Vision and Mission of Toyota Motor Corporation - Statistics Project Example

Project report: Toyota company (International Business) Table of Contents Introduction 3 Discussion 3 Brief overview of Toyota Motor Corporation 3 Vision and mission of Toyota Motor Corporation 4 Theory and strategy used by Toyota Motor Corporation in operating in UK 4 Analysis 8 Findings 10 Conclusion 12 References 13 Introduction In this age of extreme competition, sustainability may be attained only by presenting high quality products at a competitive price. By doing so, the organization may easily satisfy the changing requirements of the customers in an effective way thereby amplifying its intensity of growth and profitability. Keeping this fact in mind, the organization of Toyota Motor Corporation also tried to enhance its productivity and customer bases by expanding its operations in international markets of United Kingdom. By doing so, not only the market share of the organization enhanced but also the brand value and popularity of the brand improved among many other rival players in international perspectives (Guillén & García-Canal, 2012, p.467) This report entirely deals with the strategies and theories used by the organization of Toyota Motor Corporation at the time of expansion into the international market of United Kingdom. Along with this, it also includes the graphs and charts to know the level of improvement attained by the organization in international markets. Discussion Brief overview of Toyota Motor Corporation Toyota Motor Corporation (TMC) is recognised as one of the multinational organization, with headquarters in the city of Toyota of Japan. It is quite popular for its technologically designed cars, trucks, buses and robots in the entire globe, producing almost ~5.5 million vehicles per year. Due to which, it is recognised as the largest car producer in the market of Asia that acted as a boon for the organization thereby amplifying its market share by 5.8 percent among others like Nissan Motors and Honda Motors and others. This is mainly due to its availability to offer technologically inventive features within its manufactured products that helped the organization to attain supremacy and popularity in both domestic and international markets as well (Bradley, 2007, p. 183). Vision and mission of Toyota Motor Corporation The vision of the organization of Toyota Motor Corporation is to attain long-term sustainable growth and profitability in the market by offering extremely innovative and value-added vehicles. By doing so, it might position itself as one of the most prosperous brand in the minds of its target customers that might amplify its chances of sustainability among numerous new entrants in the market of United Kingdom. Theory and strategy used by Toyota Motor Corporation in operating in UK In order to retain its portfolio and popularity in the market, an organization always desires to offer highly qualitative products at a competitive price. However, this might be possible only by presenting inventive products and services to its customers that may satisfy their changing requirements effectively (Luo & R, 2007, p. 57). Only then, the organization might become successful in positioning itself as a distinctive identity or organization with highest market value and demand in the market among other rival players. However, this fact in mind, the organization of Toyota Motor Corporation implemented the hypothesis of total quality management (TQM) as well as Total Quality production system (TPS). According to total quality management (TQM), the quality of the products might be enhanced by continuous refinement of its features on the basis of customer feedbacks. By doing so, each and every requirements of the customers might be attained or accomplished very easily that may amplify the brand value and equity of the organization in the market among others. By doing so, the organization of Toyota Motor Corporation enhanced it total sale by 75 percent in the year 2010 as compared to 2009 (Bradley, 2007, p. 163). As a result of which its market share also enhanced by almost 17 percent as compared to previous years that proved extremely effective for the organization of Toyota Motor Corporation (Funaru, 2010). Not only this due to its inventive technologies, the profit margin of Toyota Motor Corporation also increased to a considerable extent as compared to others as presented in graph. Source: (The economists, 2009). Thus, it might be stated that, prior implementing TQM, the productivity of the organization of Toyota Motor Corporation was not satisfactory. But implementation of this hypothesis or customer satisfaction theory, the market share of the organization of Toyota Motor Corporation increased as presented below: Source: (The economists, 2009). Hence, it might be clearly stated that the hypothesis of total quality management (TQM) proved extremely effective for the organization of Toyota Motor Corporation as depicted by the above mentioned points (Li, 2010, p. 43). In addition to this, total quality production system (TPS) of Toyota Motor Corporation proved extremely effective. This is because; it is entirely based on the concept of lean manufacturing or just –in-time system. According to the concept of Just-in-time, each and every process includes only, the essential requirements. So as to, satisfy the demands of the customers. Along with this, another concept named ‘Jidoka’ is used, which means resolution of any problem at the time of its occurrence. So as to stop the production system just at that time thereby saving the organization from producing effective products. As a result of which, the total sales grew by more than 50 percent in the year 2011 as compared to 2000 that proved extremely effective for the organization (Mathews, 2002, p. 52). Therefore, both the approaches of TQM and TPS proved extremely effective for the organization of Toyota Motor Corporation as compared to other rivals in the market of United Kingdom (Meyer, 2004, p. 256). Apart from the hypothesis of total quality management, Toyota Motor Corporation also implemented the strategy of continuous improvement or Kaizen (Hill, 2010, p. 552). According to this strategy, the organization of Toyota Motor Corporation always tries to improve the quality of the products by implementing innovative technologies and techniques within it. By doing so, the organization of Toyota Motor Corporation positioned itself as one of the market leader in this segment presenting high-valued products at a lowest price. Moreover, due to the implementation of this strategy, the threat of substitute products reduced thereby declining the switchover costs of the customers as well (Grant, 2005, p. 424). In addition, the organization of Toyota Motor Corporation also became successful in launching its newly developed vehicles such as FT-EV and FT-EV 11 in the markets of United Kingdom among others. Apart from this, Kaizen is also considered as an integrated strategy that became successful in resolving the problem of emission of harmful gases by developing electric cars (Li, 2007, p.318). By doing so, the environment conscious customers became extremely devoted and loyal to the organization of Toyota Motors Corporation as compared to others. As a result of