Polytechnic University of the Philippines

College of Business Administration

Department of Human Resource Management
A.Y 2020-2021

BAROT, JOHN PAUL CASTILLO JULY 9, 2021

BSBA-HRM 2-3N Basic Microeconomics

EXERCISE 10

Exercise 10
Choose an existing firm in the market that belongs to any of the 4 market structures and prepare
the firm analysis including but not limited to the following components:

I. Name of the Firm

II. Vison, Mission. Goals and Core Values

III. Brief History

IV. SWOT-PESTLE Analysis

V. Market Analysis (based on market structure where the firm belongs)

A. Product and Major Competing Product(s) and firms

B. Pricing Strategies

C. Non-Price competition strategies

D. Marketing Strategies

VI. Corporate Social Responsibility (relate to which of the SDGs the CRS is contributing
to)

VII. Conclusion and Learnings

VIII. References
I. Name of the Firm
Toyota Motor Corporation

II. Vison, Mission. Goals and Core Values

Vision: "To be the most successful and respected car company in America."
Mission: "To attract and attain customers with high-value products and services and the
most satisfying ownership experience in America."
Goals: It will be at the forefront of the future mobility society, enriching lives all across the
world by providing the safest and most responsible modes of transportation.
We want to surpass expectations and be rewarded with a smile by committing to quality,
continuous innovation, and environmental stewardship.
We'll achieve difficult objectives by enlisting the talent and enthusiasm of people who
believe there's always a better way.
III. Brief History
Sakichi Toyoda formed Toyota Industries Corporation in 1926 to produce and sell the
automatic looms that he had invented and improved. Toyota Industries has pushed diversification
and broadened the scope of its business domains to include textile machines, automobiles
(vehicles, engines, car air-conditioning compressors, and so on), electronics, and materials
handling equipment since that time.
Toyota Motor Corporation, founded in 1937, is a Japanese corporation that designs,
manufactures, assembles, and sells passenger automobiles, minivans, commercial vehicles, and
related parts and accessories primarily in Japan, North America, Europe and Asia. Toyota, Lexus,
Daihatsu, and Hino are among the current models. Toyota Motor Corporation is the world's most
successful automaker and the world's eighth-largest corporation. Toyota Motor Corporation has
$213 billion in annual revenue and 333,498 employees as of March 31, 2013.
IV. SWOT-PESTLE Analysis

Strengths Weaknesses
1. Strong brand value 1. Hierarchical organizational structure
2. Research and Development 2. Overdependence in certain markets
3. Good financial health 3. Lack of flexibility due to large size
Opportunities Threats
1. Developing the market in emerging economies 1. Cab aggregators
2. Growing demand for fuel efficient and hybrid 2. Rising fuel prices
cars 3. Emergence of innovative competitors
3. Researching automated driving technology
 Political Economical
1. Toyota’s UK business facing uncertainty over 1. Border-tax and trade protectionist policies
Brexit under Trump administration
2. Japan’s cold political relation with China 2. Emerging markets to witness strong economic
growth
Social Technological
1. Consumer preferences for environmental- 1. Strong focus on Research and Development
friendly transportation 2. “Connected Technologies” by Toyota to
2.Women being allowed to drive in Saudi Arabia enhance in-car user experience
top open up the market for Toyota
Legal Environmental
1. Inconsistent regulations regarding autonomous 1. Persuasion of twin goal-zero emissions and
and hybrid vehicles zero casualties from traffic accidents.

