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EXECUTIVE SUMMARY
Project On Operation Research Page 1
The Toyota Motor Co. Ltd was first established in 1937 as a spin-off from Toyo Automatic Loom Works, one of the world's leading m anufacturers of weav m achinery.
The Toyoda Automatic Loom W orks was then headed by Japan's "King of Invento Sakichi Toyoda. The patent rights to one of his m achines had been sold to Pl Brothers (UK) and provided the seed-money for the development and test-buildi of Toyota's first autom obiles.
In 1950 the com pany experienced its one and only strike. Labour and m anageme emerged from this stoppage firmly comm itted to the principles of mutual trust a dependence, and that corporate philosophy still guides our growth today.
Production system s were im proved in the late 1950s, culminating in t establishm ent of the 'Toyota Production System.' It became known as TPS in 19 but was established much earlier by Taiichi Ohno. Based on the principles of Jido Just-in-tim e and Kaizen, the system is a major factor in the reduction of inventor and defects in the plants of Toyota and its suppliers, and it underpins all o operations across the World.
Toyota launched its first small car (SA Model) in 1947. Production of vehic outside Japan began in 1959 at a small plant in Brazil, and continued with growing network of overseas plants. Toyota believes in localizing its operations provide customers with the products they need where they need them; t philosophy builds mutually beneficial long-term relationships with local suppli and helps the company fulfill its comm itments to local labour.
Over and above m anufacturing, Toyota also has a global network of design a 'Research and Developm ent' facilities, embracing the three m ajor car markets Japan, North Am erica and Europe.
In every comm unity in which the company operates, Toyota strives to be responsible corporate citizen; close relationships with people and organizations the local community are essential contributors to m utual prosperity. Across t world, Toyota participates enthusiastically in community activities ranging from t sponsorship of educational and cultural programmers to international exchan and research. Toyota Motor Corporation m only known as com Toyotaand abbreviated as TMC is a multinational autom aker headquartered in Toyota, Aichi , Japan. In 2010, Toyota Motor Corporation employed 317,734 people worldwide, a was the world's largest autom obile m anufacturer production. by
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TABLE OF CONTENTS
Page No. 1. EXECUTIVE SUMMARY---------------------------------- 2 2. INTRODUCTION------------------------------------------ 4 3. LOGO AND BRANDING--------------------------------- 6 4. COMPANY AT A GLANCE------------------------------ 7 5. OBJECTIVE------------------------------------------------ 9 6. METHODOLOGY----------------------------------------- 9 7. TECHNOLOGY------------------------------------------- 10 8. OPERATION STRATEGY OF TOYOTA--------------- 16 9. MARKETING STRATEGY----------------------------- 28 10. FINANCIAL SOLUTION------------------------------- 40 11. HR POLICY---------------------------------------------- 55 12. CONCLUSION------------------------------------------ 60 13. BIBLIOGRAPHY---------------------------------------- 61 14. CONTRIBUTION -------------------------------------- 62
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INTRODUCTION
Toyota Motor Corporation is headquartered in Toyota 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 provides financial services through its Toyota Financial Services division and also builds robots. In predominantly Chinese-speaking countries or regions using traditional 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 world over. 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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From left, Iwate Governor Takuya Tasso, President Akio Toyoda, and Miyagi Governor Yoshihiro Murai
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.
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COMPANY AT A GLANCE
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Type
Industry
Founded Founder(s)
Headquarter Toyota, Aichi, Japan s Area served Worldwide Key people Fujio Cho (Chairman and Representative Director)
29.818 trillion (FY2011) (US$370.3 billion) 10.33 trillion (FY2011)[1] (US$128.32 billion)
[2]
Total equity
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OBJECTIVES
Study any organization in detail. Collect data pertaining to the following: Operations strategy Financial strategy HR policy Marketing strategy
METHODOLOGY
All the analysis is done with the help of secondary data.
Technology
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The latest corporate crowd sourcing 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. 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 crowd sourcing 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.
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T.H.U.M.S. 1. Solar Powered Ventilation System 2. Hybrid Synergy Drive 3. Advanced Parking Guidance System 4. 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 collisions, 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 pleasure and environmental responsibility
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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 the vehicle's operating conditions. BY determining the level of performance that is demanded of the engine at a given time by way of the driver's accelerator operation and the engine rpm, the VVT-I enables the overall performance of the engine to be enhanced all the way from the low to the high rpm range.
