project on toyota

8/3/2019 Project on Toyota

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History

The Toyota Motor Co. Ltd was first established in 1937 as a spin-off from ToyodaAutomatic Loom Works, one of the world's leading manufacturers of weaving machinery.

The Toyoda Automatic Loom Works was then headed by Japan's "King of Inventors"

Sakichi Toyoda. The patent rights to one of his machines had been sold to Platt Brothers

(UK) and provided the seed-money for the development and test-building of Toyota's first

automobiles.

August 1997 marked the 60th anniversary of TMC. The fledgling company founded

by Kiichiro Toyoda, Sakichi's son, has since blossomed into the leader that it is today.

In 1950 the company experienced its one and only strike. Labor and management

emerged from this stoppage firmly committed to the principles of mutual trust and

dependence, and that corporate philosophy still guides our growth today.

Production systems were improved in the late 1950s, culminating in the

establishment of the 'Toyota Production System.' It became known as TPS in 1970 but was

established much earlier by Taiichi Ohno. Based on the principles of Jidoka, Just-in-time and

Kaizen, the system is a major factor in the reduction of inventories and defects in the plants

of Toyota and its suppliers, and it underpins all our operations across the World.

Toyota launched its first small car (SA Model) in 1947. Production of vehicles outside

Japan began in 1959 at a small plant in Brazil, and continued with a growing network of

overseas plants. Toyota believes in localizing its operations to provide customers with the

products they need where they need them; this philosophy builds mutually beneficial long-

term relationships with local suppliers and helps the company fulfill its commitments to

local labor.

Over and above manufacturing, Toyota also has a global network of design and

'Research and Development' facilities, embracing the three major car markets of Japan,

North America and Europe.

In every community in which the company operates, Toyota strives to be aresponsible corporate citizen; close relationships with people and organizations in the local

community are essential contributors to mutual prosperity. Across the world, Toyota

participates enthusiastically in community activities ranging from the sponsorship of

educational and cultural programmers to international exchange and research.

Toyota Motor Corporation commonly known as Toyota and abbreviated as TMC

, is a multinationalautomaker headquartered inToyota, Aichi, Japan. In 2010, Toyota Motor

Corporation employed 317,734 people worldwide,[2] and was the world's largest automobile

manufacturer by production.
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INTRODUCTION

Toyota Motor Corporation is headquartered inToyota City,Aichi. Its Tokyo office is located in Bunkyo, Tokyo. Its

Nagoya office is located in Nakamura-ku,Nagoya. In addition to manufacturing automobiles, Toyota providesfinancial

servicesthrough its Toyota Financial Servicesdivisionand also builds robots.

In predominantly Chinese-speaking countries or regions usingtraditional Chinese characters, e.g. Hong Kong

and Taiwan, Toyota is known as In predominantly Chinese speaking countries using simplified Chinese characters(e.g.

China), Toyota is known as (pronounced as "Fngtin" in Mandarin Chinese). These are the same characters as the

founding family's name "Toyoda" in Japanese, which translate to "fertile rice paddies" in the Chinese language as well.

The Toyota Company is a leader in the car manufacture, assembly and distribution the worldover. A very efficient management style that the company uses has been one of the reasons for the firms

good performance. There are many other salient factors that have made the company achieve the niche of

market leader. The market structure the company operates in cannot be definitely stated. Some may consider

it to be a monopoly. This is due to the fact that the company is a dominant market player in car exportation.

In fact, its differentiation strategy has made it enjoy an almost monopolistic presence especially in the

developing nations of the world. On the other hand, the market structure can be seen as an oligopoly. This is

due to the fact that there are other key players like GM who are peer competitors. Toyota is keen to see what

these competitors are doing and make sure it reacts to their actions in a way that will guarantee its market

leadership.
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Visit to the Miyagi prefecture office, July 19, 2011.

From left, Iwate Governor Takuya Tasso, President Akio Toyoda, and Miyagi Governor

Yoshihiro Murai

The new headquarters of the Toyota Motor Corporation, opened in February 2005 in Toyota City.


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Logo and branding

Employee at Toyota Museum explains development of Toyota name and brand

In 1936, Toyota entered the passenger car market with its Model AA and held a competition to establish a new logo

emphasizing speed for its new product line. After receiving 27,000 entries, one was selected that additionally resulted in a

change of its moniker to "Toyota" from the family name "Toyoda." It was believed that the new name sounded better and

its eight-stroke count in the Japanese language was associated with wealth and good fortune. The original logo no longer

is found on its vehicles but remains the corporate emblem used in Japan.

Still, there were no guidelines for the use of the brand name, "TOYOTA", which was used throughout most of the world,

which led to inconsistencies in its worldwide marketing campaigns.

To remedy this, Toyota introduced a new worldwide logo in October 1989 to commemorate the 50th year of the company,

and to differentiate it from the newly released luxury Lexus brand. The logo made its debut on the 1989 Toyota Celsior

and quickly gained worldwide recognition. There are three ovals in the new logo that combine to form the letter "T", which

stands for Toyota. The overlapping of the two perpendicular ovals inside the larger oval represent the mutually beneficial

relationship and trust that is placed between the customer and the company while the larger oval that surrounds both of

these inner ovals represent the "global expansion of Toyota's technology and unlimited potential for the future.

The logo started appearing on all printed material, advertisements, dealer signage, and the vehicles themselves in 1990.

Much like the design of the cars we sell, our logo has undergone a number of refinements and improvements over the years.:
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COMPANY AT A GLANCE


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OBJECTIVES

Study any organization in detail. Collect data pertaining to

the following:-

Operations strategy Financial strategy

HR policy

Marketing strategy

Type Public company

TYO:7203

LSE:TYT

NYSE:TM

Industry Automotive

Robotics

Financial services

Founded August 28, 1937

Founder(s) Kiichiro Toyoda

Headquarters Toyota, Aichi, Japan

Area served Worldwide

Key people

Fujio Cho (Chairmanand Representative

Director)

Akio Toyoda (Presidentand Representative

Director)

Products Automobiles

Financial Services

Production output 7,308,039 units (FY2011)[1]

Revenue 18.99 trillion (FY2011)[1]

(US$235.89 billion)

Operating income 468.28 billion (FY2011)[1]

(US$5.82 billion)

Profit 408.18 billion (FY2011)[1]

(US$5.07 billion)

Total assets 29.818 trillion (FY2011)[1]

(US$370.3 billion)

Total equity 10.33 trillion (FY2011)[1]

(US$128.32 billion)
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METHODOLOGY:-

All the analysis is done with the help of secondary data.

Technology

The latest corporate crowdsourcing experiment comes to us from Toyota, which this week launched its "Ideas for Good"

initiative--an opportunity for consumers to repurpose Toyota automotive technology to benefit society outside of the automotive

space. In return, winners will get to choose from one of three Toyota cars (2011 Prius, 2011 Highlander Hybrid or 2011 Venza)

and be part of an "Idea Design Session" event.

The campaign, which is being produced in conjunction with Saatchi & Saatchi LA, asks entrants to work with five Toyota

technologies:

Total Human Model for Safety (THUMS) An advanced injury-simulation software that measures more than the

conventional crash test dummy can.
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Hybrid Synergy Drive (HSD) HSD converts braking energy into electricity. The hybrid system helps lower emissions

while raising mpg.

Solar Powered Ventilation System The Toyota Prius offers this system that helps keep the interior air temperature near

the outside ambient temperature, when the vehicle is parked in direct sun.

Touch Tracer Display An advanced touch-activated display system that allows drivers to control music, temperature and

other features from the steering wheel without taking their eyes off the road. Touch Tracer is the first display system in the world

to allow steering wheel controls to read out on the instrument panel.

Advanced Parking Guidance System (APGS) Available on the Toyota Prius, this system utilizes ultrasonic sensors in the

front and rear bumpers to detect open parking spaces and helps guide the car into those spaces with only soft driver braking.

