PREMIER UNIVERSITY

TERM PAPER Title:- The International Distribution Channel of Toyota Submitted For:Mrs. Sultana Razia Chowdhury Assistant Professor Faculty of Business Studies Premier University, Chittagong.

Submitted By:Name:- Shuvodip Chowdhury Programm:- BBA Major:- Marketing Student ID:-0613111465

Submission Date:- 18-10-2011

PREMIER UNIVERSITY

TERM PAPER Title:- The International Distribution Channel of Toyota Submitted For:Mrs. Sultana Razia Chowdhury Assistant Professor Faculty of Business Studies Premier University, Chittagong.

Submitted By:Name:- Shuvodip Chowdhury Programm:- BBA Major:- Marketing Student ID:-0613111465 Submission Date:- 18-10-2011

LETTER OF TRANSMITTAL

To The Supervisor, Faculty of Business Studies Premier University, Chittagong. Sub:- Prayer for accepting term paper. Madam, I beg to state that I am a student of business faculty of premier university, chittagong. My major was Marketing. and my ID is:0613111465. Recently you give us term paper topics. My Term paper topic is The international Distribution channel of Toyota. I try my level best to collect information as much as I can. I hope that you would be kind enough to accept my term paper and oblize there by. I remain Madam Date:- 18-10-2011 Your most obedient pupil Shuvodip Chowdhury Programm:- BBA Student ID: 0613111465

ACKNOWLEDGEMENT At the beginning of the term paper, I am grateful to the Almighty God to help me to complete my term paper successfully and within a time. Without his blessings, it is not possible for me to complete my term paper within just time. Then I would like to give thanks to my supervisor Mrs. Sultana Razia Chowdhury, Honourable Assistant professor of marketing department of Premier University who give me this type of exciting topic. At the time of collecting information, I learn many things about Toyota. Finally I also like to thanks Mr, Nasimul Gani, Mr, Sayed Irshad Raihan, the honourable Deputy manager of Chittagong sales office of Toyota motors who provide me information as much as they know. Other staffs also provide information. I also thankful to the Mr. Atiqur Rahman Sazib who provide me many information.

TABLE OF CONTENTS Chapter:- A ***** Introductory Aspects:A.1 Introduction A.2 Objectives A.3 Methodology A.4 Scope A.5 Limitations Chapter:- B ****** Theoratical Aspects Chapter:- C ****** Practical Aspects:C.1 Sample enterprise at a glance C.2 Findings C.3 SWOT Analysis C.4 Summarized View

Chapter:- D ***** Concluding Aspects:D.1 Conclusion D.2 Recommendations D.3 References D.4 Appendixes

Statement of Problem **** Topic Name:The International Distribution Channel of Toyota.

**** Reason For Selecting Topic:Toyota Car is famous in world wide. In Brand position, it is now in 11th position within the other brand. But I did not have enough Knowledge about Toyota Car. From that perspective, I select this Topic to know something new about the Toyota Company and their Car.

OBJECTIVES To Find out the information regarding international distribution Channel of Toyota. It was primary target. I also try to cover Toyota Car Designing, Raw Material Sourcing, Toyota Car Manufacturing process.

METHODOLOGY

**** Way of Collecting Information:For collecting information at first I made up a MCQ type Questionnaire for the Corporate officials who directly related With the sales of Chittagong. I also collect information from the Dhaka office. I took three persons interview. They provide me Information as much as they know. They also advice me to visit Global website of Toyota, for collecting information. **** Technique Used:==== Questionniare. ==== Interview.

Address of Website:- www. Toyota-global.com

SCOPE **** Organization Name:Toyota Motor Corporation **** Covering Area of Organization:I mainly emphasized on the Toyota Car Designing, Raw Material supplier of Toyota Car, Manufacturing process of Toyota Car, and finally my topic international distribution channel of Toyota. I collect information from the Dhaka and chittagong sales office of Toyota Car. In Bangladesh, Toyota Car distribution work is control by the Navana Limited. **** Address of Chittagong Office:Quadery Chamber ( ground floor), 37 Agrabad C/A, Chittagong. **** Address of Dhaka Office:125/A Motijheel C/A, Dhaka-1000, Bangladesh.

LIMITATIONS At the time of collecting information, I did not face any big problem as I imagine before. But inexperience problem was a little bit problem for me. If I studied one course Marketing Research before, it was most likely easy for me doing this research work comfortably.

