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Presented By: Globalisation analysis: Sarang Singal The real forces of competition: Khalifa Inuwa Where in the world to locate: Geetika Tyagi Balanced Score Card analysis: Bhaumik Patel Strategic options analysis: Sharat Singal Reasons to Diversify analysis: Lina Cebatoriunaite
Introduction
Inventor Sakichi Toyoda invented the Toyoda automatic loom. Toyota launched the Model AA in 1936. In 1937 constructed a large factory in Koromo-cho (now Toyota City) in Aichi Prefecture, to begin full-scale car production. At the present Toyota is a public company.
Globalisation
It means to shift towards integrated and independent economy. The Globalisation is the combination of technology, economic, socio-cultural and political forces. It is the flow of money, ideas, information and goods/services. A wide deepening of interconnectedness in all aspects of social life from culture to everything. (Wall et al 2010) Worldwide Operations for Toyota Toyota operates worldwide with 50 overseas manufacturing companies in 26 countries and regions. Toyota's vehicles are sold in more than 170 countries and regions.
2010
Issues of Automobile in UK
Competitive Pressures: Constant Pressure on suppliers of price and high productivity. Sustainability: Public polls and environment analysis moving suppliers to manufacture different kinds of engine and long life vehicle. Supply Chain Management: In dynamic environment companies have chance to develop but hardly the advantage to modify the business performance. Emerging Market: Developing Economies of Asian Market are offering the advantage to grow sales and reduce cost.
Results from poll US people prefer 38 percent domestic vehicles and 33 percent Asian
Source: economiccrisis.org
Brussels, Belgium. TME is responsible for all western, Central and Eastern European countries including Russia as well as Israel and a number of Central Asian car Markets. European Automotive Industry is one of the worlds competitive market. Giving rise to firms struggling for marketshare.
Potential Entrants
Reregulati on
Competitive
Suppliers
Buyers
Rivalry
Technology
Substitutes
Euro Crisis
Source: Michael E. Porter (1979). Adopted from Harvard Business Review. Downes etal Unleashing the killer App.
1,627,537
Peugeot
Ford
Renault Toyota
16 14 12 10 8 6 4 2 0
14 10.9
2,000,000 1,500,000
646,860
Peugeot
Renault
Ford
Toyota
Peugeot
Reanault
Ford
Toyota
Potential Entrants
Reregulati on
Competitive
Suppliers
Buyers
Rivalry
Technology
Substitutes
Euro Crisis
Source: Michael E. Porter (1979). Adopted from Harvard Business Review. Downes etal Unleashing the killer App.
Plans to make UK the sole manufacturing base for hatchback versions of its next C-segment family car. More than 100 million to be invested in the Burnaston plant.
More than 2.1 billion spent since 1989 in TM UK plants.3100 employees already employed and up to 1500 jobs are expected to be created by mid of 2012.
Source : BBC, 2011
TM UK is one of the leading European Companies which largely depends on its suppliers. A 'milk-run' service runs in the manufacturing plants of Toyota UK which picks up parts from various suppliers just-in-time to keep the production running effectively. 800 suppliers providing supplies to the UK plant. locally based in areas like Derbyshire and North Wales.
Customer Perspective
Objectives KPIS Measures
Objectives
KPIS Measures
Customer Perspective
Financial Perspective
Objectives KPIS Measures
Positive Negative
Customer Perspective
Objectives KPIS Measures
Optimization
Based on Kaplan & Norton 1992.Data chosen according to Challenge, Kaizen, Genchi Genbutsu
Ansoff Matrix
Toyota strategy with its new Innova will aim at increasing sales and revenue.
Diversification in India
Demand for luxury cars are rising.
Toyota planning to launch its new Lexus in 2012 in India. The car will be able to compete with BMW, Mercedes and Audi.
