Académique Documents
Professionnel Documents
Culture Documents
I would like to express my deepest affection for my parents and friends who prayed for my success and encouraged me during this internship period. I appreciate and acknowledge the patience, understanding and love provided by employees of TMM. A token of special thanks to the following people who had been very friendly, co-operated with me throughout my internship period in Toyota Multan Motors and made it possible for me to learn and gather all the information needed for my internship report with as much detail as I could. These are the people who in spite of their busy scheduling took time out to explain to me the procedures and mechanics of work in the organization. My internship report would not have been possible without friendly and helpful attitude of following people
Malik Israr Ahmad Altaf-ur-Rehman Ch Imran Aktar Majid Naeem Butt Amaar Ahmed Syed Ghufran Syed Faheem Shamsi
(CEO) (Manager Sales) (Deputy Manager of corporate sales) ( Manager of leasing) (Deputy Manager of delivery) (Incharge sales) (NVD coordinator)
Pervaiz, Bilal,Ammar, Naveed, Niaz, Hasnat Ahmad, Shakeel, Tauqeer, Mazhar( admin), Roshan, Jahanzaib waraich, Naheed, Hafeez, Nasir,Khalid Thanks to all that help me in making report .
1: Title page
5: Acknowledgement
6: Executive Summary
7: Table of contents
9: Organization Structure
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17-Critical Analysis
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19: Conclusion
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21: References
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22: Annexes
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Toyota in Pakistan: In Pakistan, Indus Motor Company is having sole distributorship of Toyota and Daihatsu Motor Company for assembling, marketing and manufacturing.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.
Nature of Organization
Toyota Motor Corporation (TMC) origin in the country of Japan is the worlds largest auto manufacturer, offering a full range of beautiful and latest vehicles design models. Toyota not just selling auto motors, but also ensures after sales and full service of their clients with full different range of warranties. Toyota builds dealer networks to sell these cars and to do services. Ensure dealers are sufficiently trained and can deliver excellent services to customer
Toyota is at the heart of global manufacturing, a company that has grown within 70 years to become the worlds second largest vehicle manufacturer, which shows the great interest of reliability and full trust from the customers of Toyota for many years. The company wanted to integrate back office systems and external sources of information regarding vehicle data to ensures continues feedback and improvements.
CKD (complete knocked down) assembled corolla CKD (local) assembled cuore (Daihatsu) CBU (complete built in unit) imported vehicles
CKD (Local) Corolla Toyota Multan Motors is offering local assembled corolla 1300 cc with power pack, power steering, electronic control units with added advantage of ABS brake system which means antilock braking system. This is very unique system in which wheel are not locked when braked suddenly and can move easily right or left with control convenience. There are 8 different colors offer in corolla, with price range from 12, 39,000 to 18, 21,500 including different horse power separately. E.g. XLI, GLI, ALTIS, 2.OD etc.
CKD (Local) Cuore Similarly Toyota Multan Motors is offering local assembled cuore 850 cc with automatic variant also, cuore is a best vehicle for small family, there are 8 different colors offer in cuore, with price range from 5, 69,000 to 7, 19,000.
CBU (Imported) Vehicles The Toyota Multan Motors provides imported vehicles to customers. For example the customer wants to add the new luxurious things in their variants such customers are treated with such type
Main Clients
Corporate sector Industrialist Business persons Landlords
Suzuki
Nissan
Mazda
Kia
Mitsubishi
Internationally:
Ford
Chevrolet
Volvo
Hyundai
Daewoo
Volkswagen
Chrysler
Dodge
GM
Saturn
Skoda
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Number of Employees
167 employees
Accounts Department
The responsibility of this department is Collection, summarization, Bookkeeping, accounting, auditing and reporting of financial information about various decisions throughout an organization. The department traces costs, revenues, or profits to the individual managers who are primarily responsible for making decisions about the costs, revenues, or profits in question and taking action about them.The department is doing update and maintains accounting records, including those which calculate expenditures, receipts, accounts payable and receivable, and profit and loss.
