TOYOTA Indus motor co.

-: INTRODUCTION :-

VISION AND MISSION:

"IMC’s Vision is to be the most respected and successful enterprise, delighting customers
with a wide range of products and solutions in the automobile industry with the best
people and the best technology".

• The most respected.

• The most successful.
• Delighting customers.
• Wide range of products.
• The best people.
• The best technology.

Mission of Toyota is to provide safe & sound journey. Toyota is developing various new
technologies from the perspective of energy saving and diversifying energy sources.
Environment has been first and most important issue in priorities of Toyota and working
toward creating a prosperous society and clean world.

HISTORY:

Indus Motor Company (IMC) is a joint venture between the House of Habib , Toyota
Motor Corporation Japan (TMC) , and Toyota Tsusho Corporation Japan (TTC) for
assembling, progressive manufacturing and marketing of Toyota vehicles in Pakistan
since July 01, 1990. IMC is engaged in sole distributorship of Toyota and Daihatsu Motor
Company Ltd. vehicles in Pakistan through its dealership network.

The company was incorporated in Pakistan as a public limited company in December

1989 and started commercial production in May 1993. The shares of company are quoted
on the stock exchanges of Pakistan. Toyota Motor Corporation and Toyota Tsusho
Corporation have 25 % stake in the company equity. The majority shareholder is the
House of Habib. IMC's production facilities are located at Port Bin Qasim Industrial
Zone near Karachi in an area measuring over 105 acres.Indus Motor company's plant is
the only manufacturing site in the world where both Toyota and Daihatsu brands are
being manufactured.
Heavy investment was made to build its production facilities based on state of art
technologies. To ensure highest level of productivity world-renowned Toyota Production
Systems are implemented.

IMC's Product line includes 6 variants of the newly introduced Toyota Corolla, Toyota
Hilux Single Cabin 4x2 and 4 versions of Daihatsu Cuore. We also have a wide range of
imported vehicles.

MANAGEMENT TEAM:

Ali S. Habib
Chairman

K Hyodo
Vice Chairman

Parvez Ghias
Chief Executive Officer

INFORMATION TECHNOLOGY
Mr. Adnan Qazi
Chief Information Officer

FINANCE
Muhammad Faisal
Chief Financial Officer

Mustafa Hasan Lakhani

Company Secretary

HUMAN RESOURCE
Mr. Salim Azhar
Director

LOGISTICS, ADMINISTRATION & COMMERCIAL

Mr. Salim Azhar
Director

MANUFACTURING
Mr. Y. Tsubaki
Director

SALES & MARKETING

Mr. Raza Ansari
Director

INTERNAL AUDIT
Mr. Ahson Tariq
Chief of Internal Audit
 VALUE CHAIN ANALYSIS
OF TOYOTA Indus Motors Co.

The value chain is a systematic approach to examining the development of competitive

advantage. It was created by M. E. Porter in his book, Competitive Advantage (1980).
The chain consists of a series of activities that create and build value. They culminate in
the total value delivered by an organization. The 'margin' depicted in the diagram is the
same as added value. The organization is split into 'primary activities' and 'support
activities.'

Primary Activities

Inbound Logistics:

Here goods are received from a company's suppliers. They are stored until they are
needed on the production/assembly line. Goods are moved around the organization.
Toyota motors purchase their raw material from all around the world. In order to
maximize their availability of raw material Toyota motors maintain good relationship
with their suppliers. Toyota use JIT (Just In Time) approach for handling of raw material.
Operations:

This is where goods are manufactured or assembled. Individual operations could include
organizing the parts to make new cars & the final tune for a new car's engine. Toyota
motors are known for their reliability which comes from efficient operations.

Outbound Logistics:

The goods are now finished, and they need to be sent along the supply chain to
wholesalers, retailers or the final consumer. Toyota motors manage their own Show
rooms in different countries. Toyota motors make their product easily assessable.

Marketing and Sales:

In true customer orientated fashion, at this stage the Toyota motors prepares the offering
to meet the needs of targeted customers. This area focuses strongly upon marketing
communications and the promotions mix.

Service:

This includes all areas of service such as final checking, after-sales service, complaints
handling, training and so on. Toyota value their customers.

Support Activities

Procurement:

This function is responsible for all purchasing of goods, services and materials. The aim
is to secure the lowest possible price for purchases of the highest possible quality. Toyota
motors will be responsible for outsourcing (components or operations that would
normally be done in-house are done by other organizations), and e-Purchasing (using IT
and web-based technologies to achieve procurement aims).

Technology Development:

Technology is an important source of competitive advantage. Companies need to

innovate to reduce costs and to protect and sustain competitive advantage. Toyota motors
implemented production technology, Internet marketing activities, lean manufacturing,
Customer Relationship Management (CRM), and many other technological
developments.
Human Resource Management (HRM):

Employees are an expensive and vital resource. Toyota motors manage recruitment and s
election, training and development, and rewards and remuneration. Toyota motors
consider their employees as HUMAN CAPITAL. The mission and objectives of the
Toyota motor is the driving force behind the HRM strategy.
Toyota motors uses following techniques to retain their employes:
• Recruitment
• Selection
• Training and development
• Compensation
• Maintenance

Firm Infrastructure:

This activity includes and is driven by corporate or strategic planning. Toyota motors
implemented Management Information System (MIS), and other mechanisms for
planning and control in different departments.

SUGESSIONS & RECMENDATIONS

1. Toyota motors should use Value Coalitions for better use of their under utilized
recourses. Toyota develops synergies among their recourses.

Marketing Production

R&D CUSTOMERS
 2. Toyota should use design to maximize the performance of their operations. Using
the value chain approach, processes that provide direct value to the customer are
modeled first. Derivative processes that support the value chain processes are
modeled to support the value chain.

TOYOTA Company Functional and Process Based Designs

Functional
Marketing Finance Sales Engineering Manufacturing Distribution
Design

Process
Design
Design Build
Market Car Deliver Cars
Car Car