Design
VVT-I is comprised of three major components 1.The electronic control unit(ECU), which calculates optimum intake valve timing based on engine operating conditions. 2. The oil control valve (OCV), which controls hydraulic pressure under
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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 engines are available on select models of Yaris, Yaris Verso, Corolla Verso, Innova, Avensis, Avensis Verso, RAV4, Land Cruiser and Prevail 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 pressure pump 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.
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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 protect the occupants. During the development of a new automobile, Toyota uses dummies of several different sizes to make sure the seatbelts, anchors, and buckles are positioned for a safe and comfortable fit. While roadtesting prototypes, real people use the seatbelts and report on their fit and comfort. Adjustable shoulder anchor are provided for wearers to change the height of the belt for additional comfort and safety. Toyota continually strives to design new and better seatbelts that make the most of the ride-down effect of our automobiles' crumple zones and enhance the deceleration effects. Toyota even designs the structure and shape of the seats in its cars to complement the restraint of the seatbelts. Making the shape of the seats and the position of the anchors to ensure that the belts fit low across the pelvis. Depending upon the seating configuration, some of our vehicles have 3Project On Operation Research Page 14
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 to determine 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 speed sensor detects a sudden increase in wheel rotation speed. 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
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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 centre of the hood. Toyota earns $1250 per vehicle produced while GM loses $2311 per vehicle produced.
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Production System
A production system which is steeped in the philosophy of "the complete elimination of all waste imbues all aspects of production in pursuit of the most efficient 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
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TPS Concept
Jidoka Highlighting/visualization of problems
-Quality
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. 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. 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
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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.
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MARKETING STRATEGY
Strategic Focus and Plan
There 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;
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 Analysis
Strength 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
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Management
Having competent and Large size of management experienced management team team reduces chances of and board members moving fast into the targeted market, because of slow rate in decision making Hybrid products that are customer friendly Distribution of products into the market through wide range of identified branches Have good skilled workforce who are relied upon Improved revenues from sales made in the global market Expensive in proofing the market that are right products for them Expensive in establishing this distribution network The gap will be big if the employees left the Company Limited workforce and material may slow down the growth of the Company in relation to competitors Different supply interests among the Company suppliers and other competitors.
Offering
Marketing
Personnel Finance
Manufacturing
Main supplier of material ensure fast and quality material Quality of products delivered is enhanced through out the period of doing business
R&D
Figure 2: SWOT Analysis of Toyota Company (External Factors) External Factors Consumer/social Opportunities Stability of the upcoming market is highly projected Threats Low priced products may proof that the quality of the products is quite low
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Technological
Economic
Legal/Regulatory
Strengths: investment in new factories diverse range of products improved marketing techniques
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Industry Analysis
Toyota 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
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.
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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.
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 colour 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.
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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.
Product 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.
Price Strategy
The reputation of the Company has been developed by producing high quality vehicles that can be bought at a reasonable price. The Company
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Location 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.
Promotion Strategy
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.
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 Net Sales 1,243,445 1,455,650 Operating income 54,120 65,023 Ordinary 70,912 80.636 Income 46,123 47,999 Net Income 30,051 32,051 Research 32 44 Dividends/yen 2011 2012 2013
1,900,340 1,957,879 2,000,534 89,954 108,484 60,231 30,051 50 98,0530 125,444 81,234 20,051 60 99,760 14,343 57,576 30,051 78
Toyota has taken a bold step in being a leader in sustainable development. This position will need some innovations which translate to expenditure.
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Product Activities 1.Car air conditioning compressor 2.DC-DC converters for fuel efficiency 3.Low Exhaust Emission Engine Pricing Activities 1.New Technologies 2.Compression of Production platforms 3.Merger of Assembly points Distribution Activities 1. Opening up of new factory in America and china 2. Machine handling 3.Logistical operations IMC (Promotion) Activities 1.Concerts 2.Volunteer 3Youth Invention club
2012
2010
Marketing manager
9.20
2012
Implementation Plan
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Today (2010)
Working towards hybrid products Introduction of pricing mechanism and price differentiation strategies.