Some of these technologies are already being used outside Toyota. THUMS, for example, is being used by Wake Forest

University to study the effects of tackles and hits on football players. It is also being used by NASCAR to analyze the effects of

high-speed impacts.

The benefits of Toyota's crowdsourcing experiment are twofold: the brand gains recognition for some of its more innovative

technologies, and it gets to leverage the ideas of the crowd, to boot.

Toyota is far from the first company to dabble in online crowdsourcing. Pepsi's multimillion dollarRefresh grant program has

been wildly successful, and GE's recent $200 millionEcomagination Challenge captured the attention of environmentally-aware

Internet junkies. Toyota's promise of a shiny new car will probably be enough to get a decent number of participants in its

contest.

About the Technologies T.H.U.M.S.

Solar Powered Ventilation System

Hybrid Synergy Drive

Advanced Parking Guidance System

Touch Tracer

T.H.U.M.S.

T.H.U.M.S. (Total HUman Model for Safety) is an advanced injury-simulation software that measures injury to parts of the body not measurable

with conventional crash test dummies.

T.H.U.M.S. (Total HUman Model for Safety) is an advanced injury-simulation software. T.H.U.M.S. has two million distinct parts, including

bones, ligaments, tendons and the muscular systems, enabling Toyota to better understand injury mechanisms in crashes that have historically

been difficult to analyze with current crash test dummies.

Toyota is using T.H.U.M.S. to better understand the mechanisms that cause injuries to vehicle occupants and pedestrians in car crashes, using

the data collected to help develop advanced safety technologies for airbags, seatbelt systems and vehicle body structures. In one case,

T.H.U.M.S. was used to study low-speed rear impacts to help reduce the risk of whiplash injuries.

Internal organs are particularly vulnerable during coll isions, with injuries to them accounting for approximately half of all injuries sustained during

automobile collisions. T.H.U.M.S. provides Toyota with more data than ever before to help them create the next generation of safety features on

their vehicles.

Engines

Toyota's new-generation engines combine driving pleasureand environmental responsibility

Award Winning Engines

Toyota prizes itself for its advanced and intelligent engines.

Its VVT-i engine won "Engine of the Year 2000" and recently

the VVTL-i has won a similar award for its revolutionary
http://www.fastcompany.com/1686659/pepsi-refresh-project-announces-do-good-for-the-gulf-finalistshttp://www.fastcompany.com/1686659/pepsi-refresh-project-announces-do-good-for-the-gulf-finalistshttp://www.fastcompany.com/1669875/ges-200-million-ecomagination-challengehttp://www.toyota.com/ideas-for-good/technologies/THUMS.htmlhttp://www.toyota.com/ideas-for-good/technologies/THUMS.htmlhttp://www.toyota.com/ideas-for-good/technologies/solar-powered-ventilation-system.htmlhttp://www.toyota.com/ideas-for-good/technologies/hybrid-synergy-drive.htmlhttp://www.toyota.com/ideas-for-good/technologies/hybrid-synergy-drive.htmlhttp://www.toyota.com/ideas-for-good/technologies/hybrid-synergy-drive.htmlhttp://www.toyota.com/ideas-for-good/technologies/advanced-parking-guidance-system.htmlhttp://www.toyota.com/ideas-for-good/technologies/touch-tracer-display.htmlhttp://www.fastcompany.com/1686659/pepsi-refresh-project-announces-do-good-for-the-gulf-finalistshttp://www.fastcompany.com/1669875/ges-200-million-ecomagination-challengehttp://www.toyota.com/ideas-for-good/technologies/THUMS.htmlhttp://www.toyota.com/ideas-for-good/technologies/solar-powered-ventilation-system.htmlhttp://www.toyota.com/ideas-for-good/technologies/hybrid-synergy-drive.htmlhttp://www.toyota.com/ideas-for-good/technologies/advanced-parking-guidance-system.htmlhttp://www.toyota.com/ideas-for-good/technologies/touch-tracer-display.html


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"lifting" valve control technology. And the developments go

on: At Paris Motor Show 2002 Toyota will launch its new D-

CAT clean diesel technology.

Engines - VVT I

VVT-i (Variable Valve Timing with intelligence)

Why VVTI

In contrast to the fixed valve timing of conventional engines, the VVT-I

system is an computer controlled mechanism that continually varies the

timing for opening and closing the intake valves in accordance with thevehicle's operating conditions.

BY determining the level of performancethat is demanded of the engine at a giventime by way of the driver's acceleratoroperation and the engine rpm, the VVT-Ienables the overall performance of the

engine to be enhanced all the way from the low to the high rpmrange.

Design

VVT-I is comprised of three major components

1.The electronic control unit(ECU), which calculates optimum intakevalve timing based on engine operating conditions.

2.The oil control valve (OCV), which controls hydraulic pressureunder the ECU's instruction and

3.The VVT pulley, which continuously changes the intake valvetiming using hydraulic pressure.

The VVT-I is an engine control system that has achieved high levels

of the seemingly opposing performances of Higher power out-put,Lower fuel consumption, Cleaner exhaust gases.

D-4D

D-4D High technology, clean diesel

Originally introduced in Europe in the top selling Avensis

range, D-4D is widely recognised as one of the most advanced

diesel technologies on the market today. Toyota D-4D enginesare available on select models of Yaris, Yaris Verso, Corolla


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Verso, Innova, Avensis, Avensis Verso, RAV4, Land Cruiser and

Previa models.

Until recently, diesel engines relied on relatively simple

technology with a low-pressure mechanical injector delivering

fuel to a pre-combustion chamber in the cylinder head, where

a single ignition - fired by the intense heat of high

compression - takes place.

The system was reasonably fuel efficient but lacked precision

and refinement, leading to vibration and noise. Fuel

combustion can be incomplete, allowing smoke and other

emissions to pass into the exhaust.

D-4D components

Toyota's common rail system makes use of a high pressurepump and intelligent, computer controlled injectors to deliver

precisely the right amount of fuel, at precisely the right time,

directly into the centre of the combustion chamber.

Safety

While you're getting out of your car, we're thinking about how

to keep you in.

The most important aspect of protecting

passengers in a collision is to minimize

collision forces transmitted to them. At

Toyota, we design automobile bodies with

crumple zones to absorb collision energy,

and we have put a great deal of work into designing ever

more efficient passenger restraint systems such as seatbelts

and head restraints. We search for improved webbing

elongation characteristics, improved ways of clamping the

webbing, and improved pretensioners. Passenger safety

begins with buckling up. And at Toyota, we are working hard

to make seatbelts more comfortable and easier to wear. In

addition, we are making significant progress with airbags as

supplemental restraint systems (SRS).

In a collision, seatbelts are the primary safety device that helps protectthe occupants. During the development of a new automobile, Toyota


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uses dummies of several different sizes to make sure the seatbelts,anchors, and buckles are positioned for a safe and comfortable fit.While road-testing prototypes, real people use the seatbelts and reporton their fit and comfort. Adjustable shoulder anchor are provided forwearers to change the height of the belt for additional comfort and

safety.Toyota continually strives to design new and better seatbelts that makethe most of the ride-down effect of our automobiles' crumple zones andenhance the deceleration effects. Toyota even designs the structure andshape of the seats in its cars to complement the restraint of theseatbelts. Making the shape of the seats and the position of the anchorsto ensure that the belts fit low across the pelvis.

Depending upon the seating configuration, some of our vehicles have3-point belts for the passenger sitting in the middle of the back seat.

Our Tension-Reducing Emergency Locking Retractor (ELR)

automatically locks when you pull on the belt to ensure it's secureenough to work, yet loose enough to feel comfortable.

And some of our vehicles have Pre-Tens ioner Sensors which quicklypull the seatbelt back at the first shock of a severe head-on collision,while the Force Limited keeps that tension from injuring you. It allworks to keep you safe and secure in the event of an accident.

