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Maruti Udyog Limited is India's largest automobile company. Its main factory is situated
in Gurgaon district, Haryana. The company, a joint venture with of Government of India with
Suzuki ofJapan, has been a success story like no other in the annals of the Indian automobile
industry. The first cars rolled out for sale on 14th December 1983, (the Company went into
production in a record 13 months), marking the
beginning of a revolution in the Indian automobile
industry. The Indian car market had stagnated at a
volume of 30,000 or 40,000 cars a year for the decade
ending 1983. In 1993, this figure reached a number of
1,96,820. Maruti's figures are a different story
altogether. Maruti reached a total production of one
million motorcars in March 1994, becoming the first
Indian company to cross this milestone and crossed
the two million mark in 1997. For the year ended
1997-98, Maruti posted a turnover of US$ 2.1 billion
and a Profit Before Tax of US$ 244 million. During
the year, Maruti produced over 350,000 vehicles, out
of which 26,000 were exported. Maruti has made profits in every single year since inception,
and has been paying dividends for ten years. Through the years Maruti has provided world-
class Japanese technology, suitably adapted to Indian conditions and Indian car users.
Maruti's market share figures show the response of customers: In 1997-98, its market share of
vehicles was over 70%. In addition to leading in the economy car segment, Maruti is also the
leader in the luxury car segment with a market share of 38%. Maruti also sells the Grand
Vitara, sports utility vehicle (SUV) in India. The success of the joint venture led Suzuki to
increase its equity from 26% to 40% in 1987, and further to 50% in 1992. As a result, Maruti
changed from being a government company to a non-government company. With the
introduction of economic liberalization from July 1991, the government realized the high
growth potential of the passenger car market. It took note of the contribution of this segment
in promoting employment, technological up gradation of industry and contribution to
government revenues. Policy changes took place accordingly. Maruti's excellent performance
in the post-liberalization milieu is in keeping with the earlier trend set by it. As a result, the
transfer of technology from Suzuki has been a smooth process. By February 1990, a local
content of above 90% was reached for the Maruti 800.

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  provide maximum value of money to their customer through
continuous improvement of products and services.

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 Creating customer delight and shareholders wealth.

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Toyota is one of the world's largest automobile manufacturers, selling over 9 million models
in 2006¹ on all five continents. A Top 10 Fortune Global 500² enterprise, Toyota ranks
among the world's leading global corporations and is proud to be the most admired
automaker³, an achievement the company believes stems from its dedication to customer
satisfaction.Toyota has been shaped by a set of values and principles that have their roots in
the company's formative years in Japan. The Toyota story begins in the late 19th century,
when Sakichi Toyoda invented Japan¶s first power loom, which was to revolutionize the
country¶s textile industry. In January 1918, Sakichi founded the Toyoda Spinning & Weaving
Company, and with the help of his son, Kiichiro Toyoda, he fulfilled his lifelong dream of
building an automatic loom in 1924. Two years later, he established Toyoda Automatic Loom
Works. Like his father, Kiichiro was an innovator, and during his visits to Europe and the
U.S. in the 1920s, he became deeply interested in the nascent automotive industry. Making
the most of the £100,000 that Sakichi Toyoda received for selling the patent rights of his
automatic loom, Kiichiro laid the foundations of Toyota Motor Corporation (TMC), which
was established in 1937. From looms to cars, the Toyota experience has been shaped by
extending the boundaries of manufacturing.


Toyota Motor Corporation is a multinational corporation headquartered in Japan. Today,
Toyota is the world's third largest manufacturer of automobiles. Providing the most reliable
automobile for its customer is the Toyota¶s specialty. Toyota Motor Corporation recently
celebrated its 70 years both as a carmaker and half a century of selling cars in America. In
2007 Toyota sold 8.52m vehicles and its net income rose by 20% and become $14 billion.
Moreover Toyota is aiming to sell 10.4m vehicles in 2009. In Bangladesh it is the most
popular automobile company to the car user and it has almost 70% market share in our
country. It is always interested to get the attention of the young generation, family people,
working executives, service holders, business people, in one word all kind of people. ³ Its
mission´ is to predict consumer trends and create a lineup of cars and trucks to capitalize on
them. Each professional is expected to spend time out in the field talking to car buyers. The
Japanese have a name for it: genchi genbutsu - go to the scene and confirm the actual
happenings. With Toyota, one thing has never changed that their commitment to the
communities where they do business. Toyota spends over billions of billion on R&D, design,
manufacturing, sales and marketing operations. Over the world they have sales /service
offices,..

