CHAPTER I

ANAAMALAIS TOYOTA PVT LTD

INTRODUCTION:

Training in the act of increasing the knowledge and skill of an employee for
doing a particular job. Training bridges the gap between what the employee has and what the job
demands.

I have learned more knowledge through institutional training. It helps to collect

various information about the company. I have done my training at ANAAMALAIS TOYOTA
PVT LTD. The founder of the company is MR.KIICHIRO TOYODA

The training has given me knowledge regarding organizational structure, department

function and employee of the organization.

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 1.1 INDUSTRY PROFILE

AUTOMOBILE INDUSTRY

Over a period of more than two decades the Indian Automobile industry has been driving its
own growth through phases. The entry of Suzuki Corporation in Indian passenger car
manufacturing is often pointed as the first sign of India turning to a market economy. Since
then the automobile sector witnessed rapid growth year after year. By late-90's the industry
reached self reliance in engine and component manufacturing from the status of large scale
importer.
With comparatively higher rate of economic growth rate index against that of great global
powers, India has become a hub of domestic and exports business. The automobile sector has
been contributing its share to the shining economic performance of India in the recent years.

The Indian automobile industry is going through a technological change where each firm is
engaged in changing its processes and technologies to sustain the competitive advantage and
provide customers with the optimized products and services. Starting from the two wheelers,
trucks, and tractors to the multi utility vehicles, commercial vehicles and the luxury vehicles,
the Indian automobile industry has achieved tremendous amount of success in the recent years.

Consistent growth and dedication have made the Indian automobile industry the second-
largest tractor and two-wheeler manufacturer in the world. It is also the fifth-largest
commercial vehicle manufacturer in the world. The Indian automobile market is among the
largest in Asia.
The key players like Hindustan Motors, Maruti Udyog, Fiat India Private Ltd, Tata Motors,
Bajaj Motors, Hero Motors, Ashok Leyland, Mahindra & Mahindra have been dominating the
vehicle industry. A few of the foreign players like Toyota Kirloskar Motor Ltd., Skoda India
Private Ltd., Honda Siel Cars India Ltd. have also entered the market and have catered to the
customers’ needs to a large extent.

Not only the Indian companies but also the international car manufacturing companies are
focusing on compact cars to be delivered in the Indian market at a much smaller price.

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Moreover, the automobile companies are coming up with financial schemes such as easy EMI
repayment systems to boost sales.

There have been exhibitions like Auto-expo at Pragati Maidan, New Delhi to share the
technological advancements. Besides, there are many new projects coming up in the
automobile industry leading to the growth of the sector

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1.2. COMPANY PROFILE

The story of Toyota Motor Corporation began in September 1933 when Toyota Automatic Loom
created a new division devoted to the production of automobiles under the direction of the
founder's son, Kiichiro Toyota. Soon thereafter, the division produced its first Type A Engine in
1934, which was used in the first Model A1 passenger car in May 1935 and the G1 truck in August
1935. Production of the Model AA passenger car started in 1936.

Although the Toyota Group is most well known today for its cars, it is still in the textile business
and still makes automatic looms (fully computerized, of course), and electric sewing machines
which are available worldwide.

Toyota Motor Co. was established as an independent company in 1937. Although the founding
family name is Toyoda, the company name was changed to:

 Signify the separation of the founders' work life from home life;

 Simplify the pronunciation, and

 Give the company an auspicious beginning. Toyota is considered luckier than Toyoda in Japan,
where eight is regarded as a lucky number, and eight is the number of strokes it takes to write
Toyota in Katakana.

During the Pacific War the company was dedicated to truck production for the Imperial Army. Because of
severe shortages in Japan, military trucks were kept as simple as possible. For example, the trucks had only
one headlight on the center of the hood Commercial passenger car production started in 1947 with the
model SA. In 1950 a separate sales company Toyota Motor Sales Co. was established (which lasted until
July 1982). In April 1956 the Toyota dealer chain was established.

