San Jose Community College

San Jose Malilipot, Albay

As a requirement for Final Exam in International Business and Trade

Marketing Opportunity Assessment

(Foreign Company)

Jay-ar Alapide
HRDM 4-B

Mrs. Aurora Dutollo

(Instructor)
 TOYOTA MOTOR CORPORATION

Toyota's origins lie in the Japanese weaving industry when Sakichi Toyoda invented the world's
first automatic loom and, subsequently, set up the Toyoda Spinning and Weaving Company in
1918. His invention reduced defects and increased yields since a loom stopped and would not go
on producing imperfect fabric and using up thread after a problem occurred. This principle of
designing equipment to stop automatically and call attention to problems immediately (jidoka)
remains crucial to the Toyota Production System today.

The loom impressed a British Company, the Platt Brothers, so much that, in 1929, they bought
the production and sales rights for £100,000. Sakichi gave those proceeds to his son, Kiichiro, to
develop automotive technology at Toyoda. This in turn led to the launch of the Company's first
ever passenger car in 1936, the Model AA, and in 1937, the Toyota Motor Company was born.
Production of Toyota vehicles outside Japan began in 1959 in Brazil and now, besides its own
plants, manufacturing subsidiaries and affiliates in Japan, Toyota manufactures Toyota and
Lexus brand vehicles and components throughout the world.

Look back at the history of Toyota, starting with the birth of founder Sakichi Toyoda. It traces
the company's development from 1937 when Toyota Motor Corporation was established to when
the two millionth Prius hybrid was sold.

In 1933 Toyoda Kiichiro founded what later became the Toyota Motor Corporation as a division
of the Toyoda Automatic Loom Works, Ltd. (later Toyota Industries Corporation, now a
subsidiary), a Japanese manufacturer founded by his father, Toyoda Sakichi. Its first production
car, the Model AA sedan, was released in 1936. The following year the division was
incorporated as the Toyota Motor Company, Ltd., headed by Kiichiro. (The company’s name
was changed to Toyota, which has a more pleasing sound in Japanese.) Toyota subsequently
established several related companies, including Toyoda Machine Works, Ltd. (1941), and
Toyota Auto Body, Ltd. (1945). During World War II the company suspended production of
passenger cars and concentrated on trucks. Faced with wrecked facilities and a chaotic economy
in the aftermath of World War II, the company did not resume making passenger cars until 1947
with the introduction of the Model SA.

By the 1950s Toyota’s automobile production factories were back in full operation, and to gain
competitiveness the company began a careful study of American automobile manufacturers,
owing to perceived U.S. technical and economic superiority. Toyota executives toured the
production facilities of corporations, including the Ford Motor Company, to observe the latest
automobile manufacturing technology and in turn implemented it in their own facilities, yielding
a nearly immediate increase in efficiency. In 1957 Toyota Motor Sales, U.S.A., Inc., was
established, and the following year the company released the Toyopet sedan, its first model to be
marketed in the United States; it was poorly received because of its high price and lack of
horsepower. The Land Cruiser, a 4 × 4 utility vehicle released in 1958, was more successful. In
1965 the Toyopet, completely redesigned for American drivers, was re-released as the Toyota
Corona, marking the company’s first major success in the United States.

During the 1960s and ’70s the company expanded at a rapid rate and began exporting large
numbers of automobiles to foreign markets. Toyota acquired such companies as Hino Motors,
Ltd. (1966), a manufacturer of buses and large trucks; Nippondenso Company, Ltd., a maker of
electrical auto components; and Daihitsu Motor Company, Ltd. (1967). For several decades
Toyota was Japan’s largest automobile manufacturer. The company continued to thrive in the
American market as well, gaining a reputation for its low-cost, fuel-efficient, and reliable
vehicles such as the Corolla, which was released in the United States in 1968.

The company took its present name in 1982, when Toyota Motor Company was merged with
Toyota Motor Sales Company, Ltd. Two years later Toyota partnered with General Motors
Corporation in the creation of New United Motor Manufacturing, Inc., a dual-brand
manufacturing plant in California, where Toyota began U.S. production in 1986.

The company experienced significant growth well into the 21st century, with innovations such as
its luxury brand, Lexus (1989), and the first mass-produced hybrid-powered vehicle in the world,
the Prius (1997). In 1999 Toyota was listed on both the London Stock Exchange and the New
York Stock Exchange. The company continued to expand to new markets—specifically targeting
younger buyers with the launch of its Scion brand (2003) and unveiling the world’s first luxury
hybrid vehicle, the Lexus RX 400h (2005).

Toyota Motors Philippines Corporation is the largest automotive company and market leader in
the country.

Incorporated on August 3, 1988, Toyota Motors Philippines has been in the country for over 25
years and is a joint venture of GT Holdings, Inc., Toyota Motor Corporation, and Mitsui and Co.
Ltd.

For 12 years, Toyota Motors Philippines has been the top company in passenger car sales,
commercial vehicle sales, and total car sales in the country with 40% share of the Philippine
market or total sales of 70,000 vehicles in 2013.

Operating out of its 82-hectare special economic zone industrial complex and headquarters in
Sta. Rosa, Laguna, the company annually produces 40,000 Completely Knocked Down Units
(CKD), distributed in over 43 dealerships across the country.

Investing in the Philippines

Atty. Rommel Gutierrez, First Vice President of Toyota Motors Philippines Corporation,
explains that Toyota has always been a firm partner of the Philippine government in the
automotive sector and growth of the economy.

“The government has always been our partner in strengthening the automotive industry in the
Philippines. Of course there were some challenges but Toyota has always made sure that its
presence is here and its contribution to the economy is priority for the management,” he says.

With the largest market share in the Philippines for over a decade, the global Toyota brand has
taken notice and values its Philippine operations as key to its international standing.

Atty. Gutierrez explains, “Toyota Motors Philippines Corporation is one of the top 5 affiliates of
Toyota Motors Corporation worldwide”.

Enhancing Business Operations in the Philippines

In anticipation of the growth of the Philippine market and the sustained economic growth of the
Philippines, Toyota views their current investments positively and has started upgrading its
production facility to meet future demand and retain its position as the market leader.

“We want to retain local production and enhance the competitiveness of CKD production…and
maintain our leadership position in the industry,” Atty. Gutierrez explains.
On Toyota’s recent investments in Sta. Rosa, Atty. Gutierrez says, “We can do more. These are
just plant upgrades. [These are] improvements that will prepare us. We are anticipating
motorization to come in.”

To further industry growth, Toyota is coordinating with the Philippine government towards the
development of an automotive industry roadmap, and advocates supporting the local auto parts
sector.

With the improvements of the economy and government support, Toyota is eager to continue to
be the top automotive company for many years to come.