320
600
Enhancing 370 hybrid products by use of new technologies Product differentiation to meet the needs of the market 420
970
1320
FINANCIAL SOLUTION
Income Statement
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Gross Profit
Operating Expenses Research Development Selling General and Administrative Non Recurring Others Total Operating Expenses -
Income from Continuing Operations Total Other Income/Expenses Net 1,500,000 1,898,000 (531,000) Earnings Before Interest And 7,150,000 3,477,000 (5,199,000) Taxes 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 Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items 4,925,000 2,242,000 (4,424,000)
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Balance Sheet
View: Annual Data Period Ending Assets Current Assets Cash And Cash Equivalents Short Term Investments Net Receivables Inventory Other Current Assets Total Current Assets Long Term Investments Property Plant and Equipment Goodwill Intangible Assets Accumulated Amortization Other Assets Deferred Long Term Asset Charges Total Assets All numbers in thousands 31-Mar-2011 31-Mar-2010 31-Mar-2009
142,734,000 139,914,000 114,396,000 132,933,000 105,241,000 76,124,000 7,985,000 71,820,000 7,823,000 97,746,000 74,939,000 7,159,000 -
Liabilities Current Liabilities Accounts Payable 40,892,000 Short/Current Long Term Debt 78,803,000 Other Current Liabilities 10,506,000
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4,791,000 4,249,000 4,020,000 142,805,000 123,808,000 116,752,000 (15,219,000) (13,489,000) (12,766,000) 6,102,000 5,365,000 5,075,000 (13,812,000) (9,063,000) (11,216,000) 124,667,000 110,870,000 101,865,000
Quotes delayed, except where indicated otherwise. Delay times are 15 min. for NASDAQ, NYSE and Amex. See also delay times for other exchanges. Quotes and other information supplied by independent providers identified on the Yahoo! Finance partner page. Quotes are updated automatically, but will be turned off after 25 minutes of inactivity. Quotes are delayed at least 15 minutes. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.
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Net Income
31-Mar31-Mar31-Mar2011 2010 2009 4,925,000 2,242,000 (4,424,000) In 15,139,000 15,138,000 1,408,000 2,919,000 (6,172,000) 8,013,000 10,325,000 (11,452,000) 600,000 1,948,000 3,468,000 3,056,000
Operating Activities, Cash Flows Provided By or Used Depreciation 14,184,000 Adjustments To Net Income (1,260,000) Changes In Accounts Receivables 5,085,000 Changes In Liabilities (2,504,000) Changes In Inventories 625,000 Changes In Other Operating Activities 2,675,000 Total Cash Flow From Operating Activities
Investing Activities, Cash Flows Provided By or Used In Capital Expenditures (7,593,000) (6,470,000) (13,816,000)
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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 Effect Of Exchange Rate Changes Change In Cash and Cash Equivalents 5,240,000 (1,533,000) 2,594,000 (2,975,000) 7,075,000 (95,000) (1,314,000) (6,192,000) 8,259,000
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FINANCIAL DATA
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Vehicle production
Vehicle sales
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Net revenues
operating income
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*Financial figures are based on U.S. GAAP (Generally Accepted Accounting Principles)
Notice Concerning Distribution of Interim Dividends from Surplus At a meeting held on November 8, 2011, the Board of Directors of Toyota Motor Corporation ("TMC") resolved to distribute dividends from surplus, with record date dated September 30, 2011. In relation to the above, we hereby inform you of the following: 1. Details of dividends Interim dividend Most recent for dividend forecast FY 2012 Record Date Dividend per share Total amount of dividends
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2. Reason for the dividend amount TMC deems the benefit of its shareholders as one of its priority management policies and strives to continue to pay stable dividends while giving due consideration to factors such as business results for each term, investment plans and its cash reserves. In order to successfully compete in this highly competitive industry, TMC will focus on the early commercialization of technologies for the nextgeneration environment and safety, giving priority to customer safety and sense of security. Based on the foregoing, TMC's interim dividend for the year is 20 yen per share.
Details of Dividends through the fiscal year Dividend per share (yen) Record date Dividends for FY2012 (ending March 31,
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Total -
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20.00
30.00
50.00
PRICE CHART
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HR 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
Rewards and recognition The purpose of any corporate reward process is to encourage and incant the right behaviours and to discourage the negative ones. Its important for the reward process to incant the gathering of information about problems. Its equally important to reward employees who are successful in getting executives to take immediate action on negative information. Training The purpose of training is to make sure that employees have the right skills and capabilities to identify and handle all situations they may encounter. Toyota is famous for its four-step cycle plan/do/check/act but clearly the training among managers now needs to focus more on the last two. In addition, in an environment where safety is paramount, everyone should have been trained on the symptoms of groupthink and how to avoid the excess discounting or ignoring of negative external safety information.
