TOYOTA- The Rise of a Global Corporation
(12010121196) Ms. N AMULYA REDDY (12010121213) Ms. NIKITA SINGHANIA (12010121276) Mr. REUBEN JOSEPH (12010121032) Mr. AMIT KUMAR JENA (12010121057) Ms. ARPITA DEB (12010121316) Ms. SAYONEE DATTA
Submitted To: Dr. Ravi Raj Kumar.
At an outset we would like to express our profound gratitude to all the people who helped us directly or indirectly in completing the project. We thank Alliance University, the institution that has been working towards its noble mission of providing quality and holistic knowledge to its students. We sincerely express our gratitude to our Dean, Dr. Ravi Raj Kumar for the benevolence he ...view middle of the document...
In its inception Toyota manufactured cars through mass production system. Mass production system was developed by Henry Ford found of Ford Motor Co. At that Time Mass production system was considered the most ideal method for manufacturing cars, but Taiichi Ohno a production engineer found some flaws in the method. So, he tried to introduce some changes in this method. The method he established was later known as lean production system. Since its development Lean production system has always worked as the competitive advantage for Toyota for making quality cars for a very affordable price. What started in 1937 with a single plant has now become an enormous company with 52 plants in 26 countries. In the financial year ending March 2007 it earned $11 billion net profits on sales of $152 billion. By some measures it also surpassed General Motors to become the largest automobile company in the world. Toyota’s core business is the manufacture and sale of automobiles. A successful company they have a presence in more than 170 countries. However the vehicle industry as a whole faced with a huge threat to its survival. Oil accounted for 95% of global energy used for transportation also other factors including energy security, concerns over carbon emissions from burning fossil fuels and increasing demands for fossil fuels (and cars) in emerging economies has been pushing, and will continue to push, up the price of oil. As a result of these factors, the cost of petrol, used to power Toyota’s cars, was predicted to rise significantly, making Toyota’s products less attractive to customers. This prediction was correct, with the monthly cost of filling up an average car in 2008 was exceeding £100 for the first time in history. In addition, Toyota knew that automotive were a significant source of carbon dioxide emissions and energy use. At the time consensus was growing amongst key stakeholder groups that CO2 emissions were causing global warming, a process where these gases form a blanket around the Earth, trapping energy from the sun causing the climate to change unnaturally, which would eventually demand global countermeasures which were likely to include measures governing emissions from automotive. Both of these issues posed a severe threat to Toyota’s core business as a car manufacturer. The company could predict that increased costs and changes in customer attitudes could damage their sales internationally, while governments were likely to penalize heavy emitters through taxes and legislation.
The Challenge The challenge for Toyota was to acknowledge the potential threat of depleting oil reserves and climate change and change their strategy or products to meet the needs of future customers. The Response Toyota set up a group tasked with meeting the challenge of creating a vehicle for the 21st century, which would work within the parameters of natural resource constraints and environmental issues. Toyota pioneered the concept of Hybrid...