Welcome To The Presentation of Business

Policy and Strategy

Topic: Toyota Motors{A Japanese Multinational Automaker in China}

TOYOTA

Group Name: Atomic

Group Members:

Name ID

Sheikh Arifin Islam 11122101226

Md Tanvir Faisal 11122101227

Md. Sumon Hossen 11122101230

Sonia Akter Sunny 11122101239

Rayhan Murshed 11122101251

Introductory SpeechToyota Motors (formerly known as Toyoda) is now one of the leading and largest automobile brands in the Earth.

Toyota’s early manufacturing of textile machinery, textile production which was founded by Kiichiro Toyoda in 1933. In 1935, the history of Toyota Motors Incorporation began the journey in Automobile industry.

Toyota started the whole process in 1937 under the brand name Toyota (Toyoda). During the early WW2, the production of automobiles was running in slow motions.

After the WW2, Toyota started the pace of development. After 1980, Toyota took steps to enter Global market of Automobile industries.

Now it is dominating the Europe, America and of course Asia.

Question No:1Understand the strategies followed by companies from developed countries in emerging countries.

Answer: Toyota is one of the largest automobile manufacturers in the world. In the year of 1937, Toyota focused on adopting ‘Ford Production System’ to suit the Japanese market.

After that, it adopted it is known as ‘Toyota Production System’ which is also known as ‘Lean Manufacturing system’. This system helps the company to create many innovative ideas.

Through globalization, company started global network of design and R&D facilities to cover the three major markets – Japan, North America and Europe.

Toyota also took some strategic action to develop position and enter in the first world countries. Those are: (1960-1970), the company started to manufacturing fuel-efficient small cars. It reduced the manufacturing cost. It was developing more sophisticated cars. It started to sell Toyota Corolla in 1966; which was the most popular family

car from that time. By the time of 2000, it started to produce full passenger car. Its main strategy is now to make some cars which will fill the

straightforward entry level segment.

Answer: To tackle the developing market condition and market situation some action should have to implement. These are: Keeping up with the market: Market changes continuously. So the market

research should be continuous as well, otherwise in developing the market decision based on out of date information, which may lead to business failure.

QuestionNo:2Understand the issues and challenges tackled by established companies in developing market conditions and customer.

Entrepreneurs are the driving force behind creating a developing the business. To develop the market the number of the business has to delegate properly trusting the management team. To fulfill the need and want of the customer demand, the marketer has to keep knowledge and has to fulfill them according to needs.

Pricing strategy is one of the important factors to know and fulfill the demand of the consumers. It helps the company to know the market more efficiently and hold a strong position for longer period.

Answerer: Due to the WW2 legacy the relation between China and Japan was adverse. But, Toyota’s target was to build a strong car market in china. For that, the company took some strategic action. These are the followings. Shanghai General Motors (GM)-a joint venture of GM and Shanghai

Industry Corporation (SAIC). They invested up to US $1.5 billion in 1997to produce Buick and GM promised to release a new model every year. This strategy helps the company had a good position in china.

GM co-operate with local partners. In 2002, the company purchased Yantai Body shop. Later, the company signed an agreement with Wuling Automotive in South China.

QuestionNo:3Evaluate the strategies adopted by Toyota in China.

GM was successful because of their sales power, good public relation etc.

After the neutralization of China-Japan relation, the company trained personnel in China, as well as developing the automobile industry.

These strategies helps the company in china and also be a full scale car producing industry in china.

Answer: China is one of the largest markets of the Toyota Automobile. But, to capture this market of China, it has to face challenges from the beginning of manufacturing.

Toyota automobiles face the consequence of World War 2 where Japanizes invasion on China.

Toyota has to overcome these obstacles with their fuel efficient car and with low pricing strategy. To be a leading one, the company has to manage with many local companies. They have to train personnel’s and built automobile factories etc.

The root of the Toyota’s challenge was the market size of the China. It was not huge like US and Europe.

They have to make new models, new size, new pricing strategy etc. to make it a large one. Because the lacking of focus on Chinese people, it didn’t make a profitable market.

QuestionNo:4Assess the challenges faced by Toyota as a Japanese company in China.

Present Scenario of ToyotaBefore World War II, Toyota built plants in Tianjin and Shanghai and

conducted local assembly in China. From the early 1970s, after China's return to the United Nations was formally decided, Toyota transferred technology, worked to develop the auto parts industry and actively trained personnel in order to contribute to the development of the Chinese automobile industry.

Since 2000, Toyota has started full-scale auto production and sales and established nine local production companies and four distributors.

By the year 2037, Toyota has a virtual monopoly on the North American automobile market. This is only possible due to the outstanding quality of their products and the low cost of manufacture.

Cars and other transport devices are built by largely robot factories. In these numerous 'factories' 90% of the human employees are involved in quality control of one kind or another.

Some of their recent works for future are :

Future Scenario of Toyota

Thank you for staying with us.

Prepared by Atomic