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Replica of the Toyota Model AA, the first production model of Toyota in
1936HEADQUARTERS: TOYOTA CITY, JAPAN

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 1.3 PRODUCT PROFILE:
Toyota has factories all over the world, manufacturing or assembling vehicles for local markets,
including its most popular model, the Corolla. Toyota has manufacturing or assembly plants in the
United States, Australia, Canada, Indonesia, Poland, South Africa, Turkey, the United Kingdom,
France, Brazil, and more recently India, Argentina and Czech Republic. Toyota also builds and
sells cars in China in a joint venture with Tianjin Xiali. Toyota New Zealand assembled vehicles
until 1998, when it switched to importing cars from Japan and Australia. Cars from these plants
are often exported to other countries.

MARKET SHARE OF TOYOTA

Toyota Motor Corp. grabbed more U.S. retail market share than Ford Motor Co. in early November
and it was less than one share point behind General Motors Corp.,

Toyota, Japan's largest automaker, had a 15.4 percent U.S. retail market share a year earlier.
Toyota plans to enter small car segment in India
World’s second largest automaker wants to get offensive in the Indian domestic auto market.
Toyota is very much interested in launching a small car here in the segment currently dominated
by Maruti Suzuki and Hyundai. Tata also has a decent presence in the market with their Indica
range of diesel vehicles.
Toyota is at the moment carrying out a feasibility study for launching such a vehicle in the
domestic market where it has models like the Innova and Camry amongst others. They have had
an incredible success with their stopped Qualis model and are selling Toyota Innova in large
numbers. T Ino, director (marketing), Toyota Kirloskar Motor Pvt Limited has expressed that the
Indian auto market is a huge one and has the capacity to involve more players in the small car
segment.
Toyota has a variety of interesting models in its global lineup, which it can consider to launch in
the Indian market. Some of these are Vios, Platz, and Passo. The company also expects to break
even here in India this year with all the accumulated losses were expected to be wiped out during
2005. They also plan to invest around Rs 130 crores during the current year to enhance efficiency.

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PRODUCTS (GLOBAL):

1. AVALON
2. CAMRY
3. CAMRY SALORA
4. COROLLA ALTIS
5. MATRIX
6. PRIUS
7. 4RUNNER
8. HIGH RUNNER
9. LAND CRUISER
10. SEQUOIA
11. SIENNA
12. INNOVA
13. GLANZA
14. ETIOS

PRICE:-

As far as pricing strategy of Toyota is concerned. They are focusing on the very segment of the
market not only particular segment. Basically they are focusing on official and business class
people

FUTURE PLANS

India's car population may be growing but the growth is mainly concentrated in the small car
sector, and not without reason. With increasing interest rates making buying cars costlier and the
government slapping new duties on larger vehicles in addition to the existing favorable tax regime
for smaller cars, even premium players are wading into the small-car scene. Indian passenger car
sales rose by 11.79 per cent between April 2007 and March 2008 to 1.2 million units. Competition
in the small car segment is set to increase in 2009, with planned launches by Maruti Suzuki (A-
Star and Splash), Honda (Jazz) and as yet unnamed models from Ford, GM and
Volkswagen.Japanese carmaker Toyota, all set to surpass General Motors as the world's largest, is

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the latest entrant when it made its intentions clear on the occasion of the laying of the foundation
stone for its second factory in India. The decade-old Indian joint venture of the Japanese
automaker, Toyota Kirloskar, is building its second plant at Bidadi, about 40 kilometers from
India's IT hub of Bangalore, with an upfront investment of Rs14,000 crore ($329 million) to
manufacture a range of passenger cars and multi-utility vehicles. Toyota is the majority partner
with an 89-per cent stake with Kirloskar owning the rest.

