slept factors

8/6/2019 Slept Factors

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SLEPT FACTORS ANALYSIS

GLOPAL MARKETINGGROUP MEMBERS:

NAMRATARAJA(08H266)

SARANYA.S(08H270)

DIVYA.L(09H422)

RENUKADEVI.V.M(09H430)


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Toyota Motor IntroductionToyota Motor Corporation is one of the worlds leading automakers, offering a full

range of models, from mini vehicles to large trucks. Global sales of its Toyota andLexus brands, combined with those of Daihatsu and Hino, totaled 6.78 million

units in CY2003*. Besides its own 12 plants and 11 manufacturing subsidiaries

and affiliates in Japan, Toyota has 45 manufacturing companies in 26

countries/locations, which produce Lexus- and Toyota-brand vehicles and

components. As of March 2003, Toyota employs 264,000 people worldwide (on a

consolidated basis), and markets vehicles in more than 140 countries. Automotivebusiness, including sales finance, accounts for more than 90% of the company's

total sales, which came to a consolidated 16.05 trillion in the fiscal year to March

2003. Diversified operations include telecommunications, prefabricated housing

and leisure boats.


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History

Toyota started in 1933 as a division of ToyodaAutomatic Loom Works devoted to theproduction of automobiles under the direction

of the founder's son, Kiichiro Toyoda.[108] Itsfirst vehicles were the A1 passenger car andthe G1 in 1935. Toyota Motor Co. wasestablished as an independent company in1937. In 2008, Toyota's sales surpassedGeneral Motors, making Toyota number one inthe world


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COUNTRIES


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COMPETITORS OF

Toyota Motors

Ford Motor Co.

General Motors Company

Honda Motor Co., Ltd.

Auto Manufacturers - Major


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Company strategy

Toyota's management philosophy has evolved from the company's origins andhas been reflected in the terms "Lean Manufacturing" and Just In TimeProduction, which it was instrumental in developing. Toyota's managerialvalues and business methods are known collectively as the Toyota Way.

In April 2001 the Toyota Motor Corporation adopted the "Toyota Way 2001,"

an expression of values and conduct guidelines that all Toyota employeesshould embrace. Under the two headings ofRespect for People andContinuous Improvement, Toyota summarizes its values and conductguidelines with the following five principles:

Challenge

Kaizen (improvement)

Genchi Genbutsu (go and see) Respect

Teamwork


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According to external observers, the Toyota Way

has four components: Long-term thinking as a basis for management

decisions.

A process for problem-solving.

Adding value to the organization bydeveloping its people.

Recognizing that continuously solving root

problems drives organizational learning. The Toyota Way incorporates the Toyota

Production System.


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SLEPT FACTORS OF TOYOTA


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Social Factors

As part of the development in automotive industry, the Toyota Companyactually affects the society as a whole. It employs millions of peopledirectly, tens of millions indirectly. Its products have transformed society,bringing undreamed-of levels of mobility, changing the ways people liveand work (2007). The social value of the additional mobility that thisindustry brings involves the value of the people being able to commuteover longer distances easily, among many others. For most of its existencethe Toyota Company has been a model of social discipline and control andit is not just that the auto sector offers a pillar of something else. Thereare, on the other hand, particular social issues to address in manydeveloping countries, often those that are the result of an undertone ofreligious faith. Toyota company has the role to play in helping develop the

mobility of such countries and it can be achieved at an acceptable socialcost of the country is prepared to learn the necessary lessons from thosewho have traveled this route before it, and to make the necessaryinvestments.


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Legal Factors

Toyota Company is subject to numerous technicaldirectives and regulations, as well as legislation ofa more legal nature. The legislation covers areassuch as competition law, intellectual propertylaw, consumer protection and taxation, andemissions (air quality and fuels). When the autoparts industry reached full development,accelerated technological efforts were made to

create a web of local suppliers that would make itpossible to meet the growing legal requirementsfor the national integration of production.


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Economic Factors

For much of the developed world, andeconomic progress. WithoutToyota Company in automotive industry, it is impossible to developan efficient steel business, a plastic industry or a glass sector other central foundations of economic progress. The ToyotaCompany has been a core company, a unique economic

phenomenon, which has dominated the twentieth century (2007).However, the automobile industry including the Toyota Companynow suffers from a series of structural schisms and has becomeriddled with contradictions and economic discontinuities. For thecapital markets and the finance sector, it has lost a lot of itssignificance, as a result of ever declining profits and stagnant sales.

The proliferation of products means that it has become hopelesslywasteful of economic resources. While all these and more soundlike a very gloomy assessment of such a vast economicphenomenon, the industry is not in the end despondent. A differentfuture is possible for the industry, a highly desirable one.


