Internship Report

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 Toyota Multan Motors

DEDICATION

I would like to dedicate my all efforts of making this Toyota internship report to my dear
parent’s teachers and my friends, who always motivated and encouraged me in each
step of my life.

ACKNOWLEDGMENT

I am very much thankful to Mr. Altaf-Ur_Rehman (GM Sales of Toyota Multan motors)
that helps me a lot with full sincerity to complete my internship report.
I am also very much thankful to Mr. Ammar (senior corporate manager) who guides me
to visit all Departments.
I would like to say thanks to Mr. Jahanzaib Warriach (Manager Customers relations
Department), who supports me to complete my report and taught me all techniques of
customer’s complaint and handling.
I am really thankful to Mr. Faheem abbass and Mr. Shakeel (Sales Executives) who
guided me completely regarding valuable information for this report. At the end I am
thankful to all team members including staff who corporate with me in each department

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to give me the knowledge, procedure and way of operations in entire organization of
Toyota.

EXECUTIVE SUMMARY

Internship is like “The First Flight” for a young business graduate who is to enter his
professional life very soon. It provides a gateway to youngsters and an insight of
corporate world.
Toyota is one of the Largest Company in the world that is known as world class car
manufacturing company.
Toyota has the network of dealership all round the world; it was my honor to work for
Toyota Multan motors which is located in my city Multan. Basically, Toyota Operates in
three ‘S’, 1st Sales, 2nd Service and 3rd Spare parts and they are working efficiently and
effectively in Multan city.
The main objective of the internship is to analyze that how the theoretical framework
differs from practical realities. Its main scope is that we get through the detailed study of
Toyota motors.
The analysis is done about the performance of the Toyota motors and its departments.
The report begins with the introduction of the automobile industry in Pakistan and its
main contributors. Heading forward specifically to the Toyota motors who owns the
major share of the Pakistan’s automobile industry, the detailed explanation is given
about its products and services. More detailed analysis is done through financial analysis
statement and its performance is analyzed on the financial side that how company is
incurring profits and what is its financial position in the market.
In political and legal forces, poor law and order situation, also affect the country. Political
instability in the country and the government’s inconsistent policies,
Last but not the least internship experience is being explained with the description of
activities performed, problem faced by the company and recommendations are given to
The main objective of the internship is to analyze that how the theoretical framework

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Improve its status. The conclusion is drawn that Toyota motors are working efficiently
but they have to arrange training sessions for their employees, reward system should be
introduced in order to increase the employee satisfaction and loyalty to the organization
and also an up gradation of computer systems are required in this way they can excel
more in the market.

Table of Contents

Title page Page#

Dedication o2
Acknowledgement 02
Executive Summary 03
Overview of the Organization 04
Vision 04
Mission 04
Toyota in Pakistan 05
Nature of the organization 06
KAIZEN Approach 06
Product lines and brand portfolio of the organization 07
Main clients 09
Main competitors
Toyota Multan Motors
Organization Structure
Achievements and Awards
Introduction of all the departments
Detailed description of tasks assigned to me
Ratio Analysis
Horizontal and Vertical Analysis
SWOT Analysis
PESTLE Analysis
Competitors Analysis
Critical Analysis
Conclusion
Recommendations for Improvements

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 References
Annexes

Overview of the Organization

Brief History

Designed for style, engineered to perform, all Toyota and Daihatsu vehicles offer outstanding Technology for a superior
driving experience

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The Toyota motor corporation is a Japanese car manufacturer, which is the world’s
second largest manufacturer after General motors, regardless of this fact it is ranked first
in terms of profitability, its net worth and revenue collection. It was founded in 1937 as a
subsidiary of Toyota industries.
In the late 19th century, a Japanese Sakichi Toyoda invented Japan’s first power loom for
textile industry. In 1918, Sakichi founded the Toyoda Spinning & Weaving Company, and
with the help of his son, Kiichiro Toyoda, his dream came true to make an automatic
loom in 1924. After Two years, he established Toyoda Automatic Loom Works.
Kiichiro adopted innovations in nature by his father, especially during his visits to Europe
and the U.S. in the 1920’s, he started taking interest in the nascent automotive industry,
Sakichi Toyoda received for selling the patent rights of his automatic loom, and Kiichiro
laid the foundations of Toyota Motor Corporation (TMC), which was established in 1937.
Started From looms to cars, the Toyota successful experience has been shaped by
extending the boundaries of outstanding vehicles manufacturer all around the world.
Now Toyota is one of the world's largest automobile manufacturers, selling over 9
million models in 2006 on all five continents of the world. Also Top 10 Fortune Global
500 enterprises, Toyota ranks among the world's leading global corporations and is
proud to be the most admired automaker.

vision

To achieve total customer satisfaction and loyalty through quality assurance and
continuous improvement. To foster friendly and caring relationship with customers
through committed, professional and skilled employees working in an encouraging and
supportive work environment. Ethical standards drive all aspects of business and ensure
its successful and enduring existence to meet the needs of the stakeholders.

