Beruflich Dokumente
Kultur Dokumente
Submitted By:
Garcia, Arjay
Mendoza, Cedrick L.
Mendoza, Charlotte V.
Submitted To:
Date:
April 8, 2019
1
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
Table of Contents:
EXECUTIVE SUMMARY
1. INTRODUCTION
2. RESEARCH DESIGN AND METHODOLOGY
3. MACRO-ENVIRONMENTAL ANALYSIS
3.1 Economic Forces
3.2 Socio-cultural Forces
3.3 Technological Forces
3.4 Political Forces
3.5 Environmental Forces
5. COMPANY ANALYSIS
5.1 Company Vision and Mission Statement
5.2 Review of Toyota Motor Corporation Mission and Vision Statement
5.3Toyota Motor Philippine Corporation’s 7s Framework
5.4 Company Internal Audit
5.5 Key Financial Ratio Analysis
5.6 Internal Factor Evaluation (IFE) Matrix
2
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
6. STRATEGY FORMULATION
6.1 Strengths, Weaknesses, Opportunities, Threats (SWOT) Matrix
6.2 Strategic Position and Action Evaluation (SPACE) Matrix
6.3 Boston Consulting Group (BCG) Matrix
6.4 GE Toyota Motor Corporation Matrix
6.5 Grand Strategy Matrix
6.6 Internal-External Matrix (IE)
6.7 Summary of Strategies
6.8 Quantitative Strategic Planning Matrix (QSPM)
3
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
9. CONTINGENCY PLAN
Appendices Audited Financial Statements of Toyota Motor Philippines
Audited Financial Statements of Mitsubishi
Audited Financial Statements of Hyundai
Audited Financial Statements of Ford
4
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
EXECUTIVE SUMMARY:
The industry players are serviced by the following industry associations: The Philippine
Automative Federation Inc. (PAFI), the Industry’s largest umbrella organization and recognized
As forums such as the ASEAN Automative Federation and APEC Auto Dialogue. The Chamber
Of Automative Manufacturers in the Philippines (CAMPI), which a core manufacturers and
Second tier importers and distributers.
There are currently fifteen vehicles manufacturers with operating plants in the country,
Practically seven of which are equipped with electro – deposition painting systems. There are
Total of 272 parts and components manufacturers in the country. The industry has an annual
Capacity of 250,000 units. All the different types produced plants rated as compliant standards
And certified by the International Standard Organization (ISO).
In 2011, the automative industry generated production valued at P. 368 billion – equal
To 4% share in GDP.
5
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
INTRODUCTION:
The Toyota Industries Corporation is a Japanese machine maker. The Company was
Founded in 1926 as Toyoda Automatic Loom Works, Ltd. By Sakichi Toyoda, the inventor of
Series Manual and machine – powered looms. The most impressive of theses was the 1924
Toyoda Automatic Loom, Type G, a completely automatic high – speed loom featuring the
Ability to changes shuttles without stopping and dozens of other innovations.
TMPC is the largest automotive Company in the country, with the wildest vehicle line – up
Of 17 models and a sales distribution and service network composed of 47 dealerships
Nationwide. TMP’s head office and manufacturing plant are located inside 82 hectare Toyota
Special Economic Zone in (TSEZ) in Santa Rosa Laguna. The Company currently produces
The best -selling Innova and Vios. It’s existing manufacturing plant has the Capacity to produces
Over 51,000 units per year on two shift production operation.
Toyota Motor Philippines grew its net income by 11% to 13.4 billion last year from P.12.1
Billion in 2016 on the back of a 19% growth in consolidated revenues to P185. 3 billion from
P.155.8 billion in 2016. The automotive company hit retails sales volume of 183, 908 units
Last year, garnering a 16% improvement from 158,728 units in 2016 to corner all over the
Market share of 39%
6
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
7
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
Relevance to Firm:
Toyota Motor Philippines (TMP) Corporation expects vehicles sales to bounce back this year
As its targets a 5% growth after as industry – wide slump in 2018. The vehicle industry sales
Slump last year due to the imposition of a new taxes and soaring inflation. In 2018, car sales
Dropped 16% from 183, 908 in 2017.
Relevance to Firm:
Toyota remains to be the automotive leader in the Philippines with 183,908 units sold in 2017.