Brakes

Our brakes allow you to do something you never thought

possible

Toyota has developed new electronic

control systems that make the most of

the basics and add to overall

performance. These electronic systems

include ABS for the brakes and TRC for

traction control. ABS helps prevent wheel

lock. When the brakes are applied, the

tyres begin to slip. ABS measures the degree of slip todetermine when wheel lock will occur from the degree of slip,

and reduces hydraulic pressure to prevent it. Because ABS

allows the wheels to roll - albeit at a slower speed than the

vehicle velocity - the vehicle maintains directional control and

steerability. A cars wheels may tend to spin when starting off

or accelerating. In some cases, loss of traction can cause the

tyres to lose their grip and allow the vehicle to slide sideways.

Toyota's TRC system regulates engine and brakes to help

provide as much control of wheel slip as possible during start-

off or acceleration. If a wheel loses traction, the wheel speedsensor detects a sudden increase in wheel rotation speed.


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This information goes to the TRC electronic control unit (ECU),

which commands the engine to reduce torque. At the same

time, the ECU commands the brake actuator to engage the

brakes on the affected wheel until it regains traction.

Obviously, driver awareness of road hazards and appropriate

response is also required to avoid dangerous situations and to

give the various systems time to operate. Toyota's TRC

system uses components of ABS and engine management

systems, as well as components designed specifically for TRC.

The system helps the driver maintain control of the

automobile and optimizes traction, even on slippery surfaces.

Operation Strategy Of Toyota

Toyota is Japan's biggest car company and the second largest in the world after General Motors. It produces an estimated eight mil lion vehicles

per year, about a million fewer than the number produced by GM. The company dominates its home market, with about 40% of all new cars

registered in 2004 being Toyotas.

Toyota also has a large market share in both the United States and Europe. It has significant market shares in several fast-growing South East

Asian countries. The - 1 -company produces a large range of vehicles which are highly regarded for their quality, engineering, and value; their

designs set global standards for safety, reliabil ity and ease of maintenance.

The Company Philosophy

"Do the right thing for the company, its employees, the customer and the society as a whole."

Origins

The story of Toyota Motor Corporation began in September 1933 when Toyoda Automatic Loom created a new division devoted to the

production of automobiles under the direction of the founder's son, Kiichiro Toyoda. Soon thereafter, the division produced its first Type A

Engine in 1934, which was used in the first Model A1 passenger car in May 1935 and the G1 truck in August 1935. Production of

the Model AA passenger car started in 1936.

Although the Toyota Group is best known today for its cars, it is still in the textile business and still makes automatic looms

(fully computerized, of course), and electric sewing machines which are available worldwide.

During the Pacific War, the company was dedicated to truck production for the Imperial Army. Because of severe shortages in

Japan, military trucks were kept as simple as possible. For example, the trucks had only one headlight in the center of the hood.

Toyota earns $1250 per vehicle produced while GM loses $2311 per vehicle produced.


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JUST IN TIME ( JIT )

Just-In-Time (JIT) is a Japanese manufacturing management method that was developed in the 1970s. It was f irst adopted by Toyota

manufacturing plants by Taiichi Ohno. One motivated reason for developing JIT was a need of a better production technique after World War II.

Japanese people had a very strong incentive to develop a good manufacturing technique to help them rebuild the economy. They also had a

strong working ethnic which was concentrated on work that caused continuous improvement. These kinds of motivation had driven Japaneseeconomies to succeed. Because of the natural constraints and the economy constraints after World War II, Japanese Manufacturers looked for

a way to gain the most efficient use of limited resources. The Toyota Company implemented this into their plant and turned the management

and accounting principles around to effectively and efficiently move inventory in and out very quickly while also concentrating on the

manufacturing aspects of their cars. After the first introduction of JIT by Toyota, many companies followed up and around mid 1970sand it

gained extended support and widely used by many companies around the world.Just in Time is an inventory strategy implemented to improve the return on investment of a business by reducing in-process inventory and its

associated carrying costs. JIT can lead to dramatic improvements in a manufacturing organization's return on investment, quality, and efficiency.

Just-in-time means, quite literally, that an assembler on a line receives his consignment of parts "just in time" to use them. The system is based

on an ideal situation in which a part arrives just in time to be used. The system also operates on the strength of very small lot quantities of

replacement parts. This type of system produces only quantities necessary to fulfill the demands of the next operation. The quantity is pulled

when it is needed, where it is needed, and in the exact quantity which is needed. The company will also need to ensure that the process has

adequate response time to maintain an uninterrupted schedule. Companies can make great strides in JIT by reducing setup and changeover

times for machinery. JIT recognizes that any motion which does not add value to a product increases the no value added cost of the product.

Reduction of setup and changeover time reduces the no value added costs attached to a product.With Just in Time management, a company can dramatically improve its product quality. Using JIT, a company only holds enough inventories

for current production, zero defects must be maintained. Once parts are put into production, attention to quality must continue since no finished

goods inventory will be held. JIT is generally recognized that the implementation of JIT will result in significant reduction in inventory. Inventory

levels are a key measurement of the JIT process. The JIT philosophy on inventory management is simple. It includes: strive for a level of zero

inventories, produce items at a rate required by the customer, eliminate all unnecessary lead times, reduce setup costs to achieve the smallest

economical lot size, optimize material flow from suppliers through the production process to the point of sale of the finished product, so that

inventories are minimized, ensure high quality just- in-time delivery from suppliers, minimize safety stocks, implement a total quality control

program which will minimize scrap, rework, and resultant delays in production. In the JIT manufacturing environment, inventory is "demand"

pulled into and through the process on a part-by-part basis in small quantities. The movement of inventories is no longer from the storeroom to a

work center, to a storeroom, to another work center and so on. JIT accounting systems are similar to process costing; the vehicle for collecting

costs is the time in the system, not a work order. There was a major need for this process because before the introduction of JIT, there were a lot of manufacturing defects for the existing

system at that time. This included inventory problem, product defects, risen cost, and large lot production and delivery delays. The inventory

problems included the unused accumulated inventory that was not only unproductive, but also required a lot of effort in storing and managing

them. Other implied problems such as parts storage, equipment breakdowns, and uneven production levels. For the product defects,

manufacturers knew that only one single product defects can destroy the producers creditability. They must create a "defect-free" process.

Instead of large lot production - producing one type of products, they awarded that they should produce more diversified goods. Lastly, the

system before JIT did not manage well for fast delivery request, so, there was a need to have a faster and reliable delivery system in order to

handle customers needs. Thus, JIT manufacturing management was developed based on these problems.JIT was highly needed especially in the automotive industry thats why Toyota was the first company to use it. In order to have an efficient

production system in the automotive industry, there were many issues that needed to be solved. The first main problem was that the automotive

industry is a typical mass production assembly type where each vehicle is assembled from several thousand parts that have undergone

numerous processes. Therefore, a trouble in any of the processes will have a large overall effect. The second issue was there are very many

different models with numerous variations and with large fluctuation in the demand of each variation. The last issue is every few years, the

vehicles are completely remodeled and there are also often changes at a part level. The ordinary production control system in such an industry

consists of fulfilling the production schedules by holding work-in-process inventory over all processes as a means of absorbing troubles in the

processes and changes in demand. However, such a system in practice often creates excessive unbalance of stock between the processes,

which often leads to dead stock. On the other hand, it can easily fall into the condition of having excessive equipment and surplus of workers,

which is not conformable to Toyotas' recognition. In order to avoid such problems as inventory unbalance and surplus equipment and workers,

Toyota recognized necessity of schemes adjustable to conform to changes due to troubles and demand fluctuations. For this purpose, they put

their efforts in development of a production system which is able to shorten the lead time from the entry of materials to the completion of vehicle.

