7/11/2018 FINAL REPORT

PRINCIPLE OF MANAGEMENT

GROUP MEMBERS
MARIA LUNETTA, ABDUR REHMAN
ASHESH RAZA, HAMDA TUFIQUE &
AMNA IMDAD
TOYOTA INDUS
Indus Motor Company Indus Motor Company Limited (IMC) was incorporated in 1989
as a result of a joint venture agreement among some

MOTORS
companies of House of Habib of Pakistan, Toyota Motor
Corporation and Toyota Tsusho Corporation of Japan. The
manufacturingfacility and offices are located at a 105 acre site
in Port Qasim, Karachi, while the product is delivered to end
customers nationwide through a strong network.

CONTENT
Vision Mission of the company
Guiding principles
Code of Conduct
Strategic objectives
Objectives ( long and short
term)
Key departments and
functions
Organizational Hierarchy
Management team and
managerial functions and
roles
Decision making styles
SWOT
PESTLE
Current issues and challenges
Risk management
Global scenario
Division of labor
CSR policy
Human resource policy
Employee engagement
strategy
5S management system at
IMC
Value Chain
Part B ( Interview)
Part C (Comparison Of the
company with Ashok Leyland)

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Core Values
 World class production quality
 Achieving the ultimate goal of complete customer satisfaction
 Being seen as the best employer
 Fostering the spirit of teamwork
 Inculcating ethical and honest practices

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Guiding Principles

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Code of Conduct
Being a highly responsible corporate citizen, Indus Motor Company expects its employees / directors to uphold and enhance the
reputation of the business by: Maintaining an unimpeachable standard of integrity in all their business relationships both inside and
outside the company. Fostering the highest standard of conduct and competence amongst those for whom they are responsible.
Ensuring transparency in business transactions, and rejecting any business practice, which might be deemed to be improper and
promoting fair business practices and ensuring compliance with legal and regulatory requirements In applying these Rules, employees /
directors should use the following guidelines:

1) Conflict of Interest Any personal interest, which may affect or might reasonably be deemed by others to affect an employee’s
impartibility, should be declared up front in writing.
The company property must not be used for personal work unless specific permission is obtained.
Each staff member is employed in the company on a full time basis and therefore, they are not to be involved, directly or indirectly, in
any vocation, business or commercial activity. Any departure from this can only be made with the written permission of the Chief
Executive Officer.

2) Confidentiality and Accuracy of Information The confidentiality of information received in the course of business must be
respected and never used for personal gain; information given in the course of business must be honest and never designed to mislead.
Further, all company affairs are to be treated as confidential and should not be discussed with third parties during service with the
Company and after leaving the service.

3) Gifts all members are forbidden to accept gifts or borrow money from another member of the company or from a Distributor, Dealer,
Vendor or a Customer. Personal gifts given or received beyond norms of business etiquette, which are likely to improperly influence
business decisions, must be avoided.

4) Proper Recording of Funds, Assets, Receipts and Disbursements All funds, assets, receipts and disbursements should be properly
recorded in the Books of the Company. In particular, no funds or accounts should be established or maintained for purposes that are not
fully and accurately reflected in the Books and records of the Company.

5) Health and Safety Every staff member should take reasonable care to ensure the health and safety of him/her and others who may be
affected by his/her acts at work. Staff members should not tamper with or misuse any item provided by the Company to secure the
safety, health and welfare of its staff and for the protection of the environment.

6) Environment To preserve and protect the environment, all staff members should. Design and operate the Company’s facilities and
processes so as to ensure the trust of adjoining communities; Promote conservation of resources, waste minimization and the
minimization of the release of chemicals / gas into the environment; Strive continuously to improve environment awareness and
protection.

7) Work Place Harassment The staff will maintain an environment that is free from harassment and in which all employees / directors
are equally respected. This means any action that creates a hostile or offensive work environment and such actions include, but are not
limited to, sexual harassment and any disparaging comments based on gender, religion and race or ethnicity.

8) Company Image All staff members must avoid participating in any political activity or in such personal behavior during or after
office hours, which may bring disrepute to the Company.

9) Legal Proceedings It is essential that a staff member, who becomes involved in legal proceedings, whether civil or criminal, should
immediately inform his superior in writing.

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Strategic Objectives

Achieving Market Bringing Toyota Respecting our Become a good

Leadership by Quality customer coparate citizen
Delivering Value to to Pakistan
Customers
• Following our • Maximizing QRD • Treating • Following ethical
“Customer (Quality, employees as the business practices
First” philosophy Reliability and most and the laws of the
in Durability) by important land.
manufacturing and built-in sustainable • Engaging in
providing high engineering. competitive philanthropic and
quality • Transferring resource. social
vehicles and technology and • Providing a activities that
services promoting continuous contribute to the
that meet the indigenization at learning enrichment of the
needs of IMC and its environment that Pakistani society,
Pakistani Vendors. promotes especially in areas
customers. • Raising the bar in individual that are strategic
• Enhancing the all support creativity and to both societal and
quality and functions to meet teamwork. business
reach of our 3S Toyota • Supporting equal needs e.g. road
Dealership Global Standards. employment safety, technical
Network. opportunities, education,
• Employing diversity and environment
customer inclusion without protection,
insight and discrimination. etc.
feedback for • Building • Enhancing
continuous competitive value corporate value
corporate through mutual and
renewal, including trust and mutual respect while
product responsibility achieving a stable
development, between the Indus and
improving Team and the long term growth
service and Company. for the benefit of
customer care. our shareholders.