THEORATICAL ASPECTS

SUPPLIER A firm or individual that provides the resources needed by a company And its competitors to produce goods and services.

DEALER An individual or firm willing to buy or sell securities for their own Account. He purchases goods and services for resale to consumers.

DISTRIBUTION CHANNEL A path through which goods and services flow in one direction (from Vendor to consumer) and the payments generated by them that flow In the opposite direction ( from consumer to the vendor).

SAMPLE ENTERPRISE AT A GLANCE

PARENT COMPANY:Toyota Group MAIN COMPANY NAME:Toyota Motor Corporation (TMC)

Main Head Quarter of Toyota in Japan LOCATION OF HEADQUARTER **** Aichi Prefecture in Toyota City. **** Tokyo office is in Bunkyo, Tokyo. **** One office located in Nakamura-ku, Nagoya.

ESTABLISHMENT YEAR In January, 1937 FOUNDER OF THE COMPANY Sakichi Toyoda

OTHER BUSINESS ****Established Power Plant in Japan. **** Established Educational Institution related with Technology. VISION Rewarded with a smile by exceeding your expectations. ---- Toyota will lead the way to the future of mobility, enriching lives Around the world with the safest and most responsible ways of Moving people. ----- Through our commitment to quality, constant innovation and Respect for the planet, we aim to exceed expectations and be rewarded With a smile.

------ We will meet challenging goals by engaging the talent and Passion of people, who believe there is always a better way.

PHILOSOPHY **** 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.

MARKET AREA Toyota is a multinational company. It has large markets in all over the world.

FINDINGS When I started to collect information, my misconceptions about Toyota are being removed. I try to collect information on the Following matters:**** Toyota Car Design **** Raw Material Sourcing

**** Toyota Car Manufacturing ****** Toyota Car Distribution

I describe those matters one by one:-

TOYOTA CAR DESIGN Toyota Car designing are not limited within japan. Some designing Work have done in japan, but some are designed outside the Japan.

IN JAPAN **** Head office of Toyota Design- Toyota City, Aichi **** Tokyo Design Research and Laboratory- Hachioji city, Tokyo

OUT SIDE JAPAN **** Calty Design Research Inc.- Newport Beach, California. **** Toyota Europe Design Development- one in Brussels, one in France. **** Shanghai Design office Shanghai Design Department Toyota Motor Technical Center (china) co. Ltd.

TOYOTA CAR DESIGNING STEPS At the time of designing, following steps are followed:CONCEPT MAKING

The car design process begins with a design concept. Having been briefed on the development goal, the target customer profile, and other aspects of the vehicle development plan, the design team first thinks about the car design concept. The designers research their own market and, bearing in mind the latest trends and other factors, explore what themes meet the customers needs. There follows exhaustive discussions until designers are satisfied with a shared vehicle image as the concept.

**** Idea Sketch- Freehand

The first step in giving expression to the image in the designer's head is to make a freehand idea sketch. Taking into account the concept adopted, and the various conditions set at the conceptmaking stage, the designer begins a series of sketches. At this stage the sketch is about giving a sense of the design goal, the potential for its future development.

SECOND STAGE IDEA DEVELOPMENT **** Idea Sketch- Computer

Pencils, pastels, markers and the other sketching tools used by designers have changed with the times. Nowadays, personal computers play an important role as drawing tools for designers. Computers allow the designer to examine design ideas, sophisticated expressions, and visual images in a short time. Personal computers are thus a valuable tool for

designers that offer them a way for expressing the image they want to convey.

Idea Sketch- Digital Design

A digital modeler takes the designer's sketch and gives the idea a three-dimensional shape. A vehicle that no one has yet seen is given concrete form in virtual space. To give the drawing a three-dimensional shape, a large amount of information has to be gathered. Moreover, the appeal and distinctive features of the idea and the image conceived by the designer must be respected as the sketch is translated into lines and surfaces. This conversion process requires creativity and makes the greatest demands on the digital modeler's talents.

THIRD STAGE COLOR DEVELOPMENT **** Exterior Color Development:-

Color design. That means not just applying color but giving individuality to a vehicle. Color design, just like exterior and interior design, is an important element in determining the character of a vehicle. Total color coordination is critical. Analysis is undertaken of a whole range of data including what colors are in vogue in the fields of fashion and interior design around the world, to decide on the best color for the vehicle and also to bring out its individuality.

