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Table of Content
Acknowledgement
Introduction
Industry Analysis
History of Company
Order-Winning Criteria
Conclusion

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ACKNOWLEDGEMENT
Assalamualaikumwarakhmatullahiwabarokatuh.
First of all, thanks to ALLAH S.W.T for his mercy and guidance in giving me strength to
complete this individual assignment task. Even facing with some difficulties in completing this
task, I still managed to finish it.
A lot of thanks to my lecturer, Sir Muhammad Sazri bin Khamis who had taught me and
my classmates the Relationship Marketing subject. I appreciate your kindness and tolerant in
teaching us in class for time being. Besides that, I also appreciate your guidance and advice in
order to complete this assignment.
Then, I would like to appreciate and thanks to my parents, for supporting me mentally
and physically not just during finishing this assignment but also during my whole studies.
Lastly, I also would like to thank each and every person who directly or indirectly helped
me in completion of this assignment especially my friends and classmates.

1.0 INTRODUCTION
Toyota Motor Corporation is a well-known Japanese Multinational Corporation and founded by
Kiichiro Toyoda. This company is the worlds second largest manufacturer of automobiles,
trucks, robots and buses. Toyota Motor Corporation is a Japanese automotive manufacture
headquarters are in Toyota, Aichi, Japan. Toyota has been hits unexpected around the world with
its bestselling car which is the Toyota Corolla which was released in 1966. As of 2013, Toyota
Corolla has been sold worldwide about more than 40 million. This is the first step for Toyota to
introduce its brand to around the world by followed proven a luxury car brand in 1989 named
Lexus. This brand became a huge hit with the public and went on to outsell established brands
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like BMW, Mercedes-Benz, Jaguar and others. After 50 years since Japanese company started
exporting cars to the United States, almost a decade since Toyota launched the worlds first
commercial hybrid the worlds first mass-produced gasoline-electric hybrid car, the Prius only
in Japan in 1997. This car representing 65.4% of the 8 million hybrids car sold worldwide by
Toyota Motor Company since 1997 and this makes Toyota become the worlds successful
automobile manufacturer. For the first time, in 2008 Toyota becomes the largest automobile
manufacturer in the world and also becomes the worlds first automobile manufacturer to
produce more than 10 million vehicles per year. In 2012, Toyota had become ahead of the
Volkswagen Group and General Motors by production. In March 2014, this multinational
corporation consisted of 338,875 employees worldwide and as of November 2014, this company
becomes the eleventh largest company in the world by revenue.

2.0 INDUSTRY ANALYSIS

Today, the automotive industry is one of the biggest industries and one of the worlds most
important economic sectors by revenue. But, the automotive industry is now facing new and
pressing challenges. The automotive industry is highly competitive, and Toyota Motor
Corporation competes in the automotive industry. Toyota is not about becoming number one in
the global automobile industry in terms of how many automobiles Toyota manufactures or sell in
a year, or about generating the most sales revenues and profits, but being number one is about
being the best in the world in terms in quality on a sustained basis. Toyotas keys to build a
stronger foundation; we must improve product quality, keep reducing costs, and develop human
resources.
2.1 Capital Market Risk
According from interviews with Katsuaki Watanabe, in Lessons from Toyotas Long Drive, he
said that as Toyota wants to continuous to expand outside Japan, the company will face market

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risk, which will vary from country to country. They will use the concept of leveling fluctuations
(heijunka), which is part of the Toyota Production System to reduce the risks. For example, the
condition in some Asian markets, such as Taiwan and Indonesia are still tough. Japans economy
is doing better, but the automobile market is stagnant except for the minivehicles whose
engines have less than 660 cc capacity. When the problems like this arise that are short-term
demand fluctuations in one market, the company uses their operations in Japan to support them.
2.2 Growth and Globalization Risk
Toyota has continued to grow very rapidly. Toyota had opened about a dozen new facilities
during that period, and also builds five more plants. The facilities in China and the United States
and seen the new plants that they have been building in Thailand, Canada, China and Russia
surely have facing distinct challenges and difficulties that makes the systems be overstretched.
The actions taken by Katsuaki Watanabe is they will try their best to keep hidden problems and
try to solve it efficiency.