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Technological Factors

The Toyota Company works on a scale so awesome and has aninfluence so vast that it is often difficult to see. The level anddiversity of technologies that it must deploy are increasing, whichimposes both new investment burdens and new uncertainties andrisks (2007). Roughly a million new cars and trucks are built around

the world each week they are easily the most complex productsof their kind to be mass-produced in such volumes. The industryuses manufacturing technology that is the cutting edge of science.But still, the potential for developing coordination skills, intellectualcapabilities and emotional sensitivities through electronictechnologies remain far from fully exploited. There are numerous

additional near-term technological opportunities to adapt thecompany to changing energy availability. The possibilities suggestthat automotive technology is unexpectedly robust and provides apowerful defence against energy starvation even if the real price ofoil climbs steadily during the next couple of decades.


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SWOT Analysis

- Toyota


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Strengths

New investment by Toyota in factories in the US and China saw 2005 profits rise,against the worldwide motor industry trend. Net profits rose 0.8% to 1.17 trillionyen ($11bn; 5.85bn), while sales were 7.3% higher at 18.55 trillion yen.Commentators argue that this is because the company has the right mix ofproducts for the markets that it serves. This is an example of very focusedsegmentation, targeting and positioning in a number of countries.

In 2003 Toyota knocked its rivals Ford into third spot, to become the World'ssecond largest carmaker with 6.78 million units. The company is still behind rivalsGeneral Motors with 8.59 million units in the same period. Its strong industryposition is based upon a number of factors including a diversified product range,highly targeted marketing and a commitment to lean manufacturing and quality.The company makes a large range of vehicles for both private customers andcommercial organizations, from the small Yaris to large trucks. The company usesmarketing techniques to identify and satisfy customer needs. Its brand is ahousehold name. The company also maximizes profit through efficientmanufacturing approaches (e.g. Total Quality Management).


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Weaknesses

Being big has its own problems. The World market for cars is in a conditionof over supply and so car manufacturers need to make sure that it is theirmodels that consumers want. Toyota markets most of its products in theUS and in Japan. Therefore it is exposed to fluctuating economic andpolitical conditions those markets. Perhaps that is why the company isbeginning to shift its attentions to the emerging Chinese market.Movements in exchange rates could see the already narrow margins in thecar market being reduced.

The company needs to keep producing cars in order to retain itsoperational efficiency. Car plants represent a huge investment inexpensive fixed costs, as well as the high costs of training and retaininglabour. So if the car market experiences a down turn, the company could

see over capapacity. If on the other hand the car market experiences anupturn, then the company may miss out on potential sales due to undercapacity i.e. it takes time to accommodate. This is a typical problem withhigh volume car manufacturing.


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Opportunities

Lexus and Toyota now have a reputation for manufacturingenvironmentally friendly vehicles. Lexus has RX 400h hybrid, andToyota has it Prius. Both are based upon advance technologiesdeveloped by the organization. Rocketing oil prices have seen salesof the new hybrid vehicles increase. Toyota has also sold on its

technology to other motor manufacturers, for example Ford hasbought into the technology for its new Explorer SUV Hybrid. Suchmoves can only firm up Toyota's interest and investment in hybridR&D.

Toyota is to target the 'urban youth' market. The company haslaunched its new Aygo, which is targeted at the streetwise youth

market and captures (or attempts to) the nature of dance and DJculture in a very competitive segment. The vehicle itself is a uniqueconvertible, with models extending at their rear! The narrowsegment is notorious for it narrow margins and difficulties forbranding.


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Threats

Product recalls are always a problem for vehicle manufacturers. In2005 the company had to recall 880,00 sports utility vehicles andpick up trucks due to faulty front suspension systems. Toyota didnot g ive details of how much the recall would cost. The majority ofaffected vehicles were sold in the US, while the rest were sold in

Japan, Europe and Australia. As with any car manufacturer, Toyota faces tremendous competitive

rivalry in the car market. Competition is increasing almost daily,with new entrants coming into the market from China, South Koreaand new plants in Eastern Europe. The company is also exposed toany movement in the price of raw materials such as rubber, steel

and fuel. The key economies in the Pacific, the US and Europe alsoexperience slow downs. These economic factors are potentialthreats for Toyota.


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REFERENCES

http://finance.yahoo.com/q/co?s=TM+Competitors

https://docs.google.com/viewer?a=v&pid=gmail&attid=0.1&thid=1314c0ba591a5280&mt=application/vnd.openxmlformatsofficedocument.wordprocessingml.document&url=https://mail.google.com/mail/?ui%3D2%26ik%3Df194d7f4bb%26view%3Datt%26th%3D1314c

0ba591a5280%26attid%3D0.1%26disp%3Dsafe%26realattid%3Dfile0%26zw&sig=AHIEtbQYWzzG7lEdjmvads7YLU7Y6OLIIw&pli=1

http://www.marketingteacher.com/swot/toyota-swot.html

http://www.toyota.co.jp/en/about_toyota/executives/index.html.

http://www.toyota-

global.com/investors/financial_result/2011/pdf/q4/summary.pdf. http://ivythesis.typepad.com/term_paper_topics/2009/08/strategic

-analysis-of-toyota.html#ixzz1SjSwGhGA


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