Management, Financial and Marketing Strategy of Toyota

Introduction of Toyota

Toyota Motor Corporation, Japanese Toyota Jidōsha KK, the Japanese parent company of the Toyota Group. It became the largest automobile manufacturer in the world for the first time in 2008. Most of its nearly 600 subsidiary companies are involved in the production of automobiles, automobile parts, and commercial and industrial vehicles. Headquarters are in Toyota City, an industrial city east of Nagoya, Japan. Toyota is nowadays a leading retailer throughout the world, especially within the United States, and this leading position has been attained due to the company's increased ability to understand the needs of the market and adapt to them.

Core Functions

Research and Development Division

Toyota had facilitated and incorporates all of the improvement stages which from the basic research until at advance looking innovation advancement and item advancement to guarantee that Toyota had quickly and persistently created front line, high-caliber, and engaging vehicles. Hence, Toyota make a basic research to develop the theme discovery and made a research on basic that related to technology. Next, Toyota also make a forward looking and leading edge technology development where the technological related to the components and systems. Development of leading-edge components and systems ahead of competitors.

Furthermore, their main development for now are evolving their ever better cars using the development methods from racing technologies and developing an automated driving technologies. For their new ever better cars using the development, Toyota had announced their new concept which is GR Super Sport concept. Under this concept, Toyota had utilizing mostly the same main parts and development methods as those employed for the race cars that it competes with in the World Endurance Championship (WEC) and applying technologies honed through racing to create a next-generation sports car. Therefore, Toyota mainly use a model based development where the entire car is considered and the simulations are run to determine on how each function should run in order to achieve the desired of the performance. This approach enhances the performance in less time and with fewer people even before prototypes are built. Using this model based development, Toyota had their aims in order to further increase efforts to make ever-better cars.

For their developing automated driving technologies, Toyota had ultimate goal in developing automated driving technologies which this development is not simply to create an autonomy for cars, but to create a world in which mobility is safe, convenient, enjoyable, and available to everyone. Safety is Toyota topmost of their priority as they pursue the goal. Toyota had advancing the development of automated driving technologies on two fronts which first, personally owned vehicles (POVs) and second is Mobility as a Service (MaaS). By offering a reasonably priced, on demand mobility, MaaS will provide a platform that facilitate the road transport of more people around the world. For example, for people with disabilities, people who cannot afford to, or prefer not to own a car. Add on, MaaS platforms will also produce the vast amounts of data essential to automated driving technologies, helping to reduce the per passenger mile cost of transportation. In terms of evolving POVs, Toyota had making it one of the most perceptive automated driving research vehicles on the road. On top of being highly functional, the vehicle’s cameras and other sensors are arranged in a compact package styled to harmonize with the design.

Controlling and Finance Division

In terms of financial strategy, Toyota had applied three pillars of financial strategy which focus on the stability, growth and efficiency. Hence, by maintaining their stability, pursuing growth and the efficiency over the medium and the long term, Toyota aim to create a financial foundation in order to support sustainable growth.

For their first pillar is, stability which is on securing liquidity. This is where to ensure that their business in any business environment, Toyota had maintained a sufficient level of liquidity in order to backup half a year of both fixed cost in the automotive business. Adequate liquidity, is Toyota essential in term of maintaining a full line-up in each region and also to retaining the ability to respond to all options and opportunities in this era of profound transformation in mobility.

Next, for the second pillar of financial strategy is, growth which is focus on aggressive forward looking on investment. By right, every year, Toyota had spent more than 1 trillion yen on the Research and Development. This is for enhancing the efficiency in existing areas. Toyota are strategically increasing the portion of Research and Development spending allotted to cutting edge fields like the above.

Furthermore, Toyota are investing in new initiatives. For example, such an investment includes the establishment of Toyota Research Institute - Advanced Development (TRI-AD), which is funded by Toyota, and investment in such business partners as Grab, and Uber.

Last but not least, on their third pillar, Toyota focus on efficiency where enhancing the capital efficiency. Toyota had using a cost reduction and through application of the transaction processing system (TPS), Toyota had reinforcing the profit structure and securing funds in order to invest in advanced and cutting edge technologies. Toyota also are carefully on assigning priority to individual projects and tracking their progress while advancing measures to improve productivity, such as streamlining development in the existing fields, making equipment more compact, shortening processes, and facilitating faster response to changes in production quantities.
Furthermore, in addition to sustainably increasing ROE by repurchasing shares, Toyota had strengthening investment management by regularly evaluating the rationality of their strategic shareholdings in terms of the needs of their business strategies and economic utility. In these ways, Toyota are striving to enhance the capital efficiency.

Personnel Advice Division

As per of their crucial policy of 'making individuals able to do independently maintaining occupational safety and health,' Toyota Industries endeavors to counteract mechanical accident and occupational disorder issue just as realize better workplaces by making gear progressively safe from mishaps or disorders as early as in the design stage. In fiscal 2019, they kept on advancing primarily 'exercises planned for setting up a security arranged culture' and 'safety and health measures from human, object and administrative outlooks dependent on risk appraisal.'

In setting up the theyllbeing culture, they trust it is crucial that all partners, under the leadership of administrators and directors, take part in significant activities with solid safety awareness and a conviction that they can wipe out unfortunate incidents. They have accordingly extended the group of rank-based security workshops. They additionally look to sustain a common enlightenment-based theyllbeing society, which they urge that laborers to practice point-and-call training and remind those people demonstrating hazardous conduct to be mined their safety.

As for hazard evaluation, they intend to guarantee the safety and security of the work environment and diminish latent hazard sources inside the working environment. As the investigation of dangers requires data on past incidents and possibly genuine close-call accidents, they separate and sort out such data into smaller phases of unfortunate event and scatter it to improve the nature of risk assessment in every working environment.

Some measures that they had conduct is effectively improved the detection precision and thought of a gas concentration detection system with great maintainability. Then, temporarily restricted the number of using crane wire rope because some of it might deteriorate cause by the ages of the tools. Other than that, they had installed antislip tapes and hazard markings on uneven floors and stairs as theyll as fixing shoe cleaning mats onto the floor to prevent the workers from falling on the stairs. They conduct periodic age-based health checkup for all associates. they also feedback to associates the results of a yearly theyllbeing test and measurements directed around the same time including physical theyllness, body fat percentage and measure of fat around internal organs, alongside counsel to improve way of life habits.

Sales and Marketing Division

Toyota sales and marketing division works intimately with group distributors to help and guide with Sales Planning and Marketing procedures for our primary brands in particular Toyota, Hino and Yamaha. High usage of different deals and market information analysis are carefully adhered to always gauge and asses our situation in the market as the establishment of our business arranging strategies they work to communicate necessities from distributors to the manufacturers on items, determinations and creation portions to meet their targets and objectives. Simultaneously they communicate manufacturer rules, approaches and recommended techniques to keep the brand high position and reputation in the market. This capacity is unique to Toyota organization where they work to accomplish targets and objectives from manufacturers and distributors has demonstrated to be the key achievement of our deals in the markets. They arrange and bolster significant campaign, occasions and launches to guarantee consistent executions and uniformity over the distributors. At a same time, they constantly keep up and update on marketing and media graphic strategies to guarantee consistency in marking of their organization and important establishments over the nations. Despite that, they are continually investigating adjustment of new approaches, medias and innovations into our advertising methodologies and activities to stay aware of regularly developing progress and markets.