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‘ ‘‘ ‘   We aspire toward the realization of a society
in which each individual can live with dignity and hope. To this end, we support efforts to
activate the wisdom found in everyday life and to build a good society through mutual
support and collaboration among‘neighbors.‘

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 In today's globalized world, nature is on the verge
of crisis, while culture is undergoing a rapid transformation. We wish to contribute to the
creation of a beautiful environment and dynamic local culture by nurturing relationships with

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the people of the world and learning from nature's wisdom, so that everyone can enjoy a
compassionate and fulfilling coexistence.

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 We support initiatives to enrich the lives and minds of young
people, with the aim of fostering the next generation, on whom the future depends. We hope
that this will enable the next generation to respect each other's cultures from a broader
perspective and to forge a path to the achievement of lasting peace.

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1.‘ Toyota is the largest motor company in Japan, and the third largest in the world.
2.‘ They understand the desire for personal mobility, but also the impact on finite resources.
3.‘ Toyota has established a lead in process - with lean manufacture and product
development.
4.‘ They have now gained a lead in product - with the Toyota Hybrid System.
5.‘ They have secured it with patents, and are exploiting it directly, and through licensing and
joint ventures.
6.‘
As Shinichi Kato, head of Toyota's Technology R & D, said at the Third Toyota
Environmental Forum, in October 1999: "These are not merely temporary solutions that
Toyota has selected for the Prius. These technologies, and the command of them, will
shape the future of the automobile".

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In order to have a successful strategy for growth, businesses must first find, evaluate and
select a strategy to capture a potential market. Since it entered to American car market in
1967, Toyota has developed a diverse business portfolio with its existing line of cars as well
as brands such as Lexus and Scion. It became a successful car manufacturer by having an
effective marketing process that allowed it to attract customers and expand its product range
to other market segments. When Toyota and other Japanese carmakers entered the American
market, they were not considered a threat to the American auto industry because it was
believed their cars had no appeal to American consumers. However, in the 1970s, due to
problems such as the 1973 Oil Embargo, environmental regulations, and quality control
issues with American cars (Ford Pinto), a good number of American car owners began
searching for alternatives to their gas guzzling, poorly made American cars. In response to
these changes, Toyota and other Japanese carmakers aggressively marketed their cars to
Americans as being fuel-efficient, environmentally friendly, and having better build quality
than American cars. In addition, Toyota marketed their cars as being hip and fun with
memorable slogans like, you asked for it, you got it, Toyota,´ and with commercials
involving young Toyota drivers jumping in the air. As a result, the Japanese¶s marketing
campaign along with continuing problems from the Big Three auto manufacturers, allowed
import cars to make up about 20 percent of the US car market by 1980. After successfully
gaining a sizable market share in the US, Toyota decided to create the Lexus brand in 1989 to
target the luxury-car market segment, which was dominated by Mercedes-Benz and BMW.
They decided to create a new brand because of their reputation at the time for being a
company that only offered fun and fuel-efficient compact cars and because the introduction
of luxury models into their existing lineup would dilute the Toyota brand. Therefore, Toyota
marketing strategy was to market Lexus as a separate company with almost no references to


Toyota, a heavy emphasis towards quality customer service and it had a separate dealership
network from Toyota.

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Toyota Production System, which is actually the innovation that made the company
successful globally, was deeply studied and even copied by many car manufacturers.
However, none of them was able to copy the success of the system developed by Toyota
Motor Corporation. The mistake is, probably, in the approach: it is not enough to just
copy a successful practice ± it is necessary to understand and comprehend it. Among the
major principles of the Toyota Production System is strong and constant devotion to the
highest quality. If there is any problem occurring in the production process, the
manufacturing equipment automatically and immediately stops in order for defective
products not to be manufactured. Another concept Toyota relies on is that the company
should produce only what is demanded, at the exact time when it is needed, and in the
needed amount.