2.
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Hiring The purpose of great hiring is to bring on board topperforming individuals with the high level of skills and capabilities that are required to handle the most complex problems. Poorly designed recruiting and assessment elements can result in the hiring of individuals who sweep problems under the rug and who are not willing to stand up to management. The performance management process The purpose of a performance management process is to periodically monitor or appraise performance, in order to identify problem behaviours before they get out of hand. If the performance measurement system included performance factors to measure responsiveness to negative information, Toyota wouldnt be in turmoil today. The corporate culture The role of a corporate culture is to informally drive employee behaviours so that it closely adheres to the companys core values. Because these errors occurred under difficult driving conditions, its hard to blame the production group, which has a well-known reputation for Six Sigma quality in its construction. The negative reports came to functions like government, risk analysis, corporate and customer satisfaction. As a result, it is the culture within the corporate offices that need to be more closely monitored rather than assuming that the culture was aligned. It appears that the corporate culture created leaders so concerned with saving face and so adverse to negative publicity, that they for years postponed making the announcement of a massive recall. Leadership development and succession The purpose of leadership development and succession planning processes are to ensure that a sufficient number of leaders with the right skills and decision-making ability are placed into key leadership positions. It is likely that the leadership development and the promotion process both failed to create and promote leaders who were capable of confronting problems and making difficult decisions. Retention The purpose of a retention program is to identify and keep top performers and individuals with mission-critical skills. Risk assessment Most HR departments dont even have a risk assessment team whose purpose is to both identify and calculate risks caused by weak employee processes. Clearly HR should have worked with corporate risk management at Toyota in order to ensure that employees were capable of calculating the long-term actual costs of ignoring product failure information.
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4.
5.
6.
7.
8.
Role of selection:
Selection is crucial for the organizations effectiveness for 2 reasons: 1) Work performance: Performance of the organization is very important to the success of the Company. So the organization always employs people who are well qualified and competent. 2) Cost incurred: Cost incurred while selection process also plays an important role.
PERFORMANCE APPRAISAL:
In simple terms, performance appraisal may be understood as the assessment of an individuals performance in a systematic way, the performance being measured against such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgment, versatility, health and the alike. Assessment should not be condensed to past performance alone. Potentials of the employee for future performance must also be assessed.
MOTIVATION:
Toyota gives both financial as well as non financial motivator to their employees. What type of motivational tool given in Toyota? Annual Salary Revision. Promotion Job Enrichment Delegation & authority Telephone Facility Bonus Quarters Toyotas share etc
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CONCLUSION
Toyota is making a product that is both good for the society/environment and practical at the same time. It is practical in that there is a demand for it and that Toyota presumably is making money or will make money on the product. Toyota is also looking towards further development of the engine, possibly combining an alternate fuel source other that gasoline with the electric component. We believe that Toyota is acting as a social entrepreneur with these lines of cars. They are providing a service to humanity and the environment while also presumably sustaining a business. According to James Brook of the New York Times, Toyota has claimed that it reached the break-even point for its profitability on its hybrid models, but industry experts in Tokyo find it impossible to know exactly how profitable these cars have been for Toyota so far. i Even if they are losing money, I think in the long run it will be where all auto production is headed, evidenced by the fact that oil is a
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BIBLIOGRAPHY:
BOOK REFERENCE:OPERATION RESEARCH J.K. SHARMA FINANCIAL MANAGEMENT- I. M. PANDEY MARKETING MANAGEMENT- PHILIP KOTLER WEBSITE REFERENCE:Project On Operation Research Page 66
BUSNESS SCHOOL OF DELHI WWW.TOYOTA.COM WWW.TOYOTABHARAT.COM WWW.TOYOTA.CO.JP WWW.ERE.NET WWW.RESEARCHANDMARKETS.COM WWW.THEPENSTERS.COM WWW.MANAGEMENTPARADISE.COM
ASHISH KR. SINGH: Marketing Strategy , Editing ABHISHEK PATEL: Financial Solution
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