Company background and history of Toyota
|✅ Paper Type: Free Essay||✅ Subject: Marketing|
|✅ Wordcount: 2990 words||✅ Published: 1st Jan 2015|
The assignment briefly describes about the background and the lines of business of the company. This is Toyota. Further Toyota motors strategically factors were described to its extent. The mission statement of Toyota and its general and specific objectives is followed by its environmental factors.
The analysis clearly gives the idea about the company’s strengths, weakness, opportunities and the threats behind it.
Further this assignment gives details about its decision making levels and the types of decisions made at various levels.
Finally the ethical issues were discussed briefly.
Toyota is a Japan automobile manufacturer company. This is based in Japan. The company was established on August 28, 1937. It’s giving financial services and participating with other lines of the business. It makes vehicles under the own brand name.
Toyota vehicles are popular for their longevity and reliability, quality, engineering, and value.
Toyota is a first and biggest in the japan and has a second place in the world.Toyota also has a large market share in both the America and Europe. also has market shares in south-east Asian countries.
Company background and Toyotas lines of business
Principles of Toyota
Contributing to the development of a society through the manufacture of vehicles.
Contribute to society
To produce automobiles that meets the needs of society and enriches people’s lives.
To bring root in the communities they serve by creating jobs, making profits and paying taxes, thereby enriching the local economies where they operate
Major threats for Toyota Corporation
In 1950, Toyota faced bankruptcy and suffered a labour dispute that reduced its workforce by a quarter.
In the 1970s, air pollution standards and two oil crises again threatened the auto industry, but they prevailed by building cleaner, more fuel-efficient cars.
In the 1980s, they faced trade frictions and voluntary export restraints, but they overcame these by expanding production outside Japan.
Toyota is doing a product-focused management by designing efficient vehicles.
Toyota has been big increase sales over the international and production in the last 10 years. Since 2003, the pace of expansion has exceeded half a million vehicles a year.
Toyota wants to build company to strive to make better cars.
Strategic plan is much significance for a business organisation.
A framework for decisions or for securing support/approval.
Make a basis for more detailed planning.
Explain the business to others in order to inform, motivate & involve.
Assist benchmarking & performance monitoring.
Stimulate change and become building block for next plan.
Toyota business strategy
Toyota’s business strategy is concerned with major resource issues
Strategies are also concerned with deciding on what products to allocate major resources to!
Toyota is one of his strategies as a benchmark to compare the use of statistics and control costs. Benchmarking is a process that is similar to comparing business services companies. Identifies opportunities for improvement often necessary for the implementation and provides the momentum of change.
Reduction of costs, but also one of the strategies. Is a valuable lasting impact on job creation is of strategic decisions.
Further the Directors of Toyota were taking responsibilities for the management. They are acting in a way most likely to promote the success of the business and benefit its shareholders. They also taking responsibilities to the company’s employees and its trading partners.
Creating and increasing profitability depends on doing many little things better than the competition.
Growth – the expansion of the company to purchase new assets, including new businesses, and to develop new products. Toyota has expanded from being just automaker, to other functions such as
Toyota housing operations financial services,
communications, marine vehicles,
Biotechnology and afforestation.
Competitive strategies Toyota is highly competitive because they sell vehicles at lower prices. Further Toyota is differentiating its product from other vehicles in a lot of ways such as its aerodynamic style, spacious room inside the vehicle etc.
Mission statement of Toyota
“To continually improve our products and services and to maintain a level of excellence which will meet our customers’ needs, provide the company with a satisfactory return on invested capital and will exceed the levels of expectations set by the dealers we represent”
Toyota Motor primary goal is to increase stakeholder value. The most important stakeholders in their own business as a shareholder, customer or business, and business products, services, business employees, for customers to buy. The purpose of the mission and the company’s activities in the above clearly shows the full job of work is usually about the nature of their mission in terms of what it describes is a.
Toyota’s management philosophy -“Lean Manufacturing” and Just in Time Production, which Toyota’s managerial values, business methods are known as the Toyota Way.
Increase of the development.