**** Interior Color Development

Colors must be chosen but be coordinated. Instrument panel and steering wheel, seat fabric, ceiling, carpet and other interior fittings are made of a wide range of materials. Because of this, the interior colors are studied repeatedly from a variety of perspectives. This creates a space that pleases all five senses. Careful attention to individual colors and materials is the key to creating a total impression.

FOURTH STAGE MOCK-UP ***** Clay Modeling:-

In the creation of a three-dimensional clay model, the clay modeler works together with the designer to ensure an understanding of the original intention, using eyes and hands to check the actual finished lines and surfaces as the model takes shape. In forming a shared idea of the design goal, image and themes, a satisfactory result will not be possible unless the modeler and the designer can achieve a united approach. The work involves molding and chiseling then molding and chiseling again. By repeating this process, which may seem simple to an

outsider, the shape of the vehicle is tested and refined down to the finest line

**** Interior Mock-UP:-

When exploring the interior design, a mock-up that is as close as possible to the real object is used. The wood modeler uses not just wood but plastics, metal, fabrics and a wide range of other materials to create a full-size model of the designer's idea. The designer can then check not only the spaciousness and feel of the cabin but also the cabin accessibility, ensuring visibility, the visual "friendliness" of the meters and the operability of the controls at a full-size scale. Toyota's wood modelers include professionals who have won first prize in the international technical skills contest known as the World Skills Competition.

**** Skill and Tool:-

The modeler's world is one of skilled workmanship. This skill and process of improvement have all the features of a craft. The skills involved in modeling can be taught, but the rest of it has to be learned alone. Understanding the designer's intentions and responding with the appropriate modeling skills, judgment, and appreciation of the physical mass of the vehicle an expert feeling for this kind of task is acquired through practice and careful thought on the job.

FINAL STAGE DECISION HALL

Roof Closed

Roof Open

In a final design process, customer's angle is needed. The Decision Hall has a roof that opens and closes. When the roof is opened, the design of the model, which is placed on a turntable, can be studied under natural light from every direction despite the indoor location. The facility also has special lighting that allows the model to be viewed in conditions close to natural light on rainy days and at night. The facility also has virtual display capabilities. On the screen, an image of the actual vehicle is projected. This makes it possible to study the design of a number of vehicles at the same time. Viewing vehicles in natural light. Viewing vehicles digitally. Regardless of the method used, the most important thing is to see things from the customer's viewpoint.

PROBLEM A design may be approved after 3-4 years from the time of Designing, because it faces competition. Designing work mainly controlled by the Japan, America and Europe etc. In those regions, a design face global competition. It requires approval, but approval not given in a easy way.

RAW MATERIAL SOURCING Toyota Motors collect raw materials from various places of Japan. But it is difficult to find out the exact number of suppliers Within the japan. Approximately, 620 primary suppliers around japan who provide necessary raw materials to the TMC directly. But there is also one layer followed , that is tier suppliers. TMC having tier suppliers included ( first, second, third, fourth, fifth ). But which supplier within japan are included in which tier it is not only difficult to find out but also one type of impossible task. OUT SIDE OF JAPAN Japan not dependent on their country suppliers for providing raw Materials. Japan import raw materials from the following countries Mainly:INDIA ## karan Exports:- Piston, Ringsets, Cyl liners ## Tynor Orthotics Pvt. Ltd:- Body belts and braces, Cervical Aids Fracture Aids. ## Pushpak Products India Pvt. Ltd:- Furniture and Furnishings

### J. D. Products:- Engine Cylinder Liners, Cylinder Liners.

### J. R. Industries:- Fabrication of sheet metal, turning components of iron steel. ### Saini Exports:- Automotive Brake. ### Jhalani Exim Inc:- General Mechanical Components.

PAKISTAN Malik Auto and Agricultural Industries Pvt. Ltd:- Auto Filter

CHINA *** Dongguan Prospect Optoelectronic technology Co. Ltd:LED Display Screen, LED Street light, LED high bay light. *** Zhejiang Jilong Electronic Co. Ltd:- Pvc wire, Electric wire, Power cable. *** Dongguan Sunge Filter Co. Ltd:- Filter, Auto Filter, Car Filter.

