Toyota is a Japanese automobile manufacturer headquartered in Aichi, Japan. It produces around 8 million vehicles per year. Toyota's mission is to attract customers with high-valued products and services and the most satisfying ownership experience. Their vision is to lead the future of mobility enriching lives around the world. Toyota uses strategic operations like the Toyota Production System and Just-in-Time to produce high quality vehicles efficiently through continuous improvement.

1. Strategic management
Toyota automobile
manufacturer
Presented By,
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2. • Introduction
• Mission
• Vision
• Goal
• SWOT Analysis
• Porter's five forces analysis for Toyota
• Operation Strategies
• Conclusion
Contents
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3. • Toyota is a Japanese multinational automobile makers, headquartered in
Aichi, Japan.
• It produces an estimated eight million vehicles per year, about a million
fewer than the number produced by General Motors.
• Japanese market share : 40% of all new cars registered in 2004 being Toyotas
Founders:
• Sakichi Toyoda
• Kiichiro Toyoda
• Eiji Toyoda
Current Chairman :
Takeshi Uchiyamada
Current CEO :
• Akio Toyoda
Introduction
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4. History :
• Began as a Automated Loom production company in 1926
• In 1933 an automobile department was established with Toyoda
automatic loom works
• In 1937 Toyota motor co. was established as an independent company
• The Golden Period :
• Becomes a major supplier of trucks to the imperial Army during WWII
• Plants were scheduled to be destroyed by allies, but the war ended first
• Launching first car :
• launched first car in 1947
• Toyota production system formed in 1950 based on JIT principle
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5. Mission:
• “To attract and attain customers with high-valued products and services
and the most satisfying ownership experience”
Vision:
• “Toyota will lead the way to the future of mobility, enriching lives
around the world with the safest and most responsible ways of moving
people.”
Goal:
• "Always better Cars." We continually reinvent ourselves , introduce new
technologies and stay ahead of our competition.
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 Automobiles
 Luxury vehicles
 Commercial vehicles
 Engines
 Motorcycles
Products:

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8. • International Position in 170 countries worldwide
• Second largest manufacturer automobile
• It is best know for durability, reliability and value for money and
convenient.
• its brand image in market is based on quality and environmental
friendly
• Presently maintains 16% of US market share
Strengths
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9. • It is criticized as foreign importer by Japanese cars producers
• In may 2009 they reported a record yearly net loss of 4.2 billion $
• It was badly hit by 2008 financial crises and declared its first annual loss
in 70 years history
• In 2005 faced criticism because of large scale recall and quality issues
• Production capacity which produces most of its cars in US and Japan
where with that competitors might take advantage of global efficiency
gains
Weaknesses
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10. • Toyota produces Fuel efficient , higher quality and smaller automobile
that can attract consumers
• With fuel price increasing every time they can produce hybrid gas
electric vehicles which are both fuel and environmental effective
• Toyota keeps on producing the new models of vehicles so attract all the
segment in population
• They continued global expansion especially in emerging markets that is
China, India and Russia where population and demand are accelerating
Opportunities
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11. • Increased competition , force full marketing campaigns and raising
competitive pressures
• Increasing maintenance cost of vehicles , rising fuel price and changing
customer preferences are challenging threats
• Adverse impact of fluctuations in foreign currency conversion rates
• Economic slow down
Threats
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12. • Porter five forces analysis is a framework to analyze level of
competition within an industry and business strategy development. It
draws upon industrial organization (IO) economics to derive five forces
that determine the competitive intensity and therefore attractiveness of
an Industry.
• Porter referred to these forces as the micro environment, to contrast it
with the more general term macro environment.
• They consist of those forces close to a company that affect its ability to
serve its customers and make a profit.
• A change in any of the forces normally requires a business unit to re-
assess the marketplace given the overall change in industry information.
Porter’s Five forces Analysis: WHY ??
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14. • the threat of new entrants is low.
• Toyota has established brand image and reputation
Threat of new entrants :
bargaining power of buyers:
• the bargaining power of buyers is moderately high in automotive
industry
• the buyers have low switching cost
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15. • bargaining power of supplier is low.