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One more reason Toyota is so successful is the fact that the company adapts to changes
and innovations easily and smoothly. This, of course, is not as easy as it seems, and
requires mangers to perform great work. But the result ± improvement of manufacturing
processes, work being easier and faster to do, strong organizational culture and
philosophy ± is worth that volume of effort. Successfully introduced change,
reorganization and innovation lead to inevitable growth and development of any
organizational setting. Besides, the principles Toyota follows are applied to all the aspects
of work: not only manufacturing, but all the other areas of the company¶s operations.
Among Toyota¶s most famous innovations is their great investment into the research of
cleaner-burning automobiles that combine gas engines with an electric motor.

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Toyota is Japan's biggest car company and the second largest in the world after General
Motors. It produces an estimated eight million vehicles per year, about a million fewer
than the number produced by GM. The company dominates its home market, with about
40% of all new cars registered in 2004 being Toyotas. Toyota also has a large market
share in both the United States and Europe. It has significant market shares in several
fast-growing South East Asian countries. The - 1 -company produces a large range of
vehicles which are highly regarded for their quality, engineering, and value; their designs
set global standards for safety, reliability and ease of maintenance. The Company
Philosophy "Do the right thing for the company, its employees, the customer and the
society as a whole." Origins The story of Toyota Motor Corporation began in September
1933 when Toyoda Automatic Loom created a new division devoted to the production of
automobiles under the direction of the founder's son, Kiichiro Toyoda. Soon thereafter,
the division produced its first Type A Engine in 1934, which was used in the first Model
A1 passenger car in May 1935 and the G1 truck in August 1935. Production of the Model
AA passenger car started in 1936. Although the Toyota Group is best known today for its
cars, it is still in the textile business and still makes automatic looms (fully computerized,

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 of course), and electric sewing machines which are available worldwide. During the
Pacific War, the company was dedicated to truck production for the Imperial Army.
Because of severe shortages in Japan, military trucks were kept as simple as possible. For
example, the trucks had only one headlight in the center of the hood.

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Pavana Limited stands as the authorized distributor of Toyota cars in Bangladesh, so we

have chosen them to make a successful marketing plan on Toyota cars. Our area of
concentration was centered on the new model of Toyota Corolla-GLi. This is the latest
car of Toyota Corolla that has been recently launched in Bangladesh by Pavana Limited
in Povember 2007 at Japan trade fair in Bangladesh. The brand name Corolla of Toyota
is well known for producing cars for the common people but this car is an upgraded
model of Corolla. ! %& Ý &  ' English Indian Clays Ltd About the
Company English Indian Clays Limited (EICL, has two key business segments viz Clay
Business and Starch Business with strong R&D set-up at all its three manufacturing
locations. English Indian Clays Limited was incorporated on 18th Povember 1963, in
technical and financial collaboration with English China Clays Limited, UK (now known
as ECC Group plc, UK). The collaboration with ECC ceased in the year 1992. EICL has
since been actively engaged in the manufacture and processing of China Clay of different
grades for use as a coating agent and filling agent. The Company has its clay
manufacturing units at Veli, Thonnakkal and Kollam located in Thiruvananthapuram,
Kerala. The installed capacity of the plants was 36,000 MT per annum initially and it has
since been increased to 2, 13,600 MT per annum as of date.
The Starch business has two manufacturing divisions at Yamunanagar in Haryana and
Puducherry. The Starch division at Yamunanagar can trace its origins back to 1937 when
Late Lala Karam Chand Thapar promoted a Company by the name of Indian Starch &
Chemicals Limited. The name of this Company was later changed to Bharat Starch
Industries limited. The Starch Division at Puducherry was set up in 1994-95 to
manufacture modified starches for industrial uses. The Divisions have the distinction of
being the only Starch Company in India to have acquired ISO-9002 certification and
DSIR recognized R & D centre.

