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Urk Kuldar Inc. & Toyota Motor Company
              Joint Venture
Shaun Calvin
CEO Urk Kuldar Inc.
Should Urk Kuldar Inc. enter into a Joint
 Venture with Toyota Motor Company to
design and manufacture a specialized, all
        terrain, armored vehicle?
The Situation

    In 2012 Urk Kuldar Inc. turned down an
    estimated $25 million in contracts because
    of their location

    Unable to operate in required terrain

    Would need specialized vehicles
Specialized Vehicles,
       Specialized Problems

    Expensive

    Too specialized

    Limitations

    Multipurpose option costs $4 million each

    Market is limited in options
Why Toyota

    Urk Kuldar Inc.      
                             Hilux with only a
    uses primarily           few modifications
    Toyota Hilux and         went through
    Tundra                   “Impassable”

    Highly satisfied         terrain to become
    with current motor       the first automobile
    pool                     driven to the North
                             Pole
http://youtu.be/5rOGmGXcR7M




Top Gear UK Toyota Hilux taken to North Pole




                                                     Toyota Tundra
Urk Kuldar Inc. History

    Started as Urk Kuldar   
                                One of the largest
    Securities October          private security
    2000                        companies in the

    Started by Mogg             world
    Bonecutta               
                                Third highest client

    Shaun Calvin took           satisfaction rating in
    ownership May 2006          the world

    January 2008 Urk        
                                2012 profits were $6
    Kuldar went Public as       Million
    Urk Kuldar Inc.
                            
                                Current estimated
                                worth: $71.2 million
Urk Kuldar SWOT Analysis
Strength                   Weakness

    Excellent reputation   
                               Relatively small

    Highly trained         
                               Can not effectively
    Personnel                  offer all services in

    Experienced                all regions and
    Management                 environments.

    International          
                               Limited
    Recognition
                               Manufacturing
                               Capabilities
Opportunities              Threats

    Relatively untapped    
                               Competition from
    markets available          larger, more well

    Rising need for            established
    private securities         companies
    world-wide             
                               Competition with

    Expansion available        higher operations
    into other fields          capacities

    Large quantity of
                           
                               Surge of new
    trained workforce to       competition offering
    draw from                  cheaper services
Toyota History

    Started 1933 by        
                               2006 Surpassed GM
    Kiichiro Toyoda            as worlds larges
                               automaker by 128000

    Founded in Japan
                               vehicles

    1935 produced A1 car   
                               Current President:
    & G1 Truck
                               Akio Toyoda

    Toyota Crown first     
                               In 2012 reported
    Japanese vehicle to
                               283.5 billion in profit
    be exported

    2003 produced 6.78
    million vehicles,
    second only to GM
Toyota SWOT Analysis
Strength                            Weakness

    Wide range of car variants to   
                                        Immense competition
    offer
                                        from world class
    One of the oldest car
                                        competitors



    manufacturers which brings
    high brand awareness            
                                        Lesser grip in

    Highly diversified product          European market as
    portfolio
                                        compared to other car
    World class R&D and
                                        manufacturers



    Engineering capabilities

    High brand awareness and
    market presence in the
    international market

    Product known for durability
Opportunities                    Threats

    Expanding Automobile         
                                     Intense competition in the
    market and opportunities         market leading to
    for launching new                saturation
    products
                                 
                                     Competition offering

    Concentrated efforts in          innovative features at
    hybrid segment can help          lower price
    Toyota become a market
    leader
                                 
                                     New entrants in the same
                                     segment with better

    Augmenting worldwide             features and lower price
    distribution and servicing
    network to increase
                                 
                                     Car manufacturers
    market penetration               catering to high ended
                                     customers
Recent Toyota Issues

    Recalled 6.5 million vehicles for problems
    with the acceleration peddle during late
    2009 and early 2010

    Recalled 7.4 million vehicles due to fire
    hazard caused by electrical issues in
    October 2012

    In 2011 an earthquake hit Japan,
    disrupting the their ability to manufacture
    these parts. As a result of this interruption,
    production in the US dropped to 30%
    capacity
Urk Kuldar Inc. Risks

    Could lose $4 million after selling related
    assets

    Damaged Reputation

    Loss of future clients

    Loss of some current clients

    Total losses could be close to $8 million
Urk Kuldar Inc. Benefits

    Supplied a fleet of the new vehicle for the
    cost of manufacturing

    Gain ability to accept contracts in
    previously regions previously unavailable
    worth around $25 million/year

    Receive 20% of total profits from sales
    estimated at $1.4 billion

    Improved reputation
Toyota Benefits

    New vehicle to sell, nothing else like it

    Marketable to government, security and
    industrial sector

    These sectors will still spend for this
    product even when the public has cut back
    on buying other models.