This was significant increase from its 2016 sales record with 16% growth. This led TMP t
Achieve its 16th consecutive Triple Crown. No. 1 in Passenger Car Sales, No. 1 in Overall
8
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
Sales. On Top of these milestones , TMP ranked 9th in Sales Performance among all Toyota
Distributors worldwide. TMP owes its success to the unwavering support of its entire value chain
TMP will remain committed to deliver better products and services to its customers.
It has always been Toyota’s mandate to be a positive impact to a society wherever it conducts
Business. With the robust growth of the automotive market, TMP continuous to flourish enabling
The Company to infuse more investment in the country to support its business requirements.
3.2 SOCIO –CULTURAL FORCES
Population Growth
The Chamber of Automotive Manufacturers in the Philippine Inc. (Campi) and Truck
Manufacturers Association (TMA) have shown five months of consecutive sales slump over last
Year and this year. The AVID said sales of imported automotive vehicles in the first half
Dropped 11 percent to 43,138 units from 48,344 units in the 2017 period. The fact that the
Philippines population has grown beyond 105 million of mostly young citizens, and has a
Rapidly growing middle class, is a reason for cautious optimism.
Relevance to Firm
Toyota Philippines expecting that the New Vios model will help them the Company recover
Sales after the market correction in the second half of the year. The new – Vios is poised to
Succeed its predecessors as the largest volume model manufactured in the country. Along
With the Vios, Toyota also resembles the Innova at the factory. Together, the two models
Combine for about 53,000 units total.
9
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
Passenger cars and sold an average 12,050 units per month equating to a 36 percent and a 32
Percent market share respectively.
Relevance to Firm
The Fact that Toyota has been a presence in both official and unofficial capacity in our
Country has a done a lot to sway in hearts and minds. Toyota currently holds close to 40%
Market share of all vehicles sales in the country, and that number has been steadily on the rise.
They also have the widest vehicle line up at more 15 models available for customers at different
Trim levels and at all of their 45+ dealership nationwide.
Relevance to Firm:
Toyota Motor Philippine Corporation produces vehicles and components of outstanding quality,
Using advance technology, continuously improving methods and environment -friendly
Processes while maintaining safe working conditions.
10
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
Will raise revenue in a very progressive manner as the richer buyers tend to own more
And expensive cars compared to those who earn less.
When we consider the TRAIN as a package, the increase in take home pay from
The personal income tax reduction will be more enough to offset the increase in
Prices resulting from adjustments in excise taxes.
Relevance to Firm
The Toyota Vios which typically sells for Php. 587, 255. Under the new excise tax schedule,
11
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
Such a vehicle would fall under the first tier, which means that it is subject to a 4% excise tax.
The TRAIN simplified the taxes on automobiles by replacing the complicated tax structure
Before.
Toyota Vios
Activities Sustainability Our ESG activities are rooted in the belief that our efforts in the
Environmental, Social, and Governance-related fields are a driving force behind long-term
growth for Toyota, while supporting the formation of a sustainable society. Environmental
Toyota Environmental Challenge 2050 To go beyond zero environmental impact and achieve a
net positive impact, Toyota has set itself six challenges. Environmental Management Toyota has
12
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
management in all regions around the world and in all fields, while collaborating and
cooperating with related companies, business partners, employees, and other stakeholders.
and environmental accounting by Toyota and all our global subsidiaries. Environmental Report
Read our annual environmental report. Social Initiatives for Improving Traffic Safety Toyota
vehicles, and the traffic environment, as well as to pursue "real-world safety" by learning from
accidents and incorporating that knowledge into vehicle development. Customer First and
Quality First Measures Toyota constantly seeks to improve customer safety, security, and
satisfaction, putting the principles of customer first and quality first into practice. Creating a
Prosperous Society To help realize the future mobility society and enable prosperous lifestyles,
Toyota is working on a wide variety of initiatives that extend beyond automotive manufacturing.
to be a strong corporate citizen. Respect for Human Rights Toyota respects and honors the
human rights, and other rights, of all people. We take care to source conflict-free minerals.