Karnataka chief minister B S Yeddyurappa unveiled the foundation stone for the new plant that
will have a test track and additional space for suppliers and other vendors. The ceremony was
attended by Toyota senior managing director Akira Okabe, chairman Ryoichi Sasaki, vice-
chairman Vikram Kirloskar and managing director Hiroshi Nakagawa.The modular plant, to be
commissioned by 2010, will have an installed capacity of 100,000 units annually and will employ
about 2,400 people. Top officials confirmed that the company will soon be introducing its newly
designed compact car in the Indian market.The factory will be ready by mid-2010 and we are yet
to finalize the launch date of the new car. We have basic concept of the new car ready and very
shortly we will finalize the design of the car.''The plant which is being set up will see an initial
investment of Rs1400 crore. But this initial investment won't include certain other costs like
installing robots and other automation equipment.

The arrangement of this additional amount required for the plant would be worked out later. A
new test track will be included in the second plant, which is expected to be spread over 130 acres
of land.

Though the new compact car has been designed for the Indian market, the initial design features
indicate that it can be exported to other markets in Asia. Daihatsu, Toyota's group company, will
not be involved in designing the compact new car, though it may be included in future
plans.However, Tata Motors and Bajaj Auto can rest easy for the time being. Although Okabe
confirmed that the new product will be the cheapest in the Toyota stable, indications are that it
maybe priced higher than its Indian competitors.

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Vikram Kirloskar said as much when he commented, ''We are working on the new design. The
model is yet to be finalized. We plan to have petrol as well as diesel versions. The small car will
not compete with the upcoming Nano of Tata Motors, touted to be the world's cheapest car.''

GENERIC STRATEGIES

Generic strategies were used initially in the early 1980s, and seem to be even more popular today.
They outline the three main strategic options open to organization that wish to achieve a
sustainable competitive advantage. Each of the three options are considered within the context of
two aspects of the competitive environment:

OVERVIEW

In 2006, Toyota was engaged in a variety of projects designed to solidify its foundations
while continuing to grow.
On the product front, Lexus launched its new flagship model, the LS, and the new global Camry
went on sale. In Japan, a new Corolla range was introduced, emphasizing the importance of this
best Selling car.

In manufacturing, several new projects were started around the world. In May, manufacture of the
Camry began in Guangzhou, China, while in the United States, the Kentucky plant, which in
October celebrated 20 years of production, started manufacturing the first Toyota hybrid vehicle
to be made in North America, the Camry Hybrid. In November, the Texas plant began producing
the new Tundra truck, a key vehicle in Toyota’s North American lineup. In Japan, Toyota Motor
Kyushu, Inc. began full-scale operations at its engine factory, while Toyota Motor Tohoku Co.,
Ltd. increased its manufacturing capacity.
In human resources development, following the establishment of the Asia Pacific Global
Production Center in Thailand in August 2005, Toyota established the North American Production
Center in the U.S. in February, and the European Global Production Center in the United Kingdom
in March. Established as branches of the Global Production Center in Japan, these were created to
spread Toyota’s manufacturing knowledge and skills throughout the world in pace with the rapid
growth of Toyota’s overseas manufacturing. The centers educate trainers for local manufacturing

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plants in all regions, with trainees passing on what they learn to team members on their return to
their plants.
In R&D, Toyota focused its efforts on three key areas: environment, safety and energy. It made a
special effort in the area of the environment by expanding its lineup of hybrid vehicles, and has
worked on R&D relating to plug-in hybrid. In addition, as part of Toyota’s efforts to respond to
the diversification of energy, in 2007 Toyota introduced a flex fuel vehicle* in the Brazilian market
that will run on 100% bio-ethanol fuel. From this point on, based on the philosophy of providing
“the right car, in the right place, at the right time,” and in accordance with the infrastructure and
customer needs of each region, Toyota will continue to promote efforts to develop environmentally
friendly technology and vehicle.