Values
 Customer Focus
 Professionalism
 Teamwork
 Integrity
 Corporate Ethics

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 Mission

To provide exceptional value to all our customers through superior service,

innovative products and operational excellence

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.
Indus Motor company's plant is the only manufacturing site in the world where both
Toyota and Daihatsu brands are being manufactured.
Heavy investment was made to build its production facilities based on state of art
technologies. To ensure highest level of productivity world-renowned Toyota Production
Systems are implemented.

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 Nature of Organization

Toyota Motor Corporation (TMC) origin in the country of Japan is the world’s 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 world’s 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 ensure continues feed back and improvement.
Toyota Motor customized the system to meet its unique needs, which enabled the

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company to automate many day-to-day processes and continuous improvement in their
auto-vehicles.

“Kaizen Approach”

Toyota follows Kaizen Approach (continuous Improvement), they believe improvement

on continuous basis, basically it’s a japans model that lies under the quality to improve
continuously. And this is the result that Toyota gone globally, leading in sales, innovation
and product line.

Product lines and Brand Portfolio of the Organization

IMC's Product line includes 6 variants of the newly introduced Toyota Corolla, Toyota
Hilux Single Cabin 4x2 and 4 versions of Daihatsu Cuore. We also have a wide range of
imported vehicles.

The Toyota Multan Motors is offering all local and imported Toyota vehicles, which
consist of three parts local assembled corolla variant, local assembled cuore (Daihatsu)
vehicles, and imported vehicles like, Prado, land cruiser, coaster, and imported double
cabin HILUX. Thus by the above definition all these three parts shows the attention, use
and physical objects and are satisfying the customers needs and wants. In such a way we
can say these parts as products.

Products offered by the Toyota Multan Motors:

 CKD (complete knocked down) assembled corolla

 CBU (complete built in unit) imported vehicles

CKD (Local) Vehicles

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

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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 16,45,500 to 23,20,500
including different horse power separately. E.g. XLI, GLI, 1.6 ALTIS, 1.8 ALTIS, Hilux
simple, Hilux Vigo Champ, etc.

CBU (Complete Built Unit) 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 of luxury vehicles and price range is from 4 million to 24 million.
E.g Terios, Avanza, Prado, Camry, Land cruiser etc.

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 Main Clients

 Corporate sector
 Industrialist
 Business persons
 Landlords

Main Competitors

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In Pakistan:
1. Honda

2. Suzuki

3. Nissan

4. Mazda

5. Kia

6. Mitsubishi

Toyota Multan Motors(TMM)

Our family has been in the automobile business since 1927. Toyota Multan Motors was
established in 1992. We are the authorized dealers of Indus Motor Company Limited,
Karachi (manufacturers and importers of Toyota & Daihatsu vehicles in Pakistan), in
Multan division for Sales, Service and Spare Parts of complete range of Toyota and
Daihatsu vehicles.

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 TMM Business philosophy

“Passion for Excellence”

This philosophy is extended in everything that we do. We believe in offering our

customers the best possible services. Our goal has always been to turn that one-time
buyer into a lifetime customer. We ensure this through quality assurance and continuous
improvement so that our customers always get the best value for their money. Our
relationship with our clients is based on honesty, trust, integrity and commitment.

Organizational Structure

Organizational hierarchy chart

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Number of Employees

250 employees

ACHIEVEMENTS & AWARDS

 ISO 9002/ISO 9000-2001 certification (First Toyota Dealership in Pakistan to get

this quality certification)
 Professional Management Award (1999 - 2000)
 Best in service - Central Region (1995-96, 1996-97, 1997-98,1999-00,2003-2004)
 Best in parts - Central Region (2000-01,2001-02, 2002-03)
 Best in sales - Nationwide (2002-03)
 Best in sales - Central Region(2003-04)
 Best in Customer Satisfaction(CSI) - Central Region (1998-99)
 Best in Customer Satisfaction (CSI) - Nationwide (1999-00)
 Among top 3 purchases of IMC parts
 Among the first 4 dealerships of Pakistan to get Toyota Service Marketing (TSM)
certification

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 Introduction of all Departments

The Toyota Multan Motors is providing different products and services to its customers
through the following departments.
 Accounts department
 Administration department
 Service department
 Parts department
 Customer Relations department
 Sales & Marketing department
 New Vehicle Delivery department (NVD)

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.