Collaboration with Business Partners Collaboration with Business Partners Toyota is bolstering
its CSR initiatives through increased cooperation with suppliers, dealers, and other business
partners. Employees Toyota's employees are the bedrock of stable business. Learn more about
our way of thinking and our activities. Governance Corporate Governance Learn more about
13
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
Toyota's corporate governance-related activities. Risk Management Learn more about Toyota's
Relevance to Firm:
Toyota aims to create a more sustainable community in all locations of its dealerships by
Contributing to the preservation and protection of the environment. Toyota believes in creating
Sustainable society by Incorporating Environmental Challenge (TEC) 2050 to serve as guide
Achieving zero environmental impact in all aspects of its operation, and create a net positive
Impact to contribute to a better society. Guided by the TEC 2050, TMP shall continue to
Implement environmental programs in line with the global challenges and its Corporate
Environmental Policy.
14
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
Toyota Company does not have and is not able to create own raw materials that are
Needed for assembling of cars, thus it has to collaborate with a third party. Toyota
Orders the raw materials from all over the world and in the interest of maximizing
Their availability of raw materials they maintain good relationship in their suppliers.
Toyota just used Just In Time (JIT) to manage the supply of raw materials as well
As optimizing the Supply and production processes.
4.1.3 Operations:
These activities compromise mainly of manufacturing and assembling process of the
Motor vehicles. Other activities in the operations may include motor tuning,
Configuration of Motor parts and Final Engine Tuning. Toyota Motors have established
And Maintained the image of producing reliable and long lasting vehicles largely due to
Their well – designed and moderated operation process. One of the main factors of Toyota
Successful sales record is credited to their comprehensive implementation of an exquisitely
15
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
Each Toyota dealer is directly linked and controlled by Toyota, with few or no subsidiaries
Involved in the distribution process. Outbound logistics of finished vehicles are the responsibility
Of Toyota Motor Sales. Parts Distribution manages the supply of service parts from the plant to
The service center. It supports service parts production and shipping preparation which includes
Containerization and overseas shipping. This group is also responsible for quality, technical
Support and overseas logistics and customs.
16
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
sales promotions, as well as building groundwork for offers that would be suitable for meeting
the expectations of the customers and the company, as well.
4.1.6 Service
Service is the final Aspect of the Primary activities that mainly add value to the
Products and ensures successful distribution, as well as, obtaining feedbacks and response from
The customers. This includes all areas of service such as final checking, after-sales service,
maintenance, handling complaints, training, repair services and additional customer services.
Toyota believes that customers are the “driver” of the company’s success, thus it provides and
improve several types of their offered services. As Toyota product’s main factor is reliability,
therefore services are delivered by qualified personnel ensuring all services provided are of high
quality. The importance of perfection ensures service.
Support Activities:
The support activities include Procurement,Technolgy, Human Resource Management
And Firm Infrastructure.
Procurement
These activities are associated with the purchase of goods, materials, equipment, and
Services, and focus on reducing the cost of purchases and receiving them on the assigned
Time. Toyota used E – buying and outsourcing methods to manage procurement to
Activities. Furthermore, in collaboration with its suppliers, Toyota support the reduction
Of environmental pollution that occurs during the delivery of supplies.
Technology
These activities are the integration of constantly developing technologies in the
Processes used in help to create and maintain their competitive advantage. Every
Department of Toyota is build up on Technologies. The main focus on technology
Development is to guarantee the customers of safety of the vehicles.
17
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
Toyota has integrated safety technological systems that are aimed to provide safety
Technological systems that aimed are to provide safety for the driver and vehicles. The
First technology is PCS (Pre – Cash Safety) system that helps to predict cash and thereby
Minimizes the risk of damage and injuries. The second is Pop – Up Bonnet technology
Which is definite design of the car frame structures that was created by the Toyota to
Avoid the damage caused to other vehicles and pedestrians.
The third one is Adaptive Driving Beam System which is assimilated in some models
Of Toyota cars that helps to regulate High Beam in Automatic way.
Toyota has a highly integrated Lean Production System in order to use the
Workforce in more productive and efficient way. The main concept of managing
Human resource is to expand the capacity and capability of the employees by
Providing them a material encouragement for the extra work, training them to
Develop their working skills and giving them various rewards.
