Part C : Toyota 's Financial Analysis

INTRODUCTION Toyota is one of the world’s best-known and most successful businesses, building cars and trucks in 27 countries for sale in more than 170 markets around the globe. Worldwide production was 9.5 million (8.5 million for Toyota and Lexus brand vehicles) in 2007, placing Toyota Motor Corporation (TMC) firmly among the world’s leading vehicle manufacturers. This result keeps it on course to achieve its ambition of becoming the world number one by the end of the decade, with a 15 per cent market share.

Toyota has a huge operation and distribution system around the global. Whereas it affiliates through more than 50 companies in 27 countries apart from Japan. These companies are produce automobile related parts and components for Toyota and also distribute vehicles to their related regions (Market line, 2014). This could be a major competitive advantage from other automobile manufacturers while Toyota geographically well spread and has wide distribution network than

For my project I have chosen a Toyota Motor Corporation (TMC) – an international automobile manufacturer. In addition, Toyota provides retail and wholesale financing, retail leasing and certain other financial services primarily to its dealers and their customers related to vehicles manufactured by Toyota. The major portions of Toyota 's operations on a worldwide basis are derived from the Automotive and Financial Services business segments. The Company also has an All Other segment, which includes its non-automotive business activities. The most significant of Toyota 's other operations are its information technology (IT)-related businesses and pre-fabricated housing.

Bodek, Norman. “The Toyota Secret: Constant Change and Growth.” Industry Week. 8, Aug. 2007. .

Ratios for return on assets and return on equity offer support for the loss in stockholders’ equity. Return on assets went from 13.1 in 2000 to 5.1 in 2001 and return on equity dropped from 25.4 in 2000 to 8.7 in 2001. Return on equity represents return on assets divided by the difference of 1 and debts/assets. This supports the conclusion that cost of sales, a reflection of asset investment, is most responsible for the lackluster net income of 2001. The price/earnings (P/E) ratio further demonstrates the fluctuation in value to stockholders from 1998 to 2001.

Interrelated variables account for the decisions of per capita purchases for adults in considering automobile acquisitions. Most mainstream automotive manufacturers offer different models to fit each market segment based primarily on the customer’s age, purchasing power, and lifestyle. Depending on the market segment that an individual can enter into based upon their budget restrictions, a myriad of options are available based on one 's lifestyle and automotive requirements. Today, automobile manufacturers offer compacts, intermediates, large, and premium size vehicles with correlating body styles such as coupe, sedan, sport utility, pickup trucks, and even crossovers. Utilizing a popular automobile manufacturer for an example of this observation, Toyota is currently considered to be the world’s largest automobile company (Holt, 2015). As of late, Toyota has also been the most successful automotive company. Recently plagued with accelerator, braking, and steering issues with their popular hybrid models, as well as supply chain disruptions in Japan’s recent tsunami disasters, Toyota has succumbed in its success to Volkswagen with a recent posting of 5.04 million vehicles sold worldwide in the second quarter of 2015 to Toyota’s posting of 5.02 million vehicles sold worldwide (Tuttle, 2015). The loss of market share by Toyota was due, in part, to lack of contingency plans for supply chain disruptions, which is liken to the biblical principle: “where there is no vision,

The Toyota Motor Corporation was founded in Japan in 1937 by Kiichiro Toyoda (Abdulmalek & Rajgopal, 2007, p. 225). It was an offshoot of his father’s company, Toyota Industries, and Kiichiro purposed it to create automobiles. Today, Toyota is involved in designing, manufacturing and assembling motor vehicles for sale around the globe. As of March 31st, 2014, Toyota had 338,875 employees from all around the world (Toyota, 2015). Some of Toyota’s most popular brands are the Lexus series, Prius, Camry, Noah and the Corolla (Toyota, 2015). It is currently the most valuable automotive brand in the world, and in October 2014, it was ranked the best automotive brand worldwide for the 11th year in a row. This paper aims will explore the motor vehicle industry as it is today, the rise of Toyota as an international brand with respect to how it penetrated the American market, a detailed look at Toyota’s supply chain system and the role it had to play in its success, the Toyota Learning Principles, and the v4L Framework, the biggest competitors it faces in today’s industry and conclude with how it gives back to the community.