2.3 Rivalry among Competitors

1) Japan
There was rivalry between Nissan and Toyota before Toyota had entered the American
market resulted in a great cost advantage for Toyota over American car companies. The
rivalry between those companies was fierce, looking for ways to cut their costs and make
better cars at the same time.
2) United States
There was rivalry between Ford and General Motors with Toyota. Although American
small cars were cheap, they were not as reliable as Japanese cars. But now, American car
companies were seen as getting sloppy about quality. Besides that, Volkswagen also
becomes a rivalry to Toyota too.
2.4 Buyer and Supplier Bargaining Power
Rental car would have some sway over car prices when they bought large quantities of Toyota
cars but not enough to affect overall prices. Meanwhile, suppliers would extract a lot of the
profits from cars companies; however there were many suppliers, so supplier bargaining power
was negligible.

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2.5 Substitutes
Local transport or mass transit is a substitute to cars if you live in a big city. Many people would
prefer to drive instead of taking buses, subways, or taxis.
2.6 Cooperation between Companies
There were very few instances of cooperation between car companies. No instances of collusion
to fix prices the competition was fierce to lower the car prices and increase quality.

3.0 HISTORY OF COMPANY

The history of Toyota Automobiles Company was begun in 1933 as a new division of Toyota
Automatic Loom Works, Ltd founded by a Japanese manufacturer, Sakichi Toyoda. The new
division was under the leadership of founders son, Kiichiro Toyoda. Kiichiro Toyoda had
traveled to Europe and United States in 1929 to explore about automobile production and had
begun researching gasoline-powered engines in 1930. Toyota Automatic Loom Works, Ltd was
encouraged to develop automobile production by the Japanese government, which needed
domestic vehicle production due to the war with China. Its first vehicles were the A1 passenger
car and the G1 truck in 1935. After that, in 1937 the company was established as independent
and separate company renamed as Toyota Motor Corporation. The company was eventually
founded by Kiichiro Toyoda as a spinoff from his fathers company Toyota Industries to create
automobiles.
Toyota Motor Corporation produces vehicles of five brands. There are including Toyota brand,
Hino, Lexus, Ranz, and Scion. It is also holds a 51.2% stake in Daihatsu, a 16.66% stake in Fuji
Heavy Industries, a 5.9% stake in Isuzu, and a 0.27% stake in Tesla, as well as joint-venture with
two in China (GAC Toyota and Sichuan FAW Toyota Motor), one in India (Toyota Kirloskar),
one in the Czech Republic (TPCA), along with several nonautomotive companies. In addition,
Toyota Motor Corporation is part of the Toyota Group, one of the largest corporations in the
world.

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Besides that, Toyota also has several facilities that been provided to their workers. Toyota further
provides great new knowledge centers for the public such as museums and plant tours. These
facilities are Research and Development Center, Japanese Production Sites, Worldwide
Operations, Plant Tour and Toyota Kaikan Museum, Toyota Kuragaike Commemorative Hall,
Sakichi Toyoda Memories House, Toyota Automobile Museum and lastly Toyota
Commemorative Museum of Industry and Technology.
4.0 ORDER-WINNING CRITERIA
4.1 The Toyota Way
Based on from in order-winning criteria of Toyota, Toyota has developed business beliefs and
methods are known as The Toyota Way. In Toyota adopted the Toyota Way 2001, an
expression of beliefs and guidelines that all Toyota employees should embrace in order to carry
out the Guiding Principles at Toyota throughout
the companys global activities.
The Toyota Way is supported by two main pillars,
which are Continuous