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Administration Department
Administration department perform a broad range of duties in virtually every sector of the economy. They coordinate and direct support services to organizations as diverse as insurance companies, computer manufacturers, and government offices. These workers manage the many services that allow organizations to operate efficiently, such as secretarial and reception, administration, payroll, conference planning and travel, information and data processing, mail, materials scheduling and distribution, printing and reproduction, records management, telecommunications management, security, parking, and personal property
procurement,supply,anddisposal.
Service Department
Service department is responsible for taking the vehicles for maintenance and deliver on time, service department include a very comprehensive workshop regarding denting & painting and this workshop is also awarded the best and well planned workshop by Indus Motor Company
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Marketing Department
In Toyota Multan Motors, the main responsibility of the marketing department is to act as the 'boundary-spanner' between the company and its (potential) customers. In other words, it has ensure the company creates value for customers ('exploration'), and captures this value for itself ('exploitation'), while sustaining it(e.g. through maintaining brand equity/customer retention)
Chain of command
Toyota got a system to follow line authority. There is a hierarchy chart that follows the relation of upper and lower management of Toyota.
Span of control
All the decisions start from the CEO and then goes further followed by the other department according to their policies.
Centralization
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Decentralization
The management of all departments fully performed the task and assigned work individually with the help of their department sub-ordinates and co-workers.
Toyota Multan Motors was established in 1992. They are the sole dealers of Indus Motor Company Limited, Karachi (manufacturers of Toyota & Daihatsu vehicles in Pakistan), in Multan division for the Sales, Service and Spare Parts of the complete range of Toyota and Daihatsu vehicles.
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Duration of my training was the day of starting of the very first day until the last day of my internship.
Training Program
Detailed descriptions of the operations/activities performed by the departments in which I worked:
Service Department
Service department is responsible for taking the vehicles for maintenance and deliver on time, service department include a very comprehensive workshop regarding denting & painting and this workshop is also awarded the best and well planned workshop by Indus Motor Company. This department is responsible for running an efficient and profitable service department. The department is also responsible for maximum production, controlling costs, building a loyal clientele, sustaining good employee relationships, setting and obtaining sales and profit objectives and maintaining service records.
The service department is responsible for the proper maintenance and repair of owner vehicles. The service department has done a high capability for performing operations "right the first time," as a means to influence customer satisfaction, owner loyalty and dealership profitability. The department provides on-the-job training to technicians as appropriate, and conduct informal evaluations with technicians. Service department Help ensure customer satisfaction by helping
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directed, Determine correct spare parts numbers and "pick" spare parts for orders received, Arrange for delivery or shipment of spare parts as required, Prepare and cost spare parts invoices, properly identifying eligible wholesale customers, to Help maintain orderly spare parts stock, monitor regular spare parts inventories and the selection of spare parts for return under the spare parts obsolescence protection program Customer satisfaction and sales are is the top responsibilities of the spare parts department they provides merchandise, supplies or information for all customers, both external and internal, while aiding in the achievement of department and dealership goals and objectives.
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department, I was observing customers behavior towards asking inquiries or sales purpose visit clients which after spending some time, I got accustomed to deal with them and started to take feed back of customers, inquiry handling and giving necessary information for new launches of vehicles. I also used to take pictures while delivery new vehicles which is a part of selling new vehicles. With the help of Microsoft word version, I was assigned to task maintenance reminder letter of regular or loyal customers and sending birthday wish card on the birthdays of customers to Toyota regular customers to make sure they keep in their mind Toyota remind them on their unforgettable moments.In service department, my experience was to deal with those customers, who need maintenance, service or need repair of their vehicles.
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Marketing Manager
Assistant Manager
Junior Executives
Sales Force
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Marketing Operations
Toyota is strongly considered marketing operations functions in a marketing department.