When Toyota managers as well as its executives were interviewed, they are asked why the company was there as a business. Based on their opinion, it is evident that the company’s success is a result of motivation and consistence in their labor. In addition, they argued that the purpose of the company is not to make money. The company only makes money in order to focus on the future. The company invests in order to ensure that it continues to grow and develop in investments. According to managers and executives response, it is evident that Toyota makes money to help the community in many ways.

Team C examines the channeling and pricing strategies of the Toyota Motor Corporation for the team’s product launch. The assignment explores the appropriate channel strategy for both the domestic market as well as the international market through direct exporting channels. The team justifies Toyota international market through extensive research on the chosen product. According to Toyota New Release “Toyota Motor Corporation (TMC) announces that cumulative sales in Japan of its hybrid vehicles have topped the one million mark, while more than 2.68 million units have been sold globally as of July 31, 2010” (Sales in Japan

The global economic interdependence for corporate Toyota is very important in order to increase revenue sales by focusing on both purchasing vehicle parts and materials from specific countries and as well as in increasing market share in each region in where they do business. Toyota must also consider the targeting of specific groups and classes of people within a country because those groups may be dependent on the success of Toyota. The effect of trade practices and agreements play a major role in Toyota’s strategies and operations within the boundaries of countries. For instance, Toyota must consider different trade barriers,

According to Toyota website (2016) CSR Management, reported the company financial strategies are based three key priorities: growth, efficiency, and stability. The three priorities equally balance over the average to extended term will permit they accomplish stable and supportable growth and results into raise corporate value

Toyota Motor Corporation (NYSE:TM) is a Japan-based company. The Company operates through three business segments, which are Automobile, Finance, and Other segments. Toyota’s Automobile segment includes design, manufacture and sale of car products including passenger cars, minivans and trucks, as well as the related parts and accessories. The Finance segment is involved in the provision of financial services related to the sale of the Company's products, as well as the leasing of vehicles and equipment. The Others segment is involved in the design, manufacture, and sale of housings, as well as information and communication business .

Financial performance. According to Toyota’s 2014 Form 10-K, the company 's sales in U.S failed dramatically over the past five years because of a safety problem that Toyota had in 2006. However, the management division of Toyota returned the company to profitability in 2011. In 2012, the earthquake affected company production everywhere, including the United States market. Nevertheless, over the next five years, Toyota’s revenue is expected to grow from 1.8% to $17.6 billion. Toyota still has status in the market because of new competitive market in vehicle technology. The following chart shows that current

Toyota Motors Company is multinational Japanese automobile manufacturer, a corporation that has it 's headquartered at Toyota, Aichi. Toyota Motors are the largest world’s manufacturer of the automobiles about the data of 2013 by the number of vehicles. Toyota was also the biggest producer of the cars in 2012 and has been the first an automobile manufacturer that produced ten million vehicles per year. It is also listed the most major manufacturing company in Japan of the market capitalization and revenue. The motors industry produces its vehicles under the five viz. Toyota, Lexus, Ranz, Hino and Scion. Toyota Motors Company also has joint ventures that are Toyota Kirloskar based in India, GAC Toyota and the Sichuan

Public interest in automobiles is very high, that is glimpsed as a potential market by car manufacturers. Alternative elections for consumers in the purchase of the car more and more can be seen from the side of the brand, price and type (class). The condition shows the high competition in the automotive industry. PT.Hadji Kalla as one of the dealers of Toyota car for Sulawesi region has a experiencing the impact of the high-intensity competition. Based on the market share of the national automotive industry in 2013 until 2015, Toyota has continued to decline, although still remain in first position with a market share of 35.70% in 2013 and then dropped to 33.40% in 2014 and in 2015 decreased return to 32.10%. Toyota Car Sales in Sulawesi within the last three years has decreased both in terms of number of units and the acquisition of market share.