Go and look
Toyota Way has four components
Long-term thinking as a basis for management decisions.
A operation for problem-solving.
Increase the value to the organization by developing its people.
Recognizing that continuously solving root problems drives organizational learning.
General objective of Toyota motors
Toyota motor companies are targeting their customers benefit. The main aspect of Toyota’s motor companies to get their vehicles back to customers on the fantastic. Toyota motor company, plans for the future, all the way up to 2020
Toyota in 2013 to reach annual sales of 10 million vehicles have a short-term three-year plan. Then, in 2021 to reach 15 million in annual sales will be another eight years.
Kind of business model is undergoing a tectonic shift is the latest sign of the car. Toyota wants to offer hybrid version in the entire line-up within the next five years.
Already being snapped up U.S. and European markets – the company makes the Priushybrid motor. Natural gas powered cars, pickups, vans and SUVs such as the location
Toyota also makes forklifts and manufactured housing and consumer financial services.Toyota Toyota Production System lean manufacturing methods that are part of a leading exponent.
Important parts of the world, including Toyota’s North American and Western European market share is growing.
Specific objective of Toyota motors
Toyota motors when another 2-year period planned to do some of the best value of the vehicle models. Toyota’s average of 35 miles per gallon in order to meet the standards for fuel economy will increase by 40 percent more than the car is trying to apply hybrid technology to perform this operation.
Toyota Motor Corporation, in a period of three years, have other plans to be environmentally friendly.
Increasing production by Toyota Motor Corporations plan to reach them at its production plant in the U.S.
The growing Chinese market will also demand more Toyota vehicles
Toyota Motor Corporation, in the first of the environmental factors were affecting the environment, called MACRO is based away from the external environment factors that change can be analyzed in two ways. These factors have no control.
The second is the internal environment within the industry about the Toyota company.
This depends on the characteristics of the process inside Toyota Corporation.
The remote factors which are affecting Toyota motor corporation The company’s worldwide vehicle production and income, inflation, recession, interest rate and the job can bring a big impact, as exchange rate changes every minute.Toyota’s strong global brand of scale, economies and highly skilled engineers
As we all know 20 century’s most dynamic economy in the vehicles as a way to stop the production of some special kind of dropped the affected Toyotas
Toyota’s total sales, and create a market for other weak U.S. market due to lower market shares.
Reduce investment in new vehicles because of the Middle East crisis affects oil buyers have an increase in fuel rate constant.
In addition, exchange rate fluctuations, earnings and revenues can be a major threat to Toyota. Toyota made it easier to keep the situation developed with the price of the vehicle at all times to produce a value is typical.
When the analysis of political factors, political stability, the company can get ideas about government regulations and taxes and tariffs. However, Toyota has to make a good relationship with governments to achieve long-term profit.
The purchasing power of consumers due to economic factors more related to supply and demand in a particular country and per capital income is related to the automobile industry Toyotas.
Social factors that influence consumer purchase behaviour and lifestyle. This highly innovative technology and knowledge-based, depending on the technological factors are important factors for this industry.
Technological changes have contributed to a lot more on the growth of the sector.
The industry environment inside Toyota and its influence in the company
Basically this industry environment factors has five forces also called as porters five factors
Barriers to entry
When we analyze about the Toyota Motor Corporation which is a faster growing industrynowadays than other industry. Barriers to entry to the threat of new entrants in the automobile industry is low due to the huge capital and cutting-edge technology.
Suppliers are weak because they are spread all over the world and can not easily integrate forward. That is the parts were made â€‹â€‹in different places. The automobileindustries use very high quality materials. Which means having the Capacity to influence price?
Buyers are weak due to low demand for automobile and high switching costs. Moreover, buyers are able to backward integrate shout.
Substitutes are moderately strong due to the different and less-expensive transportationfacilities. More over people like nowadays uses less fuel and produce less carbonGreener cars which emission is produced by almost all the high brands which not even one Ferrari launches in February 2010.
intensity of the rivalry is strong because of the major players in the Toyota motors are the dominant in the market by nearly same technology and manufacturing Processes,suppliers relationship and distribution systems were also same in the Toyota motors
SWOT ANALYSIS WITHIN THE COMPANY
New investment by Toyota factories in the United States and China, is the important trends
Marketing industry is extremely strong position and commitment to lean production and quality target, depends on a number of factors including a diversified product range.