*** Zhuji city wufeny pipe industry Co. Ltd:- Brake Hose, Power

Steering, PE Pipe. *** Watsun Filters( shenzen) Co. Ltd:- Filters, Oil Filter, Fuel Filter. *** A A Top Trading Co. Ltd:- Windshield, Bulletproof glass, tempered glass. VIETNAM Vinatexmat Jsc:- Textile and leather products, Coton Fabric. SINGAPORE Energy Systems Transnational Pte Ltd:- Traction Batteries, Deep Cycle Batteries, Car Batteries.

HONG KONG Good luck Asia Ltd:- Chemical Raw Materials and automobile spare parts. TAIWAN Asia Cooperation International Co:- Crude oil, Fuel oil, Iron ore.

SOUTH AFRICA Roan Chemicals (pty) Ltd:- Organic and inorganic chemicals, Auto motive components. TURKEY Maysat A.S. and Polyfil:- Air Filters, Cabin air filters, ecological oil filters. Done Trade Agency:- Wool Fabric, Pes Fabric.

PHILIPPINES Precision Crestec Inc:- Printing, Packaging, Small boxes, Paper Box, Product label, product stiker.

SENDING SYSTEM This are the countries directly export from their country to the Toyota Motor Corporation (TMC).

TOYOTA CAR MANUFACTURING Toyota Car Manufacturing Plant are not limited within japan. Almost 24 countries are engaged with the manufacturing process.

MANUFATURING PROCESS By Following ten steps a Toyota Car has been made. Those steps are:*** Welding Body *** Coloring Body *** Various parts are joined from the various sections of the manufacturing plant. *** Setting engine and chesis *** Electric Wearing *** Setting Charing and Transmission *** Setting Tier and Loyering *** Setting light, electrical connection, AC, Steering, audio system etc. *** Setting Windsheild glass. *** Setting Window glass and door.

TOYOTA MANUFACTURING FACILITIES JAPAN Twelve factories located is in Toyota City. Three factories is in Kyushu, Hokkaido, Northern Honshu. Indonesia PT Toyota Motor Manufacturing, Indonesia THAILAND ** Toyota Gateway Plant:- Chachoengsao ** Toyota Samrong Plant:- Samrong ** Toyota Banpho Plant:- Chachoengsao AUSTRALIA Single factory located in Altona, Victoria. UNITED KINGDOM *** Toyota Manufacturing Uk, Banaston, Derbyshire and Deeside North wales. UNITED STATES OF AMERICA *** Toyota Motor Manufacturing Mississippi Inc. :- Tupelo,

Mississippi. ***Toyota Motor Manufacturing Kentucky Inc.:- Georgetown. *** Toyota Motor Manufacturing Texas Inc.:- San Antonia *** Toyota Motor Manufacturing Indiana:- located in halfway between Princeton and fort branch. *** Toyota Motor Manufacturing Albama Inc.:- Huntsville *** Toyota Motor Manufacturing west Virginia Inc:- Buffalo BELGIUM Single factory located in Brussels. CANADA Factory located in Cambridge, Ontario. Also one in Woodstock ontario. FRANCE Toyota Motor Manufacturing France:- onnaing. MEXICO Toyota Motor Manufacturing:- Baja California. PHILIPPINES Toyota Motor Philippines Corporation:- Santa Rosa, Province of Laguna. PORTUGAL

Toyota Caetano Portugal, S.A, Portugal.

RUSSIAN FEDERATION Toyota Motor Manufacturing Russia:- Saint Petersburg. TURKEY Toyota Motor Manufacturing Turkey:- Arifiye, sakarya province. BRAZIL Single office located in Indaiatuba, Sao Paulo. ARGENTINA Single office located in Zarate, Buenos Aires Province.

Licensed, Joint Venture and Cotract Facilities:India:- Toyota Kirloskar Motor private limited, Bangalore. Pakistan:- Indus Motor Company limited, joint venture with House of Habib. China:- Manufacturing Plant located in Tianjin Faw and Guangzhou. Czech Republic:- Toyota Peugeot citroen automobile Czech, joint venture with PSA Peugeot citroen, kolin, Czech republic. USA:- Subaru of Indiana Automotive Inc. (contract facility) Lafayette, Indiana.