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In May of 2006, The Toyota Motor Corporation initiated a recall of nearly one million
vehicles around the world to replace faulty parts that could cause drivers to lose control of
the steering wheel. The recall affected vehicles across 10 models, including the popular
Prius. The intermediate shafts and sliding yokes in the recalled cars lacked the necessary
strength and could distort or crack under strong pressure, causing drivers to lose control
of the steering wheel, according to Toyota (ConsumerAffairs.Com). Owners of these
vehicles were allowed to have these defects repaired at the cost of Toyota and required
approximately on hour to complete (Pews.com.au).
Dealing with any recall is never a positive situation and our estimates are this particular

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 recall will cost Toyota in excess of $925 million dollars. Toyota will most likely borrow
from its future earnings at nominal discount rates. However, given Toyota's positioning as
the world's eight largest and most profitable automobile company they will be able to take
this problem in stride. The biggest danger associated with the recall will not be short term
capitalization. To maintain its impressive rate of growth Toyota will have to conduct
effective public relations damage control in an attempt to safeguard its stellar reputation
as a manufacturer of highly reliable automobiles. The Toyota Motor Corporation has been
around for greater part of last century. It really started to make a strong entry in the Porth
American and European car markets in the mid 1970's. Their successful product offering
combining low prices and high reliability have been huge factors in its successful
profitable market-share growth ever since. Toyota Motor Corporation is a Japanese
multinational corporation and the world's second largest automaker making automobiles,
trucks, buses and robots and providing financial services. Based in Toyota, Aichi, Japan,
the company...

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Since 2003, Toyota has taken over to become the world's number two carmaker and they are
not very far behind GMC, the number on US carmaker. With their consistency in innovating
designs and over a billion dollars spent in advertisement a year, Toyota has become an
attraction in the eyes of many auto consumers worldwide. Toyota has built its reputation not
only by producing high quality vehicles at affordable prices, but the brand and marketing
skills they use through tactful pricing strategies. Toyota has differentiated their prices from
the traditional pricing set up of many of the other automobile makers. However, it is their
effectiveness in targeting consumers' needs and wants that has pushed them to the top.
Toyota believes the role of purchasing is through long term and stable production of quality
products at the lowest price in a fast and timely manner. (Toyota Co. sustainability report
2006). The main objective of administering prices within any company in the automobile
industry is profitability and to consistently increase efficiency in their product line. The
traditional pricing strategy is formulated into the cost + profit = selling price. When auto
companies make changes and improvements , cost of production increases causing the selling
prices to go higher. Companies normally do not want to cut their targeted return and
therefore the costs are passed on to the consumer to maintain their profit margin. Toyota
takes on slightly different approach with a sales - oriented objective. Although the variables
are the same, the formula is adjusted strategically into the selling price - cost = profit.
Toyota firmly believes that its markets and consumers is what determine the selling price.
Waste elimination is given top priority which reduces cost and by continuously reducing
these types of costs, it will result in persevering the company's profit growth.
It was in 1929 that Kiichiro Toyoda, founder of Toyota, began traveling and...


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Advanced Battery R&D and Manufacturing Capacity will Rise with Scheduled Roll-out of
Plug-in Hybrids, Fuel Cells and Battery Electric Vehicles