This is where Just in Time was needed. The just-in-time production is a method whereby the production lead t ime is greatly shortened by

maintaining the conformity to changes by having all processes produce the necessary parts at the necessary time and have on hand only the

minimum stock necessary to hold the processes together". In addition, by checking the degree of inventory quantity and production lead time as

policy variables, this production method discloses existence of surplus equipment and workers. This was the starting point of the Toyota

Production System.There are many advantages in using the Just in Time inventory. One major benefit of JIT is the elimination of separate raw materials and work-

in-process inventory accounts. These accounts are replaced by one account called Raw and in-Process Inventory. All materials and conversion


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costs are charged to this account. Due to the reduction of in-process inventories, the computation of equivalent units of production is simplified.

Some other advantages include minimizing raw material, minimize defects goods, simplify the production process, and create a timely, multi-

skilled work force. By using the JIT production planning approach, managers reduce inventory to a minimum level, keeping on hand only the

amount needed in production until the next order arrives. This approach eliminates the double handling of products which occurs when storage

is relocated to the work area or shipping area. The JIT production stage is driven by having continuous delivery of items. The use of production

planning eliminates the need for material requirements planning (MRP) as a production planning tool. In contrast to the JIT system, a MRT

system is a "push-through" system driven by forecasted demand. It examines the finished goods requirements before determining the demandfor raw materials, components, and subassemblies. JIT is an attempt to change the manufacturing process and to eliminate non-value-added

activities in order to judge the cost high or low. This method can also help organization tremendously.There are also some disadvantages that JIT can bring. The JIT systems can be disastrously affected by outside forces. September 11, 2001

caused massive amount of financial damage to companies operating JIT Inventory or Production systems because so many large transport

systems like Fed-Ex, United Parcel Service (UPS), and the Post Office could not get the goods delivered. It also affected the other

transportation industries. With the increased security at the U.S. border crossings with Canada and Mexico as well as at U.S. ports, trucks

reportedly waited 18 to 20 hours at some crossing points. Not only did crossing times increase but, more importantly for JIT systems, they

became unpredictable problems and increased financial losses especially in perishable products.There is a definite downside to JIT. In the JIT system often a sole supplier is used for products for the manufacturing process. A company

becomes vulnerable if that sole supplier shuts down for some reason. The General Motors Corporation recently faced such a problem. When

the Lordstown body stamping and fabrication plant went on strike, the GM Saturn division was forced to shut down. Lordstown is the sole

supplier for about 300 Saturn parts. Eight more GM plants followed suit within days, at a daily cost to GM of between $8 and $10 million in

pretax profits. It is easy to see that a JIT inventory management system intensifies the impact of a strike. General Motors plight painfully

illustrates the risk of a JIT strategy: It puts a company at the mercy of its key suppliers.Companies that use JIT principles are frequently used by large regional companies, or companies that expand nationally or even globally. Take

for instance Sears Department store. Whenever a sale is made, that information is transferred to the computer and stored, to later be submitted

to various computers that use the information to update inventory, calculate sales and create other statistical reports. Another example would be

a restaurant such as Applebees. When food is ordered, the waiter submits this into a computer. At the present t ime, the information is used for

the cooks and for check calculation. Later, the stored information is used in reports for management to clearly see what items have been sold

and need to be reordered. The uses span far, as management can also use this data to see sale progressions of certain i tems and to see what

sells the most at various times of the day, week or month. Other companies such as, The Quincy, Ill., plant of Quincy Compressor, Inc. has

reduced its inventory to $4 million from $21 million over 10 years. Quincy uses JIT techniques to speed up delivery time for its large industrial air

compressors, used in service stations, factory machinery, and climate-control systems. "We are producing more than we ever did, with less

people," says David Irick, traffic manager. "When I started here 13 years ago, if you called for a basic air compressor, we quoted you nine

months' delivery time. Now we quote 10 days, and we are averaging about five. That's just the way the market is. Nobody carries anyinventory."The JIT inventory method is now being used just about anywhere. It is a common practice that many companies have adopted and many more

are realizing the need to pursue the concept. This method is becoming the most effective and efficient in operations today. Eliminating waste,

which is the most of important in JIT, can be used for all levels of operation in a company, not just inventory. More and more uses of JIT will be

introduced and implemented as businesses seek to maximize the quality of their operations.

...

Toyota adopting three-stage plan

The Japanese carmaker was a latecomer to the China market. Within its global strategies, NorthAmerica is the top priority, followed by its home country Japan.

China has been included in Toyota's top development strategy in recent years with its first China-made VIOS sedan produced in Tianjin in October 2002.

Considering China is an immature auto market, the company has adopted a three-stagedevelopment plan -- first to establish a local sales network and launch brand promotions, then to

build auto parts manufacturing bases, and, finally, to establish joint ventures (JVs) with local playersand produce automobiles.

About 57 per cent of respondents said Toyota adopted the right strategy for expansion in China and

avoided possible risks.


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Although a latecomer, Toyota has jumped to the front in terms of imported car volume -- 50,000units annually. It has 57 JVs and wholly funded auto parts companies scattered across China.

Now, the company is stepping into the most important and critical stage -- speeding up thelocalization of its products, since its rivals, such as Honda and General Motors, are accelerating theirpenetration into China.

After the market entry of the Prado and Land Cruiser with China's First Automobile Works, its newproduct with Guangzhou Automobile Manufacturing Co -- Camry, which was a great success in theUntied States -- is also being developed.

About 80 per cent of the respondents predicted Toyota will continue its brilliant performance in theUS market, since the company has established a far-reaching sales network (35.6 per cent) and itsproduct brands are highly recognized by Chinese customers (52.9 per cent).

However, there are also unsatisfactory results of the development strategy. Seventy-five per cent of

the 104 senior company managers surveyed said Totoya only wants to sell cars in China, but doesnot want to share technological know-how.

Some 40.4 per cent of respondents said the company does not give enough attention to Chinamarket.

Forbes magazine commented on Toyota's success in the US auto market, saying that once thecompany sets goals, it will manage to exceed the targets. What is more challenging to its rivals is

Toyota's strategy to realize these goals.

That assessment may well apply to its China expansion. Although Toyota missed the firstopportunities, it will likely catch up if it pays more attention to the China market and introduceshigh-end brands.

Toyota Motor Corporation - SWOT Framework Analysis

SWOT Analysis, is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a

business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that

are favorable and unfavorable to achieving that objective.

The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. SWOT analysis

groups key pieces of information into two main categories:

Internal factors - The strengths and weaknesses internal to the organization.

External factors - The opportunities and threats presented by the external environment.

The internal factors may be viewed as strengths or weaknesses depending upon their impact on the organization's objectives. What may

represent strengths with respect to one objective may be weaknesses for another objective. The factors may include all of the 4P's; as well as

personnel, finance, manufacturing capabilities, and so on. The external factors may include macroeconomic matters, technological change,

legislation, and socio-cultural changes, as well as changes in the marketplace or competitive position. The results are often presented in the

form of a matrix.

SWOT analysis is just one method of categorization and has its own weaknesses. For example, it may tend to persuade companies to compile

lists rather than think about what is really important in achieving objectives. It also presents the resulting lists uncritically and without clear

prioritization so that, for example, weak opportunities may appear to balance strong threats.


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Production System

Hormonizing with the Environment

Globally, Toyota has indicated a strong

and diverse commitment to the pursuit ofharmonious growth through its

technically advanced and environment-

friendly products. There have been

relentless efforts in the crucial fields of

mobility, city transportation, resources,

society and environment, through

research & development.

Protecting the environment has always

been a priority at TKM, starting with theeco-friendly engines that are

manufactured for the Toyota vehicles, to

the advanced technology that is used for

purification or recycling of waste water at

the plant. Apart from this, the plant at

Bidadi, Karnataka, is surrounded by a

green belt, meets high environmental

standards and has achieved the ISO

14001 certification in its very first year of

operations.

Setting benchmarks for Production Excellence

Quality is ensured in every vehicle that

rolls out of Toyota Kirloskar Motor,

through in-built audits at every process of

the system. The company's operational

excellence is based on the improvementtools and methods developed by Toyota

under the Toyota Production System

(TPS), greatly emphasizing superlative

quality and minimal waste.

