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The Toyota Way - Toyota dramatic business success

Overview on the Toyota business performance and its business success points.

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The Toyota Way - Toyota dramatic business success

  1. 1. 1 Overview on the Toyota Performance & Business Success  Toyota’s annual profit at the end of its fisical year in March 2003 , was 8.13$ Billion-larger than the combined earnings of Chrysler, GM, and Ford.  Toyota has a profit margin of 8.3 times higher than the industry average.  While the stock prices of the big three was falling in 2003, Toyota’s shares had increased 24% over 2002. Toyota’s market capitalization was 105$ Billion as of 2003.  The return on asset is 8 times higher than the industry average. TOYOTA BUSINESS
  2. 2. TOYOTA BUSINESS 2 The company has made a profit every year over the last 25 years and has 20$-30$ billion in its cash war chest on a consistent basis. Toyota has for decades been the number one automaker in Japan and distance fourth behind the big 3 automakers in North America. But in AUG 03, for the first time, Toyota sold in North America more than one of the 3 big automakers (Chrysler). In 2003, Toyota was on track to sell more vehicles in the US than either of the two brand names that have led US sales for the past 100 years—Ford and Chevrolet. Camry was top- selling US passenger car in 2003. Corolla was the top-selling small car in the world. Toyota became the leader in producing luxury cars when they introduced the Lexus firstly in 1989. Toyota invented the lean production, known inside Toyota as TPS Toyota production system.
  3. 3. TOYOTA BUSINESS 3 Toyota has the fastest product development process in the world. New cars and trucks take 12 months or less to design, while companies require typically 2 or 3 years. Toyota automobiles have been consistently been at the top of quality rankings by JD Powers and Associates, Consumer Reports, and others for many years. In the small cars category (Toyota Corolla, Ford Focus/Escort, Crysler Neo, GM Cavalier), Toyota won each of the last three years for overall reliability, as well as the prior three years, and predicted reliability for 2003 model year. For family sedans, the Toyota Camry beat out the Ford Taurus, the GM Malibu, and Dodge Intrepid, wining in the last three years, the three prior years, and predicited reliability for the 2003 model year. More than half of all Toyota used cars are singled out as “recommendedfor purchase,” compared with less than 10% of the fords, 5 percent of the GMs, and none of the Chryslers.
  4. 4. TOYOTA BUSINESS 4 Toyota Lexus has dominated the J.D Powers “initial quality” and long-term durability rankings for years. Toyota Lexus was again the #1 most reliable car, according to the J.D. Powers 2003 quality survey, Followed by Prosche, BMW, and Honda. The Helpful Reference: Liker, J. K. (2003). The Toyota way: 14 Management Principles From The World’s Greatest Manufacturer. New York, NY: MacGraw-Hill. Toyota’s Profit in 2014 Was Around 18-19$ Billion Announced as per the Fisical Year March 2015, Bigger than the Combined Profit of Volkswagen and General Motors By Mohammed Hamed Ahmed Soliman LinkedIn: eg.linkedin.com/in/mohammedhamed www.personal-lean.org In 2015, Toyota keeps top global automaker crown, sells 10.15 million cars. Compared to 9.93m for Volkswagen and 9.8m for Chevrolet.

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