ACKNOWLEDGEMENT

so many people have helped us in many ways that share their experience & knowledge with immense gratitude and regard, we would like to thanks our respected assistant professor sir Saleh Memon for giving us this golden opportunity of preparing this report through which we availed the chance of preparing formal report of given company and getting practical knowledge

TOYOTA Indus motor co. 1. INTRODUCTION 1.1 VISION AND MISSION: "IMCs Vision is to be the most respected and successful enterprise, delighting customers with a wide range of products and solutions in the automobile industry with the best people and the best technology". The most respected. The most successful. Delighting customers. Wide range of products. The best people. The best technology. Mission of Toyota is to provide safe & sound journey. Toyota is developing various new technologies from the perspective of energy saving and diversifying energy sources. Environment has been first and most important issue in priorities of Toyota and working toward creating a prosperous society and clean world. 1.2 Company profile Indus Motor Company (IMC) is a joint venture between the House of Habib , Toyota Motor Corporation Japan (TMC) , and Toyota Tsusho Corporation Japan (TTC) for assembling, progressive manufacturing and marketing of Toyota vehicles in Pakistan since July 01, 1990. IMC is engaged in sole distributorship of Toyota and Daihatsu Motor Company Ltd. vehicles in Pakistan through its dealership network. The company was incorporated in Pakistan as a public limited company in December 1989 and started commercial production in May 1993. The shares of company are quoted on the stock exchanges of Pakistan. Toyota Motor Corporation and Toyota Tsusho Corporation have 25 % stake in the company equity. The majority shareholder is the House of Habib. IMC's production facilities are located at Port Bin Qasim Industrial Zone near Karachi in an area measuring over 105 acres.Indus Motor company's plant is the only manufacturing site in the world where both Toyota and Daihatsu brands are being manufactured Heavy investment was made to build its production facilities based on state of art technologies. To ensure highest level of productivity world-renowned Toyota Production Systems are implemented. IMC's Product line includes 6 variants of the newly introduced Toyota Corolla, Toyota Hilux Single Cabin 4x2 and 4 versions of Daihatsu Cuore. We also have a wide range of imported vehicles.
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2. Company Operating Performance

The combined sales of Toyota and Daihatsu brands (CKD and CBU) for the quarter ended March 2011 recorded a growth of 7% to 15,084 units as compared to 14,145 units sold for the same quarter last year. Ongoing improvement in all areas of manufacturing enabled the plant to operate efficiently and at full capacity to meet the market demand. The production of PC and LCV for the quarter also increased by 5% to 14,969 units as against 14,203 units produced for the same quarter last year. IMC market share for the quarter ended March 2011 was 32% as compared to 36% achieved for the same quarter last year. On year to date basis, the sales volume of Toyota and Daihatsu brands (CKD and CBU) increased by 7% to 37,987 units from 35,445 units, while the production at 38,451 units was up by 9% compared to 35,322 units produced for the same period last year. The Company's sales revenue for the nine months ended March 2011 increased to Rs 45.3 billion, up 13% as compared to Rs 40.1 billion posted in 2010, while profit after tax fell by 26% to Rs 1.6 billion compared to Rs 2.2 billion for the same period last year. Decline in the nine months profitability is mainly attributable to manufacturing operations affected by rising input costs in international markets further compounded with the deterioration of the Rupee and other inflationary pressures that the Company has absorbed in order to cushion the adverse impact on our valued customers. The Company recently unveiled the new Corolla model 2011. The New Corolla incorporates an elegant and sporty design in an advanced and dynamic form, and embodies class-above overall quality. The New Corolla has a refreshed front end that promotes sleeker look and stable driving experience. The feedback from our valued customers in the market is positive we expect the product to perform well.

3. VALUE CHAIN ANALYSIS OF TOYOTA Indus Motors Co. The value chain is a systematic approach to examining the development of competitive advantage. It was created by M. E. Porter in his book, Competitive Advantage (1980). The chain consists of a series of activities that create and build value. They culminate in the total value delivered by an organization. The 'margin' depicted in the diagram is the same as added value. The organization is split into 'primary activities' and 'support activities.'

4. Primary Activities 4.1 Inbound Logistics: Here goods are received from a company's suppliers. They are stored until they are needed on the production/assembly line. Goods are moved around the organization. Toyota motors purchase their raw material from all around the world. In order to maximize their availability of raw material Toyota motors maintain good relationship with their suppliers. Toyota use JIT (Just In Time) approach for handling of raw material. 4.2 Operations: This is where goods are manufactured or assembled. Individual operations could include organizing the parts to make new cars & the final tune for a new car's engine. Toyota motors are known for their reliability which comes from efficient operations.

4.3 Outbound Logistics: The goods are now finished, and they need to be sent along the supply chain to wholesalers, retailers or the final consumer. Toyota motors manage their own Show rooms in different countries. Toyota motors make their product easily assessable. 4.4 Marketing and Sales: In true customer orientated fashion, at this stage the Toyota motors prepares the offering to meet the needs of targeted customers. This area focuses strongly upon marketing communications and the promotions mix. 4.5 Service: This includes all areas of service such as final checking, after-sales service, complaints handling, training and so on. Toyota value their customers 5. Support Activities 5.1Procurement: This function is responsible for all purchasing of goods, services and materials. The aim is to secure the lowest possible price for purchases of the highest possible quality. Toyota motors will be responsible for outsourcing (components or operations that would normally be done in-house are done by other organizations), and e-Purchasing (using IT and web-based technologies to achieve procurement aims). 5.2 Technology Development: Technology is an important source of competitive advantage. Companies need to innovate to reduce costs and to protect and sustain competitive advantage. Toyota motors implemented production technology, Internet marketing activities, lean manufacturing, Customer Relationship Management (CRM), and many other technological developments. 5.3 Human Resource Management (HRM): Employees are an expensive and vital resource. Toyota motors manage recruitment and s election, training and development, and rewards and remuneration. Toyota motors consider their employees as HUMAN CAPITAL. The mission and objectives of the Toyota motor is the driving force behind the HRM strategy. Toyota motors uses following techniques to retain their employees: Recruitment Selection Training and development
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Compensation Maintenance

6. Firm Infrastructure: This activity includes and is driven by corporate or strategic planning. Toyota motors implemented Management Information System (MIS), and other mechanisms for planning and control in different departments

Marketi ng

Product ion

R &D

Custom er

7. FINANCE COSTS This includes impact of unrealised gain on revaluation of foreign exchange contracts amounting to Rs. 102.990 million. 8. SUGESSIONS & RECMENDATIONS 1. Toyota motors should use Value Coalitions for better use of their under utilized recourses. Toyota develops synergies among their recourses
2. Toyota should use design to maximize the performance of their operations. Using the value chain approach, processes that provide direct value to the customer are modeled first Derivative processes that support the value chain processes are modeled to support the value chain. 6

9. TOYOTA Company Functional and Process Based Designs Marketing Finance Sales Engineerin g Manufacturi ng Distributio n

FUNCTIONAL DESIGN

PROCESS DESIGN

Desi gn Car

Buil d Car

Mark et Car

Deliv er Car

10. Reference source http://www.toyota-indus.com/ http://en.wikipedia.org/wiki/Toyota economist magazine