Company Name Toyota Motor Corporation

Established August 28, 1937

Tokyo Head 1-4-18 Koraku, Bunkyo-ku, Tokyo 112-8701, Japan

Office Phone: (03)3817-7111

Nagoya Office 4-7-1 Meieki, Nakamura-ku, Nagoya City, Aichi Prefecture 450-8711,
Japan
Phone: (052)552-2111

Since its foundation, Toyota has conducted business with “contributing to the development
of a prosperous society through the manufacture of automobiles” as a guiding principle. When I
became president two years ago, I called on all employees to work with me in returning to our

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origins and asking earnestly whether Toyota is truly contributing to society and whether we are
doing everything we should be doing. On the occasion of Toyota’s 70th anniversary, we will
reinforce our measures designed to return to our core principle, which is to "repay the earth and
society through technological innovation (and contribute to enhancing the quality of life
everywhere.

GUIDING PRINCIPLES

 Honor the language and spirit of the law of every nation and undertake open and fair corporate
activities to be a good corporate citizen of the world.
 Respect the culture and customs of every nation and contribute to economic and social
development through corporate activities in the communities.
 Dedicate ourselves to providing clean and safe products and to enhancing the quality of life
everywhere through all our activities.
 Create and develop advanced technologies and provide outstanding products and services that
fulfill the needs of customers worldwide.
 Foster a corporate culture that enhances individual creativity and teamwork value, while honoring
mutual trust and respect between labor and management.
 Pursue growth in harmony with the global community through innovative management.
 Work with business partners in research and creation to achieve stable, long-term growth and
mutual benefits, while keeping ourselves open to new partnerships.

PERCEPTS

 Be contributive to the development and welfare of the country by working together,

regardless of position, in faithfully fulfilling your duties.
 Be at the vanguard of the times through endless creativity, inquisitiveness and pursuit of
improvement.
 Be practical and avoid frivolity.
 Be kind and generous; strive to create a warm, homelike atmosphere.

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 1.4 ORGANIZATON STRUCTURE

managing
Director

General
Manager

Production Marketing Finanace HR Purchease

Deparatment Deparatment Deparatment Deparatment Deparatment

Productiion Marketing Finanace Purchase

HR manager
Manager Manager Manager Manager

Marketing
Assistant Assistant Staff Supervisor
Executive

Laboratory
Clerks Cashier Workers
Testing

Supervisor Staff

Workers

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 Various Departments

 Purchas department
 Human department
 Production department
 Marketing department
 Finance department

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 2.1 PURCHASE DEPARTMENT

Meaning of purchase:
Purchase is to obtain ownership of a security or other asset in exchange for money or
value.

Objectives of purchasing:
 Procurement of requirement quantity and quality of materials at the
economical price
 Procuring the material well in advance to meet the needs the production
department to save production losses from lack of materials.

Purchase chart:

purchase
manager

supervisor

workers

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 2.2 HUMAN RESOURCE DEPARTMENT

Meaning:
The division of a company that is focused on activities relating to employees. These
activities normally include recruiting and having of new employees. Orientation and training of
current employees. Employee’s benefits and retention.

Organization chart:

HR manager

staff

Provident fund:
The organization provides a provident fund (PF) of 12.5% on the basic salary to all its
employees.

ESI:
Employees are paid ESI of 3.18% of their basic salary.

Bonus:
The organization provides a bonus for its employees during diwali.

Welfare facilities:
The organization has provided drinking water and restroom facility for the employees.

First aid boxes are provided in each department for emergency medical care.

Refreshment:
Tea is provided at free of cast to the employees.

Shift timings:
There is two shift in the company. They are 6am to 2 pm, 2pm to 10pm.
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Recruitment:
Recruitment is done only through campus interviews conducted in polytechnic collage.

Selection:
The eligible candidates are selected through personal interview.

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 2.3 MARKETING DEPARTMENT

MARKETING

What is marketing?