Vietnam:- Toyota Motor Vietnam, vinch phuc, on the outskirts of Hanoi. Zimbabwe:- Toyota Kirloskar Motor private limited, Harare. Ghana:- Toyota Industries, Accra (contract facility).

MANUFACTURING SYSTEM At the time of manufacturing, two techniques are used. These are:JUST-IN- TIME The concept of JIT is to make and deliver the part at the exact time it is needed, pulling the products from the supply rather than pushing them. This ultimately reduces waste, wait times and establishes a continuous flow. Thus, people have coined this production strategy: Lean. JIDOKA The Term Jidoka is used in the TPS can be defined as automation With a human touch. This word Zidoka invented by the Sakichi Toyoda, Founder of the Toyota Group. Jidoka covers four fundamental concepts. These are:*** Detect the abnormality or defect. *** Stop doing what you are doing when something is wrong. *** Fix the issue. *** Investigate the cause and insure that it does not happen again.

The Toyota Production System is a large reason for all of Toyotas success, and without these lean principles in production, Toyota would not be the efficient company in it is today. OTHER TECHNIQUE KAIZEN (CONTINUOUS IMPROVEMENT) Kaizen is a Japanese word. It means improve business operations continuously, always driving for innovation and evaluation. *** Kaizen mind and innovative thinking:## Relentless efforts for continuous improvement. ## Soui Kufu (individual creativity and innovation/ Benchmarking). ## Search for breakthroughs/ Elimination of Taboos *** Building Lean System and Structure:### Pursuit of profit based on cost reduction. ### Elimination of Muda, Mura, Muri (Beyond capability, no value added, unevenness) ### Regard for next processes/ just-in-time ### Revealing problems *** Promoting Organizational Learning:### Shared understandings of conditions.

### Learning from mistakes ### Standardization, yokoten (leveraged transfer) and established of Success. TOYOTA CAR DISTRIBUTION Toyota Motor Corporation offers more than sixty models around the world. For distributing car in world wide, TMC makes contract with dealers in all over the world. The dealers are served as distributor and service network for Toyota. TMC use following channel system:Producer--------- Dealer--------- Consumer To spread the distribution work in world wide, TMC divided countries in to eight regions. The countries which achieve the dealership from Toyota their name are given below:WHOLE ASIA BANGLADESH Navana Limited:- Dhaka and Chittagong Show room. INDIA Exact name find out hard task because in India there more than 150 dealers. PAKISTAN Indus Motor Company Limited

SRILANKA Toyota Lanka Private Ltd:- Toyota Plaza No-337, Negombo road, wattala. BHUTAN State Trading Corporation of Bhutan Ltd:- Post Box No-76, phuentsholing. NEPAL Unitied Traders Syndicate Private Ltd:- Volth Complex, Sinamangal, Kathmandu. THAILAND Toyota Motor Thailand Co. Ltd. SINGAPORE Approximately, 150 dealers in within the Singapore. PHILIPPINES Toyota Motor Philippines Co. Ltd. HONG KONG Crown Motors Limited. MALAYSIA UMW Toyota Motor Sdn. Bhd.:- 2 persiaran Raja Muda, Seksyen

15, 40200 shah Alam, Selangor.

VIETNAM Toyota Motor Vietnam Co. Ltd. CAMBODIA Toyota Cambodia Co. Ltd.

MIDDLE EAST SAUDI ARABIA Abdul Latif Jamel Group. KUWAIT AL Sayer Group:- Kuwait Free Trade Zone, shuwaikh port(beside Movinpick Hotel) BAHRAIN Toyota Bahrain Co. Ltd:- 99, Road 1104, Block 611 Alhamriya, Sh. Jaber Al Subah Highway, Sitra. QATAR

AAB Group. OMAN Saud Bahwan Group. ### Al- Futtaim Motors Ltd is the only dealer in UAE, Abu Dhabi, Al Ain, Ajman, Dubai, Fujairah, Khorfokkan, Ras Al Khaimah.

YEMEN Automotive and Machinery Trading Center. BRUNEI DARUSSALAM North Borneo Trading Ltd. JORDAN Toyota Central Trade and Auto company, Jordan. LEBANON Boustany United Mechineries Co. Ltd. SYRIA Al Saddy Group.