DETROIT, January 11, 2010---Toyota Motor Sales (TMS), U.S.A, Inc., today unveiled the
FT-CH dedicated hybrid concept at the Porth American International Auto Show (PAIAS) in
Detroit. The FT-CH is a concept that would address Toyota¶s stated strategy to offer a wider
variety of conventional hybrid choices to its customers, as it begins to introduce plug-in
hybrids (PHVs) and battery electrics (BEVs) in model year 2012, and hydrogen fuel cell
vehicles (FCHVs) in 2015 in global markets. Within the next 10 to 20 years, we will not
only reach peak oil we will enter a period where demand for all liquid fuels will exceed
supply,´ said Jim Lentz, TMS president. A century after the invention of the automobile,
we must re-invent it with powertrains that significantly reduce or eliminate the use of
conventional petroleum fuels. One of many alternatives is through what is commonly called
the electrification of the automobile. By far, the single most successful example of this has
been the gas-electric hybrid.´ The CH stands for compact hybrid as in compact class and it¶s
a concept that can best be defined by comparing it with the mid-size class Prius. The FT-CH
captures the spirit and functionality of a car that thrives in the inner-city environment; sized
right to be nimble, responsive and maneuverable. It¶s a package Toyota dealers and
customers have been asking for,´ added Lentz. The FT-CH was styled at Toyota¶s European
Design and Development (ED²) center in Pice, France. Compared to Prius, it is 22 inches
shorter in overall length, yet loses less than an inch in overall width. In spite of its compact
external dimensions, FT-CH was designed for maximum passenger comfort and interior
roominess, with an imaginative sense of style. ED² designers looked to capture the vivid,
high-energy appeal of what has come to be called the 8-bit generation. Popularized in the
early 80¶s, 8-bit microprocessor technology dominated the budding home video game
industry. Today, 8-bit is considered a specific retro-style that is embraced by such things as
8-bit genre music and 8-bit inspired art. The direct reference to the 8-bit generation is meant
to be fun and innovative, colorful and stylish, with strong appeal to young buyers. Lighter in
weight and even more fuel efficient than Prius, the concept specifically targets a lower price
point than Prius, thus appealing to a younger, less-affluent buyer demographic. Pointing to
how Prius has become a universal icon for hybrid technology, Lentz confirmed that TMS is
developing a Prius family marketing strategy´ for Porth America that will take full
advantage of the Prius brand equity. The strategy is still taking shape and obviously it will
require additional models to qualify as a family,´ said Lentz. Among others, the FT-CH is a
concept that we are considering.´ In the early 2010s, Toyota plans to sell a million hybrids

 
per year globally, a majority of those in Porth America. To accomplish this, Toyota will
launch eight all new hybrid models over the next few years. These will not include next
generation versions of current hybrids; instead, they will be all new dedicated hybrid
vehicles, or all new hybrid versions of existing gas engine models. The heart of hybrid
technology is its battery. Since the early 90¶s, during the early stages of first-generation Prius
development, Toyota has been committed to in-house R&D of advanced nickel-metal hydride
batteries. Through three generations of Prius and a total of seven full-hybrid models, it has
systematically reduced size, weight and cost while improving energy density, quality and
reliability. Toyota¶s joint venture partnership with Panasonic has been a key element of its
success in the advancement of hybrid technology. Later this year, Panasonic EV Energy
(PEVE) will have three separate, fully operational production facilities with a combined
capacity of more than one million units per year. Moving the promise of electrification one
step further, Toyota recently kicked off its global demonstration program involving
approximately 600 Prius plug-in hybrid electric vehicles. ' &(  )
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Masatami Takimoto, Toyota Motor's executive vice president, came of age as an engineer
with the law that set the standard for tailpipe regulation worldwide: the 1970 Clean Air
Act amendments. Since 2003, Takimoto has led Toyota's R & D unit as it grapples with a
more fundamental challenge than fighting smog: breaking the automobile's century-long
addiction to petroleum. Toyota emerged as an industry leader with hybrid technology,
which it launched in the Prius in 1996 and now promises for every Toyota model by 2020.
Pow Takimoto's teams are exploring--and in many cases commercializing--several
technologies, including advanced diesel engines, tiny battery-powered commuter electric
cars, fuel cells, and a half-dozen kinds of hybrids. Technology Review contributing writer
Peter Fairley caught up with Takimoto at the Geneva Motor Show last week.

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How was the 1970 law so critical for Toyota research--and how do today's efforts
compare?
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The targets were very ambitious, and we just didn't know what we could do to meet these
requirements. So as young engineers, we were told we could try anything, and that's what
we did. In that sense, it was really unforgettable. Toyota actually developed eight
solutions in parallel, then selected the one which we thought was the best. The solution
which we and also some others chose--catalytic converters with a three-way catalyst--
endures today. Advertisment It's very important when you do R & D to widen the scope,
to have several competing technologies or systems, and then to choose what is best.
Actually, this same approach was taken for Toyota's hybrid system. There are all kinds of
hybrid systems: series, parallel, mild, full, et cetera. We started our hybrid development
work in 1969, and since then, we've tried them all. I was involved in the development of a
hybrid system for a minivan that survived until the very end. This was a full hybrid system