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Objectives of the company

Management Policy
Integrated Management System Policy
As a team Indus Motor Company, are committed to comply with the requirements of our
Integrated Management System and to endeavor to continuously improve upon it in order to:

 Manufacture high Quality Products.

 Generate Customer Satisfaction.
 Provide Service to the Society.
 Maintain Market Leadership.
 Identify and avoid/mitigate those environmental aspects which have negative
environmental impacts.
 Comply with all applicable legal, regulatory and other requirements related to
Environment, Health and Safety, Assist society by making the environment more
friendly.
 Design and maintain facilities, establish systems, provide training and conduct
operations in a manner that safeguard people and property.
 Identify, evaluate & mitigate health risks related to our operations that potentially affect
our employees, contractors and the public.

Management involves intentionally organizing your resources and deploying them to meet
specific goals. Short-term goals and long-term goals can help you set priorities and emphasize
to employees what is important.

Performance goals of an organization, intended to be achieved over a period of five years or

more. Long-term objectives usually include specific improvements in the organization's
competitive position, technology leadership, profitability, return on investment, employee
relations and productivity, and corporate image.

The company’s long term objective includes:

 Securing the new and existing products of the company

 Providing wider choice to customers
 Enhance safe operation at the plant for employee, contractors, and visitors
 Promoting Human recourses capabilities
 Ensuring customer satisfaction
 Company’s growth by cost reduction, efficient production ongoing quality improvement
and increase sales.
A smaller, intermediate milestone to achieve when moving toward an important goal. Many
business operators will set a short term objective for their staff in order to assist them in
moving gradually toward the company's longer term goals.

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Key departments and functions
Roles & Departments in IMC is divided into two:
Non Technical Division
 FinanceBudget/Treasury/Costing:
Looks after all departmental and project
budget including investment made by
the company.
 Costing/MIS/Taxation: Making
payments to the required vendors and
various tax calculations.
 Human Resources: HR department is
responsible for Talent Acquisition,
Organizational Development, Industrial
Relations and Performance
Management.
 Corporate Planning: Responsible for
managing strategic business plan, takes
care of all internal and external
communication. Also looks after public
and government affairs.
 Internal Audit: Internal auditing
provides value to governing bodies and
senior management as an objective
source of independent advice.
 Information Technology: Responsible
for smooth operation of all Information
Technology system including SAP.
Technical Division
Production: Looking after daily
production of vehicles. Includes Weld,
Paint and Assemble Lines.
Production Engineering: This
department is responsible for
improving production process and
implementing new projects to remove
bottle necks form our processes.
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 Sales & Marketing: Behind monitoring
sales target by our 3S dealerships looks
after computerized order intake from
dealerships, invoicing and daily sales
administration issues.
 Marketing Planning: responsible for
Products Forecast, Planning, Promotion
and implementing the marketing
strategies.
 Customer First Department: Catering
our after sales operational and service
issues with the help of our 3S
dealership’s service department and
supplying and making sure all our 3S
dealerships are equipped with enough
genuine Toyota spare parts and also
dealing with counterfeit and regulatory
issues with Government.
 Administration: This department looks
after logistics, transportation of
employees, security of plant and
employees and also canteen facility.
QA & QC: Making sure that we meet all
Toyota Quality standards before
delivering vehicle to customer.
Product Development & Commercial:
product development department is
responsible for Product Localization
which includes vendor development,
ensuring quality and timely supply of all
localized parts and regulatory issues.
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Organizational Hierarchy

Hierarchy is a way to structure an organization using different levels of authority and a vertical
link, or chain of command, between superior and subordinate levels of the organization. Higher
levels control lower levels of the hierarchy. The following is the organizational Hierarchy of IMC.

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Managerial Functions and Roles

Managers perform the duties of a

ceremonial and symbolic in nature such
as welcoming official visitors, signing
legal documents etc. As head of the
organization or strategic business unit or
department.

1. Duties of interpersonal roles include

routine, involving little serious
communication and less important
decisions. However, they are important
for the smooth functioning of an
organization or department.

2. Leadership Role of
Manager
All managers have a
leadership role. The
manager, as in charge of
the organization /
department, coordinates
the work of others and
leads his subordinates.
This role includes hiring,
training, motivating and
disciplining employees.