NORTH AMERICA *** Canada:- In whole Canada, there is almost 86 dealers. They are appointed in different province. Some are regional dealers, some are individual dealer. ### Hawaii Island:- There is nine dealer. UNITED STATES OF AMERICA Toyota Motor Sales USA Inc. SOUTH AMERICA BELIZE Belize Diesel and Equipment Company Ltd. BERMUDA Bermuda Motors Ltd. FRENCH GUIANA NCCIE Group, Occasioiog. GUYANA

Beharry Automotive Ltd.

SURINAME Suroto N.V. EUROPE REGION UNITED KINGDOM ### Approximately, in whole UK there almost 250 dealers. But this Figure may be bigger than approximate figure. CYPRUS Dickran Ouzounian Co. Ltd. GIBRALTER Toyota Gibralter Stockholdings Ltd. IRELAND There is almost 54 dealers in whole Ireland. MALTA Michael Debono Ltd.

OCENIA AUSTRALIA There are almost 317 dealers in whole Australia. AMERICAN SAMOA Toyota Tsusho(American Samoa) Inc. FIJI Toyota Tsusho(south sea) Ltd, Trading as Asco Motors. GUAM Atkins Kroll Inc. KIRIBATI Tarawa Motors, A division of Bairiki holdings Ltd. MICRONESIA Atkins Kroll Inc. NEW ZEALAND Approximately, around 5oo dealers in new Zealand north island, and South island.

PAPUA NEW GUINEA Toyota Tsusho(PNG) Ltd, Trading as Ela Motors. SAIPAN Microl Corporation SAMOA Toyota Tsusho(Samoa) Ltd, Trading as Asco Motors. SOLOMN ISLAND Toyota Tsusho(S.I.) Ltd, Trading as Ela Motors. TAHITI Nippon Automoto. TONGA Toyota Tsusho(Tonga) Ltd, Trading as Asco Motors. VANUATU Toyota Tsusho(vanuatu) Ltd, Trading as Asco Motors. THE CARIBBEAN BARBADOES Nassco Ltd.

JAMAICA Toyota Jamaica Ltd. ST. LUCIA Beachcomber Ltd. TRINIDAD AND TOBAGO Toyota Trinidad and Tobago Ltd. ARUBA Garage Cordia Aruba N.V. CURACAO Garage Cordia

AFRICA REGION ANGOLA Toyota De Angola, S.A. BENIN Crafo Motors, Benin. BURKINA FASO Crafo Motors, Burkina.

BURUNDI Toyota Burundi S.P. R.L CAMEROON Crafo Motors, Cameroon. CENTRAL AFRICAN REPUBLIC Crafo Motors, Centrafrique. CHAD Crafo Motors, Chad. COMOROS MMC Distribution CONGO Crafo Motors, Congo. IVOIRE COAST Crafo Motors, Ivoire Coast. ERITREA Anberbeb Share Company. ETHIOPIA Moenco Ethiopia Ltd.

GABON Sogafric Group. DISTRIBUTION POLICY Distribution Policy is differ from country to country. Toyota Motor Corporation (TMC) give international distributors enough freedom for making their own distribution policy.

DISTRIBUTION WORK OFFER LETTER At first dealers give offer letter to the prospective buyer. In that offer letter, vehicle model, their specifications, terms and conditions, Payments time, and LC opening address are given. LC is made for the producer. Customer if open LC, then other steps will started.

TOTAL WORK Producers receive order from the customer. Then they accumulate necessary raw materials for car manufacturing. Collecting raw materials depends on what type of car is given for order to make. Approximately, within 2-2.5 months cars are manufactured. Then it kept in warehouse until export related documents are prepared. After making documents, cars are send to the sea port. Almost 24 countries are directly or indirectly are engaged with the manufacturing work,

so it is difficult to say that which sea ports they use specifically for distribution work. At the time of shipping, one thing is consider very seriously that is where cars will go? For the distribution work, approximately 4-5 ships are used. Their carrying capacity almost 600+ cars. For the some country, ships went on directly but most cases does not directly are coming to the importes directly. In that case, another ship is used for bring the cars in main customer country.

