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Company Introduction & Summary

Toyota global vision was to lead the way where to the future of mobility to enriching
lives around the world with safe and most responsible way of transporting people around.
Through their commitment which of quality, it constant innovation and respected for the
global, and they are aiming to exceed the expectations of gaining rewarded with a smile
from there users. They meet certain challenging goals by engaging with the talented and
passion people who usually believe there is always a better ways to improve.

And Toyota is known for reliable car among the public, but it has also been known in the
management and leadership circles for exceptional people. Many credit Toyota's success
to aspects of the Toyota Production System, which was established by Taichi Ohno and
Shigeo Shingo from the late 1950s through 1970. Today, Toyota is the second or third
largest in the world in both car sales and in unit sales net, and the number 1 seller of retail
vehicles in the United States. From sources Jidoka, (2013).

But according to Tabuchi, (2014) in April 2013, Toyota estimated to be around 170,000
cars in the United States have the defective component, but that all vehicles should be
checked to find the broken once for all, about 3.3 million vehicles around the world are
involved in the recall, including about 1.7 million Toyota.

With Toyota's Aim for growth that is in harmony with the environment, and to challenge
the achievement of zero emissions throughout all business activities and set up as a
challenge achievement of zero emissions throughout the entire business activities. Source
from Genchi, (2014).

With this our group had decided to start off a balance scorecard for Toyota in order to
overrun the problem which occurred in the past and to make an improvement for it
product to go better in the future. Where as we would start off from learning and growth.
The question is Are we maintaining our ability or to change and improve? as that, our
group have decided to make a certain changes like, by creating a Quality Web Forum for
the employees with the aim of "getting each and every employee to think about what they
need to do to be rewarded with the smiles of customers. Based on Junichi, (2013) stated
that, this forum will be able to further develop and to allow everyone to hold free
discussions on the theme and enhance each other's awareness to their jobs.

Learning and Growth Part

Firstly, we want to increase the knowledge and skills of employees in the department of
R & D. In order to implement this process, our group has spent 807.4 billion, according
to Takeshi, (2014). R & D expenses increased by 3.5% compared the previous year.
Investments in R & D are very important to improve the skills of workers to improve
product design by eliminating the limits of the factors in the design and production
technology. This is very important for the development of a new car. Below is the figure
of R & D expenses changes.

By source of Maekawa, (2014), a new structure to be developed to develop powertrains
into ever better powertrains, and will play an important role in changing the way they
work to support a reputable future. In the structure, he has a new environment where R &
D workers to be involved in face to face conversations with accomplices who are
responsible for technology spending and development spending methods. Lastly, it will
have a system that may assess all development rankings, from the principle of technology
for vehicles and components prepared under one roof with effectively and efficiently.
This will allow workers strive to make ever-better cars that were always meets the needs
around the world.

Besides that, we will incurred another expenses on giving out more training to the
employees under the production line, in order to enhance their skills in producing cars
that are defect free effectively and efficiently. Our group too has come out of an idea by
increasing their employees incentives, which are able to boost up their employees
morale. When employees morale is high, they will be put more effort on doing their job,
thus the performance will increase.

With these ideas it could increase another cost for the company but in return, it be able to
gain something such as having an improvement and overruling the problem in the past by
decreasing the problem of facing defect product in the ways of happening in the past of
recalling cars for certain problem which causes imperfection and huge loses. Therefore,
with these changes, we will then further showing and discusses the result effect under
next section of internal business process.