3. Liaison Role of Manager

As the leader of the organization or
unit, the manager has to perform the
functions of motivation,
communication, encouraging team
spirit and the like. Further, he has to
coordinate the activities of all his
subordinates, which involves the
activity of liaison.
This role also requires the manager to
interact with other managers outside
the organization to secure favours

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and information. In this role, the manager
represents his organization in all matters of
formality.
4. Monitor Role of Manager
As a result of the network of contacts, the
manager gets the information by scanning his
environment, subordinates, peers and
superiors.
The manager seeks and receives information
concerning internal and external events so as to
gain understanding of the organization and its
environment. Typically this is done through
reading magazines and talking with others to
learn the changes in the public’s tastes, what
competitors may be planning, and the like.
Managers, mostly collect information in verbal
form often as gossip, hearsay, speculation and
through grapevine channels.
5. Disseminator Role of Manager
Manager disseminates the information, he
collects from different sources and through
various means. He passes some of the
privileged information directly to his
subordinates, peers and superiors who
otherwise have no access to it. This information
is gathered by him from his environments and
from his own equals in the organization.
The manager will play an important role in
disseminating the information to his
subordinates, when they don’t have contact
with one another.
6. Spokesman Role of Manager
Managers also perform a spokesperson role
when they represent the organization to
outsiders. Manager is required to speak on
behalf of the organization and transmit
information on organization’s plan, policies and
actions.
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The manager has to keep his superior informed
of every development in his unit, who in turn
inform the insiders and outsiders. Directors and
shareholders must be informed about the
financial performance, customers must be
informed about the new product
developments, quality maintenance,
government officials about implementation of
law etc.
7. Entrepreneurial Role of Manager
As an entrepreneur, the manager is a creator
and innovator. He initiates and oversee new
products that will improve their organization’s
performance.
He seeks to improve his department, adapt to
the changing environmental factors. The
manager would like to have new ideas, initiates
new projects and initiates the developmental
projects.
8. Disturbance Handler Role of Manager
As a disturbance handler, managers take
corrective action to response to previously
unforeseen problems. Disturbance handler role
presents the manager as the involuntarily
responding to pressures. Pressures of the
situation are severe and highly demand the
attention of the manager and as such the
manager cannot ignore the situation.
9. Resource Allocator Role of Manager
The most important resource that a manager
allocates to his subordinates is his time. As a
resource allocator, managers are responsible
for allocating human, physical and monetary
resources. Accordingly, setting up of a time
schedule for the completion of an operation or
approval of expenditure on a particular project,
etc., are the functions which the managers
perform in the role of a resource allocator.
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10. Negotiator Role of Manager

In this tole, the manager represents the
organization in bargaining and negotiations
with outsiders and insiders, in order to gain
advantages for his own unit. He negotiates with
the subordinates for improved commitment
and loyalty, with the peers for cooperation,
coordination and integration, with workers and
their unions regarding conditions of
employment, commitment, productivity, with
the government about providing facilities for
business expansion etc.

Thus, the major role of the manager is

integrating all the roles while playing
managerial role or performing his tasks. In fact,
the manager cannot play any role isolating the
other roles.
As a strategist, the manager has to integrate all
the roles in decision-making and performing his
tasks.

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Decision Making Styles

Decision making style

proposes people differ along two
dimensions in the way they
approach decision making. The
first is an individuals way of
thinking. Some people tend to be
rational and logical and others
tend to be creative and intuitive.
The other dimension describes
an individuals tolerance for
ambiguity. Some people have a
low tolerance for ambiguity and
others have high level of
ambiguity. Based on way of
thinking and tolerance for
ambiguity decision making styles
can be of four types.

IMC works on the Behavioral

Style: Managers with behavioral
style have low tolerance for
ambiguity and an intuitive way of
thinking. They work well with
others. They are receptive to
suggestions from others. They
often use meetings to communicate although they try to avoid conflict. They want to be accepted by
others. They parctice the team work style and behavioral decision making has proved to be successful
for that.

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SWOT

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IMC’s PESTEL/PESTLE Economic Factors