18
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
Firm Infrastructure:
These activities are connected with strategic plans of the organization. MIS (
Management Information System ) plays a vital role in designing Strategic Plan,
Organizing, MIS(Management Information System) plays a vital role in designing
The strategic plan, organizing and controlling the various departments of Toyota
Such as Finance, Accounting and Corporate strategy. Moreover, Toyota uses
Robotic system where people act as operators that make the production process
Fast and Efficient.
Toyota reached a record breaking number of sales as it sold more than 106,000 vehicles
In 2014 alone, showing a 41% increase of sales over 2013. This number proved to be a milestone
Since the Company didn’t expect to reach it until 2018. Because of this, TMP gained entry into
The prestigious group of Toyota Manufacturers worldwide to reach more than a hundred
Thousand sales. It was also this year that the Chamber of Automotive Manufacturers of
The Philippine Inc. (CAMPI) awarded Toyota Motor Philippines Corporation (TMP) the
Triple Crown award which is comprised of Number one in Passenger Car sales, Number One in
Commercial Vehicles Sales, for the thirteenth year in a row.
Toyota Motor Philippines Corporation reported consolidated earnings and result for the
19
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
Nine months ended September 2018. For the nine months, the Company revenues reached Php.
119.3 Billion. The Company realized Php. 6.6 Billion in net income. For the nine months, the
Company attained retail vehicles sales of 109, 402, units. The Company sales grew 3% to
12, 686 units from 12,315 units in the previous month.
20
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
Rivalry of Players
Rating: MODERATE
Analysis Criteria Description Ratings
Industry Growth Automotive industry is a fast 1 = Low intensity of rivalry
growing market. Companies can grow without
The worldwide automotive capturing market share from
industry has been enjoying a each other, which leads to
period of relatively strong decreased competition.
growth and profitability, and
annual sales have reached
prerecession levels in some
regions.(strategyand.pwc.com)
Product Differences Automotive industry has 3 = High intensity of rivalry
undifferentiated products with Customers can choose any
regards to their cars and other brand because the products
vehicles. But with regards to are almost the same. But not
advancements in the use of that much if talking about
technology, there is a big technological advancement.
difference.
21
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
22
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
23
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
regions. (strategyand.pwc.com)
Proprietary product Automobile companies can 5 = Strong threat of new
differences upgrade and improve their entrant
products with quality Companies should always
innovation can also help them upgrade their research and
attract buyers that will give the development to sustain their
new entrants strategies. competitiveness because
New technologies are competitors can do it too.
constantly being discovered
that improve the quality of
automobiles in market as well
as reduces cost throughout the
manufacturing process.
(psu.edu)
Products of different
companies are mainly
differentiated by design and
engineering quality (Nkomo)
Brand identity Almost all of the companies in 1 = Weak threat of new
this industry are well-known to entrants
provide good quality products New entrants cannot easily
at reasonable prices. And build up their brand identity
because of that, new entrants because of the large existing
will have to take more time to companies in the industry.
have their own identity in the
industry.
Brand identity of companies is
based on quality, safety,
24
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
25
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
26
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
27
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
28
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
29
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
30
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
1946 and 1964, kept their spot increase their competition with
as the largest consumer group, other companies.
buying 38 percent of new
vehicles sold in the same time
frame.(autonews.com)
Buyer volume Some buyers are individuals 5 = Strong bargaining power
that buy only one or two of buyers
vehicles and some are The more frequent your
corporations or government customer purchases and the
agencies that buy large more they are likely to
quantities that they will give negotiate on price, quality and
in reasonable prices and service
request for discounts. (Nkomo)
Switching cost Firms in the industry have 3 = Moderate bargaining
been through in different power of buyers
issues regarding to their It doesn’t cost much for buyers
products that might tend to to switch to another brand of
switch to another company. vehicle.
Few switching costs exist
(little cost for moving to
another brand). (marsdd.com)
Buyer information Meanwhile, consumers are 3 = Moderate bargaining
awash in easily accessible power of buyers.
information about automobile Buyers are being wise these
specifications, prices, days they are being too strict
discounts, quality, and with different aspect.
performance, giving buyers
greater bargaining power.
(Strategy&.pwc.com)
31
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
32
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
33
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
34
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
35
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
Mitsubishi
Honda
Ford
Isuzu
Narrow Wide
(Market Coverage)
Low
Among the Market positioning Variables classified. The two most important variables examined
Are Price Competitiveness and Market Coverage.
