Business Report on Toyota Australia

This business report provides an overview of Toyota Australia, including its company profile, financial information, expected revenue growth, market share of R&D, new business opportunities, customer relationship, key performance indicators, and management information.

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Business Report on Toyota Australia

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Table of Contents
Company Profile- Toyota Australia..................................................................................................3
Toyota’s Capitals..............................................................................................................................3
Toyota’s financial information.........................................................................................................4
Expected revenue growth............................................................................................................4
Market share of R&D...................................................................................................................4
New business opportunities of environmental policies..............................................................4
Customer relationship.................................................................................................................5
Key performance indicators............................................................................................................5
Management Information...............................................................................................................6
Reference List..................................................................................................................................7

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Company Profile- Toyota Australia
Toyota Motor Corporation was established in 1937 making it one of the world’s biggest car
manufacturers in the world. Toyota started its operations in Australia in 1963 and Australia has
played an important role in the development and success of the company over past 50 years
(Toyota 2019). The company has been a guest-centric organization with its unchanged brand
value and deliverables in Australia. The company has produced cars in Australia for more than
four decades. The business transition started with building if the new plant in Altona which
produced Camry in 1995 and Corolla in 1999 (Toyota Sustainability Report 2018). It created a
larger supplier base with over $1.2 billion purchases of goods from its suppliers. The company
has maintained a comprehensive marketing and sales operations in Sydney and distribution to
other states in Australia. The performance of the company can be measured by its use of the
production lines to produce more than 500 vehicle variants for both domestic and export
markets. Toyota Australia has served as the third largest Toyota market in the world proximity
2.4% of its global vehicle sales. The market share of the company stood at 18% in the year 2012
(Toyota 2018). Currently the company has officially ended manufacturing plant of Altona on
20th October 2017 (Autocar 2017). In the current scenario, the automotive industry in Australia
has shown a considerable decline of 1% affected the production of cars of Toyota Australia.
The future of Toyota Australia depicts that it must focus more on innovation an investment in
research and development for Clean Technology that can meet market demands. It is also
important for the company to evaluate strategies to make fuel efficient and cleaner vehicles
with an intention to gain better market share and position itself as an innovative brand in the
Australian market.
Toyota’s Capitals
The company holds a dominant position in the market with more than 500 vehicle variants
under its brand name. The company uses its manufacturing lines according to the country it
wants to export keeping in mind the left and right driving. Since everything happens in a single
line of manufacturing, it makes it different from other automobile companies in the industry.

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Toyota Australia is mindful of its wider economic impacts through its capitals, suppliers,
customer support programs and the payment of taxes.
Toyota’s financial information
Expected revenue growth
Toyota Australia currently has a market share of 18.8 percent (Bonnici 2018). For the financial
year 2017-18, Toyota Australia has earned an after tax profit of $137 million (Carsales 2017).
Toyota Australia has maintained its competitive position as the top selling brand in Australia.
The market share of Toyota Australia has accounted to 18.2% in the year 2017 with the highest
selling of its Lexus cars of more than 2,29,258 in the year 2017-18. The total financing revenues
for the year 2018 results to $1,094,412 and the revenue has been recognized for major
activities such as term loans, leased assets and fee income and expense (Toyota Financing
Services 2018, p.24). The company expects to grow globally by keeping the core aspects of the
business unchanged. Toyota Australia has been ranked as most reputable automotive brand in
May 2018 which makes it the second most reputed automobile company in the world. The
profits of the company have been fluctuating due to fluctuating rate of foreign exchange in the
export market.
Market share of R&D
Toyota is popular for its innovative culture and its R&D initiatives focus more on producing
ecofriendly vehicle technologies along with vehicle safety. The spending on research and
development budget results in 3.9% of the total revenue (Strategyand 2018). The R&D
investment is directed towards researching on basic vehicle technology with use of leading
edge technology for product development. The efficient spending on research and
development has allowed Toyota Australia to create an edge over its competitors.
New business opportunities of environmental policies
Toyota Australia has changed its environmental impacts as well as created new environmental
Action Plan with the focus of building environmental friendly vehicles. Toyota Australia has
change its policies of use of older vehicles in the country that does not comply with

