M ICRO ENVIRONM ENT

The M icro env iro nment co nsists o f those com po nents o f the m acro env iro nmentwhich are directly relev ant to an indiv iduals o rganizatio n. An o rganizatio ns microenv iro nment includes 1 .Customers 2 .Suppliers 3 .Internal P ublic 4 .Com petito rs 5 .Interm ediaries The bo undary between an organizatio ns Macro and Micro environment sho uld not be v iewed as static. Changes in the former will inev itably redefine the latter.The v ario us com po nents of m icro env iro nment fo r Toyo ta hav e direct influence o nits perfo rmance. M oreover com po nents o f Toyo tas m icro env ironment are alsorelated to its m acro env iro nment. 1 .CUSTOM ERS Toyota aims at developing loy al customers relatio nship. For this reappo int tries its best to understand who its buyers are and what are their needs. It tries to listen to itscustom ers, realizing that they may be their best collabo rato rs. Customers feedback drive their pro duct develo pment.To be the market leader and satisfy the requirements of its custom ers, thecom pany has set certain objectiv es. These area)Im prove Quality b)Enhance Efficiencyc)Minim ize Co std)Increase P ro ductivity Over the prev io us y ears the com pany has put in its best effo rts to m anufacture quality cars designed fo r its customers. In P akistan, mo re and more peo ple want to experience the unique pleasure of moto ring. Exhaustive, in -depth research andco nsumer survey s co nducted ov er the past years revealed trends o f customers and theenviro nmental factors relating to use. Toyotas Marketing Policy Toyotas slo gan Relia bility n Mo tio n represents its em phasis so n stro ng trustworthy and life -long autom obiles. It has m any brand loyal customers and is co nsidered asm arket leader. In Pakistan, it has aimed at vario us segm ents with their v ariety o f mo dels in Toyo ta Corolla, so customers in every segments can be satisfied.D ifferent classes of To yota Co ro lla intro duced in P akistan are; Mo del Descriptio n Segments

SE Saloo n 160 0 ccIndustrialists, Well established Businessman,P rofessio nals.GL i 13 00ccBusinessm an, To p Lev el M gt. o f m ultinatio nals,Pro fessio nals, Go vernment High Officials.X li 1300ccM iddle -level Executives, Government D epartments &Organizatio ns, P ro fessio nals, Armed Fo rces.2 .0D / 2 .0 D Salo onPro fessio nals, Business Executives who are fuel costco nscio us.Toyo ta has got an effective Natio nwide dealer netwo rk comprising o f 25 dealers atKarachi, Laho re, Faisalabad, M irpur, Islam abad, Peshawar, Sialkot, D I Khan, M ultan,Quetta and Larkana. This spread of netwo rk shows no t ho w Toyota is sincerely busyin develo ping a com panys customer relatio nship and winning the hearts of brandloyal as well as attracting potential customers. 2 .SUPPL IERS Suppliers co nstitute a seco nd com po nent in a typical organizations m icroenviro nment. Toyo ta has to respo nd no t o nly to the customers they su pply , but also to the so urces from which they receive supplies. Suppliers are given im po rtance andrespect by Toyo ta. It co ntinuo usly aim s at develo ping a stro ng relatio nship with itssuppliers. This is done to ensure that Toyo ta suppliers provide quality m at erials whichis the most im po rtant facto r fo r Toyota vehicles.Japan, is the majo r supplier o f CBU o r com pletely built up v ehicles. Also CKD kits o r com pletely Kno cked down Kits are supplied from Japan. CKD kits m ainly com prise o f the engine o f v ehicles. The v ehicles which areassem bled in P akistan com prise o f 6 5% lo cally m anufactured parts.Toyo ta Indus aim s fo r goo d relatio ns with both the local and fo reignsuppliers. To achieve m axim um level of custom ers satisfactio n is Toyotasmissio n. This can be pro ved by the fact that dealership is autho rized to theseselective peo ple who o ffer 3 Ss. That is sales, serv ices, spare parts. This isdo ne to ensure co nv enience for its customers. They are o ffering the follo wingservices to cater to the needs o f their customers:a)One y ear free serv icing from any Toyo ta serv ice center all ov er P akistan. b)Free checkup cam ps are set annually.c)Spare parts easily av ailable all over Pakistan.d)The dealership netwo rk com prises o f sev enteen dealerships allo ffering sales, serv ices and spa res.e)The customer retentio n department at the dealerships is also improvedand co nso lidated perio dically.The com pany believes o n the fact that favorable supplier relatio ns lead to im provequality, better shipping arrangements early warm ing of majo r price ch anges and

advance info rm atio n abo ut techno lo gical o r m arketplace develo pments. So, the aim isto develo p friendly , professio nal relatio ns with suppliers in which both will profit. 3 .Internal P ublic It is the actio n, of employees by which a com panys o bjectiv es are accom plished. Ino rder to achiev e its go als and o bjectiv es Toyo ta m akes sure that highly com petent andskilled peo ple are em ploy ed. Emphases is laid to ensure that the perso n being hiredmeet the criterion fo r the respectiv e departments.Training is an integral part in Toyotas v ario us departm ents. Training wasintensified and v ario us co urses were co nducted thro ugh the prev io us year.Technicians at the dealers serv ice departments underwent extensive by IM Cserv ice departments to im prove their skills . Mo reo ver, perio dic training of managers is also co nducted. This include training cam ps, sho rt co urseconducted in vario us well -known univ ersities, training pro grams co nductedabro ad and lectures o f fo reign expo rts. 4 .COMP ETITORS M arket com petitio n is the co rnersto ne o f managerial capitalism . The five forces thatshape the degree o f m arket com petitio n operating within an organizatio ns m icroenviro nment area)Rivalry amo ng existing o rganizatio n. b)Relative power o f customers.c)Relativ e power o f suppliers.d)Threat o f new entrants.e)Threat of new substitutes.P resently Toyota is pro ud to hav e the mo st market share. Ho nda standsseco nd fo llowed by Suzuki and Nissan. Since its start it was o nly in 95 -96 that Ho nda m anaged to sale 200 mo re uni ts o f vehicles than Toyo ta. Still,Toyo ta is proud

to be in a stro ng po sitio n. However to the spirit o f com petitio n is stro ng and this has lead Toyo ta to co ntinuo usly try to im pro veitself, at all levels. Continuo us em phasis is laid o n to attract mo re custom ers,maintains healthy relatio ns with its suppliers and m akes effo rts to im provetechno lo gy. Careful strategic planning at al lev els has enabled Toyo ta to achieve the highest m arket share and hav e an edge over other automo bilecom panies. 5 .Interm ediaries Banks , Leasing com panies and car agents are some o f the intermediaries fo r Toyo ta. These interm ediaries basically giv ing the boo st to the sales o f Toyo ta, by o fferingthe cars to the co nsum ers, in easy installments and m aking the cars affordable fo r thecustom ers to the higher extent