PRESENTATION

On

TOYOTA MOTORS

Submitted by:

Group 9

Section: B

Department of Business Administration-General

Faculty of Business Administration

Submitted to:

Lecturer S.M Sayem

Faculty of Business Administration

Bangladesh University of Professionals

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 by Unknown
Author is licensed
under

Toyota Motors
History and Founder Details:
The history of Toyota started in 1933 with the company being a division of Toyoda Automatic Loom Works dedicated
to the assembly of cars below the direction of the founder's son, Kiichiro Toyoda. Kiichiro Toyoda had traveled to
Europe and therefore the US in 1929 to research automobile production and had begun researching gasoline-
powered engines in 1930. Toyoda Automatic Loom Works was inspired to develop automobile production by the
Japanese government, that required domestic vehicle production, because of the war with China. Kiichiro Toyoda
confiscated this chance to determine the Automotive Production Division on Sep one, 1933 and started preparing to
build prototype vehicles. In 1934, the division created its 1st type a Engine, that was utilized in the primary Model A1
car in may 1935. Production of the Model AA car started in 1936. Early vehicles bear a striking likeness to the Dodge
Power Wagon and 1930's Chevrolet, with some components really interchanging with their yanked originals.
throughout development of the company's 1st automobile, the Toyota AA, the company purchased regionally factory-
made GM and Ford merchandise, reverse engineered them, and employed engineers who had previously worked at
the Japanese Ford and GM factories in developing Toyota merchandise

Although the Toyota group is best identified nowadays for its cars, it's still in the textile business and still makes
automatic looms, which are currently computerized, and electric stitching machines that are on the market worldwide.

During world war two the company was dedicated to truck production for the Imperial Japanese Army.

After World War II, Japan experienced extreme economic problems. industrial car production started in 1947 with the
model SA. the company was on the brink of bankruptcy by the end of 1949. In June 1950, the company created only
three hundred trucks and was on the verge of going out of business. The first few months of the war resulted in an
order of over 5,000 vehicles from the US military, and therefore the company was revived.

In 1950, a separate sales company, Toyota Motor Sales Co., was established (which lasted till July 1982). In April
1956, the Toyota dealer chain was established. In 1957, the Crown became the primary Japanese automobile to be
exported to the US and Toyota's American and Brazilian divisions.

Toyota began to expand within the Nineteen Sixties with a replacement analysis and development facility, a presence
in the Kingdom of Thailand was established, the ten millionth model was created, and partnerships with Hino Motors
and Daihatsu were additionally established. The first Toyota built outside Japan was in April 1963, in Melbourne,
Australia. From 1963 till 1965, Australia was Toyota's biggest export market. By the tip of the last decade, Toyota had
established a worldwide presence, as the company had exported its simple fraction unit.

Growth Records:
Toyota annual/quarterly revenue history and growth rate from 2006 to 2020.

 Toyota revenue for the quarter ending December 31, 2020 was $78.240B, a 12.72% increase year-over-
year.
 Toyota revenue for the twelve months ending December 31, 2020 was $250.026B, a 10.42% decline year-
over-year.
 Toyota annual revenue for 2020 was $275.356B, a 1.22% increase from 2019.
 Toyota annual revenue for 2019 was $272.031B, a 2.88% increase from 2018.
 Toyota annual revenue for 2018 was $264.416B, a 3.02% increase from 2017.

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Toyota’s success is no accident. Toyota is not limited to only one specialty. Toyota Motor Corporation produces,
sells, leases, and repairs passenger cars, trucks, buses, boats, airplanes and other products in Japan and most
foreign countries. The 1960s were a huge time of growth for Toyota. They developed ties with Europe and began
successfully exporting vehicles there. Their sales were also booming in Australia, their largest export market at the
time.1965 proved to be a big year for the company. The Sports 800 was introduced, setting a new tone for Toyota. It
was their first production sports car, a preview of many performance vehicles to come.

Toyota’s Intensive Growth Strategies:

 Market Penetration
 Product Development
 Market Development

Present Conditions and Current Market Value:

To hear American car makers and the United Auto Workers tell it, government assistance is non-negotiable. Cash
infusions courtesy of the taxpayer are necessary to protect a vital industry, keep people employed, and maintain
Detroit’s place as one of commerce’s "shining beacons." Yet the world’s largest car company manages to not only
survive without help but generate $272 billion in revenue for FY2019. Toyota Motor Corp. (TM) generates revenue
through three primary operations: automotive, financial services, and other business, including the manufacturing of
non-automotive machines and various other activities.

