TOYOTA - INTRODUCTION The Toyota Motor Company is one of the largest automobile manufacturers in the world.

To date, it has sold more than 8.8 million of its many makes and models of automobiles on five different continents around the globe. Founded in 1937 by Kiichiro Toyoda and headquartered in Toyota, Aichi, Japan, Toyota is a global leader in automotive technology and development. The company also makes trucks, buses, forklifts, and other industrial equipment. Toyota also boasts a strong presence in North America. In the continental United States, there are five major assembly plants located in Huntsville, Alabama; Georgetown, Kentucky; Princeton, Indiana; San Antonio, Texas; and Buffalo, West Virginia. Early Japanese imports like Toyota's Toyopet were initially unpopular in the United States because of their smaller size, but with the energy crisis of the 1970s, Americans began to look to imported cars for their lower price and better fuel efficiency. Today, rising gasoline prices coupled with concerns about global warming and the environment have prompted Toyota to design even more fuel-efficient vehicles. The company's marketing campaign, "Moving Forward," signals just that. Its current offerings include Camry and Highlander Hybrids and the Prius, which is also a popular gasoline-electric mid-size model. RESOURCES 1. PHYSICAL RESOURCES The affiliates of Toyota have over 50 manufacturing companies in 26 countries and regions, and own 170 distributors in approximately 170 countries and regions. In 2009, Toyota has 50 distributors in Africa, 43 in Central and South America, 30 in Europe, 16 in Oceania, 15 in Middle East, 10 in Asia, 5 in North America and 4 in China. And the financial services cover 32 countries and regions. 2. FINANCIAL RESOURCES The revenue of Toyota is $205,295.7 million by the end of March 2009, a decrease of 21.9% compared to that of 2008, while the net loss was $4,369.4 million in 2009 compared to net profit of $17,178.8 million in 2008. In addition, Toyota net finance profit was $0.1 trillion and decreased 7.1% compared to 2008. However, there is a feature about Toyota that if provides the pension benefits and retirement benefit to the employees. In 2009, it paid a total of $841.4 million for retirement benefit plan. 3. HUMAN RESOURCES Toyota totally employed 320,808 people worldwide, and sales people account the large part. In 2009, Toyota employed 40,000 sales personnel who operate over 4,800 sales and service outlets in 290 dealers, which is helpful to maintain a large network of the customers.

4. INTANGIBLE RESOURCES Toyota is the leading automotive brand in the world, and its brand value reached $31.3 billion in 2009. In addition, Toyota is the highest ranking automotive brand name in the world, and its higher than its competitors such as Porsche, BMW and Nissan. Further, Toyota is the only automobile corporation in the top 10 list of the Fortune 500 Global. SWOT ANALYSIS STRENGTHS

Global organization, with a strong international position in 170 countries worldwide. High financial strength (1997, sales turnover, 131,511 million), sales growth of 29.3% Strong brand image based on quality, environmental friendly (greener), customized range. Industry leader in manufacturing and production. Maximizes profit through efficient lean manufacturing approaches (e.g. Total Quality Management) and JIT (Just in Time) manufacturing and first mover in car research and development. Excellent penetration in key markets (US, China, EMEA) and now the second largest car manufacturer in the world, surpassing Ford.

WEAKNESS

Japanese car manufacturer - seen as a foreign importer. Production capacity. Toyota produces most of its cars in US and Japan whereas competitors may be more strategically located worldwide to take advantage of global efficiency gains. Some criticism has been made due to large-scale re-call made in 2005, quality issues.

OPPORTUNITIES

Innovation -first to develop commercial mass-produced hybrid gas-electric vehicles (gas and electric), e.g. Prius model. Based on advanced technologies and R&D activity. With oil prices at an all time high - this investment and widening of product portfolio fits consumers looking to alternative sources of fuels away from gas guzzling cars. To expand more aggressively into new segments of the market. The launch of Aygo model by Toyota is intended to take market share in youth market. To produce cars which are more fuel efficient, have greater performance and less impact on the environment. To develop new cars which respond to social and institutional needs and wants. The development of electric cars, hybrid fuels, and components reduces the impact on the

environment. Toyotas Eco-Vehicle Assessment System (Eco-VAS) has helped in production, usage, and disposal. Continued global expansion - especially in the emerging markets e.g. China and India, Russia, where population and demand is accelerating.