Important to IMC
Analysis & Economic trends influence
Toyota’s organizational

Recommendations development. This dimension

of the PESTEL/PESTLE
Indus Motor opportunities and threats are identified in this analysis model determines
PESTEL/PESTLE analysis. With more than 300,000 employees, the effects of economic
Toyota is a leading player in the global automotive industry. situations or changes on
business. In Toyota’s case,
However, the company must exploit opportunities and address
the most significant
threats in its remote or macro-environment, as shown in this economic external factors in
PESTEL/PESTLE analysis. Various external factors influence Toyota the remote or macro-
and the global automotive industry. With these factors in mind, environment are as follows:
the firm’s executives must develop strategies and programs to
support business growth and stability. Toyota can maintain its Weaker Yen vs. U.S. Dollar
(opportunity)
position as a leading global firm by effectively addressing the
Gradual growth of U.S.
concerns highlighted in this PESTEL/PESTLE analysis.
economy (opportunity)
Toyota must address various opportunities and threats identified Rapid growth of developing
in this PESTEL/PESTLE analysis to ensure the company’s continued countries (opportunity)
dominance in the global automobile market. Toyota has the opportunity
to improve its exports from
Political Factors Affecting Toyota’s Business Japan based on the
IMC is subject to the effects of political conditions. This dimension weakness of the Japanese
of the PESTEL/PESTLE analysis model identifies the impacts of Yen. Also, Toyota has the
government on firms and industries. In Toyota’s case, the opportunity to grow its
following are the significant political external factors in the remote business in the U.S., which is
or macro-environment: the firm’s second biggest
market after Japan. In
Political stability in most major markets (opportunity)
addition, the rapid growth of
Free trade agreements (opportunity)
developing economies
Governmental support for ecofriendly products (opportunity)
present the opportunity for
The political stability of major markets is an opportunity for Toyota the firm to improve revenues
to grow with minimal political tension. Also, free trade agreements based on these markets. In
involving Japan and other countries where Toyota operates this dimension of Toyota’s
present opportunities for improved market penetration. In PESTEL/PESTLE analysis, the
addition, governmental support for ecofriendly products is an main economic external
opportunity for the company to improve its products to satisfy or
factors create opportunities
exceed environmental expectations. In this dimension of Toyota’s
for business growth.
PESTEL/PESTLE analysis, the main political external factors provide
opportunities for the business. Social/Sociocultur
al Factors

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Influencing Toyota’s Business Environment Ecological/Environ

Toyota experiences the effects of social or sociocultural factors. mental Factors
This dimension of the PESTEL/PESTLE analysis model pertains to Toyota needs to include
the impact of sociocultural trends on business. In Toyota’s case, ecological concerns in its
the following are the main social/sociocultural external factors in strategic decision-making.
the firm’s remote or macro-environment: This dimension of the
PESTEL/PESTLE analysis
model identifies concerns
Increasing interest in hybrid cars (opportunity) regarding the natural
Increasing interest in electric cars (opportunity) environment in relation to
Widening wealth gap (threat) business. In Toyota’s case,
Toyota has the opportunity to provide more products that satisfy the major
customers’ increasing interest in hybrid and electric vehicles. ecological/environmental
external factors in the
However, the company must consider the widening wealth gap,
remote or macro-
which is a threat because it corresponds to a declining middle environment are as follows:
class. The middle class is the main revenue source of Toyota. In
this dimension of Toyota’s PESTEL/PESTLE analysis, the social Climate change (opportunity)
external factor of the widening wealth gap is a major concern. Declining global oil reserves
(opportunity)
Technological Factors in IMC’s Business Increasing emphasis on
Technological factors impact Toyota, especially because it is a business sustainability
technological business. This dimension of the PESTEL/PESTLE (opportunity)
analysis model determines the influence of technologies or Toyota has opportunities to
technological trends. In Toyota’s case, the following are the most provide more
notable technological external factors in the company’s remote or environmentally friendly
macro-environment: products, such as electric
cars or cars with higher fuel
Rising use of e-commerce (opportunity) efficiency. The company also
Mobile technology trend (opportunity) has the opportunity to
Cybercrime (threat) increase its sustainability
Toyota has the opportunity to improve its e-commerce capabilities performance through
or to exploit third-party e-commerce service providers for sales of improvements in business
some of its products, such as spare parts. Also, Toyota has the process efficiency. In this
opportunity to enhance its mobile apps to increase customer dimension of Toyota’s
engagement and loyalty. However, the company must address the PESTEL/PESTLE analysis,
threat of cybercrime, including corporate cyber-espionage. This
the major
dimension of Toyota’s PESTEL/PESTLE analysis model shows major
ecological/environmental
technological opportunities, although the firm must address the
factors present
threat of cybercrime through suitable technological security
measures.
opportunities that the firm
can use for further growth.

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Legal Factors opportunities for the

Legal systems impact Toyota’s business. This dimension of the company. For instance, the
PESTEL/PESTLE analysis model determines the laws and
firm can focus on product
regulations that affect business. In Toyota’s case, the following are
the most significant legal external factors in the remote or macro- development to exploit
environment: opportunities in the market.
Toyota can also improve
Improving intellectual property laws (opportunity)
Increasingly complex environmental laws (opportunity) business operations and
Increasingly complex consumer laws (opportunity) market presence to exploit
Toyota has the opportunity to grow with reduced concerns for opportunities based on
infringement of its intellectual property rights because
governments are working toward improving intellectual property economic external factors.
protection. Toyota also has the opportunity to provide higher However, Toyota must
quality products that satisfy or exceed requirements based on address threats based on the
environmental laws. In addition, the company can exploit the
external factors of the
opportunity of offering safer and more satisfactory products to
fulfill or exceed consumer laws. This dimension of Toyota’s widening wealth gap and the
PESTEL/PESTLE analysis model shows that the legal external rising frequency of
factors present major opportunities for the firm.