In line with Toyota's growing comfort with

its India operations, the company set up

Toyota Kirloskar Auto Parts (TKAP), which

commenced production of transmissions

in May 2004, for its global requirements.Another initiative is the Toyota Techno


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Park India (TTPI), a non-profit industrial

infrastructure company aimed at boosting

local industries and related job

opportunities.

Setting benchmarks for the automobile

industry, the manufacturing facility

consists of 4 divisions (shops) Press,

Weld, Paint and Assembly.


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Toyota Production System

A production system which is steeped in the philosophy of "the complete

elimination of all waste" imbuing all aspects of production in pursuit of the mostefficient methods.

Toyota Motor Corporation's vehicle production system is a way of "making things" that is sometimes

referred to as a "lean manufacturing system" or a "Just-in-Time (JIT) system," and has come to be well

known and studied worldwide.

This production control system has been established based on many years of continuous improvements,

with the objective of "making the vehicles ordered by customers in the quickest and most efficient way, in

order to deliver the vehicles as quickly as possible."

The Toyota Production System (TPS) was established based on two concepts: The first is called "jidoka"

(which can be loosely translated as "automation with a human touch") which means that when a problem

occurs, the equipment stops immediately, preventing defective products from being produced; The

second is the concept of "Just-in-Time," in which each process produces only what is needed by the nextprocess in a continuous flow.

Based on the basic philosophies of jidoka and Just-in-Time, the TPS can efficiently and quickly produce

vehicles of sound quality, one at a time, that fully satisfy customer requirements.

TPS Concept

Jidoka

Highlighting/visualization of problems

-Quality must be built in during the manufacturing process!-

If equipment malfunction or a defective part is discovered, the affected machine automatically stops, and

operators cease production and correct the problem.

For the Just-in-Time system to function, all of the parts that are made and supplied must meet

predetermined quality standards. This is achieved through jidoka.

1. Jidoka means that a machine safely stops when the normal processing is completed. It also means

that, should a quality / equipment problem arise, the machine detects the problem on its own and

stops, preventing defective products from being produced. As a result, only products satisfying quality

standards will be passed on to the following processes on the production line.
http://www.toyota-global.com/company/vision_philosophy/toyota_production_system/jidoka.htmlhttp://www.toyota-global.com/company/vision_philosophy/toyota_production_system/jidoka.html


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Since a machine automatically stops when processing is completed or when a problem arises and is

communicated via the "andon" (problem display board), operators can confidently continue performing

work at another machine, as well as easily identify the problem's cause to prevent its recurrence. This

means that each operator can be in charge of many machines, resulting in higher productivity, while

continuous improvements lead to greater processing capacity.

Just-in-Time Productivity improvement

- Making only "what is needed, when it is needed, and in the amount needed!"

Producing quality products efficiently through the complete elimination of waste, inconsistencies, and

unreasonable requirements on the production line.

In order to deliver a vehicle ordered by a customer as quickly as possible, the vehicle is efficiently built

within the shortest possible period of time by adhering to the following:

1. When a vehicle order is received, a production instruction must be issued to the beginning of the

vehicle production line as soon as possible.

2. The assembly line must be stocked with required number of all needed parts so that any type of

ordered vehicle can be assembled.

3. The assembly line must replace the parts used by retrieving the same number of parts from the parts-

producing process (the preceding process).

The preceding process must be stocked with small numbers of all types of parts and produce only the

numbers of parts that were retrieved by an operator from the next process.
http://www.toyota-global.com/company/vision_philosophy/toyota_production_system/just-in-time.htmlhttp://www.toyota-global.com/company/vision_philosophy/toyota_production_system/just-in-time.html


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MARKETING STRATEGY

Strategic Focus and PlanThere are three aspects of the existing corporate strategy that are developed in relation to their overall

impacts caused to the marketing plan of Toyota Company. These are;

Mission Statement of the Company.Toyota seeks to create a more prosperous society through automotive manufacturing (Hiroshu, 2003).

Therefore, the Company is aimed at achieving a stable and long-term growth in future, and this is supposed to be in

synchronization with a number of factors: the significant environment, global economy, local communities served,

and the Internal Environment of stakeholders

The Companys Goals

The company has committed itself to offering of hybrid alternatives for every model that is sold in the

market. This is aimed at enabling the Company to make a total sale of 1 million hybrid vehicles within a year, and

this goal has been set to have been achieved by the year 2012.

Toyota Company has improved its 2011 Environmental Action Plan and it is committed in six different key

areas, which are: the Environmental Management; changes in Energy and Climate; the Quality of Air; concerned

Substances; the aspects of Recycling and Improved Resource utilization; and Societal Cooperation. The Company

is committed to reduce carbon dioxide emission and it is believed to take combined actions of ensuring that the

environment is kept clean all the time by observing the stated fuel economy values.


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Core Competency and Sustainable Competitive AdvantageToyota Company is working towards the achievement of a better and more sustainable economy by having

a stable global market. With advancement in new technology and other related matters, the Company is investing in

various strategies that will enable it to realize its set goals and objectives over a period of time. The Company has a

well developed and equipped network of expertise that are into research and development over aspects that are to

keep the Company on top in product and service delivery to its global market. Also it has a wide range of

distribution network allover the world and this has enabled it to reach a portion of the market that is seeing it

through to greater levels.

Situation Analysis

Toyotas capacity to stay on top of productivity efficiency and quality rankings can be credited to its internal

environment. This entails the way production process is managed by the top management who are famous for their

competency. The production team has an insatiable obsession to improve the efficiency and effectiveness of its

manufacturing operations. Therefore, to fully understand the situation analysis of Toyota Company, a SWOT analysis

is determined and it mainly consists of the Companys strength, weaknesses, available opportunities, and finally the

threats that the Company is experiencing or projected to go through.

SWOT AnalysisStrength and weaknesses are referred to as internal factors of the Company as their impact starts from

within the Company, while opportunities and threats normally originates from outside of the Company, hence

referred to as external factors.

Figure 1: SWOT Analysis of Toyota Company (Internal Factors)

Internal Factors Strengths Weaknesses

Management Having competent and

experienced management team

and board members

Large size of management team

reduces chances of moving fast

into the targeted market, because

of slow rate in decision making

Offering Hybrid products that are

customer friendly

Expensive in proofing the market

that are right products for them


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Marketing Distribution of products into the

market through wide range of

identified branches

Expensive in establishing this

distribution network

Personnel Have good skilled workforce

who are relied upon

The gap will be big if the

employees left the Company

Finance Improved revenues from sales

made in the global market

Limited workforce and material

may slow down the growth of the

Company in relation to

competitors

Manufacturing Main supplier of material ensure

fast and quality material

Different supply interests among

the Company suppliers and other

competitors.

R&D Quality of products delivered is

enhanced through out the period

of doing business

Figure 2: SWOT Analysis of Toyota Company (External Factors)

External Factors Opportunities Threats

Consumer/social Stability of the upcoming market

is highly projected

Low priced products may proof

that the quality of the products is

quite low

Competitive Differentiated products and

prices make the Company to be

quite distinctive in the market

Products of high technology are

being introduced into the market

by other competitive companies

Technological Break-through in technological

standings is a better course for

the Company to improve on the

quality of its products


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Economic Improved consumer income has

made it convenient for the

Company to get deep into the

market

Individuals opting for other

products since they have enough

disposable income

Legal/Regulatory Regulatory measures ensuring

fairness in the market and avoid

over-exploitation by other

competitors

Figure 3: The SWOT Analysis Matrix

Strengths:

investment in new factories

diverse range of products

improved marketing techniques

Opportunities:

hybrid cars

selling technology

rising urban youth population

Weaknesses:

Maintaining client base

Maintaining production

Threats:

Faulty products

Upcoming manufacturers


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3.2 Industry AnalysisToyota Company is able to apply its strengths and opportunities it has to create a competitive edge in the

industry. For instance, the widely differentiated product line is helping the company to have more global presence.