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, and disposal.

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 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.

Spare Parts Department

This department is responsible for running a profitable and efficient spare parts
department. They are responsible to accomplish objectives through proper purchasing
procedures, inventory control, staffing, security, pricing, merchandising, displaying and
advertising. The primary responsibility of the spare parts department is to service
customers.

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 Customer Relations Department

Customer relations department is backbone of Toyota Multan Motors. All inquiries and
complaints receiving and resolutions have done by customer relations department.
Customer relations department is responsible overall improvements of entire dealership
and continue the KAIZEN (continuous improvement) process, quality control, and system
implementation.

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).

New Vehicle Delivery Department

The responsibility of this department is to make sure that the customer vehicle is arrived
at Toyota dealership and to inform customer on time and to make sure that all the
documents are finalized be vehicle delivery. Just-in-time vehicle arrived, just-in-time
delivered to customer.

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 Names of the departments in which I got training and
duration of my training:

1) Customers relations department

2) Sales & Marketing Department
3) New Vehicle Delivery Department
4) Services Department
5) Leasing Department

Detailed description of the tasks assigned to me and

learning

I have performed different task, work and small part of essential responsibilities, which
helped me a lot in making me confident and learn so much that made me feel practical
and comfortable during my internship in Toyota.
In the following department, I was assigned to perform different small activities, which
helped me a lot in learning.
Basically, professionalism comes into you when you are
committed, responsive, punctual, pessimistic, and most importantly how you manage or
deal with people to those who you do not like personally, so I learn these types of skills
performing under these types of tasks in Toyota Multan Motors
.
At Customers relations 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 learn how
to negotiate or handle those customers who have complained or claim. I have also
prepared, sale service index (SSI) and customer service index (CSI). 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.

Vehicle Delivery Department, I have spend most of my time and learn how to prepare
file of the customer and get all the required documents and confirm them through bank
if the vehicle is at lease. I have assigned to make files and examine the data of customer.

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In service department, my experience was to deal with those customers, who need
maintenance, service or need repair of their vehicles. It was quite difficult, but I was
feeling much happy to be with those who Toyota call advisor which check the car by
means of mechanical problem and then make the quotation or estimation for repairs. I
also learn inspection of new vehicle in service department.

Marketing department, deal with different categories of customers including leasing,

financing, booking new vehicles etc. Different customers go through different stages to
purchase new car. As marketing is my field so, I was assigned to welcome the customer
and ask that what type of vehicle they needed and to give them information about
vehicle prices, models, colors offered etc. Basically, they have two sales portions one is
for corporate sales and other is for Private customers. When new model was going to be
launched at dealership I was assigned to tell each and every type of product related
information like, product price, launch date, features, innovation, availability,
specifications etc.

In Leasing Department, means if a customer want a leased car I give him the direction of
leasing department. I deal with customers to obtain necessary documents to fulfill the
requirement of leasing a car which includes FBR,NTN, demand draft in favor of INDUS
MOTORS, NIC copy and a company purchase order if its from commercial or corporate
purpose purchase( authorize with a company letter head).I was assigned to ask from
customer that either they will prefer financing or leasing. Financing means bank and
customer both are the owner and lease means only bank is owner till last installment of
leasing.

Customers are always make sure whatever vehicles they buy, it must be having all the
qualities and comfort, which they required and my duty was to give them that
assurance.
Although I didn’t have much knowledge regarding sales, but still I was with experienced
sales person all the time while dealing customers, observing them and tried to handle
customers in case of the absence of sale person of Toyota.

Any new car, which enter and store in a show room, I had to check and make sure all
necessary distance and space have been provided in between the cars and the sales area
is clean or not and then make it ready for display purpose. It was enjoyable and
delightful experience to deal with the customers and staying near showroom display
with brand new, zero meter beautiful Toyota cars.

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 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.