There are many different definitions of marketing. Consider some of the following alternative
definitions:

“The all-embracing function that links the business with customer needs and wants in order to get
the right product to the right place at the right time”

“The achievement of corporate goals through meeting and exceeding customer needs better than
the competition”

“The management process that identifies, anticipates and supplies customer requirements
efficiently and profitably”

“Marketing may be defined as a set of human activities directed at facilitating and consummating
exchanges”

Which definition is right? In short, they all are. They all try to embody the essence of marketing:

• Marketing is about meeting the needs and wants of customers;

• Marketing is a business-wide function – it is not something that operates alone from other
business activities;
• Marketing is about understanding customers and finding ways to provide products or services
which customers demand

To help put things into context, you may find it helpful to often refer to the following diagram
which summarises the key elements of marketing and their relationships:

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MARKETING CONCEPT AND ORIENTATION

It is a fundamental idea of marketing that organisations survive and prosper through meeting the
needs and wants of customers. This important perspective is commonly known as the marketing
concept.

The marketing concept is about matching a company's capabilities with customer wants. This
matching process takes place in what is called the marketing environment.

Businesses do not undertake marketing activities alone. They face threats from competitors, and
changes in the political, economic, social and technological environment. All these factors have to
be taken into account as a business tries to match its capabilities with the needs and wants of its
target customers.

An organisation that adopts the marketing concept accepts the needs of potential customers as the
basis for its operations. Success is dependent on satisfying customer needs.

What are customer needs and wants?

A need is a basic requirement that an individual wishes to satisfy.

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People have basic needs for food, shelter, affection, esteem and self-development. Many of these
needs are created from human biology and the nature of social relationships. Customer needs are,
therefore, very broad.

Whilst customer needs are broad, customer wants are usually quite narrow.

A want is a desire for a specific product or service to satisfy the underlying need.

Consider this example:

Consumers need to eat when they are hungry.

What they want to eat and in what kind of environment will vary enormously. For some, eating at
McDonalds satisfies the need to meet hunger. For others a microwaved ready-meal meets the need.
Some consumers are never satisfied unless their food comes served with a bottle of fine
Chardonnay.Consumer wants are shaped by social and cultural forces, the media and marketing
activities of businesses.This leads onto another important concept - that of customer demand:

Consumer demand is a want for a specific product supported by an ability and willingness to pay
for it. For example, many consumers around the globe want a Mercedes. But relatively few are
able and willing to buy one.Businesses therefore have not only to make products that consumers
want, but they also have to make them affordable to a sufficient number to create profitable
demand.Businesses do not create customer needs or the social status in which customer needs are
influenced. It is not McDonalds that makes people hungry. However, businesses do try to influence
demand by designing products and services that are

• Attractive
• Work well
• Are affordable
• Are available

Businesses also try to communicate the relevant features of their products through
advertising and other marketing promotion.

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MARKETING MIX

The marketing mix is generally accepted as the use and specification of the four Ps describing the
strategic position of a product in the marketplace. One version of the origins of the marketing mix
starts in 1948 when James Culliton said that a marketing decision should be a result of something
similar to a recipe. This version continued in 1953 when Neil Borden, in his American Marketing
Association presidential address, took the recipe idea one step further and coined the term
'Marketing-Mix'. A prominent marketer, E. Jerome McCarthy, proposed a 4 P classification in
1960, which would see wide popularity. The four Ps concept is explained in most marketing
textbooks and classes.

DEFINITION

Although some marketers[who?] have added other Ps, such as personnel and packaging, the
fundamentals of marketing typically identifies the four Ps of the marketing mix as referring to:

Product -An object or a service that is mass produced or manufactured on a large scale with a
specific volume of units. A typical example of a mass produced service is the hotel industry. A
less obvious but ubiquitous mass produced service is a computer operating system. Typical
examples of a mass produced objects are the motor car and the disposable razor.

Price – The price is the amount a customer pays for the product. It is determined by a number of
factors including market share, competition, material costs, product identity and the customer's
perceived value of the product. The business may increase or decrease the price of product if other
stores have the same product.

Place – Place represents the location where a product can be purchased. It is often referred to as
the distribution channel. It can include any physical store as well as virtual stores on the Internet.