This can also be achieved through entering new markets like China and Europe. Toyota has previously

concentrated on the Japan and American markets and it needs to setup strategies to penetrate the other markets as

well.

Toyota has taken a good position as far as sustainable development is concerned. With the fear of depletion

of the fossil fears coupled with the global warming effects, there is a ready market for the Toyotas hybrid car. The

company can also use this opportunity t sell its technology to other firms

3.3 Company analysis

Toyota Company is one of the worlds leaders in car export and it appears to literally be living its mission,

which is to be the world leader in the creation of automotives that are best in terms of value. The company is working

towards the end of creating a society that is prosperous by providing their clientele with the best value for their money.

They believe in giving the best prices for the client yet still deliver a vehicle that is at per with those being offered by

their other major competitors. This could be the reason why their products are having a very good market in the

developing nations. The Company is also conscious about sustainable development, and this can be clearly seen in its

different corporate social responsibilities as well its sustainable development initiatives aimed at reducing the pollution

of the environment.

3.4 Customer Analysis

Toyotas customers are very diverse and they range from the low income earners to the very rich. They are

widespread around the world. Toyota has catered for all car needs that may arise for any individual with their wide

range of motor vehicles. They range from small sports cars to big family vehicles and trucks as well as vans. The

customers comprise a varied group of people, with differing ages, incomes, geographical locations, and social and

cultural statuses. Customers go for Toyota products to satisfy different wants and needs. Low income earners are

provided with a basic mode of transportation that is both within their price range and efficient. Clients going for class

and elegance are also catered for.


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Customers purchase Toyota products on individual basis according to their specific needs. In some cases we

have organizations purchasing cars for their firms usage or for their employees. In such a case, the product buyer and

purchaser is not actually the product user. Once individuals purchase the companys product, there is an increased

exposure to its other products. Product awareness is enhanced through advertisements, newsletters, website

information, and other informational sources. The opportunity for Toyota to generate income from complimentary

products such as books and seminars by members is very big.

Where do they Purchase?

Most of Toyotas products are sold through retail distributors located all over the world. Purchase can also be

made directly from the factories, as is the case with limited edition models. The increase in the use of electronic

commerce,Toyota as well, that is, purchasing products on-line. Majority of the advertising materials can be obtained in

full, on-line view over the Internet. On-line publications diminish paper waste while giving existing and direct

availability of the product to clients. Customers are able to order a product in stores and with a toll-free number directly

from the company as well (Booz, 2007). This grants customers around the world access to the companys products.

When do they Purchase?

Individuals can purchase the companys products anytime that they like, at any time of the year. This is

because Toyota sells its cars all year round, except for the limited editions which are purchased directly from the

factories. New users often purchase cars after acquiring a drivers licence in the case of some countries when going to

high school or to college in others. Other users usually purchase a new car when the old one breaks or gets too old or

when they want to trade in for a newer car or a different model.

Why do they Purchase?

Customers select Toyota products over other manufacturers primarily because of their comprehensive, yet

specialized, nature. Toyota offers a diverse range of cars that encompass all needs of the clients. They are focussed on

building and maintaining high standards when it comes to the products. They offer cheaper alternatives to the clients

for the same products from other manufacturers that are quite expensive. Toyota has also invested heavily on safety in

their cars. As the globe goes green and clients call for an appropriate response from their car manufacturers, Toyota

have responded by investing in hybrid cars, the Prius. This may be the future of the motor industry. The high quality


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products make it all that easy for a customer to go back to the shop and purchase another Toyota product (Flanagan,

2007).

Why Potential Customers Dont Purchase

As is the case for many large organizations, Toyotas target market defines a much wider population than their

customer base actually reflects. There are many car manufacturers who have come up and the motor industry is

currently flooded with many products. Many of these products are similar, often differing due to one or two features

that may or may not be significant. In this case, it comes down to personal like and dislike. The other reason is the issue

of class and social status. Toyota products do not always give the implication of a high social standing. A customer

may choose to buy a car from a competitor and not from Toyota simply because of that, and yet the car is the same.

4.0 Product-Market Focus

In this section, the Company three year development projections is clearly explained in various categories,

which are developing of a strategic focus; marketing goals and objectives; target market; and the Company position in

the market.

4.1 Developing a Strategic FocusToyota has already embraced product differentiation as a major strategy in market penetration and the

strategy is working well. It is determined to use a pricing mechanism that will give it a competitive edge over its

main competitors. The cost of production of a unit for Toyota is projected to be large but due to possible mass

production plants, the overall cost will not be a huge issue in this case. This means the company will be able to sell

its products at an even lower price yet still remain profitable. The company is taking an advantage of this and using

it to penetrate the markets of emerging economies with affordable products.

4.2 Marketing Goals and ObjectivesToyotas enormous size and capacity is a great advantage in meeting industry growth. The number of

clients in need of cars is constantly increasing, thus creating a bigger market for Toyota and requiring more of their

products. The perceived importance of owning a car due to increased travelling needs in todays largely corporate


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world is constantly increasing as well. Toyotas great size will enable them to successfully meet the needs of this

growing population of customers in need of cars (Dobbin, 2002, p.41).

The company keeps making quality product and make it a rule not compromise on this, and not to give in

to the competitors pressure and rise their prices then clients will remain loyal to the company (Armstrong &

Kotler, 2002). Then, everyone has a chance to know the real values behind Toyotas past, current, and hopefully

future existence (Armstrong & Kotler, 2003).

Toyota is in the process of engineering lesser platforms to be used in the assembly of its different models.

This is as a cost cutting measure; they intended to compress their platforms from 20 to ten in the ambitious

exercise. This is especially important since their chief rivals; GM and Ford have made notable improvements in

their production process. Toyota is also thinking twice about its bloated assembly points. It is thinking of best ways

to reduce them without hindering its efficiency (Mullins, Walker & Boyd, 2010).

4.3 Target Market

Each of Toyotas products is designed to target a specific market. The design criteria range from top speed,

capacity and exterior appearance like color and shape. There is a high speed, small, two-seat model cars for the

relatively younger and single people who are adventurous to the big five-seat models for the family set up.

Demographically, they also target situations on the smooth tarmac road as well as the rough and rugged off road

terrain .

Toyota has been previously blamed by the American Markets that their products are lacking in flair and

design unlike those of GM and Ford. This has led the company to be more attentive to its American designers to

make sure this needs are met. The V8 pickup which was launched recently was as a result of this ambitious. The

hybrid model, Primus, has also been transformed since at its inception, it didnt hit the American market. When

they made it look more futuristic, it resulted in big volumes of sales.

Overly, the Toyota Company is giving its competitors a hard time. Even though it has experienced

challenges like the recent recalls, it is still notable in market leadership position. If the current impressive results

and global positioning of the company is anything to go by, then this is a position Toyota is not likely to lose any

time soon.


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4.4 Company Position in the Market

Toyota Company has been producing vehicles and significant products that are not expensive and readily

available. This has been a significant factor that has enabled the Company to have a major cut in the market , and it is

projecting to have most of the market by the end of 2013, as it has put a cross a number of strategies to enable it reach

the set target.

5.0 Market Program

This consists of the four marketing mix elements that are designed to fit the market in terms of their needs and

ability to access such products and services.

5.1Product Strategy

The Company is believed to be moving with a strategy of mass production of which it has enabled it to sell

widely in the global market. It has also included the strategy of hybrid product, where it can double the amount of

production for the arising needs in the market.

5.2Price Strategy

The reputation of the Company has been developed by producing high quality vehicles that can be bought at

a reasonable price. The Company has also been using tactful pricing strategies through price differentiation so that

they are different from other automobile producers.