Groups of financial ratios:

 Liquidity ratios
 Activity ratios
 Debt analysis ratios

LIQUIDITY RATIOS:

Net working capitals:

Ratio Formula 2011 2012 2013

Net working CA - CL = 95,742,856 1,157,296,99 1,342,655,29
capital

Interpretation:
NWC shows +ve balance. It means that company having ability to meet its short-term
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 Formula 2011 2012 2013

Current ratio CA / CL = 1.4 1.51 1.47

Interpretation:
Current ratio has decreased from previous year, which indicate that the firm's current
asset has decreased which put down the liquidity position of the firm. This number is
greater than one, and then the company has enough current assets to cover its short
term liabilities.

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 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.

Quick Ratio:

Ratio Formula 2011 2012 2013

Quick Ratio CA – inventory / CL 0.76 0.93 0.89

Interpretation

Quick ratio is less than previous year which indicates that the level of stock increases.
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.

ACTIVITY RATIOS

Inventory Turnover:

Ratio Formula 2011 2012 2013

Inventory Turnover: CGS / Inv. = 16.71 Times 24.02 Times 22.72 Times

Interpretation
The inventory turnover ratio of the company decrease then last year it means that
company is not so efficient in selling its inventory in a year.

Average Collection Period:

Ratio Formula 2011 2012 2013

Average Collection Period: A/C Receivable / Annual 15.95 13.09 14.30
Sale /365 = Days Days Days

Interpretation:
It has increased from previous year, which is not a good sign for them.

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Its mean we are giving the relaxation to our customer which might be harmful in long
run because we must receive our receivables as soon as possible.

Total Assets Turnover:

Ratio Formula 2011 2012 2013

Total Assets Turnover N Sales / TA = 6.71 8.23 8.15 Times
Times Times
Interpretation
Total assets turnover has increased, its mean more efficiently its assets have been used.

DEBT RATIO ANALYSIS

Debt Ratio:

Ratio Formula 2011 2012 2013

Debt Ratio Total liabilities / Total Assets *100= 61% 57% 60%

Interpretation:
The ratio is increasing from previous year which shows degree of indebtedness
decreasing and less financial leverage it has.

Horizontal and vertical analysis

3 years Income statement

2011 2012 2013

Sales 2,636,589,348.00 3,248,973,373.00 3,885,524,703.00
Less : C.G.S (2,533,786,130.00) (3,145,576,562.00) (3,742,022,227.00)
GROSS PROFIT 102,803,218.00 103,396,811.00 143,502,476.00
Less: operating
expenses
Administrative 14,339,278.30 13,118,270.00 26,834,503.00
expenses
Selling expenses 23,152,859.97 22,037,806.00 31,602,745.00
Store expenses 3,737,206.65 4,398,319.00 10,266,066.00
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 Financial expenses 33,144,686.79 35,704,711.00 35,615,757.00
Depreciation 7,760,735.80 70,207,537.00 7,465,676.00
Total operating 82,134,767.51 82,466,643.00 111,784,747.00
expenses
OPERATING PROFIT 20,668,450.49 20,930,168.00 31,717,729.00

Add; other income 858,386.00 308,886.00 1,504,408.00

NET PROFIR 21,526,836.49 21,239.54.00 33,222,137.00
BEFORE TAX
Less; income tax (7,534,393.00) (5,309,764.00) (11,627,748.00)*
liability for the year @
25%
NET PROFIT 13,992,443.49 15,929,290.00 21,594,389.00

* Income tax liability for the year @ 35%

VERTICAL ANALYSIS OF INCOME STATEMENT

Vertical analysis is the procedure of preparing and presenting common size statements.
Common size statement is one that shows the items appearing on it in percentage form.

2011 2012 2013

Sales 100% 100% 100%
Less : C.G.S 96.1 96.8 96.3%
GROSS PROFIT 3.89 3.1 3.7%
Less: operating expenses
Administrative expenses 0.54 0.4 .69
Selling expenses 0.87 0.67 .81
Store expenses 0.14 0.13 .26
Financial expenses 1.25 1.09 .91
Depreciation 0.29 0.22 .19
Total operating expenses 3.11 2.53 2.86
OPERATING PROFIT 0.78 0.64 0.81
Add; other income 0.03 0.09 0.03
NET PROFIT BEFORE TAX 0.81 0.65 0.85
Less; income tax liability for the year @ 25% 0.28 0.16 0.3*
NET PROFIT 0.53 0.49 0.55
* Income tax liability for the year @ 35

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Here we can see that the revenue is kept 100 % in all three years and the percentages of
various other items are determined in respect of total revenue. If we see the item Cost
of Sales in all three years, in year 2011 it was 96.1 %of sales, in year 2012 it increased to
96.8% of Revenue and in slightly moved down in year 2013 to 96.3 % of sales of the
respective years. If we take Gross Profit in year 2011, 2012 and in year 2013 it was
3.89%, 3.1% and 3.7%of Revenue. It depicts that in year 2012 firms profitability
increased.
By subtracting all the operating expenses we come to net profit in year 2011, 2012 and
in year 2013 the net profit was 0.53%, 0.49 % and 0.55% of Net Revenue which shows
that the net profit is higher than previous year.

