Presentation

On

TOYOTA

Principles of

Management

Principles of Management

(it ’s all about managerial work)

Presented by:-

ZEESHAN AHMED 14049005018

SAEED FAZAL 14049005010

IMTIAZ MAJ EED 14049005016

BURHAN SHABBIR 14049005019

OMER NAWAZ 13048005027

Presented to:-

Mr. ABDUL GHAFFAR

Introduction On Toyota Motors

Toyota is 7th largest automotive manufacturerToyota Motor Corporation is headquartered in

Toyota City, AichiToyota has annual sales of 397.05 billion yenProduces ~5.5 million vehicles per yearFrom 56 manufacturing plants across 6 continentsEmploys 317,716 peopleToyota has become the largest vehicle manufacturer

in Japan with over 40% market share

TOYOTA in Pakistan

Toyota Indus Motor Company was incorporated in early 1989 and started manufacturing in Pakistan in 1990.

The manufacturing facility and offices are located at a 105 acre site in Port Qasim, Karachi.

In Pakistan, Toyota Corolla has become a most selling sedan through the recent years and as we speak it has secured more than 36% shares of the total market.

SWOT Analysis

TOYOTA…

Toyota SWOT analysis

Strengths Weaknesses

1.Innovative culture2.Industry leader in production and sales3.Strong brand portfolio4.The leader in “green” cars development5.well-trained bank of employees

1.Large recalls2.Weak presence in the emerging markets

Opportunities Threats

1.Positive attitude towards “green” vehicles2.Increasing fuel prices3.Changing customer needs4.Growth through acquisitions5.Manufacturing facility in Pakistan

1.Fluctuating fuel prices2.Rising raw material prices3.Competition with Honda4.Appreciating yen exchange rate5.Natural disasters

Strengths

Innovative cultureToyota is one of the most innovative auto companies and has a strong culture that is focused on constant innovation. Industry leader in production and salesToyota was the first company to introduce lean manufacturing and total quality management practices in manufacturing process.Strong brand portfolioToyota currently sells about 70 different models of cars under its namesake brand. This does not only increase brands awareness but also satisfies nearly every consumer group needs.

SWOT Analysis…

Strengths…

The leader in “green” cars developmentToyota understands that environmental friendly cars are the necessity nowadays. Consumers are more selective in terms of CO2 emissions and fuel-efficiency of the cars they buy and Toyota’s early move towards selling hybrid and efficient cars is the strength few competitors can match.well-trained bank of employees IMC gets a proved method of evaluating and training employees from the parent company TMC, this enables them to have well trained employees who know it well that how to act and reach when and where.

Weaknesses

Large recallsToyota had quite a few large-scale vehicle recalls over the past few years. The business recalled 9 million vehicles in 2009-2010 and 7.43 million cars in 2012. Such recalls does not only hurt the firm financially but significantly damages firm’s brand.Weak presence in the emerging marketsToyota’s main markets are Japan, US and Europe, while such emerging economies as China or India make only a small percentage of all Toyota’s sales. Due to poor presence in the largest automobile market (China), Toyota will find it hard to compete with GM that has huge market share there.

SWOT Analysis…

Weaknesses…

New employeesThe biggest obstacle so far is the hunting of quality and responsible workers. It takes much of the resources to hire and train a new employee with blank professional background. And if you call an overseas employee, he will cost you double.

Opportunities

Positive attitude towards “green” vehiclesToday consumers are more aware of the negative effects (air pollution) caused by cars. Large quantities of CO2 emissions intensify greenhouse effect and negatively impact the life on earth. Thus, consumers are more likely to buy new hybrid and electric cars that emit less CO2. Increasing fuel pricesIncreasing fuel prices open up large markets for Toyota’s hybrid cars as consumers shift towards efficient cars.Changing customer needsBy introducing new car models, Toyota could satisfy varying consumers’ tastes and needs and access wider customer group.

SWOT Analysis…

Opportunities…

Growth through acquisitionsToyota has successfully acquired other car companies in the past and should continue doing so to grow, gain new skills, assets and access to new markets.Manufacturing facility in Pakistan The parent company, Toyota Tsushu Motors, is negotiating and trying to install a manufacturing facility in Pakistan which has an ability to support the production of Hybrid and low omission vehicles in Pakistan.

Threats

Fluctuating fuel pricesThere is high possibility that future fuel prices will drop, as more shale gas will be extracted. For this reason, fuel-efficient hybrid and electric cars will become less attractive.Like at this time drop. Rising raw material pricesRising raw material prices are especially important to automobiles manufacturers. Higher prices mean higher costs and less profits for Toyota as the raw metals are the main components in car manufacturing. Competition with HondaThe direct competitor in Pakistani market is Honda Atlas Cars Pakistan Limited, Honda have already started working on Hybrid vehicles and they are testing a fewer models to launch officially in Pakistan.

SWOT Analysis…

Threats…

Appreciating yen exchange rateMost of Toyota’s revenue comes from foreign countries. The profits earned abroad must be sent back to Japan and converted to yen. Appreciating yen exchange rate against other currencies means lower profits for Toyota.Natural disastersToyota’s has manufacturing facilities in Japan, Thailand, China and Indonesia. These countries, including others, are often subject to natural disasters that disrupt manufacturing in the facilities and decrease Toyota’s production volumes.