Internal Business Process

As the employee morale increases and gained more knowledge through training, the
production of theirs will be made more attentively, efficiently and carefully. This leads to
a percentage decrease of the production defects. With the decrease of production defects,
the cost to repair the defects will be able to be cut down which saves a large amount of
cost which is supposed to be occurred into repair accounts.
Toyotas ability to achieve these cost reductions is subject to a number of factors, some
of which are not in Toyotas control. These factors include the successful implementation
of the manufacturing processes described above, as well as the business and financial
conditions of Toyotas suppliers and the general economic and political conditions in the
markets in which these suppliers operate. A decrease of defects in production not only
assist the factories in saving cost, it also helps in saving time. As now the problem of
numerous defects on production has been solved, with the effect of it being a time-saver.
Besides that, with the knowledge that employees gain from R & D training course,
Toyota Company will be able to shorten the time to introduce their now safer car
products. With this the sales volume of the company will be able to be boosted above as
expected. As most of us as car consumers, safety will always be our first priority. As
producers, Toyota will definitely assist the market demands by fulfilling in both theirs
and our own mission.
Next, the time to introduce environmental friendly vehicles will shorten. For example, we
have discovered the technology of hybrid cars such as the Toyota Prius. We now have an
additional product line that is based on hybrid cars. We have launched hybrid cars which
help consumers save petrol oil. Due to the increased safer productions, the Toyota
Company will be able to focus on more environmental friendly vehicles. The faster the
production and introduction of newer environmental friendly vehicles, the more the sales
Toyota will be able to make. The company will focus heavily on hybrid vehicles as it
tries to drive further growth. The company aims to improve the fuel efficiency of hybrid
vehicles and launch 15 new models in the next two years.
Toyota is the worlds top-selling automaker and its hybrid Prius is already popular in
major markets worldwide. Its Aqua model, marketed in Japan, has a strong domestic
following. Speaking at a shareholders meeting in Nagoya, Toyoda said the company
plans to aggressively plant seeds now, when we can put our resources for the future. He
suggested the firm would achieve sustainable growth by prioritizing worker training as
well as R&D. Toyota also said the automakers management has certainly been
bolstered, as it logged a group operating profit of almost 2.3 trillion for the fiscal year
that ended in March, a new record high after a six-year slump.

Toyota has an aim for an auto industry first by reaching annual sales of 10 million
vehicles by 2015 even as it acknowledges that overly rapid growth was at the root of its
recall fiasco. Toyota President Akio Toyoda gave the 10 million figures while outlining
the company's "global vision" in his first major strategy announcement since the recall
As the percentage of production defect decrease, more unit of defect free cars increase.
The amounts of defected cars that will bought by customers will decrease, and more
customers will be happy as the cars that they bought has no defect and are in good
condition. This will later decrease the number of customer complaints regarding defected
cars and increase customer satisfaction as they are happy with their cars. When people
saw that our car is safe and defect free, this will attract them to buy, thus this will
increase the number of new customers and number of cars sold.
As the time of introducing new cars that are safer and environmentally friendly is reduced,
Customers will have more option in buying cars, then customer surveys should show
greater satisfaction with range of options available. If customer satisfaction improves,
the company should be able to maintain and increase its selling price which will lead into
increase in number of cars sold and later increase the residual income. Besides that,
innovative new cars will also attract new customers and later increase the number of cars
As shown in the figure below, the numbers of cars sold has started to increase
dramatically in 2013; our goal to reach 10 million sales in 2015 is nearer.

Below are the customer feedbacks for Toyota.
In Japan
When I had an accident in my LS, I was protected, surrounded by the airbag and side-
cushioning. I truly believe it is an extremely safe car.-anonymous
My car was struck from behind; causing it in turn to hit the car in front, but nobody was
harmed. Toyota's technology saved me.-anonymous

And, below is the customer satisfaction evaluation table for Toyota. As you can see
Toyota (Lexus) has a changed of 2.4% and Toyota 3.5% in customer satisfaction.


With the decrease of production defects, the cost to repair the defects will be able to be
cut down which saves a large amount of cost which is supposed to be occurred into repair
accounts. This will increase the contribution margin.

When customers satisfaction increases, they will more likely to purchase car again from
us, thus increasing the number of cars sold, thus, contributing to the contribution margin
and residual income. As safer and environmentally friendly cars are introduced, this will
attract more customers to buy cars, thus, contribution margin and residual income will
increases. Below has proven that our company revenue has increased by using the
balanced scorecard.

Refgb r
Net Revenue Operating Income Net Income and ROI