SWOT ANALYSIS

Strength Side
A) New investment by Toyota in factories in the US and China saw 2005 profits rise, against the worldwide motor industry trend. Net profits rose 0.8% to 1.17 trillion yen ($11bn; 5.85bn), while sales were 7.3% higher at 18.55 trillion yen. Commentators argue that this is because the company has the right mix of products for the markets that it serves. This is an example of very focused segmentation, targeting and positioning in a number of countries. B) In 2003 Toyota knocked its rivals Ford into third spot, to become the World's second largest carmaker with 6.78 million units. The company is still behind rivals General Motors with 8.59 million units in the same period. Its strong industry position is based upon a number of factors including a diversified product range, highly targeted marketing and a commitment to lean manufacturing and quality. The company makes a large range of vehicles for both private customers and commercial organizations, from the small Yaris to large trucks. The company uses marketing techniques to identify and satisfy customer needs. Its brand is a household name. The company also maximizes profit through efficient manufacturing approaches (e.g. Total Quality Management).

WEAK SIDE ## Being big has its own problems. The World market for cars is in a condition of over supply and so car manufacturers need to make sure that it is their models that consumers want. Toyota markets most of its products in the US and in Japan. Therefore it is exposed to fluctuating economic and political conditions those markets. Perhaps that is why the company is beginning to shift its attentions to the emerging Chinese market. Movements in exchange rates could see the already narrow margins in the car market being reduced.

## The company needs to keep producing cars in order to retain its operational efficiency. Car plants represent a huge investment in expensive fixed costs, as well as the high costs of training and retaining labour. So if the car market experiences a down turn, the company could see over capapacity. If on the other hand the car market experiences an upturn, then the company may miss out on potential sales due to under capacity i.e. it takes time to accommodate. This is a typical problem with high volume car manufacturing.

OPPORTUNITY SIDE ### Lexus and Toyota now have a reputation for manufacturing environmentally friendly vehicles. Lexus has RX 400h hybrid, and Toyota has it Prius. Both are based upon advance technologies developed by the organization. Rocketing oil prices have seen sales of the new hybrid vehicles increase. Toyota has also sold on its technology to other motor manufacturers, for example Ford has bought into the technology for its new Explorer SUV Hybrid. Such moves can only firm up Toyota's interest and investment in hybrid R&D.

### Toyota is to target the 'urban youth' market. The company has launched its new Aygo, which is targeted at the streetwise youth market and captures (or attempts to) the nature of dance and DJ culture in a very competitive segment. The vehicle itself is a unique convertible, with models extending at their rear! The narrow segment is notorious for it narrow margins and difficulties for branding.

THREAT SIDE ###Product recalls are always a problem for vehicle manufacturers. In 2005 the company had to recall 880,00 sports utility vehicles and pick up trucks due to faulty front suspension systems. Toyota did not give details of how much the recall would cost. The majority of affected vehicles were sold in the US, while the rest were sold in Japan, Europe and Australia.

### As with any car manufacturer, Toyota faces tremendous competitive rivalry in the car market. Competition is increasing almost daily, with new entrants coming into the market from China, South Korea and new plants in Eastern Europe. The company is also exposed to any movement in the price of raw materials such as rubber, steel and fuel. The key economies in the Pacific, the US and Europe also experience slow downs. These economic factors are potential threats for Toyota.

SUMMARIZED VIEW My Term Paper is completely based on The International Distribution Channel of Toyota. My objective was to find out the distribution Information as much as I can. To make this term paper, I had to collect information. For collecting information, I made a questionnaire and made interview with some people. They provide me information as much as they know. I try to cover here Toyota Car Designing, Raw Material Sourcing, Manufacturing and Distribution. Toyota Car design work are not limited within japan but occurred in some other countries too. Raw Material Sourcing information collection was not very easy for me, I try to collect information about it. But not much information I can gather because that related information not given clearly any where. Toyota Car Manufacturing are not limited within japan, in world 24 countries directly or indirectly are engaged with the manufacturing process. For Distribution work, Toyota makes appoints dealers in whole world. They segment the countries into eight regions. Toyota already expands its markets in whole world. To compete in world competitor, they makes new investment in new plant. But they need to localize the manufacturing plant so that cost can be reduced. Now a days Toyota and Lexus jointly work to provide us branded new car. Toyota also work for the youth people. They need to done more work. Some years ago product recalls had been made from the Toyota.