Toyota’s PESTEL/PESTLE Analysis –

Recommendations

The external factors identified in this PESTEL/PESTLE analysis of

Toyota’s remote or macro-environment mostly create
cybercrime. Technological measures and product innovation could prove beneficial in this endeavor.
Thus, this PESTEL/PESTLE analysis shows that Toyota has significant opportunities for growth and
stability.

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Current issues and challenges faced by the organization

rincipal Risk and Uncertainties : Despite the fact that the Company’s financial performance is

P
exceptional from the past years, however, continuous depreciation of Pak Rupee against
various currencies, general inflation and rise in international commodity prices will be vital
factors that may have an impact on the future financial statements of the Company. The
company welcomes new competition; however, consistent Government policies are required
along with creating a level playing field for the existing players of the industry for sustainable
growth taken thereon on periodic basis.

 Threat of New Entry (Weak): Large
amount of capital required High
retaliation possible from existing
companies, if new entrants would bring
innovative products and ideas to the
industry. Few legal barriers protect
existing companies from new entrants
All automotive companies have
established brand image and reputation
Products are mainly differentiated by
design and engineering quality New
entrant could easily access suppliers
and distributors It is very hard to
achieve economies of scale for small
companies Governments often protect
their home markets by introducing high
import taxes
 Supplier power (Weak): Large number
of suppliers Some suppliers are large
but the most of them are pretty small
Companies use another type of material
(use one metal instead of another) but
only to some extent (plastic instead of
metal) Materials widely accessible
Suppliers do not pose any threat of
forward integration
 Buyer power (Strong): There are many
buyers Most of the buyers are
individuals that buy one car, but
corporates or governments usually buy
large fleets and can bargain for lower
prices It doesn’t cost much for buyers
to switch to another brand of vehicle or
to start using other type of
transportation Buyers can easily
choose alternative car brand Buyers
are price sensitive and their decision is
often based on how much does a
vehicle cost Buyers do not threaten
backward integration
 Threat of Substitutes (Weak): There are
many alternative types of
transportation, such as bicycles,
motorcycles, trains, buses or planes
Substitutes can rarely offer the same
convenience Alternative types of
transportation almost always cost less
and sometimes are more environment
friendly Competitive Rivalry (Very
Strong): Moderate number of
competitors If a firm would decide to
leave an industry it would incur huge
losses, so most of the time it either
bankrupts or stays in automotive
industry for the lifetime Industry is very
large but matured Size of competing
firm’s vary but theyusually compete for
different consumer segments
Customers are loyal to their brands .

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Risk management IMC

Risk management IMC has formal risk management framework to assess the risks faced in the context
of the broader political and macroeconomic environment. The risk management system identifies
strategic, regulatory, financial, operational, reputational, and sustainability risks related to IMC business
activities. The risks are reviewed by management committee along with departmental objectives,
targets and performance. Appropriate strategies are developed and implemented to minimize the
impact of the identified risks. The Company has also formulated a risk management structure based on
the global practice followed by Toyota, with the aim of driving the Company strength growth with
managing risk associated with business adequately.

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Global scenario

Global scenario Defining the ideal form of the company for each stakeholder and the outline for the
future it should take in order to realize the Global Vision We aim to exceed expectations and be
rewarded with a smile. We will meet challenging goals by engaging the talent and passion of people,
who believe there is always a better way” as we set out in the Global Vision. That means, we will
sincerely listen to the voices of every stakeholder - customers, employees, business partners,
shareholders, and global society/local communities, and respond to those expectations. The expression
“Global Vision for Those We Serve” is our way of organizing and explaining the thoughts constituting
the Global Vision in relation to stakeholders. It is Toyota’s resolve to meet challenging goals step by
step to see the smiles and happiness of everyone including customers and beyond

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Division of labor
Toyota plants were built on division of labor, too, but the treatment of workers was
quite different.

Jobs on Toyota’s production line are even more precisely specified: for example,
standardized work instructions specified which hand should be used to pick up each
bolt. However, Toyota’s employees has a much broader range of responsibilities. Each
worker was extensively cross-trained and was expected to be able to handle six to
eight different jobs on the line. They are also responsible for both the quality of the
vehicle and for the continual improvement of the production process itself. Each
worker is expected to identify quality problems as they occurred, to pull the “Andon”
cord that are located at each assembly station to summon help to solve them in real
time, and if necessary to pull the Andon cord again to stop the entire production line.
Workers were also expected to play an active role in teams that had responsibility for
“continuous improvement” or for identifying improvements to the process that might
increase the speed or efficiency of the line. As part of this process, workers are
trained in statistical process control and in experimental design.