THREATS

Saturation and increased competition, intense marketing campaigns increasing competitive pressures. Shifts in the exchange rates affecting profits and cost of raw materials. Predictions of a downturn in the economy e.g. recession, will affect car purchases (especially new cars). As household budgets tighten - this could lead a decline in new car sales and possible rationalization of dealerships. Changing demographics e.g. number of large families is declining. Undermining the demand for large family cars. Changing usage - families using the car less for taking children to schools. Home deliveries. Businesses - restricting business travel (tele-conferencing). Governments encouraging alternative forms of transport - cycling and incentives to use public transport across Europe. Rising oil prices (fuel costs) and the costs of maintaining cars. Increase in families who have chosen not to own a car, or decided to use their car less.

AN EVALUATION OF TOYOTA MOTOR COMPANY (TMC) INFORMATION SYSTEMS Toyota's global operations are also moving forward in information systems technologies as well. In April 2001, Toyota Material Handling USA (TMHU), which is responsible for all aspects of sales and marketing for Toyota's industrial equipment line, became a stand-alone company after many years as a division of Toyota Motor Sales USA. The company is a top seller of industrial lift trucks in the United States and 99 percent of its lift trucks sold in the country are also manufactured domestically in North America. TMHU faced challenges of inefficiencies associated with the existing information system that was not specifically designed for the industrial equipment business. Many of the large corporate customers wanted to work with TMHU online and the present system was not web-enabled. The situation implored the company to build an individual site for each customer, a timely and expensive project. Recognizing the need for change, Toyota executives chose to use a third-party consulting firm to evaluate software systems and implemented SAP software based on its recommendation in 2003. Thanks to the industry-specific software, TMHU can track each individual vehicle throughout its entire life using integrated vehicle, warranty, and financial information. The preconfigured software required little modification and has yielded significant results that include increased efficiency and better decision making. One of the biggest benefits has been its reduced operating costs. According to the SAP article online, by moving its dealers to an Internet-based network, the company has been able to save about $1

million a year in network costs alone. The SAP platform has also reduced turn around times from two days to two hours and strengthened the relationships between customers and dealers. Historically, the Toyota Company has been a leader in emerging technologies. As its business needs change, the SAP software will allow THMU in particular to evolve and adapt quickly. It can monitor changes made to product specifications that allow it to better understand customer demand and ensure that it has the right components and offering available (Toyota Material, 2004). The information systems for the Toyota Motor Company (TMC) can clearly be evaluated by using SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats). The biggest strength of Toyota's information systems is their ability to integrate their company goals globally by using their systems effectively. For example, Toyota reaches its customers in different markets by using different online web systems for different world regions. Although, there are multiple websites and systems for each of the world regions, such as North America and Europe, the systems all link back to a worldwide website. A major weakness of Toyota's information systems is likely the language barrier that the Japanese based company has with its international employees and customers. Sharing and using information across language barriers on the international scene poses a significant hurdle to using information systems effectively. Toyota mainly uses the English language internationally but their company is primarily based in Japan and therefore Japanese is still a significant part of the sharing of information. Toyota has created new opportunities by developing their Transportation Systems. Toyota is working globally with partners and governments to improve the ease of transportation. To accomplish this, Toyota is seeking to research current transportation systems using their customers as well as information from other companies. Pursuing these improvements to transportation systems is a significant opportunity for Toyota, because they can increase their customer base and the satisfaction of current customers. The use of information systems and networking could be a key to helping Toyota have success in improving Transportation Systems. One of the threats for the development of Toyota's information systems includes resistance to information sharing between companies. To further advance their information systems, Toyota needs to integrate and share ideas with other companies such as Ford and Honda. In a competitive market, companies are less likely to share information and research with competitors. This poses a direct weakness to Toyota because the advancement of systems like their Transportation System initiative depends on the sharing of global information through the use of networks and information systems databases. Another great way to evaluate the information systems for Toyota Motor Company is to examine the Porter Five Forces Model for competitive advantages. In examining this model as it pertains to Toyota, it's important to examine (1) rivalry among existing competitors, (2) the threat of new entrants, (3) the threat of substitute products, (4) the bargaining power of buyers, and (5) the bargaining power of