Improvement and

Respect for People. Toyota summarizes its

beliefs and methods with following principles;
challenge,

kaizen

(improvement),

genchi

genbutsu (go and see for yourself), respect and

teamwork. By all these principles, Toyota is
never satisfied with where they are and always work to improve their business by putting
forward new ideas and working to the best of their abilities. Toyota also respects with all Toyota
stakeholders, and believe the success of business is created by individual and effort and good
teamwork. This is show how Toyota are trying to maintain their efficiency and effectiveness
meanwhile keeping this weapon secret as becoming the successful company around the world.
4.2 Five Secrets to Toyotas Success
Besides that, there are also criteria of order-winning that highlight some of reasons for Toyotas
success. Based from the author of How Toyota Become #1, David Magee, he stated that the
reasons are Toyota using the long-term planning, because they wants look far down the road
and try to develop products that will resonate for a long time. The best examples are the Prius
hybrid car, which has helped Toyota take a commanding lead in hybrid technology. Next,
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studious speediness shows that Toyota is not rush in making decisions and actions even though
their suppliers having complains that Toyota are slow in making decision. But they will do lots of
researches to make sure and created new innovation and improvement for their products day per
day. Another reasons that has been stated by the author, David Magee are Toyota also become an
open minded by learned many of its early lessons from Americans, and also studying Ford
Motors Co.s production lines and the theories of management. Furthermore, Toyota be
obsession with waste for its production to continuous improvement for its products and being
humility with everyone, which the Toyotas company culture highlights teamwork over
individual stars. For examples, at Toyota companies, the manager doesnt even get a reserved
parked space, a perk that is practically universal among manufacturing companies. This is shows
that the most humble company and how Toyota manage their company to become so successful
and efficient company through around the world.
4.3 Five Main Principles of Toyoda
The Five Main Principles of Toyoda are a written statement of the teaching of Sakichi Toyoda
collected and arranged by Risaburo Toyoda and Kiichiro Toyoda. This principles were first
released on October 30, 1935, the fifth anniversary of Sakichis death. Since that, these five main
principles of Toyoda have been handed down to every Toyota Group company and serve as
conduct guidelines for all employees.

Always be faithful to your duties, thereby contributing to the Company and to the

overall good.
Always be studious and creative, striving to stay ahead of the times.
Always be practical and avoid frivolousness.
Always strive to build a homelike atmosphere at work that is warm and friendly.
Always have respect for spiritual matters, and remember to be grateful at all times.

4.4 Guiding Principles at Toyota

Since its establishment, Toyota has been using its Guiding Principles that created in 1992 and
revised it in 1997. This principle was designed to produce reliable vehicles and sustainable
development of society by employing innovative and high quality products and services. There
have seven principles at Toyota, had been translated from original Japanese:

Honor the language and spirit of the law of every nation and undertake open and fair
business activities to be a good corporate citizen of the world.

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Respect the culture and customs of every nation and contribute to economic and social

development through corporate activities in their respective communities.

Dedicate our business to providing clean and safe products and to enhancing the

quality of life everywhere through all of our activities.

Create and develop advanced technologies and provide outstanding products and

services that fulfill the needs of customers worldwide.

Foster a corporate culture that enhance both individual creativity and the value of

teamwork, while honoring mutual trust and respect between labor and management.
Pursue growth through harmony with the global community via innovative

management.
Work with business partners in research and manufacture to achieve stable, long-term
growth and mutual benefits, while keeping ourselves open to new partnerships.

All of these criteria in order-winning of Toyota show us the real characters of Toyota in
consistency and efficiency in their production, their values and beliefs and also methods how to
achieve their goals in continuous improving and also want try the best to fulfill the needs and
wants of customers.

5.0 CONCLUSION
Starting with the values by Sakichi Toyoda, learned from his father Kiichiro Toyoda has
successfully to introduce the Toyota brand throughout the world, and achieved to establish a
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successful automobile car company around in the world. How Toyota becomes to be so
successful? It is its values, which is the Toyota Way values that has two values of continuous
improvement, and respect for people and the specifics of how those values are actually practiced
by Toyotas people. More than that, Toyota also always focused on keeping the improving
quality, faces the challenges efficiency and effectively, and try creating new innovation for their
products. There are some quotes from Toyotas president, Katsuaki Watanabe, he just said that
We have been humble; that has been the traditional Toyota character. Now, of course, we
constantly remind ourselves, dont be arrogant. This makes Toyota has become one of the most
successful, admired, and imitated companies in the world.

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