• the suppliers do not own the power to change the price
Bargaining power of supplier :
Threats of substitutes :
• threat from two wheelers
• alternative types of transportation almost cost less and sometimes are
more environment friendly
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16. • competition between existing players is likely high
• there is not much differentiation between players and their products
Degree of rivalry :
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17. Toyota’s Way
Toyota’s Way
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18. • 1. Toyota Production System (TPS)
• 2. Re-engineering
• 3. Superior Technology & Quality
Operation strategies
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19. • Lean Manufacturing
• Just-In-Time (JIT)
• Kaizen
• Jikoda
• Kanban
• Andan
• Pull System
Toyota Production System (TPS)
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20. • aimed at the elimination of waste in every area of production including
customer relations, product design, supplier networks and factory
management.
• incorporate less human effort, less inventory, less time to develop
products, and less space
• become highly responsive to customer demand while producing top
quality products in the most efficient and economical manner possible.
• Some principles:
• Zero waiting time
• Zero inventory
• Cut actual process times
• Saves turnover expenses
• Reduces set-up times
Lean Manufacturing
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21. • philosophy pioneered by Toyota in 1970s
• It's a method of waste elimination by which the inventory levels are
minimized.
• The heart of JIT is Kanban, Japanese word for signal.
• JIT implementations include:
• Inventory reduction
• Smaller production lots and batch sizes
• Quality control
• Complexity reduction and transparency
• Waste minimization
Just-in-Time
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22. • lean manufacturing term for continuous improvement
• Kaizen describes an environment where companies and individuals
proactively work to improve the manufacturing process
• Employing Kaizen means the following:
• Proactively improve production
• Reduce manufacturing waste
• Increase employee involvement
• Increase customer satisfaction
Kaizen
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23. • meaning "automation with a human touch“
• It is a quality control process
• applies the following four principles:
• Detect the abnormality
• Stop
• Fix or correct the immediate condition
• Investigate the root cause and install a countermeasure
Jikoda
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24. • Meaning "signal“
• It signals a cycle of replenishment for production and materials.
• It maintains an orderly and efficient flow of materials throughout the
entire manufacturing process
• It is usually a printed card that contains:
• Instruction for production and conveyance
• Visual control tool to check for over production and to detect irregular
processing speeds
• Tool to perform kaizen
Kanban
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25. • production line is stopped if there is a problem somewhere in the line.
• very employee is empowered to stop the production on finding a defect.
• This is done to prevent the defective items from passing to the next stage
• Andan electric boards will highlight the location where the defective
part is located, and hence, can be attended.
Andan
Pull System
• 'pull' system asks the worker to use his or her head to come up with a
manufacturing process
• where he or she alone must decide what needs to be made and how
quickly it needs to be made.
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26. Re-engineering
• Major factor for the success of Toyota.
• Consider a Toyota model, which is newly introduced in the market,
failed to impress the market.
• The next Toyota strategy will be to re-engineer the model.
• This method is not practiced at General Motors and Ford.
• the whole manufacturing facility for manufacturing the model is
scrapped and the employees are often pushed out of the company.
• This results in loosing the knowledge gained at great cost.
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27. • Toyota production facilities are flexible , could easily add / switch new
models or ramp-up production of existing models within a short period
• Robots are used widely in mass production. By allowing the choice of
either people or robots depending upon profitability, the production line
offers the flexibility to handle everything from low-volume to mass
production
• Toyota's quality control during production ensures that the correct
materials and parts are used and fitted with precision and accuracy.
• General Motors takes 34 hours for producing a vehicle while Toyota does
it in 27 hours, shows the technical superiority of Toyota.
• Awards & Recognitions
Superior Technology & Quality
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28. • with superior technology and best industry practices, Japanese auto
major is giving a run for the auto industry.
• All credits to the production prowess and the technical innovation,
which made the Japanese sail through the rough waters, a journey that
started in 1933 and is still continuing.
Conclusion
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29. Thank you
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