-Short background of a company- ToyotaMotor Co. was established as an independent and separate company in 1937.Although it is founding family’s name was written in the Kanji (“Toyoda”), the company name was changed to a similar word in katakana -(“Toyota”) because the latter has 8 strokes which isregarded as a lucky number in East Asian culture.
Headquarters are locatedin Toyota City, an industrial city in the east of Nagoya, Japan. Toyota MotorCorporation began to exist in 1933 as a division of the Toyoda Automatic LoomWorks, Ltd. (later Toyota Industries Corporation, now a subsidiary), a Japanesemanufacturer who was founded by Toyoda Sakichi. Its first production car, theModel AA sedan, was released in 1936. The following year the division wasincorporated as the Toyota Motor Company, Ltd., an automotive spin-off headedby Toyoda Kiichiro, Sakichi’s son. Toyota subsequently established few relatedcompanies, including Toyoda Machine Works, Ltd.
(1941), and Toyota Auto Body,Ltd. (1945). However, faced with particular facilities and a crisis economy inthe time of WorldWar II, the company was forced to temporarily stopits automotive production. By the 1950sToyota’s automobile production factories were back in operation, and in orderto gain competitiveness the company began a careful study of Americanautomobile manufacturers, owing to perceive U.S. technical and economictechniques. Today Toyota assembly plants anddistributes also in many countries. In addition to automotive products, itssubsidiaries manufacture rubber and cork materials, steel, synthetic resins, automatic looms, cottonand woolen goods.
Others deal in real estate, housing units, along with theimport and export of raw materials. – Business Model – For more precise allocation of areas ofresponsibility and quick decisions, the automotive business of Toyota MotorCorporation will be divided into 4 main structural units from April this year,which will autonomously determine the most interesting and suitable businessmodels for sustainable growth in the world market.1- “Lexus International” (will unite all work on the brand in theworld market);2- Toyota No.1 (will be responsible for all Toyota brand operations in Europe,including Russia, North America and Japan);3- Toyota No.2 (will be responsible for all operations for the Toyota brand inAsia, East Asia, the Middle East and Africa, Latin America, Oceania and theCaribbean);4- “Components” (development and production of transmissions, enginesand other works in the market of spare parts and auto components).
Thepurpose of the work of the structural unit of Lexus International, formed inJune 2012, is the centralized management of all operations that are somehowconnected with Lexus cars and the strengthening of the image of this brand as apremium brand with the quality of Jaan.Thebusiness units Toyota No1 and Toyota No.2 will be handed over to executivevice-presidents of Toyota Motor Corporation. Under their responsibility will bea comprehensive development of the Toyota brand in various markets: fromdevelopment and production to the implementation of finished cars.Thestructural unit “Components” will unite all operations of the companyToyota in the world for the development, production and putting into the worldmarkets of auto components, including engines and gearboxes, and spare parts.Responsible for the operations of the business unit will be the Executive VicePresident of Toyota Motor Corporation. -Structure -Toyota MotorCorporation’s organizational structure is based on the different businessoperations of the company around the globe.
As one of the world’s leadingautomobile manufacturers, Toyota hires its organizational structure to support strategicdirection and business goals. This structure is also connected to thetraditional organizational structures used in Japanese businesses. The effectivenessof Toyota in maintaining a powerful global appearance shows its ability to useits organizational structure to maximize capacity and efficiency utilization.And this organizational structure is actually contributing to Toyota’s successin the global market.Themain task of Toyota’s production system is to increase profits by reducingproduction costs, that is, by eliminating the costs of unnecessary supplies andlabor.
The concept of costs in this case is very broad. Typically, these arepast, present and future cash outlays derived from sales revenues. Thus, costsinclude not only production costs and distribution costs.
In order to achievecost reduction, production must adapt quickly and flexibly to changes in demandin the market. The external environment of an organization is conditions andfactors that arise independently of its activities and have a significantimpact on it.Importantfactors affecting the external environment of Toyota Motor LLC are factors ofthe business environment and factors of indirect impact.Factorsof the business environment of LLC “Toyota Motor” consist of:1.Consumers – consumers of manufactured products are almost the whole contingentof men, women from 18 to 70 years. These are people who constantly use the servicesof service centers, attending various presentations of new Toyota brands.2.Suppliers – from the position of macroscopic representation, the organizationis a system for converting “inputs” and “outputs”.
The maintypes of inputs are labor, materials, equipment, energy, capital.Therelationship between Toyota Motor LLC and the suppliers that provide input ofthese resources is the direct impact of the external environment on theorganization. Variability of quality and price of resources creates certainproblems.3.Materials – the inability to provide supplies in the right quantities and inthe required time can create great difficulties for Toyota Motor LLC.Sucha supply system requires close cooperation of Toyota Motor LLC with suppliers.4.
Capital – for the growth and prosperity of Toyota Motor LLC, we need”suppliers” of capital. There are many types of potential investors -banks, investment and credit programs, shareholders, private individuals.5.Competitive environment – Japan’s main competitors (Toyota) in the directionof: the manufacture and sale of cars are: Europe (Honda, Nissan and FordMotor.) and America (General Motors).6.Partners – an authorized partner is a company that is authorized by ToyotaMotor LLC for retail sale, as well as warranty and non-warranty maintenance ofToyota cars during the construction period in the region of the AuthorizedPartner of the dealer center of Toyota LLC. – International Expansion- When segmenting the market and identifying the target audience, Toyotais guided by its famous philosophy “the right car in the rightplace.
” Considering the market of each country separately, the company,nevertheless, allocates several global centers of concentration of itsactivity. The US market is an unconditional priority of the company. This isdue to the fact that 25% of all manufactured products are consumed in the USA,that is, almost as much as in Japan itself.The European market remains for the company the most unknown and, at thesame time, the most promising. In Europe, the company sells only 11% of itstotal production. Toyota has developed its market strategy at different levels- globally, regionally, and nationally, based on an assessment of customerneeds. One of the key factors for designing the strategy of segmentation,targeting and positioning of Toyota is always an analysis of the state of themarket, the economy, the purchasing power of the target audience and itsconsumer preferences.The basic elements and at the same time orienting Toyota’s marketingplanning, which allowed the company to win the trust of customers, are theindicators:? Ecological cleanliness of theproduct? Product safety? Low operating costs of the product? Quality after-sales serviceIn 2010, the company set itself an ambitious goal of growing a 15% shareof the world market by 2015.
In this regard, the European market is of specialstrategic importance. Sales in Europe are quite sensitive to the externalcircumstances of the economic environment and before falling to the level of 9years ago almost doubled.