    Improved reputation for quality

    Significant profit
Recommendation
      We recommend that Urk Kuldar Inc.
  participate in this joint venture with Toyota
    Motor Company in both designing and
 marketing of the new vehicle. In addition we
recommend using our manufacturing facilities
     in place of those in Japan to produce
 necessary parts for assembly to prevent any
  unforeseen break in supply from overseas.
Works Cited
Bailey, Scott. "Toyota sets new production record in North America." Bizjournals. America City Business Journals, 11 Jan. 2013.
     Web. 18 Jan. 2013. <http://www.bizjournals.com/sanantonio/blog/2013/01/toyota-sets-new-production-record-in.html>.

Belsie, Laurent. "Toyota recall involves record number of cars." CSMonitor. Christian Science Monitor, 11 Oct. 2011. Web. 18 Jan.
     2013. <http://www.csmonitor.com/Business/In-Gear/2012/1011/Toyota-recall-involves-record-number-of-cars.-Is-yours-
     included-video>.

"History of Toyota." Toyota Global. Toyota, 2013. Web. 17 Jan. 2013. <http://www.toyota-global.com/company/history_of_toyota/>.

"Overview." Toyota Global. Toyota, Mar. 2012. Web. 18 Jan. 2013. <http://www.toyota-global.com/company/profile/overview/>.

"Polar Challenge." BBC. BBC UK, 2007. Web. 17 Jan. 2013. <http://www.bbc.co.uk/programmes/b007v18p>.

Schreiner, Bruce. "Toyota To Shut Down North American Factories Due To Parts Shortage." Huffington Post. Huffington Post, 4 Apr.
     2011. Web. 18 Jan. 2013. <http://www.huffingtonpost.com/2011/04/04/totoya-will-close-north-american-
     plants_n_844585.html>.

Strumpf, Dan, and Stephen Manning. "Stuck gas pedal causes 2nd major Toyota recall." Miami Herald. The Associated Press, 21 Jan.
     2010. Web. 16 Jan. 2013. <http://www.orangecountylaw.com/files/1_21_1020_miami_herald_article.pdf>.

"A Toyota History." New York Times. New York Times, 2009. Web. 18 Jan. 2013.
     <http://www.nytimes.com/2008/02/10/business/worldbusiness/10iht-10chronology.9900084.html?_r=1&>.

"US Army Moves Ahead with V-Hull Strykers." Defense Industry Daily. Defense Industry Daily LLC, 22 Oct. 2011. Web. 16 Jan.
     2013. <http://www.defenseindustrydaily.com/us-army-moves-ahead-with-stryker-hull-modification-06308/>.


"World Exclusive: GM Defense Stryker Out on patrol in 8x8 Light Armored Vehicle." Motor Trend. Motor Trend Magazine, Dec.

