Toyota production system -business and marketing strategy, swot analysis and its implementation plan assignment

Kiichiro Toyoda. [1] Toyota Group is the largest group of industries in the world. Toyota Industries develops and manufactures automobiles and automobile-related products, such as vehicles, engines, car air-conditioning compressors, car electronics components and devices, and stamping dies. In the vehicle and engine businesses Toyota has achieved a top-class level of quality and productivity within the Toyota Group and is contributing to Toyota Motor Corporation’s car production. 9] Toyota employs the expertise it has mainly accumulated through its automobile manufacturing business to conduct business in a variety of other fields including housing, finance, communications, GAZOO, marine, and biotechnology and afforestation. [10] {text: list-item} Toyota’s management philosophy has evolved from the company’s origins and has been reflected in the terms “ Lean Manufacturing” and Just In Time Production, which it was instrumental in developing.

The Toyota Way has four components: Long-term thinking as a basis for management decisions. A process for problem-solving. Adding value to the organization by developing its people. Recognizing that continuously solving root problems drives organizational learning. The Toyota Way incorporates the Toyota Production System. [2] {text: list-item} Toyota has long been recognised as an industry leader in manufacturing and production.

Secondly, Toyota was also able to identify new opportunities for market development and spent time on product development to tap into these markets. The results of Toyota’s product development were the creation of Lexus and Scion, brands that both offered a unique line up of cars, a unique brand philosophy, and services that target the luxury and youth market. Third, in spite of their successes in capturing new markets and achieving greater market penetration, Toyota occasionally downsizes their products such as the Celica and MR2. The goal was to make difference using sophisticated, normal way while still encompassing luxuries of everyday life. Toyota adopted marketing strategies to brand their car among the identified segmented market. [8] Marketing Strategy for Youth

Toyota focuses mainly on the youth market by advertising through youth-oriented media (Rolling Stone, MTV, late-night programming), creating a flashy website to highlight their brand philosophy, and sponsoring live concerts. Not only does it specifically target the young buyers, but they also simplified their sales tactics by offering no-haggle pricing, which means that Scion dealers will not be allowed to negotiate prices or pressure a potential customer into buying, and giving their customers a high degree of vehicle customization. Because of these marketing tactics, Toyota was not only able to bring in younger customers but it also encouraged Honda and Nissan to consider introducing youth-oriented cars into their line up. [7] Marketing Strategy for US

Shifts in the exchange rates affecting profits and cost of raw materials. Predictions of a downturn in the economy e. g. recession, will affect car purchases (especially new cars). As household budgets tighten – this could lead a decline in new car sales and possible rationalization of dealerships. Changing demographics e. g. number of large families is declining. Undermining the demand for large family cars. Changing usage – families using the car less for taking children to schools. Home deliveries. Businesses – restricting business travel (tele-conferencing). Governments encouraging alternative forms of transport – cycling and incentives to use public transport across Europe.

Service Blueprint A “ Services Blueprint” is a process design tool which is a flow chart of the business operations. The blueprint for Toyota has been developed using the information available from different Toyota websites. The Blueprint involves all the steps from customer placing an order to delivery of car to customer. The blueprint is explained as follows: Customer Actions: The various customer action that have been identified are customer placing an order, Checking specifications on internet and enquiring about the details of car and placed orders. Final Customer action that has been identified is customer receiving the car and documents pertaining to car.

Note: Due to Space constraint we have not been able to include the complete Gantt Chart. {text: list-item} Activity Network Diagram can be used within Toyota for detailed evaluation planning. Below is the screenshot of all major tasks identified in the project plan. {draw: frame} The screenshots attached below are of the tasks broken down into its subtask identified in the Project Plan. {draw: frame} {draw: frame} {draw: frame} Financial Factors of Project and Business The Financial factors play a major role in success of project. The financial factors that have been identified and will be impacting the implementation and success of project are: Changes in economic conditions affecting, and the ompetitive environment in, the automotive markets in Australia. Toyota’s ability to realize production efficiencies and to implement capital expenditures at the levels and times planned by management. Political instability in the markets of Australia. Toyota’s ability to timely develop and achieve market acceptance of new products. Fuel shortages or interruptions in transportation systems, labour strikes, work stoppages or other interruptions to, or difficulties in, the employment of labour in the major markets where Toyota purchases materials, components and supplies for the production of its products or where its products are produced, distributed or sold. 6] On the basis of project plan – the estimated time, resource requirement and cash flows for carrying out the various activities we have prepared Balance Sheet and Cash Flow for the whole Toyota project. The assumptions that have been made are listed below: {text: list-item} {text: list-item} {text: list-item} {text: list-item} {text: list-item} {text: list-item} {text: list-item} {text: list-item} On the basis of above assumption we have developed the Balance sheet at the beginning and end of year and Cash Flow statement at the end of year which is given below: Balance Sheet at the End of Year Balance Sheet at the End of Year Cash Flow at the End of Year

Conclusion The Primary goal of the report is to analyse Toyota- the way business is carried out and mechanisms by which it implements different processes. The analysis carried out about its business and marketing strategies helped us to devise the overall project plan for starting a new business in Melbourne. Hence on the above basis we devised blueprint and finally prepared the financial statements. The report has taken into account the various constraints i. e. technical and financial constraints that may affect the success of project. The Project that is stated for implementation is a profitable venture. Hence the wise move will be to implement the project due to huge demand in Australian market. References http://ezinearticles. com/? The-History-of-Toyota&id= 2790459 ttp://en. wikipedia. org/wiki/Toyota http://www. toyota. co. jp/en/ir/presentation/2008/pdf/080828presen_1. pdf http://www. researchandmarkets. com/reports/541936 http://wiki. answers. com/Q/What_is_the_swot_analysis_of_Toyota http://www. thefreelibrary. com/Toyota+Announces+Third+Quarter+Financial+Results+-+Net+Revenues+and… -a0141766841 http://www. detnews. com/2003/autosinsider/0304/21/a01-141863. htm http://lifeinmotion. wordpress. com/2006/12/23/%E2%80%9Ctoyota-developing-strategies-for-growth%E2%80%9D/ http://www. toyota-industries. com/product/auto/ 10. http://www2. toyota. co. jp/en/business_field/ 11.