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Geographic segmentation
This segmentation divided by the marketing department of Toyota into different geographical locations. For example continents, countries, states, provinces and regions. It helps a lot to
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Psychographics segmentation
Based on social class, personalities characteristics and lifestyle, Toyota have target and design small cars to big, economy car to luxury car depend on the lifestyle
Behavioral segmentation
This segmentation based on customers need and subsequent reaction to those needs or towards the intended purchase of the product, which is closely related to the brand loyalty. Cost effectiveness in terms of benefits, circumstances responsible for the purchase, whether the customer is a regular, a first timer or and has the potential to become a customer, and whether the readiness to buy. Toyota has specially expanded its business in all around the world by this segmentation by giving after sales and service with excellent quality cars with reasonable price and fuel consumption.
Demographic segmentation
Toyota has full focused its marketing segmentation strategies to capture and target its customer on the basis of family, age, gender, income, occupation, education and nationality
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Customer focus:
1. Corporate sector 2. Industrialist 3. Business persons or landlords 4.
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Sales operations
It is an integrated business management process through which the executive/leadership team continually achieves focus, alignment and synchronization among all functions of the organization. The sales operations includes an updated sales plan, production plan, inventory plan, customer lead time plan, new product development plan, strategic initiative plan and resulting financial plan.A properly implemented sales operations helps routinely reviews customer demand and supply resources and re-plans quantitatively across an agreed rolling horizon. The re-planning process focuses on changes from the previously agreed sales and operations plan. While it helps the management team to understand how the Toyota achieved its current level of performance, its primary focus is on future actions and anticipated results. Toyota has an integrated business management process use the sales operations process to monitor the execution of the companys strategies.Function of setting the overall level of activities to best satisfy the current planned levels of sales plan and forecasts.The branch offices of Toyota Multan motors select the sales force, their selection is based on interview conducted in the dealership.
Training:
After selection of sales force Toyota Multan motors provides the training program. The training program is conducted in the dealership. Trainees get the information about products, pricing strategies, distributions, promotions, competitors and customers focuses, and tools and techniques to sale the products.
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Expert power:
The Toyota Multan Motors provides the latest information to the sales department by conducting the get together in the relevant branches.Evaluation of sales force:It is the policy of Toyota Multan Motors that each sales person is required to sale not less 10 vehicles in one month. Thus sales force is evaluated by this standard. Sales force is also evaluated by the competition among the co-workers.
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promotional activities and advertising programs but also take positive efforts to expand the network of customers Expand customers connections by conducting business seminars,
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Collect as much information as possible on each of its customers. Monitor them, take feed back and provide services and make sure fulfill warranties and recall in case of trouble. Responded fast and give efficient and friendly services with full confident.
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Customer relation department always try to make sure that entire managerial staff aware of client problems.
The training includes that do not allow any customer to just walk away. Talk to him/her on the telephone; make personal visits, in order to find out the reason for his "jumping ship".
Reward, encourage and issues appreciation letters to the sales force team, office staff and employees in the customer service department for their nurturing ties with loyal customers
Brochures:
Brochures are also one of the promotional activities, it consists of different models, prices, colors, specifications, documents required from customers, and other necessary information.
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Pamphlet:
Locally through the Pamphlet, the Pamphlets are given to the walk-in customers for the promotion.
Media releases:
Media releases are a great way to transmit information about new launches, new models product, and services to the large amount of potential customers.
Events:
Memorable events held by Toyota marketing and sales department plays a tremendous roll to attract new customers which includes exhibitions and new launch ceremonies.
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(For salaried person (Private)): Copy of CNIC. Two recent passport size colored photographs. Last six months Bank statement(s). Recent salary slip. Employment certificate. Residential utility bills (as a proof of residence). Copy of valid driving license (optional). Two references. Banks Signature Verification form. (For Government person): Copy of CNIC. Two recent passport sizes colored photographs. Last six months Bank statement(s). Copy of professional degree/certificate. Residential utility bills (as a proof of residence). Copy of valid driving license (optional). Two references.