5.3Location Strategy

Being a global producer and supplier of Toyota automobiles and their components, Toyota Company has

positioned itself all over the world giving it a clear cut within the market. Within three years to come, it is working

towards the achievement of about 35 percent of the market share, and this will make it to be best and top supplier of

automobile products.

5.4Promotion Strategy


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The Company is determined to use a pricing mechanism that will give it a competitive edge over its main

competitors. This is a mechanism that it is using to market itself so that it can get hold of market share that will see

it better in achieving the highest level in the market.

6.0 Marketing Implementation Analysis

Toyotas main focus will be in reaching the new markets of China and Europe. It will also be concerned

about the competition from other firms like Ford and GM. An advantage the company has is the widely

differentiated product range. Establishing new factories in these new markets as well as opening up new franchises

will help the company in getting an ease of penetrating the new markets

Human resource is one of the most important aspects in this plan. The company should always make sure

they have highly motivated staff as this is directly proportional to good production both in the qualitative and

quantitative aspects. Toyota can do this by coming up with schemes of rewarding their employees like helping

them own cars subsidized rates. The company should also make sure the personnel are the best in terms of

technical know-how. The company needs to carry out frequent training towards this end.

7.0 Financial data and Projections

The previous years have seen Toyotas profit grows each year with an exception of 2009 due to the

economic downturn as well as the recalls. The figures below illustrate this

Figure1: Toyotas impressive performance in the last four years(Johnson, 2009)


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With the advent of more efficient production technologies coupled with the entrance into the new markets, it is

expected that the increase in profits will continue for the next five years. Below are the projections for the next five

year period

Figure2: Projected Financial returns for the next five years (Johnson, 2009)

Sales Forecast Millions of Yen

Year 2009 2010 2011 2012 2013

Net SalesOperating incomeOrdinary Income

Net IncomeResearchDivindends/yen

1,243,445

54,12070,91246,12330,05132

1,455,650

65,02380.63647,99932,05144

1,900,340

89,954108,48460,23130,051

50

1,957,879

98,0530125,44481,23420,05160

2,000,534

99,76014,34357,57630,05178

7.1 Tactical Marketing ActivitiesToyota has taken a bold step in being a leader in sustainable development. This position will need some

innovations which translate to expenditure. They are however necessary as a way of staying ahead of competition.

The activities the company will embark on are given in figure 3

Figure 3: Tactical Marketing activities

Specific Tactical Activities Person/Department Required Completion


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Responsible

Budget millions

of yenDate

Product Activities

1.Car air conditioning compressor

2.DC-DC converters for fuel efficiency

3.Low Exhaust Emission Engine

Production engineers

and Product

management

30.45 2011

Pricing Activities

1.New Technologies

2.Compression of Production platforms

3.Merger of Assembly points

Operations

management

15.25 2012

Distribution Activities

1. Opening up of new factory in America and china

2. Machine handling

3.Logistical operations

Logistics

management

21.40 2010

IMC (Promotion) Activities

1.Concerts

2.Volunteer

3Youth Invention club

Marketing manager 9.20 2012

8.0 Implementation Plan

There are a number of activities that have been projected within a life span of three years and the following

representation shows the aspects that have been targeted and within what strategic period of time.


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Year To be Achieved New Targeted Markets

(millions)

Cumulative Targeted

Markets (millions)

Today (2010) Working towards hybrid

products

250 250

1st Year (2011) Introduction of pricing

mechanism and price

differentiation strategies.

320 600

2nd Year (2012) Enhancing hybrid

products by use of new

technologies

370 970

3rd Year (2013) Product differentiation to

meet the needs of the

market

420 1320

9.0 Evaluation and Control

There is a monitoring and evaluation team that will be set to watch over the progress of the company in

realizing the strategic goals. The short term goals will be clearly watched and corrections put in place where targets are

missed for they are the keys to fulfilling the long term goals. Currently, the Company has made a clear step forward in

ensuring that hybrid vehicles are being produced, and so far the market has started improving in terms of overall

reception of these brands of vehicles. Another aspect that is supposed to be considered here is the speed of the roll-out

program of pricing mechanism introduced. Currently, it has taken the market by surprise as most of Toyota products

are found to be customer friendly. The Company has been able to come up with a differentiation program for its

products and this has helped it to have a huge market share. It is projects to improve and reach the target within three

years and this will be determined by the rate of growth and the total number of market reached.


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FINANCIAL SOLUTION

Income Statement

View: Annual Data All numbers in thousands


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Period Ending31-Mar-

201131-Mar-

201031-Mar-

2009

Total Revenue229,171,000

202,814,000207,852,000

Cost of Revenue 200,474,000 178,551,000 186,856,000

Gross Profit 28,696,000 24,263,000 20,996,000

Operating Expenses

Research Development - - -

Selling General and Administrative 23,046,000 22,685,000 25,663,000

Non Recurring - - -

Others - - -

Total Operating Expenses - - -

Operating Income or Loss 5,650,000 1,579,000 (4,668,000)

Income from Continuing Operations

Total Other Income/Expenses Net 1,500,000 1,898,000 (531,000)

Earnings Before Interest And Taxes 7,150,000 3,477,000 (5,199,000)

Interest Expense 354,000 358,000 475,000

Income Before Tax 6,796,000 3,119,000 (5,674,000)

Income Tax Expense 3,774,000 992,000 (571,000)

Minority Interest (691,000) (372,000) 246,000

Net Income From Continuing Ops 4,925,000 2,242,000 (4,424,000)

Non-recurring Events

Discontinued Operations - - -

Extraordinary Items - - -

Effect Of Accounting Changes - - -

Other Items - - -

Net Income 4,925,000 2,242,000 (4,424,000)

Preferred Stock And Other Adjustments - - -


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Net Income Applicable To CommonShares

4,925,000 2,242,000 (4,424,000)

Currency in USD.

ANNUAL DATA OF INCOMESTATEMENT

Bottom of Form

Top of Form


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Balance Sheet

View: Annual Data All numbers in thousands

Period Ending 31-Mar-2011 31-Mar-2010 31-Mar-2009

Assets

Current Assets

Cash And Cash Equivalents 25,105,000 19,967,000 24,748,000

Short Term Investments 17,246,000 23,394,000 5,472,000

Net Receivables 78,403,000 75,859,000 62,997,000

Inventory 15,737,000 15,222,000 14,776,000

Other Current Assets 6,243,000 5,472,000 6,404,000

Total Current Assets 142,734,000 139,914,000 114,396,000

Long Term Investments 132,933,000 105,241,000 97,746,000

Property Plant and Equipment 76,124,000 71,820,000 74,939,000

Goodwill - - -

Intangible Assets - - -

Accumulated Amortization - - -

Other Assets 7,985,000 7,823,000 7,159,000

Deferred Long Term Asset Charges - - -

Total Assets 359,775,000 324,800,000 294,240,000

Liabilities

Current Liabilities

Accounts Payable 40,892,000 41,159,000 29,274,000

Short/Current Long Term Debt 78,803,000 64,966,000 70,748,000

Other Current Liabilities 10,506,000 8,240,000 7,189,000

Total Current Liabilities 130,200,000 114,364,000 107,212,000

Long Term Debt 77,814,000 75,079,000 63,799,000

Other Liabilities 10,229,000 9,674,000 9,398,000

Deferred Long Term Liability Charges 9,775,000 8,703,000 6,503,000

Minority Interest 7,090,000 6,108,000 5,462,000

Negative Goodwill - - -

Total Liabilities 228,018,000 207,822,000 186,912,000

Stockholders' Equity

Misc Stocks Options Warrants - - -

Redeemable Preferred Stock - - -

Preferred Stock - - -

Common Stock 4,791,000 4,249,000 4,020,000

Retained Earnings 142,805,000 123,808,000 116,752,000

Treasury Stock (15,219,000) (13,489,000) (12,766,000)

Capital Surplus 6,102,000 5,365,000 5,075,000


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Other Stockholder Equity (13,812,000) (9,063,000) (11,216,000)

Total Stockholder Equity 124,667,000 110,870,000 101,865,000

Net Tangible Assets 124,667,000 110,870,000 101,865,000

Currency in USD.