that was very close to what's called a series hybrid--totally different from the full hybrid
that Toyota has right now.
 The same sort of competition seems to be happening today, with automakers
commercializing a bewildering range of competing technologies.
˜: We've entered an age where the future of oil has become uncertain . . . So just like it
was the case maybe 100 years ago, where you had different types of cars using different
energy sources--steam engine cars, internal combustion cars, and very primitive kinds of
electric vehicles all coexisting with the horse-drawn carriage--we have entered an
alternative-fuels age. We have to reinvent the car again because none of the alternatives
are as appropriate for the automobile as oil. EVs [electric vehicles] are often talked about
now as being the future car, but in my own opinion, the purely electric vehicle as a
commercial product can probably only exist in the form of a very small commuter type of
a vehicle. It's not universal.


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Toyota is a leader in the Hybrid Electric Vehicle (HEV) industry. Although General Motors
will soon offer more HEV model choices, for the time being the Japanese giant is the leader
with a combined total of six between its Toyota and Lexus brand names. Pot to be outdone
by GM, this number will grow as Toyota has pledged to make every vehicle it sells available
as a hybrid by 2020, a tremendous goal, considering that that¶s less than 12 years away. Of
course, Toyota has developed a strategy to help achieve these goals.One interesting item
that¶s come up is whether or not Toyota will combine the efficiency of the modern diesel
engine with its hybrid drivetrain. And while it¶s already put diesel hybrid trucks into
production underits Hino brand, it won¶t be doing the same for cars. On the subject,
Toyota¶s president, Katsuaki Watanabe, remarked that combining diesel and hybrid
powertrains together would be too costly. Instead, what Toyota will be focusing on is the next
generation of batteries. Po, not lithium-ion cells, which the automaker is already working to
install in its Prius and other hybrid models, but the generation to follow. Toyota is reportedly
looking ahead to a zinc-air type battery. Preliminary goals for cars using the new battery
system, which would be plug-in hybrids, include the capability of being charged from a
standard outlet, and also to have a range of 50 miles on battery power alone. Toyota hopes to
have such a battery type in production for 2020, which coincides with its all-hybrid mandate.

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1.‘ Today's anticipated announcement about the fate of Ford Motor Company's St. Paul plant,
and the possible loss of nearly 2,000 Minnesota jobs, is a vivid reminder of how difficult
it is for corporations to balance current profitability with future success. Among U.S. auto
companies, Ford has done the best job of changing to meet the future, embracing lean
manufacturing techniques in the 1990s and producing the first hybrid SUV (the Escape).
Yet it still finds itself cutting manufacturing capacity to reflect shrinking market share.
2.‘ Ford's competitive position ranks somewhere between those of GM and Toyota. Toyota
has become the benchmark for success in auto production and profitability. Its success in
the hybrid market represents only its latest milestone.
3.‘ In contrast, General Motors has traded its perennial status as a challenged corporate icon
for that of a terminally ill giant. Recent talk of GM declaring Chapter 11 bankruptcy as a
means of reducing its labor costs and pension obligations has become commonplace.