Leasing tips:
Leasing a car is a very bad idea if you want to own the car after the lease period ends. You can be faced with a balloon payment at the end of the lease that is very expensive.
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Description Responsibility 1. Expenses related to ownership Bank 2. Expenses related to use of asset Client 3. Risk associated with ownership Bank 4. Risks associated with use of asset Client 5. Third party liability in case of accident Client 6 Expenses and risks associated with ownership Client Is there any penalty involved if one fails to pay the Rental on time? Nominal additional charges are taken by the Bank due to any delay in rental installment(s) by the customer, which are used for charity purposes, rather than going into the income of the Bank, as it is done in the case of conventional lease. Does Banking charge Insurance? It is a requirement of the State Bank of Pakistan for auto finance / leasing institutions to insure the leased vehicle(s). Hence, we are bound to charge Takaful/ Insurance, which is within the rental installments, throughout the Ijarah period. What if any mishap happens to the Vehicle? If the vehicle is stolen or destroyed in any mishap, unlike conventional lease, Ijarah rentals will not be charged, and security is refundable in this case. However, this is subject to there being no misconduct, or negligence, on part of the client How the client becomes owner of the Vehicle? Once the client successfully repays the whole rental, Bank gives him / her opinion to become the owner of the vehicle, against the security already deposited with Banking. You are Eligible if you are: A Pakistani National. Earning at least two times more than your monthly Car rentals. Between 21 to 60 years, (for salaried class), and of age, till the maturity of the lease period. Employment experience of minimum six months in a permanent capacity in the current organization. Being in business for at least on year.
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Delivery section will provide following things: Remote of vehicle Lighter First free service card
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Now delivery section will take sign on file for Documents received Vehicle received Warranty book received Now delivery person will confirm the chassis number and engine to customer according to requirements of documents. tell about them 1st free service and insurance of vehicle. After these procedure customer can take vehicle.
RATIO ANALYSIS
Ratio analysis involves the methods of calculating and interpreting financial ratios to assess the firm's performance and status. The basic input ratio analysis, the firm's income statement and balance sheet for the periods to be examined.
Liquidity ratios Activity ratios Debt analysis ratios Profitability ratios Marketability ratio
LIQUIDITY RATIOS:
Net working capital Current ratio Quick (acidtest) ratio Cash ratio
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Interpretation: TMM, NWC shows +ve balance. It means that company having ability to meet its shortterm obligations when they come due. Also this balance has improved from previous year, which shows that company is more efficient in selling its inventory as compare to previous year. It's also quit useful for internal control.
Current ratio:
Ratio Current ratio Interpretation: Current ratio has increased from previous year, which indicate that the firm's current asset has increased which lift up the liquidity position of the firm. This number is greater than one, then the company has enough current assets to cover its short term liabilities. A number that is much higher than one, however, might indicate that the company is hoarding its assets instead of putting them to use. A number less than one indicate that the company may experience problems with liquidity. Formula CA / CL = 2010 1.165 2011 1.397 2012 1.50
Quick Ratio
Ratio Quick Ratio Interpretation : Quick ratio is improved from previous year also reduce the level of stock in trade. Actually inventory is not more liquid asset, so in case of insolvency, firm will not be able to sell its inventory as per requirement .In the light of finance this ratio should be 1.00 or greater than it but Honda's ratios is less than but it is acceptable. Why? Because larger manufacturing concerns affords it because they already sets the impressive collecting policies. Formula CA inventory / CL 2010 0.88% 2011 0.76% 2012 0.93%
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Cash Ratio:
18.27%
7.27%
13.11%
Interpretation Cash ratio is increased this year than previous also Honda increased its investment on fixed assets. But on the other hand Toyota sold its inventory more than previous year but on credit.