If product recalls happen regularly, then Toyota image will be down. So, Toyota Authority should monitor the manufacturing steps are carefully. Finally for the some extent Toyota should change their overall Strategy because competitors are increasing, they are threat for Toyota. CONCLUSION At the end of the Term Paper, I can say that Toyota did not achieve its reputation just in a single day. They had to work hard to achieve their todays position. Japan diversify their work in whole world like design, raw material sourcing, manufacturing and distribution. Their strategy is excellent. They lower dependency from them, minimize cost, and diversify their business in world wide. In emergency situation, they provide necessary instructions to the designer, supplier, manufacturer and distributor. They also take advice from their world representator.

RECOMMENDATION **** Recommendation on Weak Side:### Toyota should spread their manufacturing plant outside of japan and US. As result, cost will decrease and manufacturing plant will be localized and diversified. ## Toyota can decrease excess fixed cost. If manufacturing plant are located outside of Japan and US, then some extent employee training and retaining labor cost will be decrease. **** Recommendation on Opportunity Side:### Lexus and Toyota should work together to surprise us by providing new branded cars. ### Toyota should laungh more cars for the urban youth market. **** Recommendation on Threat Side:### Toyota Authority should monitor the manufacturing work So carefully that it does not need any type of product recalling.

### Toyota can change their overall strategy in procurement, Manufacturing, distribution and other related departments. REFERENCES

*** WWW.Toyota-Global.com/ showroom/ vehicle Design/ Toyota Design/ Design works. *** WWW.Toyota-Global.com/ select region. *** WWW.Toyota-Global.com/ global network. *** WWW. Marketingteacher.com/ Toyota SWOT Theoretical definitions are taken from Oxford Dictionary. Information regarding Toyota Manufacturing facilities are collect from the encyclopedia of manufacturing facilities.

APPENDIXES In Appendix Section, I enclosed the questionnaire which I used to collect information, based on these questionnaire I made interview with the officials. They Provide information as much as they actually know.

MAIN QUESTIONNIARE (USED ONLY FOR OFFICIALS)

Interviewer Name:Designation :Location of Office:-

DESIGNING ## Is Toyota Car Designing work are limited within Japan? a) Yes b) No (If No, then where designing woks done) *** Inside Japan *** outside Japan *** Regional Offices ### How many steps are followed while designing works done? a) Two Steps b) Three Steps c) Five Steps ### Which personnel are responsible for designing work? a) Designer b) Modeler c) Researcher and Modeler both ### How designing work performed?
a) People manually done it.

b) Most up to date computer used. c) Both manually and most up to date computer used.

RAW MATERIAL SOURCING ## From which Personnel Toyota Motor Corporation Collect raw material? a) from own country suppliers b) from outside suppliers c) both own country and outside suppliers. ### Did they ranking their suppliers? a) Yes (if yes, How many ranks are used) ---------------------------b) No ### Did TMC prefer any region for collecting raw material? a) Yes b) No

### Did they import raw materials? a) Yes (if yes, from which countries) --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- b) No.

MANUFCATURING ### Where Toyota Car Manufacturing work has been done? a) in only japan b) outside japan c) Both inside and outside japan. ### How many steps are followed while a car has been made? a) five b) ten c) no comment. ### Approximately, how many countries are engaged with the manufacturing work? a) No in any country b) Five c) Ten d) Fifteen e) Approximately twenty four ### How manufacturing process has been done? a) only manually b) robot used.

c) Both manually and robot are used.

### How many techniques are used in the manufacturing system? a) one b) three c) Five d) Two DISTRIBUTION ### For the distribution work, TMC use which channel system?
a) Producer----------------Customer. b) Producer--------------Dealer------------------Customer. c) Producer----------- Broker--------------------- Customer.

### For the distribution work, TMC appoints how many distributors?
a) Approximately, 1 lakh people b) Approximately, 2 lakh people.

c) Right figure difficult to imagine ### Did TMC followed any strategy? a) Yes b) No

### Did TMC segment the countries into any regions?

a) No

b) Yes (if yes, then how many regions):----- no regions ------- only one region -------- almost nine regions

### Approximately, how many countries receive dealership from the TMC? a) Almost 50 countries b) Almost 100 countries c) Specific figure are unknown. ### Is distribution policy differ from country to country? a) Yes b) No

### How many seaports are used for the distribution work? a) two b) five c) difficult to find out the right figure. ### How much cars a ship can carry? a) only twenty b) almost 100 cars c) More than 100 d) Approximately, 500+ cars.