HORIZONTAL ANALYSIS OF INCOME STATEMENT

Comparison of two or more year's financial data is known as horizontal analysis. In this
analysis we keep one year as base and we examine the changed of the respective items
in the next years

2011 2012 2013 2012-2013

Sales 100% 23.22% 100% 19.6%
Less : C.G.S 100% 24.14% 100% 18.96%
GROSS PROFIT 100% 57.00% 100% 38.00%
Less: operating expenses
Administrative expenses 100% (8.51) 100% 104.5%
Selling expenses 100% (4.81) 100% 43.4%
Store expenses 100% 17.69 100% 133.4%
Financial expenses 100% 7.72 100% (.25)%
Depreciation 100% (7.12) 100% 3.58%
Total operating expenses 100% .40% 100% 35.55%
OPERATING PROFIT 100% 1.26% 100% 51.5%
Add; other income 100% (64.01) 100% 387%
NET PROFIR BEFORE TAX 100% (1.33) 100% 56.4%
Less; income tax liability for the 100% (29.52) 100% 118.9%*
year @ 25%
NET PROFIT 100% 13.84 100% 35.56%
* Income tax liability for the year @ 35

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 2012 is
23.22 % in year 2013 it reduced to 19.6% and in year 2013 the reduction of Net Revenue
as compared to year 2012 is by -3.62% and same goes for the rest of the items.
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 3 years Balance sheet

2011 2012 2013

ASSETS

CURRENT ASSETS
Sundry debtors
Adv deposit/ 115,229,522.00 116,562,459.00
prepayment 49,069,000.00 48,538,000.00 152,186,402.00
Securities and refund 85,951,200.00
Advance to staff 9,508,932.00 12,232,929.00
Stocks 10,695,038.00
Cash & bank balance 3,272,573.00 4,941,077.00
151,663,716.00 130,953,907.00 2,901,493.00
FIXED ASSETS 8,019,147.16 29,802,115.73 164,724,537.00
Operating fixed assets 5,207,969.35
As per schedule 336,762,890.16 343,030,487.73
Work in process 421,666,639.35
56,061,709.86 51,974,156.44
55,032,714.93
Total 392,794,600.02 395,004,644.17 476,699,354.28
LIABILITIES

Current liabilities
Sundry creditors 22,420,248.97 10,993,369.00 22,268,477.00
Expense payable 6,557,911.00 4,998,745.00 11,011,884.00
Bank over draft 20,450,7481.77 205,998,910.89 242,493,001.00
Income tax payable 7,534,393.00 5,309,764.00 11,627,748.00
241,020,034.74 227,300,788.89 287,401,110.00
Capital & liabilities
Partner capital 137,782,121.79 151,774,565.25 167,703,855.28
account 13,992,443.49 15,929,290.00 21,594,389.00
Un-appropriated 151,774,565.28 167,703,855.25 189,298,244.28
profit/ loss
392,794,600.02 395,004,644.17 476,699,354.28

Vertical analysis of balance sheet

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One application of the vertical analysis idea is to state the separate assets of a company
as percentages of total assets.
2011 2012 2013
ASSETS

CURRENT ASSETS
Sundry debtors 29.33% 29.50% 31.92%
Adv deposit/ prepayment 12.49 12.28 18.03
Securities and refund 2.44 3.09 2.24
Advance to staff 0.8 1.25 0.61
Stocks 38.6 33.15 34.55
Cash & bank balance 2.04 7.54 1.09
85.73 86.8 86.84
FIXED ASSETS
Operating fixed assets 14.2 13.15 11.54
As per schedule
Work in process
Total 100% 100% 100%
LIABILITIES

Current liabilities
Sundry creditors 5.70 2.78 4.67
Expense payable 1.66 1.26 2.31
Bank over draft 52.06 52.15 50.86
Income tax payable 1.91 1.34 2.43
61.36 57.54 57.54
Capital & liabilities
Partner capital account 35.07 38.42 35.18
Un-appropriated profit/ loss 3.56 4.03 4.50
100% 100% 100%

In the year 2011, 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 were 61.36% and 38.63% of Total Liabilities.
In the year 2012, the current assets were 86.84% of Total Assets where as the Non
Current Assets of the company were 13.15 % of Total Assets i.e., 100 % The Current
Liabilities and capital & liability were 57.54% and 42.45% of Total Liabilities.

