Business Essays - Company Structure Market

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Company Structure Market

1) Describe the Company and the business environments:

1.1 Identify the main stockholders.

1.2 Describe the organizational structure (if needed add a holding chart).

1.3 Describe the Company's history of operations.

1.4 Describe the main products, services and brands of the Company.

1.5 Describe the marketing system

1.6 Describe main competitors and their relevant market share.

1.7 Describe the main suppliers.

1.8 Describe the seasonally effects (if there are any).

1.9 Add summarized financial statements (Balance sheets and Income statements). No need to attach the full financial statements.

1.10 Calculate the Market Cap and the P/E multiplier (Given on yahoo finance)

Main Stockholders

The total number of shareholder of Toyota Motor is 522,135 and the total shares issued in the market are 3,447,997,492. The date to pay dividend to the stockholders is 30 September of every year. The stocks of Toyota Motor are listed at New York Stock Exchange, London and in Japan (Toyota, 2008).

Main stockholders

No. of shares (in thousand)

The Master Trust Bank of Japan, Ltd.


Japan Trustee Services Bank, Ltd.


Toyota Industries Corporation


Nippon Life Insurance Company


Hero and Company


Trust & Custody Services Bank, Ltd.


State Street Bank and Trust Company


Tokyo Marine & Nichido Fire Insurance Co., Ltd.


Mitsui Sumitomo Insurance Co, Ltd.




(Toyota, 2008)

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Organizational structure

Toyota Motor Corp. follows divisional organizational structure. Another name for this organizational structure is profit decentralization. The growth through expansion in same line of business forces a small organization to organize on functional basis; growth through geographic and product diversification necessitates the adoption of divisional structure. The organization is divided into several fairly autonomous units. Each unit is relatively self-contained in that it has the resources to operate independently of other divisions.

There are different basis on which various departments can be created in an organization. Toyota Motor follows terrestrial divisional criteria. In this form, regional offices are established as separate units. Each regional office has its own set of functional departments and operates under the strategic policies and guidelines established by the corporate management. This structure is suitable to organizations having several products with each product having distinct features or for organization having coverage of wide geographical area or having distinct market segments.

The patron, chairman and council supervise the activities, which are related to the approval of different activities and submission of budget to the board. The committees organize the project teams and the project teams accomplish the original activities. Different committees at Toyota Motor are project development committee, internal relation committee, theme study committee, etc. (Organization, 2006).

(Organization, 2006)

History of operation

The company was established in 1867. A new division of production for Toyota Motors was established in 1933. The production of the trucks was started during Second World War. At this time, the company used to create trucks with one headlight at center. The manufacturing for the passenger car was begun in 1947. The first passenger car was SA compact car. The company needed to increase its sales in 1950 and opened a separate sales unit named Toyota Motor Sales Co. This separate sales unit highly contributed to its revenue

Toyota first imported its car to the United States in 1956. The name of the car was Crown. Crown was the only Japanese car exported by the US at that time. Different sales units were formed than at different parts of the world. The period of 1960s showed high market expansion for the company. Corolla, crown eight, etc were produce in this decade. The company reached to the sales of one million units at this time. These practices helped the company to make strong worldwide presence (Toyota, 2008).

The sale of the company was declined after the increase in the gas prices in the US. In the year 199, the overseas sales of the products of Toyota Motors crossed 3 millions. In 2005, the sales of the company have touched 10 millions. The four wheelers of Toyota Motors have become popular among its worldwide customers. Although the company faced double digit decrease in the sales in 2008 due to increased gas prices but it will again reach to its old profitable position.

Different motor plants in different countries have been launched by Toyota Motors, which plays a strategic role in the growth, development and success of the organization. The environment, safety and energy are the three most important areas, which are focused by the company. This approach has helped Toyota to reach to a competitive position. Now it has worldwide presence in all the developed and developing countries with its innovative and attractive products (Toyota, 2008).