Promotion – Promotion represents all of the communications that a marketer may use in the
marketplace. Promotion has four distinct elements - advertising, public relations, word of mouth
and point of sale. A certain amount of crossover occurs when promotion uses the four principal
elements together, which is common in film promotion. Advertising covers any communication
that is paid for, from television and cinema commercials, radio and Internet adverts through print
media and billboards. One of the most notable means of promotion today is the Promotional

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Product, as in useful items distributed to targeted audiences with no obligation attached. This
category has grown each year for the past decade while most other forms have suffered. It is the
only form of advertising that targets all five senses and has the recipient thanking the giver. Public
relations are where the communication is not directly paid for and includes press releases,
sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is
any apparently informal communication about the product by ordinary individuals, satisfied
customers or people specifically engaged to create word of mouth momentum. Sales staff often
plays an important role in word of mouth and Public Relations (see Product above).

Broadly defined, optimizing the marketing mix is the primary responsibility of marketing. By
offering the product with the right combination of the four Ps marketers can improve their results
and marketing effectiveness. Making small changes in the marketing mix is typically considered
to be a tactical change. Making large changes in any of the four Ps can be considered strategic. For
example, a large change in the price, say from $19.00 to $39.00 would be considered a strategic
change in the position of the product. However a change of $131 to $130.99 would be considered
a tactical change, potentially related to a promotional offer.

CRITICISMS

Peter Doyle claims that the marketing mix approach leads to unprofitable decisions because it is
not grounded in financial objectives such as increasing shareholder value. According to Doyle it
has never been clear what criteria to use in determining an optimum marketing mix. Objectives
such as providing solutions for customers at low cost have not generated adequate profit margins.
Doyle claims that developing marketing based objectives while ignoring profitability has resulted
in the dot-com crash and the Japanese economic collapse. He also claims that pursuing a ROI
approach while ignoring marketing objectives is just as problematic. He argues that a net present
value approach maximizing shareholder value provides a "rational framework" for managing the
marketing mix.

Some people claim the four Ps are too strongly oriented towards consumer markets and do not
offer an appropriate model for industrial product marketing. Others claim it has too strong of a
product market perspective and is not appropriate for the marketing of services.

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An expanded system based on Seven Ps stresses the importance of Place, Product, Price,
Promotion, People, Process, and Physical evidence

Channel of distribution:

manufacturing

wholesaler

retailer

customer

Marketing area:

All over tamilnadu dealers.

Transporting:

The company transport the finished product vehicle to the wholesaler.

Competitors:

Opposite automobile sectors.

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 2.4 FINANCE DEPARTMENT

Meaning:

The part an organization that manages its money. The finance department also usually
maintains the company’s financial statements.

finance manager

assistant

cashier

Function of finance manager:

The finance manager is in charge of the finance department.

Function of assistant:

The assistant assist the finance manager in the day to day activities.

Function of cashier:

The cashier deals with the money transactions in the company.

Finance detail:

The industry initial investment is 85 lakes. The sales turnover of company is RS.200
cores. The company maintains their account in SBI bank.

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 2.5 LIMITATION OF THE STUDY

 The study is limited to a period 15 days only.

 The study is limited to information pertaining to anaamalais Toyota pvt ltd only.
 The finance department was not given more information to me.
 Employees can’t be given any information regarding working process because of their busy
schedule.

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 III ( A ) FINDINGS

 There is no canteen facility in the company.

 Safety measures like gloves are not provided.
 The company does not give proper training for the new employees.

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 III ( B ) SUGGESTIONS

 Canteen facility can be provided to employees.

 Training can be given to the new employees to perfume the job efficiently.

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 IV CONCLUSION

During add semester training period a lot experience, knowledge and exposure that I have
studied piratical is complement to the science of theory learned during my institutional training.
There are many changes from the point of learning environment from the decision about the
employee.
I have done my institutional training at Dharani sugar and chemicals ltd. It received lot of
information about the company and this training program has many benefits to the training.

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 V BIBLIOGRAPHY

Books:

Kotler Philips, Marketing Management: 30th Edition

Chabra T.N., Marketing management 2005

C.B. Gupta, Marketing management 2006

Magazines

Business standard Motoring May 2008 edition

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