Global Strategy

Presented ByGroup 6 Manvi Bajpai (26) Tanmoy Bhattacharyya (49) Varun Goel (50) Yamini Yadav (53)

Toyota Motor Corporation

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Headquartered in Japan Founded by Kiichiro Toyoda in 1937 Revenues 18.9 trillion Yen in 2010 71,116 employees Operations in North America, Latin America, Europe, Africa, Asia, Oceania and Middle East

Globalization Efforts
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Domestic Problems

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excessive capacity, choosy customers, surplus workforce and intensified competition within Japan. In 1998, Japan sales accounted for a mere 38% of the company's total sales, as compared to 52% in 1990

In June 1995, Toyota announced the 'New Global Business Plan aimed at
advancing localization (of production) increasing imports (through collaboration with foreign automobile companies) over a three year period.

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A major objective of this plan was to increase Toyota's offshore production capacity to 2 million units by 1998. Toyota focused on increasing overseas production significantly by establishing new plants and expanding the capacity of the existing plants

Steps involved in Globalization

Establish a local sales network and launch brand promotion

Build Auto parts manufacturing bases

Establish JVs with local players and build automobiles there

Globalization Time line

Production Bases

Hurdles in Globalization
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Quality Assurance

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no matter where Toyota vehicles are made, they have the same quality. Made by Toyota The Toyota Way needs to be spread across all locations

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Minimize the necessary support that comes from Japan and let each of the overseas bases become self-reliant Respect for people in local community and Toyotas local employees

Globalization Pay offs

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By 2003, Toyota was present in almost all the major segments of the automobile market that included small cars, luxury sedans, full-sized pickup trucks, SUVs, small trucks and crossover vehicles. Global vehicle production increased by 3.3 times since the early 1960s, Toyota's production had increased by 38 times

2010 Global Vision

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Aimed at achieving 15% market share of global market and surpassing GM The theme of the new vision was 'Innovation into the Future,'

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Recycling Based Society Age of Information Technology Development of Motorization on a Global Sale Diverse Society

Global Production Center

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To ensure that all across the overseas bases the value of Toyota remain the same Best Practices need to be determined and followed Initially established with Motomachi plant in 2003 Activity Goals:

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Human Resources Development Localization of Model Switchovers Helping plant personnel learn how to prepare for the production of redesigned and/or different vehicle models

In 2006 GPC were opened in United States, United Kingdom and Thailand to ensure skill training and HR development in their respective regions

Globalization and Localization Manufacturing

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During the almost 50 years since they first began exports, Toyota vehicles have found their way to over 170 countries and regions throughout the world Currently there are 52 bases in 27 different countries and regions. In addition, there are design and R&D bases in seven locations overseas

from development and design to production, sales and service, Toyota has now achieved consistent globalization as well as localization. - Koichi INA, Senior Technical Executive, Toyota Motors

The Global Toyota

The reaches of Toyota extend throughout the world. Toyota has plants located in every continent except Antarctica, with many more still under construction. Even in Europe, production by Toyota subsidiaries will increase from 500,000 units to 610,000 units made in the United Kingdom, France, and Turkey by 2006 The first Chinese-built Toyota, the VIOS, was made in October 2002 As a measure of attempting to tap into the Chinese market, Toyota hopes to capture 10% of the market by 2010 In North America alone, upwards of 175,000 people are employed by Toyota subsidiaries. As of today, the majority of Toyotas purchased in North America are built in North America. In North America, the Avalon, Camry, Corolla, Matrix, Sequoia, Sienna, Solara, Tacoma and Tundra are produced. At TMMAL, more than 120,000 engines are produced annually for the Toyota Tundra , which in turn is built by TMMI. More than 150,000 Tundras will be built at TMMT, a plant to be built in Texas by 2006. Even the Toyota Tacoma will be produced in Mexico starting in 2005 A joint venture between General Motors and Toyota, known as NUMMI (New United Motor Manufacturing, Incorporated) is currently based in Fremont, California As a part of Toyota policy, much of the steel used in production is purchased locally

Thank You