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4.‘ "Toyota's momentum just continues to snowball," Gordon Wangers, president of
Automotive Marketing Consultants Inc. told Bloomberg Pews this month. "If I'm one of
the guys running Ford or GM, at this point I'm deeply concerned about how quickly
Toyota is accelerating."
5.‘ Toyota, second only to GM in global auto sales, sold 2.26 million cars and trucks in the
United States last year, an increase of 9.7 percent. According to Bloomberg Pews,
Toyota's market value of $190 billion is about 18 times higher than GM's.
6.‘ Hybrids are only a footnote in the 30-year war between Toyota and General Motors.
Toyota's lean manufacturing expertise has played a much bigger role. But General Motors
has demonstrated a consistent pattern of sacrificing the future to protect its current
interests.
7.‘ In the 1970s, GM ignored the subcompact market in favor of full-sized vehicles with
higher profit margins. When gasoline prices rose drastically following the 1973 oil
embargo, high-quality Japanese subcompact manufacturers went from niche players to
preferred choices for many categories of car buyers.
8.‘ In the 1980s, GM adopted lean production halfheartedly, even after it became clear that
total quality management produced more reliable cars than Detroit's mass production
model.
9.‘ In the 1990s, GM's overreliance on SUV sales for its profits may be seen by history as its
third strike. Yes, low gas prices made SUVs popular with U.S. consumers. But the
Energy Policy and Conservation Act of 1975, passed by Congress following the 1974 oil
crisis, mandated higher average mileage. The SUV's low mileage was enabled by a legal
exception for commercial light trucks. American manufacturers lobbied fiercely to
maintain this loophole whenever Congress attempted to close it.
10.‘GM was captivated by its profitability in the SUV market, and was in denial that nearly
every one of its car brands was no longer profitable -- a fact disguised by its huge size and
complexity. Toyota also had success in the consumer SUV market, but did not lobby
against closing the SUV mileage loophole.

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On Thursday, Toyota announced a partnership with Tesla motors. Toyota will be investing
US $50 million into Tesla, as well as providing engineering and production systems for the
development of electric vehicles. The announcement sends a strong signal that the global
automaker has a vested, long-term commitment to driving the industry. Good leaders take the
time to reflect on their mistakes and respond with a strategy that not only protects their
position, but also carves out new spaces. If anything, Toyota¶s slow public response to
addressing highly visible product flaws has served as a catalyst to take real, demonstrative
action. With this agreement, both companies win. Tesla gets the necessary capital, structure

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and visibility while Toyota has an opportunity to inject a fresh jolt of entrepreneurial spirit.
For Toyota, in particular, this arrangement should have a continued calming effect with its
most vocal critics even if some may see this as a quick fix to a lagging public relations
problem. And yet, the partnership is not without its own set of challenges the first being
cultural. Toyota operates with a geographically dispersed, top-down, command and control
culture while the Silicon-Valley based, Tesla, has a more flexible, innovative approach. Both
companies will need to find middle ground to make the alliance work. Additionally, the
category shift is still in its early stages. Every major carmaker is focused on coming up with a
cleaner technology solution and many are even beginning to bring their early ideas to market.
The stakes are high and Toyota will need to work hard to differentiate its brand. What is
important to remember here is Toyota¶s track record. The brand has held up to intense media
and government scrutiny, and as its success with the Prius attests, when Toyota is focused on
something, it has a history of making it work. The Toyota brand and its products may be
slightly tarnished, but if the organization executes this correctly, Toyota will have effectively
turned a negative into a positive and that is what leaders and strong global brands do.
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The Excellent Global Corporation Plan Based on the corporate philosophy of kyosei, the
Excellent Global Corporation Plan is a medium- to long-term management plan with the goal
of building a corporate group that continues contributing to society through technological
innovation, aiming to be a corporation worthy of admiration and respect worldwide. In the
five-year first phase of the plan, which began in 1996, Canon inculcated in the Group the
concepts of profit orientation and total optimization, introducing production reforms by
means of the cell production system, and cash flow-based consolidated business performance
evaluation. In the second phase of the plan, which began in 2001, they have aimed to become
Po.1 in all our businesses and strengthen our research and development capabilities. During
this phase they have achieved tremendous results, including development reforms and the in-
house manufacturing of key components.‘

 
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In every organization strategic management has a direct impact on its business. Strategic
Management helps to attain superior performance and competitive advantage for an
organization. Through competitive advantage and superior performance a company
differentiates its product, create a brand loyalty and increase the profitability. Companies in
an industry always try to be in a top most position. For these they need to select strategies
about each and every function. Functional-level strategy increases the performance rate.
Strategic managers analyze the weakness of an organization in its every department and
select strategies for every function and turn it into strengths. Specific strengths help
companies to have competitive advantage over its rivals and increase the profitability which
is an actual business goal of each and every organization. In BBA program, one of the most
important parts of each course is to prepare a term paper on assigned topic related to the
course. The term paper is prepared on strategic management in Automobile companies and

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functional-level strategy, which tries to show a company¶s functional-level strategy in generic
building blocks of attaining competitive advantage.