Quotes delayed, except where indicated otherwise. Delay times are 15 mins for NASDAQ,NYSE and Amex. See also delay times forother exchanges. Quotes and other informationsupplied by independent providers identified on the Yahoo! Financepartner page.Quotes areupdated automatically, but will be turned off after 25 minutes of inactivity. Quotes are delayedat least 15 minutes. All information provided "as is" for informational purposes only, notintended for trading purposes or advice. Neither Yahoo! nor any of independent providers isliable for any informational errors, incompleteness, or delays, or for any actions taken inreliance on information contained herein. By accessing the Yahoo! site, you agree not toredistribute the information found therein.

Fundamental company data provided by Capital IQ. Historical chart data and daily updatesprovided by Commodity Systems, Inc. (CSI). International historical chart data, daily updates,fund summary, fund performance, dividend data and Morningstar Index data provided byMorningstar, Inc.
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CASH FLOW OF TOYOTA MOTORS

View: Annual Data | All numbers in thousands

Period Ending 31-Mar-2011 31-Mar-2010 31-Mar-2009

Net Income 4,925,000 2,242,000 (4,424,000)

Operating Activities, Cash Flows Provided By or Used In

Depreciation 14,184,000 15,139,000 15,138,000

Adjustments To Net Income (1,260,000) 1,408,000 2,919,000

Changes In Accounts Receivables 5,085,000 (6,172,000) 8,013,000

Changes In Liabilities (2,504,000) 10,325,000 (11,452,000)

Changes In Inventories 625,000 600,000 1,948,000

Changes In Other Operating Activities 2,675,000 3,468,000 3,056,000Total Cash Flow From Operating Activities 24,421,000 27,382,000 14,953,000

Investing Activities, Cash Flows Provided By or Used In

Capital Expenditures (7,593,000) (6,470,000) (13,816,000)

Investments (18,561,000) (24,594,000) 880,000

Other Cash flows from Investing Activities 619,000 562,000 480,000

Total Cash Flows From Investing Activities (25,535,000) (30,503,000) (12,455,000)

Financing Activities, Cash Flows Provided By or Used In

Dividends Paid (1,703,000) (1,846,000) (4,455,000)

Sale Purchase of Stock (345,000) (110,000) (715,000)

Net Borrowings 7,288,000 (1,019,000) 12,245,000

Other Cash Flows from Financing Activities - - -

Total Cash Flows From Financing Activities 5,240,000 (2,975,000) 7,075,000

Effect Of Exchange Rate Changes (1,533,000) (95,000) (1,314,000)

Change In Cash and Cash Equivalents 2,594,000 (6,192,000) 8,259,000


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Toyota Motor Corporation Common(NYQ: TM )


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Last Trade: 67.34Trade Time: 10:39PM

Change: 1.11 (1.62%)

Prev Close: 68.45

Open: 68.03Bid: 67.35 x 200

Ask: 67.38 x 300

1y Target Est: 57.34

Day's Range: 67.00 - 68.14

52wk Range: 60.37 - 93.90

Volume: 149,117

Avg Vol (3m): 539,989

Market Cap: 105.58B

P/E (ttm): 40.87EPS (ttm): 1.65

Div & Yield: 0.95 (1.40%)

Quotes delayed, except where indicated otherwise. Currency in USD.

FINANCIAL DATA


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Capital investment and R&D Vehicle production


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Vehicle production by region Vehicle sales

V Vhicle sales by region


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Net revenues Operating income

Financial Performance (Consolidated)Fiscal

Year

Financial Indicator

Operating Pretax Pretax Return on Return on Shareholders'


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income return

on revenues

return on

revenues

return on

capital

assets

(R.O.A.)

equity

(R.O.E.)equity ratio

FY201

12.5% 3.0% 1.9% 1.4% 3.9% 34.7%

FY201

00.8% 1.5% 1.0% 0.7% 2.1% 34.1%

FY200

9 2.2% 2.7% 1.8% 1.4% 4.0%34.6%

FY200

88.6% 9.3% 7.5% 5.3% 14.5% 36.6%

FY200

79.3% 9.9% 7.8% 5.4% 14.7% 36.3%

FY200

68.9% 9.9% 7.9% 5.2% 14.0% 36.8%

FY200

59.0% 9.5% 7.6% 5.1% 13.6% 37.2%

FY200

49.6% 10.2% 8.4% 5.5% 15.2% 37.1%

FY200

38.2% 7.9% 6.2% 3.8% 10.4% 35.3%

FY200

27.7% 6.9% 5.4% 3.1% 7.8% 37.6%

FY200

16.1% 8.5% 6.6% 4.0% 9.6% 41.6%

*Financial figures are based on U.S. GAAP (Generally AcceptedAccounting Principles)

Dividend Policy(As of March 31, 2011)TMC (Toyota Motor Corpotation) deems the benefit of its shareholders as one of its priority management

policies, and it is working to improve corporate structure towards the realization of sustainable growth inorder to enhance its corporate value.

TMC will strive to continue to pay dividends while giving due consideration to factors such as businessresults for each term, investment plans and its cash reserves.

In order to survive stiff competition, TMC plans to utilize its internal funds for the earlycommercialization of technologies for the next-generation environment and safety, giving priority tocustomer safety and sense of security.

TMC pays dividends twice a year an interim dividend and a year-end dividend. In order to secure an

opportunity to directly seek shareholders' opinions, TMC treats payments of year-end dividends as amatter to be resolved at the General Shareholders' Meeting, even though TMC's articles of incorporation


47/56

stipulate that retained earnings can be distributed as dividends pursuant to the resolution of the board ofdirectors.

Considering these factors, an annual dividend of 50 yen per share was paid for fiscal 2011, consisting of ayear-end dividend of 30 yen per share and an interim dividend of 20 yen per share.

Note: The Board of Directors determined the interim dividend for the last term on November 5, 2011.

Dividends per share

Notice Concerning Distribution of

Interim Dividends from Surplus

At a meeting held on November 8, 2011, the Board ofDirectors of Toyota Motor Corporation ("TMC") resolved todistribute dividends from surplus, with record date dated

September 30, 2011. In relation to the above, we herebyinform you of the following:

1. Details of dividends

Interim dividend for

FY 2012

Most recent

dividend forecast

Record Date September 30, 2011 September 30, 2011

Dividend

per share20.00 yen Not reported

Total amount

of dividends62,713 million yen -

Effective date November 30, 2011 -

Source of

dividendsRetained earnings -

2. Reason for the dividend amount

TMC deems the benefit of its shareholders as one of its prio

strives to continue to pay stable dividends while giving due

business results for each term, investment plans and its cas

In order to successfully compete in this highly competitive i

early commercialization of technologies for the next-generat

giving priority to customer safety and sense of security.

Based on the foregoing, TMC's interim dividend for the yea

Details of Dividends through the fiscal year

Dividend per share (


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Record date End of interim period End of fiscal period Total

Dividends for

FY2012

(ending March 31,

2012)

20.00 - -

Dividends for

FY2011

(ended March 31,

2011)

20.00 30.00 50.00

.

.

GROWTH OF TOYOTA MOTORS IN 5 YEAR

PRICE CHART


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H R POLICIES

PURPOSE:

Embodiment of management that respects people to create perpetual prosperity for the company.

BASIC PRINCIPLE:

Establishment of relationship of mutual trust and respect.

BY:

- Building a relationship, in which, employee him/herself takes up part of responsibility in corporate activities.

- Contributing to self realization of employees through continuously exercising their facilities through the job

The Eight HR Processes That Contributed to Toyotas Success

1. Rewards and recognition The purpose of any corporate reward process is to encourage andincent the right behaviors and to discourage the negative ones. Its important for the rewardprocess to incent the gathering of information about problems. Its equally i

project on toyota

Documents