Toyota Crisis
Toyota is struggling from the combined effects of flooding in Thailand (March to April 2011) and an earthquake and tsunami in Japan Thailands worst floods in almost 70 years have disrupted manufacturing facilities in the southeast Asian nation. The Japan Automobile Manufacturers Association estimates that the companies may lose 6,000 units of production daily. In October 2011 the carmaker was forced to cut production around the world. Factory closures and other disruptions resulting from weeks of flooding . Spokesman Dion Corbett estimates that 150,000 units of production have been lost globally since October due to the floods. .
sales and production. TMC, is a multinational automaker headquartered in Toyota city region of Aichi, Japan. Toyota-shi is also twinned with the county of Derbyshire, England. Toyota is engaged in the development, manufacturing, distribution and sales. Toyota sells its vehicles under mainly three brands: Toyota, Lexus and Scion.
References
Phpkb 2011, New Toyota Innova coming to India in 2012-pictures & information [online] Available at: http://www.knowledgebase-script.com/demo/article-1063.html [Accessed 20 November 2011]
Doval. P 2011 Coming Soon: Lexus' Luxury Sedans in India [Online] Available at: http://luxpresso.com/news-indulge/coming-soon-lexus-luxury-sedans-in-india/5734 [Accessed 21 November 2011] Motor beam 2011 Toyota Prius coming to India [Online] Available at: http://www.motorbeam.com/cars/toyota-prius/toyota-prius-coming-to-india [Accessed: 22 November 2011] Pwc 2011, Industry Issues [Online] Available at: http://www.pwc.co.uk/eng/industries/automotive_industry_issues.html [Accessed 13 November 2011] Toyota global 2011 [Online] Available at: http://www.toyota-global.com/ [Accessed 10 November 2011] Ensinger. D 2010 [online] Available at: http://economyincrisis.org/content/auto-industryrecovering [Accessed 15 November 2011] BBC News (2011, November 24). http://www.bbc.co.uk/news/business-15882974.
References
BBC 2011. Toyota announces 1,500 new jobs at Burnaston Factory. [Online] Available at http://www.bbc.co.uk/news/uk-england-derbyshire-15883061 [Accessed 15 November 2011] Toyota 2011. Supplier relations. [Online] Available at: http://www.toyota.co.uk/cgibin/toyota/bv/generic_editorial.jsp?navRoot=toyota_1024_root&fullwidth=true&noLeftMenu=true&for ceText=X&edname=finance_new_home&zone=Zone+Finance&id=finance_intro [Accessed 15 November 2011] The Financial Times 2011. Stress- testing western theories. [Online] Available at: http://blogs.ft.com/mba-blog/2010/10/01/but-does-it-work-in-china-stress-testing-westerntheories/#axzz1f2e5uOcz [Accessed 15 November 2011] Toyota 2011. Toyota Financial Services[Online] Available at http://www.toyota.co.uk/cgibin/toyota/bv/generic_editorial.jsp?edname=finance_new_home&noLeftMenu=true&forceText=X&id= finance_intro&zone=Zone+Finance&Failed_Reason=Session+not+found&com.broadvision.session. new=Yes&Failed_Page=%2fbv%2fgeneric_editorial.jsp&navRoot=toyota_1024_root&fullwidth=true [Accessed on 15 November 2011] ACEA 2011, Statistics. [Online] Available at: http://www.acea.be/ [Accessed 25 November 2011]. Downes, L. and Mui, C., Unleashing the Killer App: digital Strategies for market dominance. 1998. United States of America. Harvard Business School. Harvard Business Review 2011, The five forces that shape strategy. [Online] Available at: http://hbr.org/2008/01/the-five-competitive-forces-that-shapestrategy/ar/1?referral=00269&cm_sp=endeca-_-spotlight-_-link [Accessed 23 November 2011]
References
ACEA 2011, Statistics. [Online] Available at: http://www.acea.be/ [Accessed 25 November 2011]. Downes, L. and Mui, C., Unleashing the Killer App: digital Strategies for market dominance. 1998. United States of America. Harvard Business School. Harvard Business Review 2011, The five forces that shape strategy. [Online] Available at: http://hbr.org/2008/01/the-five-competitive-forces-that-shapestrategy/ar/1?referral=00269&cm_sp=endeca-_-spotlight-_-link [Accessed 23 November 2011]
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