4 major management functions of TOYOTA:

Management

Functions

Planning

Organizing

Leading

Controlling

TOYOTA Management Functions

Planning

In management planning is the process of setting goals, developing strategies, and outlining tasks and schedules to accomplish the goals.

TOYOTA Management Functions

Planning in TOYOTA

At IMC planning merely involves a few things like when to launch a new variant and when to launch a new model. What features should be added and how that particular product is marketed.

In TOYOTA they work on 2 type of planning1. Market Planning2. Management Planning

Planning…

Market Planning

Toyota IMC Is seen injecting a lot of financials in this segment. The marketing firms working with the IMC are projecting their USPs through every possible medium.

IMC have divided management panning into multiple segments. One is the team who decides which practice is suitable for the betterment of the organizations. And the other one is always enforcing the professional hierarchy.

Planning in TOYOTA…Management Planning

Step by step planning process in TOYOTA

According to the book wrote by Jeffrey K. Liker, Ph.D., is Professor of Industrial and Operations Engineering at the University of Michigan we can comprehend what have made Toyota success. They have incredibly applied planning process to their operation step by step. From setting goal, develop commitment, develop effective action plan, track progress toward goal achievement, maintain flexibility.

1. Setting goal

Toyota has identified specific company is to achieve simultaneously high quality, low cost, short lead times, and flexibility. 2. Develop commitment

Then, the leaders try to motivate their employees because goals don’t encourage them to worker harder or smarter. Thus, they were armed with their shop-floor knowledge, dedicated engineers, managers, and workers who would give their all to help the company succeed.

Planning in TOYOTA…

Step by step planning process in TOYOTA…

3. Develop effective action plan They move to next step of planning is to develop effective action plans

to their objectives. Toyota lists the specific steps (how), people (who), resources (what) and time period (when) for accomplishing a goal.

4. Track progress toward goal achievement After completing second step, they use the method of tracking

progress toward goal achievement to get more motivating and rewarding and then gather and provide performance feedback to make adjustment in efforts, direction and strategy that will lead to dramatic increase in performance.

5. Maintain flexibility Finally is maintaining flexibility, which is the key to their operations.

They learned from experiences and failures and improve them to satisfy their customers and get the best productions.

Organizing

In management organizing is the relationship between people, work and resources used to achieve the common objectives.

TOYOTA Management Functions

Processes of Organizing in TOYOTA

Organizing is the foremost important thing for of the TOYOTA administrative unit. Organizing involves following functions:Customer Care Department.Department of Finances.Sales Channel.Production Facility.

Organizing…

Customer Care Department:

Toyota is going to maintain their Customer Care Department so well so that their customer got many options like ask a question and got quick answer.

Toyota Care also available 24/7.Toyota Extra Care Vehicle Service

Agreement, helping to extend your Toyota's new car warranty for up to 8 years / 125,000 miles.

Organizing…

Department of Finances :

Toyota have the very good team of charted accountants and got their services in auditing and financial matters.

Organizing…

Sales Channel :

Toyota Indus motor also got very good sales channel in all over the Pakistan that help to create a strong network of vendors.

Toyota also have 39 independent vendors across nation wide.

Organizing…

Production Facility :

Production department is control by japan because they did not want any compromise on standards.

In this department many function is done simultaneously.

Organizing…

Leading

Leading is a significant part of the IMC’s managerial hierarchy. Whereas they come up with a slight change in the hierarchy as below:

CEO: Chief Executive Officer concerns the company growth and is not physically present during manufacturing and other process within the company instead he overlooks the processes and practices and passes his judgment for an enhanced outcome. CFO: Muhammad Ahsan, also a part of Ferguson and Company Chartered Accounts, is the Chief Financial Officer of the company Chief Engineer: Chief Engineer reports directly to the top management among which Director Engineer makes a decision regarding what he does and what he is supposed to do which might add worth to the company’s net worth.

TOYOTA Management Functions

Leading…

Director Engineer: Director Engineer is an indirect employee of Toyota IMC and is directly employed by the parent company Toyota Motor Company, Toyota Tsushu Motor Company in Japan. CMO: Chief Marketing Officer mindstorms on how to tell a message to the public and how to showcase the products of the company. Chairman: Chairman is the top boss of the company and is only involved in Board of Director meeting. Decision Making:Mainly, the decision making rests with the department leads and they are reporting to the top management. Eventually, the lane of directors come into play and seeks the verdict of the chairman.

Controlling

Toyota closely monitors its controlling and evaluates its performance against organizational targets.

Quality Control: You would wonder if Quality Control and Customer care is the same thing. No it is not. Quality Control is a step ahead of manufacturing facility. Quality Control is a pre-sale involvement. Policies Control:Policies control department is led by the board of the directors and the concerned personnel in the management such as Director HR sets the policies for his respective department and so on. Authorities Control: Authorities control is above every role in an organization and some goes for the IMC. Authorities are amended and finalized by the top directors in supervision of the chairman and the CEO .

TOYOTA Management Functions