     2001. Web. 18 Jan. 2013. <http://www.motortrend.com/features/163_0112_gm_defense_stryker/viewall.html>.

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Presentation

  • 1. Urk Kuldar Inc. & Toyota Motor Company Joint Venture
  • 2. Shaun Calvin CEO Urk Kuldar Inc.
  • 3. Should Urk Kuldar Inc. enter into a Joint Venture with Toyota Motor Company to design and manufacture a specialized, all terrain, armored vehicle?
  • 4. The Situation  In 2012 Urk Kuldar Inc. turned down an estimated $25 million in contracts because of their location  Unable to operate in required terrain  Would need specialized vehicles
  • 5. Specialized Vehicles, Specialized Problems  Expensive  Too specialized  Limitations  Multipurpose option costs $4 million each  Market is limited in options
  • 6. Why Toyota  Urk Kuldar Inc.  Hilux with only a uses primarily few modifications Toyota Hilux and went through Tundra “Impassable”  Highly satisfied terrain to become with current motor the first automobile pool driven to the North Pole
  • 7. http://youtu.be/5rOGmGXcR7M Top Gear UK Toyota Hilux taken to North Pole Toyota Tundra
  • 8. Urk Kuldar Inc. History  Started as Urk Kuldar  One of the largest Securities October private security 2000 companies in the  Started by Mogg world Bonecutta  Third highest client  Shaun Calvin took satisfaction rating in ownership May 2006 the world  January 2008 Urk  2012 profits were $6 Kuldar went Public as Million Urk Kuldar Inc.  Current estimated worth: $71.2 million
  • 9. Urk Kuldar SWOT Analysis Strength Weakness  Excellent reputation  Relatively small  Highly trained  Can not effectively Personnel offer all services in  Experienced all regions and Management environments.  International  Limited Recognition Manufacturing Capabilities
  • 10. Opportunities Threats  Relatively untapped  Competition from markets available larger, more well  Rising need for established private securities companies world-wide  Competition with  Expansion available higher operations into other fields capacities  Large quantity of  Surge of new trained workforce to competition offering draw from cheaper services
  • 11. Toyota History  Started 1933 by  2006 Surpassed GM Kiichiro Toyoda as worlds larges automaker by 128000  Founded in Japan vehicles  1935 produced A1 car  Current President: & G1 Truck Akio Toyoda  Toyota Crown first  In 2012 reported Japanese vehicle to 283.5 billion in profit be exported  2003 produced 6.78 million vehicles, second only to GM
  • 12. Toyota SWOT Analysis Strength Weakness  Wide range of car variants to  Immense competition offer from world class One of the oldest car competitors  manufacturers which brings high brand awareness  Lesser grip in  Highly diversified product European market as portfolio compared to other car World class R&D and manufacturers  Engineering capabilities  High brand awareness and market presence in the international market  Product known for durability
  • 13. Opportunities Threats  Expanding Automobile  Intense competition in the market and opportunities market leading to for launching new saturation products  Competition offering  Concentrated efforts in innovative features at hybrid segment can help lower price Toyota become a market leader  New entrants in the same segment with better  Augmenting worldwide features and lower price distribution and servicing network to increase  Car manufacturers market penetration catering to high ended customers
  • 14. Recent Toyota Issues  Recalled 6.5 million vehicles for problems with the acceleration peddle during late 2009 and early 2010  Recalled 7.4 million vehicles due to fire hazard caused by electrical issues in October 2012  In 2011 an earthquake hit Japan, disrupting the their ability to manufacture these parts. As a result of this interruption, production in the US dropped to 30% capacity
  • 15. Urk Kuldar Inc. Risks  Could lose $4 million after selling related assets  Damaged Reputation  Loss of future clients  Loss of some current clients  Total losses could be close to $8 million
  • 16. Urk Kuldar Inc. Benefits  Supplied a fleet of the new vehicle for the cost of manufacturing  Gain ability to accept contracts in previously regions previously unavailable worth around $25 million/year  Receive 20% of total profits from sales estimated at $1.4 billion  Improved reputation
  • 17. Toyota Benefits  New vehicle to sell, nothing else like it  Marketable to government, security and industrial sector  These sectors will still spend for this product even when the public has cut back on buying other models.  Improved reputation for quality  Significant profit
  • 18. Recommendation We recommend that Urk Kuldar Inc. participate in this joint venture with Toyota Motor Company in both designing and marketing of the new vehicle. In addition we recommend using our manufacturing facilities in place of those in Japan to produce necessary parts for assembly to prevent any unforeseen break in supply from overseas.
  • 19. Works Cited Bailey, Scott. "Toyota sets new production record in North America." Bizjournals. America City Business Journals, 11 Jan. 2013. Web. 18 Jan. 2013. <http://www.bizjournals.com/sanantonio/blog/2013/01/toyota-sets-new-production-record-in.html>. Belsie, Laurent. "Toyota recall involves record number of cars." CSMonitor. Christian Science Monitor, 11 Oct. 2011. Web. 18 Jan. 2013. <http://www.csmonitor.com/Business/In-Gear/2012/1011/Toyota-recall-involves-record-number-of-cars.-Is-yours- included-video>. "History of Toyota." Toyota Global. Toyota, 2013. Web. 17 Jan. 2013. <http://www.toyota-global.com/company/history_of_toyota/>. "Overview." Toyota Global. Toyota, Mar. 2012. Web. 18 Jan. 2013. <http://www.toyota-global.com/company/profile/overview/>. "Polar Challenge." BBC. BBC UK, 2007. Web. 17 Jan. 2013. <http://www.bbc.co.uk/programmes/b007v18p>. Schreiner, Bruce. "Toyota To Shut Down North American Factories Due To Parts Shortage." Huffington Post. Huffington Post, 4 Apr. 2011. Web. 18 Jan. 2013. <http://www.huffingtonpost.com/2011/04/04/totoya-will-close-north-american- plants_n_844585.html>. Strumpf, Dan, and Stephen Manning. "Stuck gas pedal causes 2nd major Toyota recall." Miami Herald. The Associated Press, 21 Jan. 2010. Web. 16 Jan. 2013. <http://www.orangecountylaw.com/files/1_21_1020_miami_herald_article.pdf>. "A Toyota History." New York Times. New York Times, 2009. Web. 18 Jan. 2013. <http://www.nytimes.com/2008/02/10/business/worldbusiness/10iht-10chronology.9900084.html?_r=1&>. "US Army Moves Ahead with V-Hull Strykers." Defense Industry Daily. Defense Industry Daily LLC, 22 Oct. 2011. Web. 16 Jan. 2013. <http://www.defenseindustrydaily.com/us-army-moves-ahead-with-stryker-hull-modification-06308/>. "World Exclusive: GM Defense Stryker Out on patrol in 8x8 Light Armored Vehicle." Motor Trend. Motor Trend Magazine, Dec. 2001. Web. 18 Jan. 2013. <http://www.motortrend.com/features/163_0112_gm_defense_stryker/viewall.html>.