competitor model  Price increase in 1000cc  THREAT  Government reducing the excise duty on imported car  IR interest rate Higher  Reduction in Diesel prices  Entrance of the new Firms .

throughout its wide range of business activities.. Toyota Industries Group will contribute to compatibility of‡ environmental conservation and economic growth . and electronic logistics. including automobile. . industrial equipment.

the Toyota Industries Group will act as an upstanding corporate citizen. ‡ In addition. including those with customers and suppliers. in order to promote sustainable management of the environment. . taking an active part in the planning of activities that contribute to various regional communities as well as to our global society.‡ The Toyota Industries Group will aim to foster greater communication and teamwork within a wide range of partnerships.

Questions? Comments? Progress Through Sharing« 34 .

Sign up to vote on this title
UsefulNot useful