ACTIVITY RATIOS
Inventory Turnover:
Ratio Inventory Turnover: Formula CGS / Inv. = 2010 24.2 2011 16.7 2012 24.02
Interpretation The inventory turnover ratio of the company improved from last year it means that company is more efficient in selling its inventory in a year;
Interpretation: As, in year 2012, the company is able to sold its inventory, so this ratio has decreased, which shows efficiency of firm in selling its inventory as compare to previous year..
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Interpretation Here Toyota increased its sale, which shows the high sales revenue
Total Assets Turnover: Ratio Total Assets Turnover Interpretation Total assets turnover has increased, its mean more efficiently its assets have been used. Formula N Sales / TA = 2010 4.62 2011 6.71 2012 8.22
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Profitability Ratio
Gross Profit margin
RATIO Gross Profit margin Formula Gross Profit / Net Sales = 2009 4.808% 2010 3.899% 2011 3.182%
Interpretation: Here the gross profit decreases that are showing completion is increasing in the market also causing of recondition vehicle sale is increasing in the market.
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2010 Sales Less : C.G.S GROSS PROFIT Less: operating expenses Administrative expenses Selling expenses Store expenses Financial expenses Depreciation Total operating expenses OPERATING PROFIT Add; other income NET PROFIR BEFORE TAX Less; income tax liability for the year @ 25% NET PROFIT 0.63 0.79 0.17 1.76 0.41 3.77 1.03 0.04 1.07 0.26 0.80 100% 95.19 4.8
0.54 0.87 0.14 1.25 0.29 3.11 0.78 0.03 0.81 0.28 0.53 2.53 0.64 0.09 0.65 0.16 0.49
An application of the vertical analysis idea is to place all items on the income statement in percentage form in terms of sales.
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2010 Sales Less : C.G.S GROSS PROFIT Less: operating expenses Administrative expenses 100% Selling expenses 100% Store expenses 100% Financial expenses 100% Depreciation 100% Total operating expenses OPERATING PROFIT 100% 100% 100% 100% 100%
23.27 100% 59.9 100% 17.26 100% 2.79 100% 3.23 100% 18.9 9.01 100% 100% 0.4 1.26
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In this analysis year 2011 & 2012 is being kept as base and we see the relative changed in the next years by keeping it a base. If we assume that the revenue of the year 2011 is 44.04% in year 2012 it reduced by 23.22 % and in year 2011 the reduction of Net Revenue as compared to year 2010 is by -5.51% and same goes for the rest of the items
CURRENT ASSETS Sundry debtors Adv deposit/ prepayment Securities and refund Advance to staff Stocks Cash & bank balance 55.4% 13.93 3.66 1.83 18.18 8.23 75.98 FIXED ASSETS Operating fixed assets As per schedule Work in process 9.90 14.11 14.2 13.15 29.33% 12.49 2.44 0.8 38.6 2.04 85.73 29.50 12.28 3.09 1.25 33.15 7.54 86.8
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Current liabilities Sundry creditors Expense payable Bank over draft Income tax payable 2.55 1.50 59.86 1.24 65.17 Capital & liabilities Partner capital account Un-appropriated profit/ loss 31.08 3.74 100% 35.07 3.56 100% 38.42 4.03 100% 5.70 1.66 52.06 1.91 61.36 2.78 1.26 52.15 1.34 57.54
While working in Balance Sheet with Vertical Analysis we keep Total Assets and Total Liabilities as 100 % and we take out the relative importance of the Current and Noncurrent Assets in the company financial statements.