suppliers. Toyota has strategically placed themselves into position to gain a competitive advantage by considering several of the Porter factors. First, Toyota Motor Company exists mainly in the automotive markets which house a significant number of competitors. For example, Ford, Chevrolet, Honda, and GM are a few of their major competitors. This competition in an industry with high entry and exit costs has led Toyota to seek a competitive advantage in their information systems. One major example of an information systems competitive advantage for Toyota is their new Hybrid Synergy Drive. As the automotive industry has suffered from high gasoline and crude oil costs, Toyota has developed a computerized engine system, HSD, that monitors engine performance and makes energy usage in the automobile as efficient as possible. Toyota has currently employed this system in their Prius and Camry sedan models, which leads the market in hybrid vehicles. The Hybrid Synergy Drive also must be evaluated using Porter's model factor for threat of substitute products. Other companies could potentially enter the hybrid market by developing a similar drive and neutralizing Toyota's advantage. In fact, Nissan and Honda have developed similar technologies for their sedan models. However, Toyota continues to dominate the market for hybrid vehicles because Honda and Nissan do not have a significant impact on the market yet. In the future, Toyota may lose their competitive advantage if hybrid vehicles take a bigger market share in the automotive industry. However, currently Toyota is adding Sport Utility Vehicles (Toyota Highlander) to their line of vehicles using the HSD. By being the first to add SUV's to the hybrid market, they have currently protected their competitive advantage from substitute products. Porter's five forces model also considers Toyota from the vantage point of bargaining power of their suppliers. Suppliers can exert influence on a company by using pricing of key components. If large suppliers raise prices, Toyota may suffer as a result, so to stay competitive they must have strategy. To stay competitive in this area, Toyota keeps a large database of small business suppliers for their operations in North America9. Via this database, Toyota puts an emphasis on using smaller businesses for suppliers in order to gain a competitive advantage. Overall, Toyota has done an excellent job following Porter's five forces model for gaining a competitive advantage. By using is Hybrid Synergy Drive in their revolutionary hybrid vehicles, they have cornered the market on hybrids and gained a significant advantage that boosts sales. Also, Toyota's addition of the Highlander SUV to the hybrid drive market has successfully maintained their advantage. Moreover, the use of smaller businesses as suppliers allows Toyota to protect themselves from pricing shifts. These factors have all led to Toyota successfully using their information systems to gain a competitive advantage. Toyota has a unique business model and the way it approaches the automobile production, with its inherent quality controls, revolutionized the industry. Toyota's "just-in-time" supply-chain concept has become a model for manufacturers around the world, and not just for automakers. The Toyota Production System (TPS) calls for the end product to be pulled through the system. This means the right parts reach the assembly line at the right place, just as they are needed, and with no excess. This

approach represented a radical departure from conventional manufacturing systems, which require large inventories in order to push as much product as possible through production lines, regardless of actual demand. The idea of TPS, on the contrary, is to produce only the products required in the precise quantities desired at a given point in time. This creates a 'pull' production system as opposed to a 'push' system. By basing production on demand rather than simply on capacity, Toyota manages to keep inventories, of both parts and of finished goods, to a strict minimum. But this is only one of the more obvious advantages of Toyota's unconventional approach. By focusing on smaller production lots and producing only what customers require when they require it, Toyota has developed a flexibility and responsiveness that continues to set the standard for the industry. Because of its Attention to continuous improvement, Toyota has attained die-changeover and machine-set times that are a fraction of its competitors'. Thus its capacity for reacting quickly to new market trends makes TPS an ideal system in today's rapidly changing global business environment. Toyota believes that it is important in ensuring quality control, and the delivery of reliable and dependable products to customers. If a problem arises at any stage of production, Toyota's automatic error detection system, called "Jidoka", flags the defect and enables line employees to take the necessary steps to resolve it on the spot even if that means bringing production to a halt. By calling attention to the equipment when an error first occurs, the Toyota system makes it easier to identify the source of the problem and prevents defects from progressing to subsequent stages of production. Only a system as agile and qualityoriented as TPS could make such measures economically possible. This approach not only helps eliminate waste, which makes TPS more respectful of the environment, it also means that customers can rest assured that Toyota products will conform to the highest standards of quality, reliability and durability. By taking this unconventional approach, Toyota is rising from the ashes of industrial upheaval in postwar Japan, becoming the largest vehicle manufacturer in its home country, gaining more than 40% of the national market. By 1980 Toyota in Japan had rolled out its 30 millionth car, and by the turn of the century the figure had risen to 100 million. Outside of Japan, Toyota first started making inroads into foreign markets in the late 1950's. The first Toyota Crown models arrived in the USA in 1957, and by 1965, with cars like the Toyota Corolla, the company had steadily built both a reputation for customer service and satisfaction and sales figures to rival those of domestic automakers. In 2004, annual Toyota car sales in the U.S. surpassed the 2 million mark, with 1.4 million vehicles and almost 1.3 million engines manufactured in the U.S. In due course, the Toyota Production System, with its emphasis on continuous improvement, the value of employee commitment and superior quality, would be recognized as a true benchmark in the eyes of the global automotive industry. CORPORATE RESOURCES MARKETING