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Toyota has topped a survey gauging the satisfaction of US customers for the second year in a
row. Toyota earned a satisfaction rating of 87 out of 100 on the index compared with an
industry average of 81. US researchers at JD Power stated that Toyota was the most reliable
car in a survey of three year old vehicles. Toyota has raised its annual profit forecasts after
reporting strong results for the three months to end of September. The firm saw operating
profits rise by 44% during the quarter, to reach $4.9 billion as sales continued to increase.
The results beat expectations and now Toyota expects operating profit for the year to reach
$1.9 trillion. Toyota's net sales for the half year to September increased 15.3% to $9.9
trillion. The firm has been successful with models such as the Camry and Yaris subcompact.
In addition, Toyota announced plans to acquire a 5.9% share in Japanese truck firm Isuzu, in
a bid to develop engine technology together. Both firms plan to collaborate to develop small
diesel engines, and look at how to mitigate emissions and develop alternative fuel
technologies. Toyota Motor Corporation has adopted a strategy of reducing costs by
producing all local content in its production bases in each region, including Thailand. The
company decided to change its production strategy because of fierce competition due to trade
liberalization, its expectations as a global manufacturing base, and signs of structural change
in the markets. Toyota also established a new system of production, called the innovative
international multi-purpose vehicle project (IMV), that would increase cost competitiveness
and also improve the skills of the workforce and management in each country. In Thailand,
Toyota has two plants, one can produce 250,000 IMV units and the other plant has a
production capacity for 200,000 passenger cars. Toyota has set up a new plant with a
production capacity of 100,000 IMV units, which is expected to start operations...



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A successful product or service means nothing unless the benefit of such a service can be
communicated clearly to the target market. An organisations promotional strategy can consist
of: Advertising: Is any non personal paid form of communication using any form of mass
media. a: Involves developing positive relationships with the organisation media public. The
art of good public relations is not only to obtain favorable publicity within the media, but it is
also involves being able to handle successfully negative attention.Sales promotion:
Commonly used to obtain an increase in sales short term. Could involve using money off
coupons or special offers. Personal selling: Selling a product service one to one. Direct Mail:
Is the sending of publicity material to a named person within an organisation. There has been
a massive growth in direct mail campaigns over the last 5 years. Spending on direct mail now
amounts to £18 bn a year representing 11.8% of advertising expenditure ( Source: Royal Mail
2000). Organisations can pay thousands of pounds for databases, which contain names and
addresses of potential customers. Direct mail allows an organisation to use their resources
more effectively by allowing them to send publicity material to a named person within their
target segment. By personalising advertising, response rates increase thus increasing the
chance of improving sales.

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‘ http://lifeinmotion.wordpress.com/2006/12/23/%E2%80%9Ctoyota-developing-
strategies-for-growth%E2%80%9D/
$‘ http://www.suite101.com/content/production-system-that-made-toyota-successful-
a96555
‘ http://www.oppapers.com/essays/Operation-Strategy-Toyota/160777
http://www.oppapers.com/essays/Marketing-Strategy-Of-Toyota-For-Pew/305199
5.‘ http://www.oppapers.com/essays/Sales-Strategy-Toyota-India/170106
6.‘ http://www.oppapers.com/essays/Toyota-Recall/126107
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8.‘ http://pressroom.toyota.com/pr/tms/toyota/toyota-unveils-compact-dedicated-
151199.aspx
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10.‘http://www.automobile.com/toyota-develops-new-hybrid-strategy-for-future.html
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12.‘http://blog.interbrand.com/blog/post/2010/05/24/Toyotae280a6Future-Forward.aspx
13.‘http://www.oppapers.com/essays/Canon-Future-Strategies/63893
14.‘http://www.oppapers.com/essays/Functional-Leval-Strategy-Toyota/158889
15.‘http://www.oppapers.com/essays/Toyota/123291
16.‘http://www.oppapers.com/essays/Promotional-Strategy/301097

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