Headquartered in Japan, Toyota began in the 1920s as a loom manufacturer. After developing and selling the patent
for an automated loom, founder Sakichi Toyoda entered into the automobile business. The first Toyota vehicles were
built in the early 1930s, while the Toyota Motor Company was established in 1937. First focusing on compact cars,
Toyota eventually expanded to produce pickups, SUVs, trucks, sports cars, and other vehicles as well. Along the
way, the company developed into one of the largest automotive manufacturers in the world; indeed, as of 2017
Toyota is the largest manufacturer globally.

Toyota produces 10 million vehicles annually, 2.8 million of those in North America. And that latter number is
expected to grow thanks to economies of scale. The Japanese automaker consolidated its United States operations
in Plano, Texas, where it will move the production capacity of 11 manufacturing outlets and three distribution
networks, along with the company’s North American sales, marketing, and financing headquarters.

For FY2019, ending on March 31, 2019, Toyota reported net revenues of nearly 30,226 billion yen, or about $272
billion. This marked a 2.9% increase over FY2018 revenues. As of July 17, 2019, Toyota's market capitalization is
$185.4 billion.

Competitors:
The competitors of Toyota includes Ford,VW,Hyundai, General Motors,Maruti Suzuki,Nissan etc.

VW is one of the major competitors of Toyota. Ducati,Bentley and Porsche is included in the product range of VW.
VW achieved high number of sales in places like USA and Canada. It is also popular among Asian Customers.

Another major competitor of Toyota is Hyundai. Hyundai is also a popular car in Asian Market. Hyundai makes cars
that is environment friendly which plays a certain role in improving the company’s image among customers. In 2017,
Hyundai sales in Asia surpassed 1.88 billion,which shows how popular Hyundai is in Asia.

Nissan is another major competitor of Toyota. It is highly well known in China and North America.

BMW is also a major competitor of Toyota. Sales of BMW vehicles surpassed 2 million in 2017, which shows how
highly competitive it is in the market.

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Products:
The products of Toyota Motors include Textile Machinery, Material Handling equipment and automobiles.

Textile Machinery

The textile machinery products of Toyota include spinning machinery and weaving Machinery. The spinning
machinery products includes RX300 and FL200. RX300 is a good spinning frame. It is the first spinning frame to have
a full sphere of fancy yearns. It also provides internet service and have an effective energy saving design. On the
other hand, FL200 is a useful machinery that is beneficial in terms of conducting operation.

Automobile

The automobile products of Toyota Motors includes Car electronics,Engines,Vehicles,Car air conditioning
compressors.

Some of the vehicles of Toyota includes Toyota 2021 Supra, Toyota 2021 camry, Toyota 2021 4 runner, Toyota 2021
Avalon,Toyota 2021 Corolla, Toyota 2022 86 etc. Toyota 2021 camry was designed in a way that ensures safety and
makes it enjoyable while driving. Toyota 2021 4 runner includes infotainment features that may keep a person
entertained during a long ride. Toyota 2021 Corolla is designed in a way that is appealing and likable. Toyota 2022 86
is a sports car that is less expensive in terms of price.

The car electronics product of Toyota includes Rear inverter, DC-AC inverters, DC-DC converters etc. The Car
electronics products of Toyota is being designed in a way that can be beneficial for the environment. The products
can be charged through certain ways. Development of car electronics is one of the way Toyota tries to widen the
number of fields they do business in.

Toyota also produces engines for Cars. Toyota have wide range of engines for Cars. The Engines type of Toyota
includes engines for Industrial Engines, Engines for Automobiles,Turbo Chargers, Foundry parts. Some of the best
Toyota engines includes 4A-GE Inline-Four, 4U-GSE / FA20 Flat-Four, 7M-GTE Inline-Six R36V V-8 etc.

Toyota also produces material handling equipment like Electrical lift trucks, internal combustion lift trucks.

Merges, Partnership, Acquisitions:

The merging of Toyota motor co. And Toyota motor sales took place on January 25,1982. The main point was that
these companies are going to merge on equal footing and target date for merging to happen was on July 1 of the
same year.

At a conference, president of Toyota Motor Co. and Toyota Motor Sales Co. Said about the merger that the
companies must be unified and investing funds on sectors which are needed to adapt to the dramatic changes
Toyota built over the years. Two days later, on January 27, a committee was set up for merger by Toyota Motor Co.
Ltd. Senior managing officer Gentaro Tsuji was set up. The focus of the merger was merger ratio, the amount of
capital, the number of directors, organizational structured and which banks to select as the main banks and began
arrangement.