Corporate and private clients, and makes a large range of vehicles for commercial organizations. The company also maximizes profit through efficient manufacturing approaches
Toyota markets products in the United States and Japan, most of them. For this reason, economic and political conditions, it is exposed to fluctuating markets.
Movements in exchange rates could see the car market is already tight margins are reduced.
Car plants are a major investment in expensive fixed costs, as well as training and retaining the high cost of labor represents. That car market experiences a down turn, the company could see on the capacity.
Toyota now has a reputation for the production of environmentally friendly vehicles.advanced technologies developed by the organization to belong to it.
Rocketing oil prices have seen sales of new hybrid vehicles increase. Toyota also soldon the technology with other engine manufacturers.
The company launched the street and the youth market targeted at very competitive segment, dance and DJ culture in the new Aygo works of nature.
These economic factors are potential threats for Toyota.
Product recalls are always a problem for vehicle manufacturers.
Once In 2005 the company had sports utility vehicles and pickup trucks due to the recall,880,00 to faulty front suspension systems.
As with any car manufacturer, Toyota’s automobile market competition faced with great competition. Competitive new entrants in Eastern Europe, China, South Korea and new plants coming to market, increasing almost every day
The company also rubber, steel and raw material prices such as fuel is exposed to any movement.
Types of decisions made at various levels in organisation.
“Top Management” generally refers to the senior executives and the Board of Directors.
“Middle Management” is found in a large enterprise where there is sufficient need for management roles below the “Director” or “Executive” level. Under this level, managers tend to be in more direct supervisory roles, often with specialized responsibility.
Execute support system. (ESS)
After an excellent analysis of the annual report requirements will decide the next steps inToyota’s management team and committee members do business in a profitablemanner.
Always working in Toyota’s management programs and meetings, the company isqualified to motivate people to
What it means and instruments that improve the efficiency of the best seller andcompare the same type of vehicle to win the competition with their rival, Toyota will havethe decision taken by the management team.
Profit of the company will be a key factor, and the company’s plan to increase profits is one of the new strategy.
Decision support system. (DSS)
Decision Support System -middle level of management to make co-operate decision on the basis of the data Toyota dealing with. What-if analysis, sensitivity analysis, goal-seeking analysis, optimization analysis.
AnnualBudget Every new financial year start Toyota decides the budget plan to keep in the profit Track capital Investment.
The decisions were made based on the past year records in the amount of money to invest
Management Information Support .(MIS)
It is the function level – middle level manager
Sales Analysis and Control Cost Analysis.
Toyota performs analysis on particular vehicles and new plans for the vehicle is launched
Toyota’s cost analysis
Maintenance and storage cost
Legal taxes and IT costs
Knowledge work Station.(KWS)
Engineering Workstation and Managerial workstation.
Toyota’s basic role in the production of these vehicles around. Design and othercomputer-based application is done here.
Transaction Processing system.(TPS)
Operational level- day to day transaction. Record daily routine transactions necessary to the conduct of the business.
Track of despatched vehicles
Training and Development.
Employee and customer Record Keeping.
Changes in the modern world
Integration of Toyota in global economic processes
problems related to ethical domain
Information in computers might be hacked by the competitors. Before launching the vehicle design.
Failure of the computers might delay the processing of works carried inside the industry
As because the machineries were operated by computers, any failures results in major loss
all units operating in different countries, the company in the world the principle ofteamwork can be a serious ethical problem of ethics.
Can be applied to all units in different parts of the world’s Toyota, the company should establish a universal corporate culture based on the principles.
In fact, the traditional view on its quality as a Toyota in third world countries the threat ofdeterioration of plant and personnel employed in building the company results, international expansion is applied.
The company needs to establish a system of effective control throughout the production chain of the world.
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