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In the year 2013, the current assets were 86.6 % of Total Assets where as the Non
Current Assets of the company were 11.54 % of Total Assets i.e., 100 % The Current
Liabilities and capital & liability were 57.54% and 39.68% of Total Liabilities.

Horizontal analysis of balance sheet

2011 2011-2012 2012 2012-2013

ASSETS

CURRENT ASSETS
Sundry debtors 100% 1.15% 100% 30.56%
Adv deposit/ prepayment 100% (1.08) % 100% 77.08 %
Securities and refund 100% 28.64% 100% (12.57)%
Advance to staff 100% 50.98% 100% (41.28)%
Stocks 100% (13.65) % 100% 25.78 %
Cash & bank balance 100% 271.63% 100% (82.52)%
1.86% 22.9%
FIXED ASSETS 100% 100%
Operating fixed assets (7.29) % 5.88 %
As per schedule
Work in process
Total 100% 100%
LIABILITIES

Current liabilities
Sundry creditors 100% (50.96)% 100% 102.56%
Expense payable 100% (23.77)% 100% 120.3%
Bank over draft 100% 0.7% 100% 17.71%
Income tax payable 100% (29.52)% 100% 118.98*%
(5.62)% 26.44%
Capital & liabilities 100% 100%
Partner capital account 100% 10.15% 100% 10.49%
Un-appropriated profit/ loss 13.84% 35.56%
Total 100% 100%

Same concept is being followed here in Balance Sheet, 2011 & 2012 year was kept as
base year and the relative changes are being observed from here.

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For instance, Current assets were100 % in year 2011 the increase in year 2012 was by
1.86% and in year 2013 the increase was by 22.9 % of the base year amount and same
goes for rest of the items.

SWOT analysis of the organization

Strengths:

 Toyota created the first hybrid car named Prius, therefore to meet consumer
demand when prices oil prices are going to high.
 Brand image of Toyota worldwide.
 Very strong auto vehicle industry position is based upon a number of factors
including a diversified product range/line, highly targeted marketing and a
commitment to lean manufacturing and quality. The company makes a large
range of vehicles for both private customers and commercial organizations.
 World's second largest carmaker with 9 million units.
 Toyota Pakistan is in the list of high automated dealership like Japanese
standards providing quick and modern workshop services through fully
computerized control.
 Market leadership and very strong brand image.
 Excellent dealership network worldwide with easily available spare parts.
 Introduced EM system (express maintenance).

Weakness:

 Huge investment with expensive fixed costs and high cost of training and
retaining labor. In case if car market experiences a down turn then company
could see over capacity. On the other hand the car market experience an upturn
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 then company may miss out on potential sales due to under capacity because it
takes time to accommodate. This is a big problem with high volume car
manufacturing like Toyota.
 Always charge the premium price to the customers.
 Management control by the local partners and dealers.
 In Pakistan, Toyota tries to feel at ease with good looking; well dress, rich and
educated people and the poor looking customers feel some bit strange in the
environment of the dealership. Toyota Pakistan employees should try to
accommodate behaviorally all type of customers.
 Delivery of car takes months for advance booking of customer’s favorite color of
its choice.

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 of diesel market towards petrol and CNG market.

Threats:

 Toyota faces tremendous competitive rivalry in the car market.

 Continues competition increases with new entrance coming from China, South
Korea and new plants in Eastern Europe.

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  Movement in the price of raw material such as rubber, steel and fuel are
potential threats for Toyota.
 Government reduces the excise duty on imported cars.
 The increased quality from other auto makers, Ford and GM, are a big reason
that Toyota lost its #1 position in the US. Other companies are simply more
competitive than they used to be, and will likely become even more so.

PESTLE Analysis

Currently, Toyota faces a need for accelerated investment, in order to deploy the
new technologies, for pressing geo-political, economic, environmental and societal
reasons.