Marketing system

The marketing system of Toyota Motors emphasizes 4Ps of the marketing mix. The business and sales divisions focus on the marketing and selling strategies of the company. The economic and consumer environment have been changing and it needs to be focused highly to sustain and develop in the current scenario (Amasaka, 2007). The company has launched multimedia player at the dealers of the company in Japan. It contain a promotional video, it is one of the best ways to minimize the marketing cost by the company. The dealers get the content by the means of video clipping.

The name of the company indicates innovation, excellence and dependability. Toyota Motor Sales (TMS) were created by the company to increase it sales. This unit focuses on the customers, distributors and dealers to increase the sales of the trucks and cars. In the United States, TMS serves 49 states and the results achieved by the company are in the form of sales of 1 million units per year (Amasaka, 2007).

Advertising is one of the most effective and efficient tools in the marketing system. Different media are used by the company to promote its products. Television broadcast is one of the most usable tools to promote the products of Toyota Motors. Different advertising agencies work for its new products and help in creating awareness among the target customers. There are more than 1400 dealers of Toyota in the United States, who forms a strong network for the sales its products (Toyota moving forward, 2008).

The marketing and research of the company helps in targeting the customers and designing the products according to the requirements of present customers. The global marketing strategies of Toyota Motors help it to maintain and improve the sales.


The main competitors of Toyota Motors are Ford Motor, General Motors Corporation and Honda Motors Co. Ltd. Ford Motors deals with different types of cars and trucks at the global level. Automotive and financial sectors are covered by Ford Motor. The major brands of Ford are Volvo, Mercury and Lincoln. It is an American multinational company, which is its presence all around the globe. The company supplies its products to retailers in North America and to dealers and distributors outside of the North America. Different types of automotive financing options are offered by the company to its customer under the financial service sector (Ford Motor Co. (F), 2008).

General Motors is also one of the main competitors of Toyota Motors with market capitalization of $5.75 billion. The company and its subsidiaries design, develop and market different types of cars, trucks and accessories. Different products of General Motors include luxury, midsize and sport cars, truck, vans and pickup vehicles. It is based in the United States. Different brands of the company are Opel, Chevrolet, GMC, etc. It has strong presence in Asia, Latin America, Europe and Canada. It also uses the same distribution channel like 'Toyota and Ford Motors. Other services provided by the company are mortgage, commercial and vehicle financing and automotive dealership (General Motors Corporation (GM), 2008).

Honda Motors has market capitalization of $118.49 billion. Honda Motor Co. is a Japan based company. It is engaged in the manufacturing and marketing of automobiles, power products and motor cycles. The motorcycle of Honda Motor ranges between 50 to 1800cc. Its products focus on the sports and business class customers. Different brands of the company are Stream, Wagon, CR-V, Airwave, etc. the power products of Honda include power generator, water pumps, power tillers, lawn tractors, etc. The distribution channel of the company includes wholesalers, company outlets and retail dealers (Honda Motor Co. Ltd. (HMC), 2008).


Market share (in United States)

Market share (worldwide )

Toyota Motors



Ford Motors



General Motors



Honda Motors



(Honda Motor Company (HMC), 2008)


Organization. (2006). Retrieved August 21, 2008, from

Amasaka, K. (2007). The Validity Of Advanced TMS: A Strategic Development Marketing System - Toyota's Scientific Customer Creative Model Utilizing New JIT. International Business & Economics Research Journal, Vol. 6(8).

Toyota. (2008). Retrieved August 21, 2008, from

Toyota Moving Forward. (2008). Retrieved August 21, 2008, from

Ford Motor Co. (F). (2008). Retrieved August 21, 2008, from

General Motors Corporation (GM). (2008). Retrieved August 21, 2008, from

Honda Motor Co. Ltd. (HMC). (2008). Retrieved August 21, 2008, from

Honda Motor Company (HMC). (2008). Retrieved August 22, 2008, from