The x – axis represent the Market Coverage of Toyota while the Y – axis represent the
Competitive Prices of Toyota and its Competitors.
36
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
37
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
5. COMPANY ANALYSIS
5.1 Company Vision and Mission Statement
5.1.1 Company Vision Statement
To be the No. 1 Automotive Company where great people work as a team to provide the
Best products and services to our customers.
To sustain Team Member’s morale and productivity by Developing their full potential and
Total well – being, and by establishing mutual trust, mutual responsibility and harmony through
Open communication.
38
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
They can achieve their vision if the innovation of the Research and
Developments are active not limiting themselves in manufacturing only Hybrid Cars however,
The whole vision statements were clearly stated.
39
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
40
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
41
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
42
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
Conclusion:
The Toyota Motor Philippines Corporation wanted to expand its Local production
Capacity and it is very good idea and opportunity because by broadening it can create a
Huge impact on the market and it can also help them to recognize more when it comes
On the Car Industry and they can benefit a lot on it.
Recommendation:
It opens an opportunity for the Company if they continues to Expand the Capacity because
It means they are ready to take a massive responsibility and improvement and they are ready to
Build and design new things a better concept that they will introduce in the industry.
b.) Differentiation
Toyota’s uses both differentiation and low cost as generic strategies to try and gain a
Competitive advantage over their competitors in the Automotive Industry. The Market scope
That Toyota uses in broad one that encompasses nearly every type of customers that in the
43
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
Market to purchase an automobile. Toyota is able to target such a large market because they
Have something for everyone. Toyota has four wheel drive trucks and SUV’s for
The outdoor types or those live in areas that face severe weather conditions, Hybrids model like
The Prius for the Eco – friendly customers that are interested in saving the Environment. Along
With the standard Cars for general, everyday use.
Conclusion
The Toyota Differentiates on several levels on their competitors. First of all, Toyota has
Been very successful in differentiating on the Basis of superior design and quality. This has lead
To Toyota being able to create a brand image that is strong and one that brings to mind quality,
Long lasting cars when a potential buyer sees it.
Recommendation
The Toyota should continue the Differentiation strategy because it create a huge impact on
The Company and also they are benefiting on it. Because of the Company differentiation the
Toyota was the first successful mass produce the Hybrid car on the market when it released in
Prius in 2003. Being the first to get their Hybrid on the Market allowed Toyota to gain a large
Portion of the market share in the Area of Hybrid Cars.
44
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
5.3.2 Structure
https://mysullys.com/toyota-flow-chart/organizational-structure-toyota-organizational-chart/
The Company has a Functional structure with 5- 6 Hierarchal Levels. It is breaking into 6
Major parts which are leading by the Vice President reporting directly on the President.
Each division was arranged according on based on the importance namely the Chief Finance
Officer , The Head of Investor Relations and Corporate Communication, Head of Legal and
Compliance, The Head of Human Resources and Administration, The Chief Risk Department
And last the Chief Audit Executive.
45
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
Head of Investor and Relations and Corporate Governance – The Company has Head of
Investor and Relations and Corporate Governance has Investor Relations and Corporate
Communication Department that concern about the relationship between the Company and the
Investors id there are things that needed to know or clarify they are the one who are handling this
Head of Legal and Compliance – According to the Organization Chart of Company the Head
Of Legal and Compliance who ensures that a Company complies with outside regulatory and
Legal requirements as well as internal policies and by laws. Their objectives is to ensure that
An Organization has internal Controls that adequately measure and manage the risks it faces.
Risk Department- The Company risk management is the processes of identifying, analysis, and
Acceptance or mitigation of uncertainty investment decisions. The risk management plan
Increasingly includes companies processes for identifying and controlling threats to its digital
Assets, including proprietary corporate data, A customer’s personally identifiable information
And Intellectual Property.
46
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
Audit Department - The Audit Department is a unit within a Company that is responsible for
Evaluating operational procedures, Risk Management, Control Functions and government
Processes. Reporting internally to the Audit Committee of the Board of Directors. The Audit
Department is supposed to be completely objective and receive no influence or interference
From the areas of the Company or organization examines.
Conclusion:
The Company’s organizational chart expressed the importance of each Department in the
Company and there role and contribution on each Department. They value each contribution
On the Company and also show the support and encouragement on each employees.