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IMC’s approach to Corporate

Social Responsibility
(CSR) and Sustainability focuses on conducting
business in a responsible manner, creating value for
stakeholders and society, and contributing to the
community, sustainable development at large

Indus Motor Company has always put CSR at the

forefront of its responsibilities. Hence, during the last
five years it has made such tremendous headway in
the areas of Education, Health, Community Services,
Road Safety, Environment as well as response to
Natural Calamities. To bolster its humanitarian efforts,
the company has a dedicated policy that allocates
1% of profit before tax of the previous year for its
annual CSR spending. A total amount of Rs 192
million was spent on social contribution during 2017-
18, whereas IMC has spent over Rs 1 billion since its
inception.

Major CSR initiatives undertaken in 2017-18 to drive societal

transformation comprise:
Community Uplifting Program Adhering to the corporate
responsibility principle,
IMC strives to make a positive contribution to the
down trodden communities in which it operates and
invests in health and education program that aims
to bring sustainable improvement to economically
marginalized people. Under its well institutionalized
“Community Uplifting Program” for its neighbor
community, there are multiple ongoing activities.
Towards transformative power of education, around
250 children are taken to school for their primary and
secondary education providing full financial support.
Through arranging Free Medical Camps weekly at
three locations around 30,000 patients are treated
in 2017-18.

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Tree Plantation Drive

As a responsible corporate entity, IMC understands
the critical need to emphasize environmentallyfriendly
practices to address climate change and
minimize the range of negative effects on ecosystems.
With this view, IMC carved out a plan under its Tree
Plantation Drive to plant a total of 10,000 trees
within its facilities.

Clean up Campaign 2018

Under its CSR program, IMC this year launched the
‘Clean Karachi Campaign’. One of the objectives of
the drive was to keep the city clean and green and
also to share 5S principles of Toyota with citizens of
Karachi so that everyone could take ownership of
their environment.

Toyota – Technical Education Program

To develop skills and expertise of younger generation

in the field of automotive engineering, IMC, with
the support of Toyota Motor Corporation, has been
offering three-year certification under Toyota –
Technical Education Program (T-TEP).
This program is conducted through four institutes in three major cities.

Commitment to the future

Since its inception, IMC has undertaken dedicated
efforts to foster societal development and continues
to do so with a range of activities aimed at benefitting
the community at large. The company is committed
to follow Toyota’s vision and UN’s SDGs and guiding
principles to ensure a greener future buttressed by its
social responsibility initiatives.

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Indus Motor Company

Human Resource IMC recognizes the significance of Human Resource. It focuses on

acquiring the best talent and developing people to steer the Company to success. To accomplish
customer delight, it aspires to have the right people in the right place at the right time. Its HR
function is aligned towards developing human capacity to support business growth.
Diversity and Inclusion
IMC is committed to affirmative action in support of
equal opportunity employment and engagement of
women in the workforce. The ratio of female employees
has increased from last year and is now 10% of the
total management employees and is expected to
increase over the years. A Gender Diversity Session
was held to explore ideas for improving workspace
for females and to retain current female employees.
Ladies Day Out activity was also organized for the
ladies of IMC to spend a day together reveling in fun
activities.

Family Day at IMC is a cherished event in the annual

calendar that all employees and families excitedly
look forward to. This year the event took place at
PAF Museum, where it attracted over 7000 people
for an evening packed with joy and entertainment.
The efforts of the employees were recognized by
presenting the Long Service Award to those who
have been part of the IMC Family for over 25 years.
Employee Engagement To challenge the physical and mental skill set of employees, a football
tournament was held which lasted for over three months. More than 300 employees participated in the
competition. This competition further helped in improving team work and team building.

Attracting the Best The Company has undertaken several campus recruitment drives for Management
Trainee and Trainee Engineers. After the rigorous process of finding the best talent, twenty seven new
trainees from the most well reputed educational institutions of Pakistan such as LUMS, GIK, IBA, NUST
and NED made their way to IMC. Our aim is to recruit the best talent. An HR portal has been developed.
It can be reached at www.toyota-indus.com where candidates can register themselves online here with
their CVs for possible selection.

5S Management System IMC

5S Management System IMC initiated the 5S audit walk to ensure safety, quality, productivity and
environmental compliance involving all employees, including top management. The system includes
audits of the task force and top management to develop teamwork and ownership. IMC has improved
5S system and developed 5S PMRs (plant management requirements) based on 5 steps. This system is
maintained not only through audits, but also by taking ownership and leading by example.

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Safety Training
The Company conducts a number of general and special training programs for employees. The
general safety training programs like firefighting, basic safety, with simulation of Stop-6
Accident Dojo and first aid are aimed at empowering every employee to deal with emergency
situations and avoid accidents. While job specific training includes construction safety, working
at height, machine safety, defensive driving and process safety. Complying with the standards
only authorized members are allowed to perform a specific job. IMC also conducts safety
training for vendors, dealers and contractors to ensure that the highest priority is understood at
all levels.