Toyota Motor Corporation is presently pursuing several new marketing goals. While two of these target markets are geographically oriented, the third uniquely focuses on the environmentally aware demographic. Pertaining to these segments, the first objective is to continue their expansion into foreign territories, broadening their overall global capacity. On a more domestic level, TMC is taking advantage of the challenges presently faced by their fiercest competitors, in order to close the market gap and become the dominant auto manufacturer in America. Lastly, they are striving to corner the new and upcoming market segment of environmentally aware individuals with the production of their latest innovations in hybrid designs. In terms of market performance, Toyota has been excelling in selection of the product they produce, its selling price, promotion and placement. They have done this through the marketing strategies and techniques discussed above, in addition to their strategy of matching specific products within a certain market segment to an even more refined sub-segment. It is all of these marketing techniques, and the success they have yielded, that has demonstrated an enhanced knowledge of marketing and its application within TMC. This particular aspect of marketing allows them to construct a consumer profile for each of their models, identifying the needs of a specific consumer group and targeting them as the preferred market for a selected vehicle that fits those needs. FINANCE Toyota's increasing financial success is certainly a function of the successful execution of its objectives, missions, strategies and policies. Not only are all aspects of the organization consistent with the ultimate goal of positive fiscal realization, but this consistency creates an environment conducive to growth and profit. Quite simply, the complementary nature of all facets of the corporation has been responsible for TMC's growing "bottom line". The meticulous attention paid to the interdependence of all company areas, has created an overall smooth flowing process that yields consistently positive results, especially in a financial sense. The most telling indicator of TMC's success is the numerous additional business ventures it is continuing to support and develop. Certainly, a company that was not enjoying a significant amount of financial success would not be in a position that would allow such a variety of projects of a varying scope. These include endeavors in the areas of biotechnology, energy, the environment, wellness, marine related projects, aerospace and entrepreneurial promotion. While each of these is an indicator of TMC's financial success, they also support causes that the corporation proposed to contribute to, while confirming their intentions of contributing internationally to a better world and the people in it. RESEARCH AND DESIGN Toyota Motor Corporation's most dominant research objective is to "search for the means to produce the ultimate EcoCar". In addition to translating this vision into a reality, they also strive to enhance and improve the present vehicle designs they manufacture, as well as the quality and efficacy of the components that comprise them. Overall, the majority of their research involves developing from the

"perspective of achieving energy security and diversifying energy sources, which is necessitated by the dwindling supply of petroleum" . With an annual Research and Design Budget of 1,528 Billion in 2006, the 2007 fiscal year has been designated an increased budget of $1550 Billion (TMC, 2006). This aspect of the corporation budget has been consistently increasing for the past decade, reflecting the emphasis TMC is putting on their R & D segment of the company. Consistent with company objectives and their mission, this is partially due to the meticulous research going into the improvement of presently existing models, in order to assure an absolutely superior standard of quality and safety. The role of technology in the R & D department is tantamount to none, utilizing only the most advanced means to create a second generation of selected models. Some of these include the Celica, which is now known as the Privia, the Soarer (which is identified in the states as The Lexus), as well as a new and improved Tacoma, Prius and Solara While the role of research and design managers is to act as a liaison between upper management and the workforce, one of their most significant responsibilities is to work as part of a team, ensuring that the research and design efforts are consistent with the other goals of the corporation. The improved designs should include the variable of increased cost-efficiency for both the consumer and corporation, as well as take into consideration the feedback from buyers and dealers, as is reflected by sales and marketing surveys. This inventory of criteria is demonstrative of the cross-functionality of all R & D goals, as well as the amount of cross-functional teamwork that is necessary to facilitate such objectives. The table below reflects TMC's present research and design projects and goals. OPERATIONS Consistent with Toyota's philosophy-oriented environment the corporation has established an operations system for production that is tailored to not only their goals, but the strategy and awareness by which they conduct all business.It is primarily based on two principles: Jidoka and "Just in Time" manufacturing. JIDOKA Jidoka is a concept that highlights the visualization of problems and identifies them before manufacturing is completed. Utilizing state of the art equipment, this technology identifies a malfunction or a defective part immediately at its time of production. The machine involved is programmed to recognize this deficiency and automatically stop, forcing the operators to address the problem. "As a result, only products satisfying the quality standards will be passd on to the next process on the production line. JUST-IN-TIME The second concept inherent in the Toyota manufacturing system is that of "Just-in-Time" manufacturing, which declares that products or vehicles are produced only as consumer orders and demand require. It is this system that has, in part, allowed Toyota to evade the issues of excess capacity