which, the growth and total sales of the organization enhanced that amplified its profitability as well as presented by the below graph. Source: (Baudin, n. d.). However, all the above mentioned strategy is implemented by the organization of Toyota Motor Corporation in order to make the policy of ‘learn local and act global’ successful in all its aspects (Guillén & García-Canal, 2012, p. 324). Due to this motive, both the strategies such as Kaizen and TQM implemented by the organization proved extremely effective in future era. Moreover, due to these strategies, the organization became successful in offering low priced cars with inventive technologies to its customers that amplified its equity and value in the market of United Kingdom. Analysis In order to improve its image and dominance in the markets of United Kingdom, the organization of Toyota Motor Corporation implemented the strategy of Kaizen into its production department (ESOMAR, 2008, p. 223). This helped the organization to improve its reputation and brand value in the market of United Kingdom as compared to many other rival contenders as presented by the below graph. Source: (Economist, 2009). As a result of which, not only its total sale increased but also its reliability and trust within the minds of its customers. This proved extremely effective for the organization thereby amplifying its sustainability in long run. As a result of which, its net profit enhanced by a considerable limit, that is beyond assumption as presented by the figure, i.e. by almost 65 percent in the United Kingdom as compared to rival players. Source: (The Economists, 2005) Therefore, from the above figure, it might be well depicted that the net income of the organization of Toyota Motor Corporation enhanced mainly due to the implementation of the strategy of total quality management (TQM), total quality production management (TPS) and Kaizen into its production system (Drummond & Ensor, 2006, p. 145). By doing so, the organization became successful in analysing and rectifying the underlining desires of the customers and the defaults of the products so as to improve its demand. This acted as a catalyst for the organization of Toyota Motor Corporation to improve its competitive advantage in this extremely competitive market (Hill, 2010, p. 452). In addition to this, the organization of Toyota Motor Corporation also tried to follow the below presented way in order to retain its aggressiveness in the market. Source: (The economists, 2009). As a result of which, the organization of Toyota Motors Corporation is the first to launch a new engine named ‘cat diesel engine’ so as to improve its performance. Clean advanced technology (Cat) also helped the organization to reduce its green house emissions thereby amplifying its corporate responsibility (Bradley, 2007, p. 134). Thus, implementation of such type of technologies proved extremely useful for the organization that amplified its net profit and total sales. Hence, it might be stated that, Toyota Motors Corporation improved its market share and demand mainly due to its effective strategies and policies mentioned above. Findings After analysing and evaluating all the above mentioned points and facts, it might be stated that the operations and functions of the organization of Toyota Motor Corporation became effective in the market of United Kingdom is mainly due to the implementation of the total quality production management (TPS). Due to this strategy, the organization of Toyota Motor Corporation offered high-quality of machines and features within its products so as to increase its demand and value in the market. This is the prime cause of success of the Japanese car manufacturing organization in both Japanese and international markets (ESOMAR, 2008, p. 225). Apart from this, due to the concept of Kaizen, the organization always desires to offer inventive automotive technologies as well inventive models so as to satisfy its customers and increase their ranges. In addition, it also developed advanced engines that might reduce emissions of gases as well as engine oils. These strategies proved extremely effective for the organization that amplified its demand and reputation in the market of UK. Moreover, the organization of Toyota Motor Corporation utilised the low-waged labours in order to improve its production ratio. Therefore, due to these above mentioned causes, the organization of Toyota Motor Corporation became able to position itself as one of the prominent car manufacturers. Thus, it might be stated that in spite of economic downturn, the demand and profitability of the organization of Toyota Motor Corporation remained at a considerable height among the other rival players mainly due to its cost leadership strategy (Meyer, 2004, p. 259). Due to which, it remained recognised as one of the dominant automobile manufacturer in the entire globe among the other rival contenders. Other than this, by implementing, ‘just in time’ approach, the organization became able to cope up with numerous manufacturing defaults very easily thereby amplifying its portfolio and dependency in the market. This is extremely essential for any organization in this age to retain its competitive position. So, this strategy also proved extremely advantages for the organization of Toyota Motors Corporation. Conclusion Conclusively, it might be stated that Toyota Motor Corporation took advantage of the global policy of cost leadership. As a result of which, the organization of Toyota Motor Corporation became able to think globally and act locally so as to satisfy the requirements of the customers. This helped the organization of Toyota Motors Corporation to amplify its market value and profitability by a significant height as mentioned earlier as compared to other rival players. In addition, the organization of Toyota Motor Corporation became successful in developing eco-friendly cars and electric cars due to the implementation of various strategies mentioned above that enhanced its success in international business as well as domestic markets. Apart from this, introduction of inventive engines such as car diesel engine is also another effective creation that proved extremely effective for the organization of Toyota Motor Corporation. This is because it amplified its profitability and brand image to a significant extent as described above. References Bradley, N. 2007. Marketing Research: Tools & Techniques,pp.163-194 New York: McGraw-Hill. Baudin, M. No. Date. Learn and Mange Processes. [Online] Available at: http://michelbaudin.com/tag/metrics/ [Accessed on 24th February, 2014]. Drummond, G. & Ensor, J. 2006. Introduction to Marketing Concepts, pp.145-167. New York: Cengage Learning. ESOMAR, 2008. Market Research Handbook, London: Sage. Funaru, M. 2010. Toyota’s Business Strategies In International Markets. [Online] Available at: http://feaa.ucv.ro/annals/v3_2010/0038v3-004.pdf [Accessed on 24th February, 2014]. Guillén, M. F. & García-Canal, E. 2012. Execution as Strategy. Harvard Business Review Vol. 90(10). Grant, R, M. 2005. Contemporary Strategy Analysis. London: Sage. Hill, C. 2010. International Business Mc Graw Hill 8th International Edition. New York: McGraw-Hill. Luo, Y. & R. L. Tung 2007. 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