Political:

As Pakistan is a developing nation the government is sometimes democratic and

sometimes partially or completely non democratic and this situation also have impact on
sales of Toyota motors in Pakistan. During the period of chaos in country as now a days
in Karachi pressure is always exerted on the company due to the miserable political
conditions. In Pakistan the distribution of Toyota motors is done through the Indus
motor company in Karachi and cars are also assembled there so in case of political
disturbance or chaos obviously there will be the slow growth. As manufactured vehicles
can’t be distributed smoothly throughout the country so it will cause many problems for
the company and its sales. Hence political stability is must required so that company can
acquire the smooth and continuous growth throughout the years.

Economic:

For much of the developed world, and increasingly for the developing world, Toyota
Company is a pillar company in auto mobile business, a flag of economic progress.
Without Toyota Company in automotive industry, it is impossible to develop an efficient

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steel business, a plastic industry or a glass sector – other central foundations of
economic progress. The Toyota Company has been a core company, a unique economic
phenomenon, which has dominated the world. Toyota in Pakistan is particularly facing
lot more barriers economically. Government use to impose taxes and duties on the
luxuries and that’s why Toyota having the luxurious products is always under the axe and
now a days due to higher rate of inflation and increased vehicle prices Toyota is facing
real problem in term of sales of its vehicles in Pakistan. It’s hard for the sales force of
Toyota motors to justify the increased prices due to taxes in front of their customers so
they often launch hard marketing efforts and schemes to increase or retain their market
share.

Social:

As part of the development in automotive industry, the Toyota Company actually affects
the society as a whole. It employs millions of people directly, tens of millions indirectly.
Its products have transformed society, bringing undreamed-of levels of mobility,
changing the ways people live and work. The social value of the additional mobility that
this industry brings involves the value of the people being able to commute over longer
distances easily, among many others. For most of its existence the Toyota Company has
been a model of social discipline and control and it is not just that the auto sector offers
a ‘pillar’ of something else. There are, on the other hand, particular social issues to
address in many developing countries, often those that are the result of an undertone of
religious faith. Toyota company has the role to play in helping develop the mobility of
such countries and it can be achieved at an acceptable social cost of the country is
prepared to learn the necessary lessons from those who have traveled this route before
it, and to make the necessary investments.

Technological:

The Toyota Company works on a scale so awesome and has an influence so vast that it is
often difficult to see. The level and diversity of technologies that it must deploy are
increasing, which imposes both new investment burdens and new uncertainties and

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risks. Roughly a million new cars and trucks are built around the world each week – they
are easily the most complex products of their kind to be mass-produced in such
volumes. The industry uses manufacturing technology that is the cutting edge of science.
But still, the potential for developing coordination skills, intellectual capabilities and
emotional sensitivities through electronic technologies remain far from fully exploited.
There are numerous additional near-term technological opportunities to adapt the
company to changing energy availability. The possibilities suggest that automotive
technology is unexpectedly robust and provides a powerful defense against energy
starvation even if the real price of oil climbs steadily during the next couple of decades.
Hybrid cars are also sold in developed countries to cope with environmental issues as
well as the crises of the fuel now a day. Soon these hybrid cars will also be introduced in
developing countries like Pakistan.

Legal:

Toyota Company is subject to numerous technical directives and regulations, as well as

legislation of a more legal nature. The legislation covers areas such as competition law,
intellectual property law, consumer protection and taxation, and emissions (air quality
and fuels). When the auto parts industry reached full development, accelerated
technological efforts were made to create a web of local suppliers that would make it
possible to meet the growing legal requirements for the national integration of
production. In developed countries when rules and regulations are strictly followed can
have the harsh impact on Toyota and they will have to follow them but in developing
countries like Pakistan Toyota try themselves to follow the rules and legal requirements
so that they could not be trapped in any controversies plus they can gain the satisfaction
and loyalty of their customers.

Environmental:

Other than the vehicles themselves, and the roads and fuel needed to run them; the
business is intricately tied to the manufacture of a wide range of components and the

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extraction of precious raw materials. Indirectly, it brings people road congestion, too
many fatalities and a wave of other environmental troubles. The effect to the Toyota
Company is that they needed to establish R&D centers to take advantage of research
infrastructure and human capital, so that they can develop vehicle products locally to
satisfy the requirements of the environmental and safety regulations more effectively.
While in perspective of Pakistan Toyota should seriously think about the launch of
economically feasible hybrid vehicles which are less harmful for the environment.
Government should also support Toyota and policies should be formulated in such way
that Toyota should launch such products which are less dangerous for the environment
and also they will be fuel efficient.