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environmental standards. The environmental policies focus on reducing the gap between the
initiatives taken and the government's policy to manufacturer cleaner vehicles. The
opportunities lie in increasing the domestic sales of locally-made vehicles.
Customer relationship
Toyota Australia has been a leading company in providing a number of cutting edge design and
engineered vehicles to its customers in Australia as well as in the entire world. Its product
services has made company a valuable link with its customers and gained their loyalty. The
most important factor for attracting and maintaining good relation with customers is providing
eco-friendly vehicles improved after sales services which is missing in most of the companies.
Key performance indicators
The key performance indicators of Toyota Australia are:
 The investment on research and development which aims at producing eco-friendly
vehicles and cleaner technology to contribute to its environmental policies.
 The development of internal capacity and systems has led to being customer centric and
innovate better solutions problems which might occur in their administrative
operations.
 The focus is more on identifying the business challenges and developing work plans to
achieve the predetermined targets.
 The success of Toyota Australia contributes to its relation with the suppliers who are
able to provide with improved services to the company.
 Product quality and safety is again an important performance indicator as the company
incorporates innovative ways to maintain safety of its vehicles.
 Guest experience remains a prime focus for Toyota Australia which allows the company
to differentiate itself from other brands operating in Australia.
 Toyota Australia has also successfully managed its emission standards as well as
maintaining a balance with the needs of customers, the automobile industry and
environment in which it operates.
 The company’s greater focus on its employees makes it other companies in the sector.

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 The performance of the company has transition from just manufacturing affordable cars
to innovative and technology driven cars.
Management Information
The Toyota Australia has coined out the strategy of Corporate Hoshin which identifies
challenges, the objectives of the company as well as its target market in alignment with the
predetermined goals. This strategy helped the company to focus on better performance and
take better initiatives to hold a better position in the market (Toyota Sustainability Report 2018,
p.20). The strategy of Corporate Hoshin aims at prioritizing the wellbeing of its employees other
associated people with Toyota. Since the company focuses on building better relations with its
guests, it aims at improving the quality of service provided to them. Along with this, the
company maintains its market dominance by creating larger customer base. This ensures that
the company is using appropriate sales and marketing techniques to attract its customers and
aiming for a better future for Toyota Australia in overall. The Corporate Hoshin is
communicated throughout the organization and requires to be implemented by its employees.
During the Annual Business Priority Forum, the company makes sure that the senior
management is following the strategy implemented and ensure that the plans are implemented
throughout the organization. This forum provides an informal and formal networking
opportunity that helps in facilitating a robust and transparent collaboration. Toyota is
Australia's center of focus which creates good network with their dealers as well as maintains
good relations internally. Toyota Australia aims at gaining a better future in Australia by
managing its business with its strategy of Corporate Hoshin.

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Reference List
Autocar, 2017, The end of car production in Australia - what went wrong, viewed 20 April 2019,
<>
Bonnici, D., 2018, VFACTS: Holden and Mazda defy October car sales slump, viewed 20 April
2019, <>
Carsales, 2017, Toyota Australia’s profits slump $137 millions in 12 months, viewed 20 April
2019, <>
Strategyand, 2018, The 2018 Global Innovation 1000 study, viewed 20 April 2019, <>
Toyota Financing Services, 2018, Annual Financial Report 2018, viewed 20 April 2019, <>
Toyota Sustainability Report, 2018, Business performance, viewed 20 April 2019, < >
Toyota, 2018, Toyota Leads Auto Industry to Record Total, viewed 20 April 2019, < >
Toyota, 2019, Toyota Australia, viewed 20 April 2019, <>