Operations
TMC Appreciation towards Quality Improvement and Dedicated Quality Month
This year Quality month was celebrated with key message ‘’Challenge to reform our work
towards customer expectations’’. The guidelines and activities of Quality month including the
CEO message, Quality month video watch and Quality exhibition (display of departmental
efforts on market issues towards customer satisfaction through simulators and problem
explanation), were in line with TMC/TDEM. In addition to above activities and appreciation,IMC
received the Warranty reduction award for achieving the TDEM Annual target of Warranty.

The Value Chain

The value chain of Toyota Indus motors company
Primary activities
 Inbound logistics: Here goods are received from a company’s suppliers. They are stored until
they are needed on the production/ assembly line. Goods are moved around the organization.
Toyota motors purchase their raw material from all around the world. In order to maximize their
availability of raw material Toyota motors maintain good relationship with their suppliers.
Toyota use JIT (just in time) approach for handling of raw material. Operations this is where
goods are manufactured or assembled. Individual
operations could include organizing the parts to make
new cars and the final tune for a new car’s engine.
Toyota motors are known for their reliability which
comes from efficient operations.


utbound logistics: The goods are now finished, and they
need to be sent along the supply chain to wholesalers,
retailers or the final customers. Toyota motors make
their product easily assessable.

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 Marketing and sales24: In true customer oriented fashion, at this stage the Toyota motors
prepares the offering to meet the needs of targeted customers. This area focuses strongly upon
marketing communications and the promotions mix.

 Service: This includes all area of service such as final checking, after-sales service, complaints
handling, training and so on. Toyota values their customers.

Support Activities

 Procurement:
This function is responsible for all purchasing of goods, service and materials. The aim is to
secure the lowest possible price for purchases of the highest possible quality. Toyota motors will
be responsible for outsourcing (components or operations that would normally be done in-
house are done by other organizations), and e-purchasing (using IT and web-based technologies
to achieve procurement aims).

 Technology development Technology :is an important source of competitive advantage.

Companies need to innovate to reduce costs and to protect and sustain competitive advantage.
Toyota motors implemented production technology, internet marketing activities, lean
manufacturing, customer relationship management (crm) and many other technological
developments.

 Human resource management (HRM) : Employees are an expensive and vital resource.
Toyota motors manage recruitment and selection, training and development, and rewards and
remuneration. Toyota motors consider their employees as HUMAN CAPITAL. The mission and
objectives of the Toyota motors is the driving force behind the HRM strategy. Toyota motors
uses following techniques to retain their employees:
1. Recruitment
2. Selection
3. Training and development
4. Compensation
5. Maintenance

 Firm infrastructure: This activity includes and is driven by corporate or strategic planning.
Toyota motors implemented management information system (MIS), and other mechanisms for
planning and control in different departments.

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Part B Interview:
We got a chance to interview Miss Maheen Yashin Ali (Assistant Manager) in the corporate office of the
IMC. She answered the following questions:

1. What are the Profit maximization techniques?

The techniques which IMC follows are the

 The 3M model Muda, Mura, Muri: Toyota has developed its production system around
eliminating three enemies of Lean: Muda (waste), Muri (overburden) and Mura (unevenness)
Muda is the direct obstacle of flow. The three enemies of lean can be found in both production
and office processes. IMC works on eliminating these three enemies for better work place an
efficient work.
 We try to produce as many products as we can but launching them is not enough we have to
maintain customer interest for that we have model changes of the car maybe minor model change,
big model change or face lift.
 Building customer loyalty for that we have after sales services are provided for the cars.
 IMC does not stock up its inventory we try to control are cost increasing by doing so and have a
less inventory cost
 Also work on the 5s strategy (mentioned on Pg:26)
 Controlling cost increases revenue

2. CSR and ethical issues and their responses?

 If the company comes across any ethical problem we don’t consider just the one side of the
situation we reach to its core problem and solve it according to the policies of the company. This
kind of problem is taken were seriously and the company has a sparate deparment to deal with
women harassment and such other problems at the workplace. The company doesn’t tolerate
such actions(unethical).
 The company has safety training for it’s employees, also has a safety and enivormental month.
 The company had a Clean up Campaign 2018 Under its CSR program, IMC this year launched the
‘Clean Karachi Campaign’. One of the objectives of the drive was to keep the city clean and
green and also to share 5S principles of Toyota with citizens of Karachi so that everyone could
take ownership of their environment. Nurturing the sense of responsibility, proprietorship and
solidarity.
 Besides this, more than 150 employees voluntarily came forward and took the responsibility to
clear the National Stadium after the 3rd T20 match between Pakistan and West Indies. This
initiative was taken to portray the positive image of the city.
 To develop skills and expertise of younger generation in the field of automotive engineering,
IMC, with the support of Toyota Motor Corporation, has been offering three-year certification
under Toyota – Technical Education Program (T-TEP).