that Ford and GM have encountered. By adhering to such a system, costs can be kept at a minimum, while profit can still be maximized avoiding the necessity of selling at a loss just to move aging product. HUMAN RESOURCES Human Resources at Toyota Motor Corporation serves to meet the needs of all employees, as well as create an environment that is both productive and conducive to employee satisfaction. Toyota's HR department is fully aware that happy employees translate into better job performance. This equates to the kind of increased production and quality that renders satisfied customers. Ultimately, how well Human Resources addresses the needs of the employee population and how well they maintain an emotionally intelligent workplace environment directly correlates to Toyota's "bottom line" and overall financial success. This involves several areas of the employee experience that Human Resource Managers must attend to. These include: hiring quality individuals that possess characteristics consistent with company standards, continued training of existing employees, promotion of diversity, resolution of disputes, maintenance of an overall system of positive reinforcement, executing standards of evaluating job performance, and all other issues pertaining to maintaining satisfied employees and an environment conducive to this goal. Some of the major functions of this department are outlined and evaluated below. THE TOYOTA INSTITUTE In 2002, the Toyota Institute was established as one of TMC's training tools. Its purpose is to "reinforce the organic integration of global Toytoa companies by way of sharing the Toyota Way as well as to promote self-sufficiency" (TMC, 2006). More specifically, it serves to promote true globalization and the core values that are inherent throughout the corporation, outlined in the Guiding Principles and set forth in the Toyoda Precepts. A business within the business, its president since inception has been Fujio Cho, with the assistance of 16 full-time associates managing the operation, as well. Within the Toyota Institute, two major programs of study exist: The Global Leadership Program and the Management Development School. An integral portion of the training is specifically aimed towards middle-management employees, who are the "go betweens" of the operation, aiding the communication flow between higher executives and hands-on/divisional employees. The purpose for instituted a company-wide, all encompassing educational program for overseas, as well as domestic operations, is to ensure consistency and that all middle-management personnel understand the full concepts of The Toyota Way, best practice sharing and drafting of action plans that are consistent among all TMC affiliates. FUTURE CHALLENGES Despite these most recent accomplishments, Toyota, like any company, has not been without its disadvantages. One significant weakness of the corporation is its prior litigious issues and the claims of inadequate safety standards brought against them. Quite impressively, Toyota has undoubtedly turned this weakness into a lesson learned and implemented a standard of quality and safety that is now hard to match. However, the memory of the public is often unforgiving and opinionated, making it difficult for Toyota to overcome the preconception of negativity that such prior publicity may have instilled in

some consumers. TMC must also work diligently to promote sustainability within The States, despite the current trend reflected by the mantra "Buy American". Toyota may also face future challenges as a function of its diverse expansion. Seemingly enjoying exploration into areas other than the auto industry, TMC must be cautious not to spread itself too thin. This is the downfall of many a corporation who enjoy success, seize the opportunity to expand into broader areas, and then lose sight of their fundamental area of expertise. However, in light of TMC's continual growth, it appears that this would not be an issue at this time or any time in the near future. Lastly, Toyota has the unique opportunity to play a role in the overall advancement of culture. Not only does it possess the ability to make fiscal gains, but also the potential to actually change the future of mobility. Through its continued emphasis on environmentally-friendly research and alternative designs, TMC will continue to be a pioneer in the realm of improved transportation. While the corporation has already proven themselves with their Prius, the first mass-marketed hybrid vehicle, their present technological projects will certainly set future trends. In light of the information presented in this report, as well as the historical patterns of TMC, itself, it is fairly safe to assume that the results of their research and design team will not only set trends, but more possibly set the standard by which all future manufacturers will follow. In consideration of Toyota Motor Corporation's continued growth, the manner in which it executes its business, the value it places on human resources and the technological advances that are not only conducive to, but aimed at the improvement of culture, as a whole, it is hereby a safe assumption that Toyota will be the driving force in the auto industry before long--a force with the sustainability and feasibility to drive both American and international culture into the next era of mobility and convenience.