Global StrategyPresented By-

Group 6Manvi Bajpai (26)

Tanmoy Bhattacharyya (49)Varun Goel (50)

Yamini Yadav (53)

Toyota Motor Corporation

oHeadquartered in JapanoFounded by Kiichiro Toyoda in 1937oRevenues 18.9 trillion Yen in 2010o71,116 employeesoOperations in North America, Latin America,

Europe, Africa, Asia, Oceania and Middle East

Globalization EffortsoDomestic Problems

o excessive capacity, choosy customers, surplus workforce and intensified competition within Japan.

o In 1998, Japan sales accounted for a mere 38% of the company's total sales, as compared to 52% in 1990

o In June 1995, Toyota announced the 'New Global Business Plan’ aimed at o advancing localization (of production) o increasing imports (through collaboration with foreign

automobile companies) over a three year period.oA major objective of this plan was to increase Toyota's

offshore production capacity to 2 million units by 1998.o Toyota focused on increasing overseas production

significantly by establishing new plants and expanding the capacity of the existing plants

Steps involved in Globalization

Establish a local sales

network and launch brand

promotion

Build Auto parts

manufacturing bases

Establish JVs with local

players and build

automobiles there

Globalization Time line

Production Bases

Hurdles in Globalization

oQuality Assuranceo “no matter where Toyota vehicles are made, they

have the same quality.”o Made by Toyotao “ The Toyota Way” needs to be spread across all

locationsoMinimize the necessary support that comes from

Japan and let each of the overseas bases become self-reliant

oRespect for people in local community and Toyota’s local employees

Globalization Pay offso By 2003, Toyota was present in almost all the

major segments of the automobile market that included small cars, luxury sedans, full-sized pickup trucks, SUVs, small trucks and crossover vehicles.

o Global vehicle production increased by 3.3 times since the early 1960s, Toyota's production had increased by 38 times

2010 Global Visiono Aimed at achieving 15% market share of

global market and surpassing GMo The theme of the new vision was 'Innovation

into the Future,' o Recycling Based Societyo Age of Information Technologyo Development of Motorization on a Global Saleo Diverse Society

Global Production Center

oTo ensure that all across the overseas bases the value of Toyota remain the same

oBest Practices need to be determined and followed

o Initially established with Motomachi plant in 2003oActivity Goals:

o “Human Resources Development”o “Localization of Model Switchovers”o Helping plant personnel learn how to prepare for the

production of redesigned and/or different vehicle models

o In 2006 GPC were opened in United States, United Kingdom and Thailand to ensure skill training and HR development in their respective regions

Globalization and Localization ManufacturingoDuring the almost 50 years since they first began

exports, Toyota vehicles have found their way to over 170 countries and regions throughout the world

oCurrently there are 52 bases in 27 different countries and regions.

o In addition, there are design and R&D bases in seven locations overseas

“from development and design to production, sales and service, Toyota has now achieved consistent globalization as

well as localization.” - Koichi INA, Senior Technical Executive, Toyota Motors

The Global Toyota• The reaches of Toyota extend throughout the world. • Toyota has plants located in every continent except Antarctica, with many more still

under construction.• Even in Europe, production by Toyota subsidiaries will increase from 500,000 units

to 610,000 units made in the United Kingdom, France, and Turkey by 2006 • The first Chinese-built Toyota, the VIOS, was made in October 2002 • As a measure of attempting to tap into the Chinese market, Toyota hopes to capture

10% of the market by 2010 • In North America alone, upwards of 175,000 people are employed by Toyota

subsidiaries.• As of today, the majority of Toyotas purchased in North America are built in North

America.• In North America, the Avalon, Camry, Corolla, Matrix, Sequoia, Sienna, Solara,

Tacoma and Tundra are produced. • At TMMAL, more than 120,000 engines are produced annually for the Toyota

Tundra , which in turn is built by TMMI.• More than 150,000 Tundras will be built at TMMT, a plant to be built in Texas by

2006. • Even the Toyota Tacoma will be produced in Mexico starting in 2005 • A joint venture between General Motors and Toyota, known as NUMMI (New United

Motor Manufacturing, Incorporated) is currently based in Fremont, California • As a part of Toyota policy, much of the steel used in production is purchased locally

Thank You