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 Goth Education Program is the catalyst for transformation of society. With this believe, Indus
Motor in 2008 initiated its Toyota – Goth Education Program (TGEP) and provides educational
support to under privileged and poor communities reside adjacent to IMC’s facilities.
 Indus Motor believes that the economic prosperity of a community depends on a healthy and
productive population. It is mindful of its responsibility towards disadvantaged communities and
so we strive to support poor and needy patients through medical institutions.Our regular
beneficiaries include Indus Hospital, the Kidney Centre, Shaukat Khanam Cancer Hospital, SIUT,
Marie Adelaide Leprosy Centre, etc.
 Women Empowerment is one of the part of CSR & responses, recently there is sa Markhor
leadership conference which is organized by youth impact , they sponser 10 girls in that
conference basically the official partner of them.
 Being at the very forefront in the automobile industry in Pakistan, Indus Motor Company has a
direct interest in road safety initiatives.We are particularly proud of our work with the Road
Traffic Injury Research Project (RTIRP), which is being acknowledged at the highest level. The
project now has the patronage of the United Nations through World Health Organization and
Government of Pakistan.

3. Any Barriers to the company?

The barriers or challenges you can say are

 The depricatiating rupee value. This causes the product to be ex[ensive and even the material
used for it.
 The import of vehicles. this should be reduced and local manufacturing should be encouraged as
this will increase employment chances
 Competition is also a challenge like KIA has started its two dealer ships
 The high sharing apps like Careema and Uber has started to reduce the need of separate cars
4. Major policies about work force management

 The company follows the five s method which is sort, set in order ,sweep ,standardize ,sustain or
self-discipline . it means that our work place should be well ordered and we wouldn’t be wasting
time as its revenue ,if someone comes asking for a report which maybe a month old so I should
exactly know where it is and without wasting any time hand it over . this can only be done on
the principles of the fives
 The other mythology that the company follows is the three ms as mentioned before

5. Suggestions for the young graduates

 The company higher fresh blood with new ideas and the company invests in the
management training program
 Do not underestimate yourself; you can be a key to change. They need to embrace
technology in this world and try to add value to which ever organization you are higher

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especially in Indus. If you are working with Indus u have to understand the vision of the
company which is to be the most respected company and if you compare our vision with
others u will find the difference that companies wants to be the successful or either no 1 but
IMC wants to be the most respectable . anyone working here has to be on the same page
when it comes to be about the vision

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Part c
Comparison of IMC with Ashok Leyland

Firstly we would like to give a short background of the company which is not much different from that of
IMC as Ashok Leyland is also an automotive company and has a Parent company which handles its
management exactly like IMC’s parent company is HOH. The difference among these companies is that
Ashok Leyland a greater expansion of its company throughout the world, has a bigger assembly line to
handle.

Corporate Profile
Ashok Leyland, flagship of the Hinduja group, is the 2nd largest manufacturer of commercial vehicles
in India, the 4th largest manufacturer of buses in the world, and the 12th largest manufacturers of
trucks.
Headquartered in Chennai, 9 manufacturing plants gives an international footprint - 7 in India, a bus
manufacturing facility in Ras Al Khaimah (UAE), one at Leeds, United Kingdom and a joint venture with
the Alteams Group for the manufacture of high-press die-casting extruded aluminum components for
the automotive and telecommunications sectors, Ashok Leyland has a well-diversified portfolio across
the automobile industry. Ashok Leyland has recently been ranked as 38th best brand in India.

The Differences:
IMC does not produce heavy vehicles like trucks or bus. They produce light cars.
Like Ashok Leyland, IMC is not expanded throughout the country. IMC has one plant operating
in Karachi.
There is a difference in the company’s Vision and Mission statements too but both of the
companies work for the customer building and that matters a lot to them.
People, Planet and Profit for all stakeholders especially our customers is at the core of Ashok
Leyland which resonates with our Philosophy of ‘AAPKI JEET, HAMARI JEET’.

Management Team
Just like IMC it has a management team but it has divided its team into two:

The board of directors

The leadership Team

By dividing the management team the company has divided the roles and responsibilities of the
management team. By doing so the company lowers the burden of work among the management. This
can also result in fast and good decision making and also gives a chance to more employees to lead.

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The operations of Ashok

Leyland are expanded
throughout the world but
IMC has been working in
Pakistan. This is one of the
major difference between
both the companies.

Community Overview of Ashok Leyland and IMC

Ashok LeyLand IMC
Through various Corporate Social Responsibility IMC also works hard on their CSR and have done
(CSR) initiatives they strive to improve the quality many actives to improve safety, environment and
of the environment and life at large. Our constant betterment of the community.
endeavor has been to make our vehicles consume
less, pollute less which is reflected in our At Indus Motor Company Ltd.,
developmental work (often well ahead of
“SAFETY WILL ALWAYS TAKE PRECEDENCE OVER
legislation), eco-sensitive manufacturing systems, PRODUCTION”
processes, energy conservation measures and
conscious greening initiatives.
Considerable ground has been covered in
spreading HIV/AIDS awareness, medical and blood
donation, driver training, safety on the highways
and setting up and hand-holding women self-
groups to be economically self dependent.
Employee volunteerism is encouraged and
recognized.

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