Toyota Strategy Analysis

1.0 Company Background

Toyota is a well-known and most successful business in the world. Their major is building cars and trucks in 27 countries for sale in more than 170 markets around the world. Their worldwide production are 9.5 million in year 2007, placing Toyota Manufacture Corporation firmly among the world's leading vehicle manufactures. The Toyota Motor Corporation commonly known as TOYOTA or TMC was established in 1937 founded by Kiichiro Toyoda as a spinoff from his father's company to create the automobiles. In the automobile industry nowadays, TMC is the world 1st for recent years after General Motor. Based on International Organization of Motor Vehicle Manufacturers OICA reports TMC has occupy over 10 percent of international market after General Motor and Volkswagen. The latest in 2010, TMC has produced over 8 million units in productions.

1.1 Vision, mission and values

Toyota vision is to be the most respected and successful enterprise, delighting customers with a wide range products and solutions in automobile industry with the best people and the best technology. Mission of Toyota is to provide safe & sound journey. Toyota is developing various new technologies from the perspective of energy saving and diversifying energy sources. Environment has been first and most important issue in priorities of Toyota and working toward creating a prosperous society and clean world.

1.2 Founders & current directors

The TMC top management level is started after co-founder which is President Eiji Toyoda (1981) and Shoichiro Toyoda (1982-1992). The Chairman of TMC is Shoichiro Toyoda (1992-1999), Hiroshi Okuda (1999- 2006) and Fujio Cho (2006- present). The Chief Executive Officer is Dr. Tatsuro Toyoda (1992-1995), Hiroshi Okuda (1995-1999), Fujio Cho (1999-2005), Katsuaki Watanabe (2005-2009), and Akio Toyoda (2009-present). The visions of TMC include as a highly respectful and succeed corporation in automobile industry and the high quality products and solutions by using the new technology and best employee to satisfy their clients or end users.

1.3 Global expansion

In Global Expansion, starting at 1989 TMC has entry the Europe markets by set up their 1st plantation in Burnaston, production centers and engine factory in Deeside by using another named called LEXUS(establish in 1983) to entry UK market due to they wanted to challenge to be world best luxury automobile manufactured. Due the brand name of Lexus has bring lucky to TMC that make the production increase consistent and over 75 percent of the automobile was export to worldwide. Besides that one of their automobile which is Toyota Avensis even export from UK to Japan, this is to balance the payments of national as a responsibilities of manufactured in Burnaston as the Foreign Direct Investment Company, TMC has increased their investment up to 50 million pound in 2004 to UK factory to improve output to over 280,000 units. This decision make them qualifies in Queen's Award for International Trade in 2004. In 2008, for the research and development of new technology purpose TMC has allocate 88 million pound to new fuel engine in UK at 2009.

1.4 Financial performance

In 2010, TMC was produce total 7342('000) units and theirs vehicles sales was more than production which is 218,000 units and total sales is 7560('000) units more than 80% of sales is other country. At 2010, TMC has earned net revenues 18,993.6 billion yens, operating income is 468.2 billion yens and their net income is 408 billion yens. TMC expected in 2012 forecasts the net revenues will drop to 18,600 billion yens, operating income will decrease to 300 billion yens and net income will drop almost 50 percent to 280 billion yens this all due to the affected of financial crisis and the earthquake in Hokkaido.

Business results

FY 2009

(April 2008 to March 2009) FY 2010

(April 2009 to March 2010) FY 2011

(April 2010 to March 2011)

Sales*1 20,529.5 18,950.9 18,993.6

Operating income*1 -461 147.5 468.2

Net income*1 -436.9 209.4 408.1

Capital Expenditures*1*2 1302.5 579.0 642.3

R&D*1 904.0 725.3 730.3

Number of consolidated subsidiaries 529 522 511

No. of Affil. Accounted for Under the Equity Method 56 56 56

(unit = 1 billion yen or 1 company)

*1 Monetary figures rounded down to the nearest 100 million yen

*2 Figures for depreciation expenses and capital expenditures do not include vehicles in operating lease

Production results

FY 2009

(April 2008 to March 2009) FY 2010

(April 2009 to March 2010) FY 2011

(April 2010 to March 2011)

Vehicles Japan 4,255,000 3,956,000 3,721,000

Overseas 2,796,000 2,853,000 3,448,000

Total 7,051,000 6,809,000 7,169,000

(unit = 1)

Sales results

FY 2009

(April 2008 to March 2009) FY 2010

(April 2009 to March 2010) FY 2011

(April 2010 to March 2011)

Vehicles Japan 1,945,000 2,163,000 1,913,000

Overseas 5,622,000 5,074,000 5,395,000

Total 7,567,000 7,237,000 7,308,000

Homes 5,442 5,281 5,157

(unit = 1)

2.0 PEST Analysis

PEST analysis is simply tool to help the organization detect and monitor weak signals in the hope of recognizing the discontinuities or fractures shaping the environment. PEST analysis can be used to help detect trends in the external environment that will ultimately find their way into the competitive environment. We also can use this useful tool to analyses how Toyota getting successes