For 32 years, since the separation of two companies i.e. Toyota Motor Co. and Toyota Motor Sales Co,Ltd. In April
1950, the two companies assumed separate responsibilities for production and sales. Initially the two companies
agreed to coordinate their operations. But in 1962, a framework meeting by representative was designed from both
sides to discuss about important matters. In 1978, these two companies began personal exchanges to intensify their
unity by ensuring joint training for newly appointed managerial staff and employees. But to address trade friction,
establishment of production plant overseas and speedy decision making, Toyota Motor Co and sales had to rebuild
all functions.

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To prepare merger at a fast pace, presidents from both Toyota Motors Co. And Toyota Motor Sales attended a
ceremony to sign merger agreement whose main points are as follows:

1) Toyota Motor Co. Ltd. Was the change its trading name on the date of the merger to TOYOTA MOTOR
CORPORATION.
2) Toyota Motor Co,Ltd. Was to increase the number of authorized shares by 2 billion shares (with a value of
100 billion yen) to a total of 6 billion shares(with a value of 300 billion yen).
3) The shares of the new company were to be allocated at a ratio of 0.75 of a share of Toyota Motor Co,Ltd. In
exchange for one share of Toyota Motor Sales Co. Ltd. However, no new share was to be allocated for the
210 million shares of Toyota Motor Sales Co, Ltd. Held by Toyota Motor Co, Ltd.

On May 13, the agreement was approved without amendment. And so, on July 1,1982, the new Toyota came into
being and it became a single company again after 32 years. At a press conference president Shoichiro Toyoda
announced the following management policy:

1) Adopting the motto “customer first”, Toyota Motor Corporation, it's dealers and suppliers will unite to deliver
attractive products.
2) In addition to building a system for annual domestic sales of 2 million units, the new Toyota will also actively
implement am overseas strategy from a long-term perspective.
3) The benefits derived from the merger will be returned to consumers by providing low price, quality vehicles.

President Toyoda also urged to remember the “3 c’s” as they're very important to create history of Toyota.

The three c’s are:

1) Creativity
2) Courage
3) Challenge

Also, he said Toyotas postwar period has come to an end.

On the establishment of Toyota, he also said that in July 30,1982 as the postwar came to an end, we took first step
into future. In December 1935, first car of Toyota was sold and was recognized by government by 1936.

Toyota became independent company in August 1937. This company then set up nationwide network of dealers thus
making system of delivering sales and services. But company had to adapt to war and controlling economy. After the
war, the company had to restore its infrastructure. Ultimately, in conclusion we can say that Toyota went through
many hurdles and followed a sequence of rising and falling but eventually it succeeds to triumph over all is
competitors to become the name it’s now today.

Coverages:
Toyota provides many coverage policies regarding its vehicles, which starts from the very beginning. The factory
coverage warranty period begins on the vehicle’s in-service date, which is the first date the vehicle is either delivered
to the original purchaser, lessor, or used as a company car or demonstration vehicle. The coverage policies are
described below –

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  Basic Coverage is 36 months/36,000 miles, whichever occurs first, from the date of first use and
covers all components other than normal wear and maintenance items. This warranty also covers
repairs and adjustments needed to correct defects in materials or workmanship or any part supplied
by Toyota, subject to exceptions. 

 Powertrain Coverage is 60 months/60,000 miles, whichever occurs first, from the date of first use and
includes engine, transmission/transaxle, front-wheel-drive system and rear-wheel drive system.

 Rust-Through Coverage is 60 months/unlimited miles, from the date of first use regardless of
mileage and covers corrosion perforation of sheet metal. 

 Emissions Coverage varies under Federal and California regulations. Refer to your Warranty and
Maintenance Guide booklet for complete details.

Unique Business Policies/Technologies:

Toyota's main intensive growth strategy is penetration. This intensive strategy supports business growth by reaching
and attracting additional customers within the firm's current markets. to satisfy this intensive growth strategy, Toyota
ensures that it offers product for each market phase.

Toyota uses a mix of the subsequent rating strategies: “Market-oriented rating, Value-based pricing”. Toyota uses the
market-oriented rating strategy to see costs supported market conditions and therefore the costs of competitors.

Huge, economical R&D disbursement has allowed Toyota to realize a competitive advantage over its competitors and
to become one in all the most important automotive makers within the world by researching and introducing the
leading-edge technology and vehicles to the customers.