5.3.3 Systems
Just In Time
Toyota Motor Corporation’s vehicles production system is a way of making things that
Is sometimes referred to as a “Learn Manufacturing System.” or “Just in Time System (JIT),”
And has come to be well known and studied worldwide. This production control system was
Established based on many years of continuous improvements, with the objective of making
The vehicles ordered by customers in the quickest and most efficient way, in order to deliver the
Vehicles as swiftly as possible.
47
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
Conclusion:
The advantages of Just in Time (JIT) included Price Flexibility, reduction in product
Variation, quick response to customer, demand high quality products at low cost for consumers,
And above all, Customer satisfaction. The system also offered the advantages of low inventory
Investment, Shortened lead times and early detection of quality problems. By using the JIT
Model, a manufacturer has a better level of control over its entire manufacturing process,
Thereby, by making it easier to respond quickly when the needs of customer changes.
Recommendation
With Just In Time (JIT), manufacturers will know when employees are needed at different
Stations off Assembly to meet the demand of those stages manufacturing. A more flexible
Workforce can focus on quality production with lower defect rate, which lower costs and
Increase customer satisfaction.
5.5 Key Financial Ratios Analysis
LIQUIDITY/ CURRENT RATIO 113,983/42, 790 = 2.66
LEVERAGE (DEBT/ TOTAL ASSETS) 57, 021 / 307, 691 = 18.5
ACTIVITY (SALES/TOTAL ASSETS) 239, 811/ 307, 691 = 78%
PROFITABILITY (EBIT/ TOTAL 25,775/307,691 = 8.4%
ASSETS)
GROWTH
SALES 19%
NET INCOME (6%)
EARNING PER SHARE 17%
48
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
49
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
IN PERCENTAGES
50
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
Delivery and 5% 5% 6%
Handling
Depreciation and 5% 4% 5%
Amortization
Light, water and 4% 3% 5%
other utilities
Office supplies 3% 2% 2%
Outside services 3% 2% .9%
Unrealized foreign 3% 4% .1%
Exchange losses
Repairs and 2% 2% 1%
Maintenance
Professional fees 2% 3% 2%
Transportation 2% 1% 2%
and travel
Rent (Note 30) 1% 1% .9%
Provision of .9% .9% 1.5%
product
warranties
Communications .6% .7% .6%
Entertainment, .5% .7% .9%
Amusement and
Recreation
Administrative .4% .4% .2%
and Management
fees
Insurance .3% .3% .4%
Provision for .1% (.04%) 1.3%
credit Losses
Royalty and .08% .1% .1%
service Fees
Donation .02% - -
Provisions for - 3% 1.8%
other Expenses
Others .07% 4% 2%
100% 100% 100%
51
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
Weaknesses
STRENGTH
Strength Sources Importance Weight Reason For
(0 – 100%) Importance Weight
Strong Supply Chain Internal Audit 10% Toyota boast a large
and Distributional and Efficiency supply
Channel chain and
Distributional
network. Each of the
vehicles produced by
Toyota is made from
52
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
thousands of parts
sourced suppliers
located around the
Globe.
Strong Brand Image Internal Audit 10% Toyota has one of the
strongest brands in the
Global Automotive
Industry.
The Company’s
global supply chain is
also strength that
enables resilience and
market – based risk
minimization. The
Company has
developed a strong
intellectual property
moat that maintains
the Company leads.
53
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
waste,
irregularities and
over burdening
from the
production
process.
Weaknesses
Weakness Source Rating Reason For Rating
Dependence on http://www.gotabout.info/- 3 The Toyota has
Suppliers of-toyota/ suppliers around the
world. Most of the
time they leaning on
them.
54
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
those markets.
6 STRATEGY FORMULATIONS
55
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
56
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
References:
https://www.bworldonline.com/gt-capital-core-profit-hits-p15-billion-in-2017/
https://www.bworldonline.com/toyota-phl-targets-5-sales-growth-for-this-year/
http://industry.gov.ph/wp-content/uploads/2017/11/DTI-Policy-Brief-2017-02-The-Philippines-
in-the-Automotive-Global-Value-Chain.pdf.
https://www.imoney.ph/articles/automotive-tax-philippines/
57