V. Market Analysis (based on market structure where the firm belongs)

A. Product and Major Competing Product(s) and firms

Toyota offers a wide range of items. For a specific group of clients, each
automotive line has its own organizational output. Toyota products are divided into the
following product lines: Toyota automobiles, Lexus automobiles, Marine products, Welcab
products, Spare parts and accessories, and Engines.
Automobiles are the company's most well-known or hallmark products. Lexus
autos are luxury automobiles. The Welcab car series, on the other hand, is designed for
those with disabilities and the elderly. Toyota targets a broader market with different
product lines and lowers the risk of focusing on a single market by having a diverse product
mix.
A high-quality product is generally self-marketed, which is why Toyota vehicles are
so attractive. Toyota's car models are divided into nine groups, each with nineteen models:
Passenger, SUVs and 4WD, Hybrid, and Commercial.
Toyota places a high priority on customer happiness, thus the firm has a research
center dedicated to acquiring and evaluating data on consumer expectations of Toyota.
Toyota created the Hybrid product line to mitigate the impact of the oil market. The Toyota
Prius was the first hybrid automobile, and it can travel up to 48 miles on a single gallon of
gas.
B. Pricing Strategies
Toyota could overtake Ford as the world's second-largest automaker as a result of
creative designs and significant promotional spending to entice customers across the
globe. It produces high-quality autos at reasonable pricing.
The cost and profit of a product are frequently used to calculate its selling price.
Any little rise in production costs will have a direct impact on the selling price for
customers. Toyota, on the other hand, takes a different approach. The recipe hasn't
changed, but it's been tweaked significantly to make a significant effect. Toyota calculates
the profit first, rather than the selling price. As a result, it can be sold using the formula
price - cost price = profit. The company thinks that the selling price is determined by the
market mechanism and consumers.
Toyota also places a high priority on waste reduction. As a result of the good price,
great quality, and low-cost automobiles, profit increases over time. Toyota sold 10,386,000
vehicles worldwide in 2017, according to a report. The vehicles range in price from
$18,990 to $80,000, depending on the model, additional parts, and manufacturing costs.
To acquire a competitive advantage in the automobile business, the corporation
relies on low costs and differentiation. Many people believe Toyota goods are superior to
those of competitors in terms of quality, design, and technology.
C. Non-Price competition strategies
Toyota's major locations for distributing products are dealerships, thus they play a
significant role in the marketing mix when it comes to determining where consumers may
see the items. The organization strives to put the customer first and understands the
importance of the target audience's ability to access autos. Each dealership's sales
personnel frequently work in seven or eight-person teams, similar to assembly-line
groupings.
All of the employees are well-versed in not only sales, but also product knowledge,
order taking, data collecting, and financial insurance. Toyota focuses on the pull strategy
and creates vehicles that meet the needs of its customers. Furthermore, it employs sales
agents in Japan who go door to door to market the company's autos.
A typical Toyota dealership will strive to reduce supply chain expenses while
maintaining a high level of service and high-quality products. Toyota divides its suppliers
into three categories. A product development team can collaborate with the first level of
suppliers. Individual parts are manufactured by second-tier suppliers. This allows for labor
cross-sharing, since Toyota can move employees to suppliers if work is overburdened.
 D. Marketing Strategies
A marketing strategy is a plan of action that a company wants to follow in order to
attain specific marketing goals. Toyota's marketing approach differs depending on the
needs of different markets in different countries. It also has a big dealership network to
deliver items all around the world, as well as a culture of innovation to ensure that every
vehicle is of the highest quality. But, most crucially, Toyota has always prioritized the
customer's best interests in its marketing strategy. This could be the key to the firm's long-
term success.
In this section, we'll look at Toyota's main marketing methods, as well as some
notable campaigns, to see if the firm is a role model for other automakers to follow.
VI. Corporate Social Responsibility (relate to which of the SDGs the CRS is contributing
to)
Toyota Global Vision, which was created in March 2011, includes CSR activities and
initiatives. The Toyota Global Vision is depicted as a tree, with Toyota values representing the
roots and the stable base of the business representing the trunk. The themes of "Always Better
Cars" and "Enriching Communities' Lives" are positioned as the tree's fruits. To put it another way,
Toyota's Global Vision prioritizes both profit maximization (Always Better Cars) and corporate
social responsibility (CSR) (Enriching Lives of Communities).
The firm publishes a Global Responsibility Report every year that includes information on
Toyota's CSR activities and efforts. Here are some activities of Toyota related to Corporate Social
Responsibility:
Labor and human rights – 2.14% of all workforce are disabled people
Health and safety – Toyota implemented Quality Control (QC) circles to improve the
vitality of its employees and workspaces. As of March 2015, there were roughly 4,100 circles
active in Japan, with approximately 36,000 members, and approximately 13,000 circles active
internationally, with approximately 99,000 members. Toyota undertakes monthly genchi genbutsu
safety checks to safeguard the safety of its personnel and visitors.
Gender equality and minorities – The number of women in managerial roles has climbed
from 16 in 2004 to 111 in 2015.Toyota plans to triple the number of women in managerial positions
in 2020 compared to 2014.
Other initiatives – Toyota has launched a number of road safety education initiatives,
including the distribution of approximately 134 million traffic safety picture books and nearly 1.5
million traffic safety picture-card sets to preschool and kindergarten children throughout Japan.
Outside of Japan, Toyota has undertaken road safety educational projects such as TeenDrive in
the United States and the White Road Campaign in Thailand. Suppliers from Japan and overseas
are invited to participate in CSR workshops and education programs, which are entirely voluntary.

VII. Conclusion and Learnings

A quick rundown of what the Toyota marketing approach can teach you. Customers
must always come first in order to be a worldwide firm that continues to expand. Different tactics
should be developed for each country and region. Create a company culture that promotes
long-term thinking and innovation.
You can let the entire production system do what it takes to get there once a corporation
can designate the path it should move in and that direction is correct. Step by step, with a long-
term strategy, Toyota has progressed to its current position as the automobile industry's leader
and Japan's pride. Despite over a century of invention, Toyota continues to strive for greater
heights.
Do you believe your brand, like Toyota's, can last a decade? What marketing approach
would you like to learn from Japan's leading vehicle manufacturer?

VIII. References

Corporation., T. (n.d.). Csr policy: Sustainability policy: Sustainability. Retrieved July 07, 2021,
from https://global.toyota/en/sustainability/csr/policy/#:~:text=of%20CSR%20Policy-
,Contribution%20toward%20Sustainable%20Development,based%20on%20our%20Guidi
ng%20Principles

Corporation, T. I. (n.d.). History 1867 - | Toyota Industries Corporation. Toyota Industries

Corporation. Retrieved July 7, 2021, from https://www.toyota-
industries.com/company/history/

Toyota corporate social responsibility - Research-Methodology. (2016, April 17). Retrieved July
07, 2021, from https://research-methodology.net/toyota-corporate-social-responsibility/

Toyota Motor SWOT & PESTLE Analysis: SWOT & PESTLE. SWOT & PESTLE.com. (2020,
September 4). https://www.swotandpestle.com/toyota-motor/

Toyota marketing strategy: The pride of JAPANESE QUALITY? (n.d.). Retrieved July 07, 2021,
from https://avada.io/resources/toyota-marketing-strategy.html

TOYOTA. (n.d.). Retrieved July 07, 2021, from https://www.toyotauk.com/about-toyota/history-

of-toyota.html