YEAR 2010:
In this year the current assets were 75.98 % of Total Assets where as the Non Current Assets of the company were 24.01% of Total Assets i.e., 100 % The Current Liabilities and capital & liability Liabilities. were 65.17% and 34.82% of Total
YEAR 2011:
In this year the current assets were 85.73% of Total Assets where as the Non Current Assets of the company were 14.2 % of Total Assets i.e., 100 % The Current Liabilities and capital & liability Liabilities. were 61.31% and 38.62% of Total
YEAR 2012:
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2010 ASSETS
2010-2011
2010
2011-2012
CURRENT ASSETS Sundry debtors Adv deposit/ prepayment Securities and refund Advance to staff Stocks Cash & bank balance 100% 100% 100% 100% 100% 100% (47.42) % (10.9) % (34.46) % (55.54) % 110.84% (75.40) % 12.02% FIXED ASSETS Operating fixed assets As per schedule Work in process Total LIABILITIES 100% 100% 100% 100% 0.4% 100% (7.29) % 100% 100% 100% 100% 100% 100% 1.15% (1.08) % 28.64% 50.98% (13.65) % 271.63% 1.86%
Current liabilities Sundry creditors Expense payable Bank over draft 100% 100% 100% 122.09% 9.8% (13.65) % 100% 100% 100% (50.96)% (23.77)% 0.7%
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Same concept is being followed here in Balance Sheet, 2010 & 2011 year was kept as base year and the relative changes are being observed from here. For instance, Current assets were100 % in year 2010 the reduction in year 2011 was by 44 % and in year 2011 the increase was by 0.21 % of the base year amount and same goes for rest of the items
Critical Analysis
First of all, I am so glad that it is an end of my MBA degree program, which was my dream that come true.Its true that the theory, what we study in the program of MBA from our university is having much difference as compare to the practical and experience life but I would say one thing here is that the studies what we have is mostly about ideal environment and situations and they evolve from the Europe and American cultures and society research and development. I am not completely satisfied whatever we had studied during our MBA program as compare to that experience, what I saw and learn in TOYOTA. The first thing what I observer is the interaction with the people who work in the field. The behavior, attitude and dealing of workers and employees including top management are entirely different as we studied.Secondly, its difficult to handle the current situation dealing with different clients at a time especially when client is angry and that time we have no alternative other than to keep silent.Co-workers, workers and management are not as comfortable working together as we have studied in our books. All the department employees usually do not feel comfortable sharing business problems and they feel that it might be their insult if they have to ask any questions or help.Toyota is a big organization and here I saw that the management tried to follow those rules and regulations
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Weaknesses
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Opportunities
Introduction of hybrid vehicles (environment friendly vehicles) by Toyota based on technological developed helps increases car sales due to oil prices increases. Investment in hybrid R&D by Toyota helps for selling its technology to other motor manufacturers like FORD. Toyota has launched its new Aygo, which is targeted at the streetwise youth market urban youth market and captured the nature of dance and DJ culture in a very competitive segment. .In case of failure of competitor new launch usually helps Toyota brand more strong. Switching diesel market towards petrol and CNG market.
Threats
Toyota faces tremendous competitive rivalry in the car market.
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Conclusion
I have concluded that Toyota is really working well. It has a well reputed organization having good control of human trainings to teach with good techniques.The technology is really appreciated by me, which Toyota uses to manufactured cars and also the sales and marketing department working well to give an excellent image of Toyota in a market.Toyota is an old multinational organization with excellent controlling and management globally and it is prove by Toyota that excellent management with same quality and same standards have been implementing successfully.The environments are too professional to work inside Toyota and the services which are provided by whole team and management is really follows the standards. The vehicles which Toyota provide is really one of the world class ranking in a cars and even in Pakistan I observe that people feel much proud buying and keeping Toyota cars, which shows the image of Toyota and shows excellent reputation of work and services.It was my excellent experience to work with one of the top ranking organization in the world(TOYOTA) and its good for me to implement further in my career the good things and professionalism whatever i learnt in Toyota and I would like to keep applying in my further practical life.
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References
Mr. Sohail Sheikh Mr. Ch.Imran Mr. Majid Naeem Mr. Amaar Ahmed Mr. Toqeer Mr. Luqman Manager Customer Relations Deputy Manager Corporate Deputy Manager Leasing Deputy manager of New Vehicle Service Advisor Customer Services Executive
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Cuore
Corolla
Camry
Prado
Hilux
Hiace
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