Competitor’s analysis

Suzuki:

Suzuki is the leading name in small commercial vehicles and passenger cars. Suzuki
commenced its operation by assembling small 800 cc cars. Suzuki has been so far a sole
leader in 800cc and1000cc passenger cars as well as 1000cc jeep Potohar. But the
emergence of so many competitors in the market will definitely trigger a very hard time
to Pak Suzuki. Suzuki has launched Mehran 800cc,Cultus 1000cc, Baleno 1.3 & 1.6 Eli and
Gxi, Bolan van & Ravi pickup800cc and Potohar jeep
Pak Suzuki’s sales during 2008 portrayed 31 per cent upsurge. Sales figures of Pak Suzuki
Motor’s during 2009 posted sanguine growth at 31 per cent to 99,104 units compared to
75,720 units during 201.On MoM (month to month) basis, sales figures increased by 3.9
per cent to 11,247 units during June compared to 10,824 units in May2012.Pak Suzuki is
the market leader in the 1000cc and lower segment of cars with sales of Suzuki Mehran,
Suzuki Alto and Suzuki Cultus at 35,982 units, 16,823 units and 21,390 units respectively.
The company has replaced Suzuki Baleno with Suzuki Liana during the period and the
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product is getting acceptance in the market. Sales figures of Suzuki Liana remained on
the ascending trend with 1,535 units during June compared to 1,187 units in May.

Honda:

Honda started its operation in Pakistan in 1994. Honda is enjoying its key position in the
segment of 1300 cc and above. Honda has launched many models like Civic 1.5 cc, City
1.3 cc to 1.5 cc etc. VTI brand continued to be popular among customers. During FY08,
Honda Atlas Cars’ sales soared by 17 per cent to 28,134 units as against 24,066 units
previously. Currently, Honda Atlas assembles only two vehicles namely Honda Civic and
Honda City to tap the upper-end segment of car market. On MoM basis, Honda City
sales stood at 1,229 units in June, almost double compared to 626 units during the
preceding month.

Critical Analysis

Its true that the theory, what we study in the program of BBA 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 BBA program as
compare to that experience, what I saw and learn in TOYOTA.
The first thing what I observe 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, it’s 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.

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Toyota is a big organization and here I saw that the management tried to follow those
rules and regulations which TOYOTA wants to be implement to have the standards,
which here they are quite successful.
I also observe that usually instead of helping for the new comer in our organization, the
employees do not co-operate as much as they suppose to do.
Its may be they feel panic that their position might be snatch with some body else or
new ones and that things make them feeling not to help or co-operate as they should
do.
But overall, few of the top management and few of the other staff workers appreciate
me and made me feel comfortable and I realize that not all people got the same
mentality and still people are there, who wants other to be successful.
My point of view here is that learning theory is not just sufficient. Having practical
experience is a big difference working with others to have patience, abilities,
interpersonal skills and need communication skills.

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 learned in Toyota and I would like to keep applying in my
further practical life.

Recommendations for Improvement

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 Should focus more to give awareness to common public for new launches and
models of cars.
 Should expand more dealership in remote areas because I observe that
customers have to come from too far areas.
 Must improve employee loyalty.
 Must improve communication gap between employees and customers.
 Should improve co-ordination in between departments.
 Should give awareness about leasing and credit facilities which Toyota offers to
the customers.
 Try to be friendlier with customers, when they enter inside so that they can finish
their hesitation.
 Sales people should be in uniform with proper name tag on it, which I was
missing in them.
 High employee turnover because of low wages.
 Salaries should be appropriate and sufficient to make employees satisfied, which
is key to success.
 Employees are not motivated so they do not perform their duty well as I feel, so
there should be motivational gatherings.

References

 Mr. Jahanzaib Warriach, Manager Customer Relations

 Mr. Ammar Yasir, Deputy Manager (New Vehicle Delivery)
 Mr. Majid Naeem Butt, Deputy Manager Leasing
 Mr. Faheem Abbass, Sales Executive
 Mr. Khalid, Customer Relation Officer
 Mr. Imran, Senior Corporate Manager
 Mr. Shakeel, Sales Executive

Annexes

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 Personal data collection through the staff of dealership during training period.
 Internet.
 Personal meeting with the head of Sales & Marketing Department.
 Annual reports of dealership.
 Notebook notes.

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