Toyota: The Once-in-a-Century Challenge

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Case Details:

Case Code : BSTR362
Case Length : 16 Pages
Period : 2006-2009
Pub Date : 2010
Teaching Note :Not Available
Organization : Toyota Motor Corporation
Industry : Automotive
Countries : Global

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction Contd...

The business segments of Toyota mainly include automotive operations, financial services operations, and other business operations.³ Automotive operations accounted for 89% of Toyota's total revenues in 2008. The company manufactured vehicles at 53 production sites in 27 countries around the globe. In the fiscal year 2008⁴, Toyota sold approximately 8.91 million vehicles in 170 countries and regions under the Toyota, Lexus, Daihatsu, and Hino brands.

North America was its biggest market followed by Japan, Europe, and Asia (Refer to Exhibit I for vehicle production, sales and exports of Toyota and Exhibit II for primary markets of Toyota).

After booming sales through 2007, which also saw the company dethrone General Motors (GM)⁵ as the world's leading automaker, Toyota's sales were hit hard in 2008. The company decided to opt for a change in leadership and appointed Akio as President. Akio immediately announced a slew of measures in a bid to bring the company back to profits...

Excerpts >>

3] Other business operations of Toyota include intelligent transport systems, IT and telecommunications, housing, motorboat manufacturing, and biotechnology and afforestation businesses.
4] Toyota's financial year ends on March 31.
5] General Motors Company, LLC (earlier General Motors Corporation) based in Detroit, is the second-largest automaker in the world. In June 2009, the company filed for Chapter 11 bankruptcy protection. The bankruptcy filing was a dramatic downfall for GM, which was founded in 1908 by William C. Durant. For the year ended 2008, the company reported revenues of US$ 148.979 billion.

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