Background

Economics is one of the most important factors to mention a country that has power. Economic

growth is getting better each time will improve the development system, the better. But one of

the factors that influence the course of the economy of a country is the stability of the global

economy. If the stability of the global economy is well controlled, then broadening the financial

crisis to the various countries can be minimized.

One of his development of the automotive world in some countries in Asia, especially Indonesia

today drove very fast. The high demand for four-wheeled vehicles is to stimulate the interest of

investors both local and foreign investors are vying to run this business in order to gain

maximum profit. With the huge market potential and promising, investors do their utmost to get

consumers as much by marketing their superior products, followed by intense competition

among the companies competitors who market similar products.

The high level of competition among automotive companies forced the producers of different

kinds of brands competing to market their superior products with various strategies, both

marketing strategy and also management strategy. With a variety of characteristic displayed by

each of these products, the strategy is a major force to be held to deal with the high level of

competition that are expected to gain market share widest which is the main objective. Without

the strategies that mature and well-planned, the producers will be very difficult to introduce and

market their products to the public in accordance with the desired objectives.

The management strategy has a very important role in supporting the development of a business.

With the good management strategy, the company will be very easy to know what are the things

that need to be done in running and developing a business. What are the strengths and

weaknesses, as well as how big the opportunities and threats being faced by the company will be

completed apabilaperusahaan have a good management strategy. Besides a description of the

planning will be done by the company in the future, manajemenstrategi also a result of the

evaluation of management policies undertaken in the previous year.

Policies that are considered not give a positive impact on the business development can dijadi

adikan reference as the lack of proper management strategies. Similarly, the policy - policies that

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are considered to have added value can be used as the basis for the policies to be taken in the

future So what are the things that need to be improved and developed can be arranged in a

management planning strategy.

The number of companies in Indonesia who fail to execute its business and subsequently went

bankrupt because the company usually have less mature plan and execute management strategies

that are less precise. So the company is not able to know how to introduce their products and to

find out what the needs of today's society. What will be done, how to do, what you want to

achieve, and what the resulting impact of that has been done are important things that must be

considered in making a policy. Therefore to decide on a policy that will be carried out, the

management should first evaluate and survey of the policy.

I. Current Situation

a. Strategic Performance

Finance

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Net Revenues

Toyota had net revenues for fiscal 2014 of ¥25,691.9 billion, an increase of ¥3,627.7 billion, or

16.4%, compared with the prior fiscal year. This increase mainly reflected the favorable impact

offluctuations in foreign currency translation rates of¥2,510.4 billion and changes in vehicle unit

sales and sales mix of ¥300.0 billion. Excluding the impact of changes in the Japanese yen values

used for translation purposes of ¥2,510.4 billion, net revenues would have been ¥23,181.4 billion

during fiscal 2014, a 5.1% increase compared with the prior fiscal year. The automotive market

in calendar year 2013 increased by 7.9% in North America and in fiscal 2014 increased by 5.9%

in Japan compared with the prior year due to the market in the U.S. and Japan progressing in a

steady manner. Under theseautomotive market conditions, Toyota’s consolidated vehicle unit

sales increased by 2.8% comparedwith the prior fiscal year to 9,116 thousand vehicles.

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Currency Fluctuations

Toyota is affected by fluctuations in foreign currency exchange rates. Toyota is exposed to

fluctuations in the value of the Japanese yen against the U.S. dollar and the euro and, to a lesser

extent, the Australian dollar, the Russian ruble, the Canadian dollar, the British pound, and

others. Toyota’s consolidated financial statements, which are presentedin Japanese yen, are

affected by foreign currency exchange fluctuations through both translation risk and transaction

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risk. Translation risk is the risk that Toyota’s consolidated financial statements for a particular

period or for a particular date will be affected by changes in the prevailing exchange rates of the

currencies in those countries in which Toyota does business compared with the Japanese yen.

Even though thefluctuations of currency exchange rates to the Japanese yen can be substantial,

and, therefore, significantly impact comparisons with prior periods and among the various

geographic markets, the translation risk is a reporting consideration and does not reflect Toyota’s

underlying results of operations. Toyota does not hedge against translation risk.

Transaction risk is the risk that the currency structure of Toyota’s costs and liabilities will

deviate from the currency structure of sales proceeds and assets. Transaction risk relates

primarily to sales proceeds from Toyota’s non-domestic operations from vehicles produced in

Japan.

Market

Toyota continues to grow as one of Indonesia’s leading car brands, offering abundant features of

excellence that justly meet the expectations of its loyal customers in the country. Toyota’s

outstanding features include easy maintenance, vast service network and availability of a wide

selection of car types for all kinds of consumers’ needs and market categories. Toyota also has

the unique ability to continuously innovate and reinvigorate its product propositions in line with

technological development and trends in the automotive industry.

To meet consumers’ demands for quality cars that are aligned with changes in lifestyle, Toyota

and Lexus introduced 5 new models and 2 facelift models in 2014 across various car types as

part of Toyota’s strategic initiatives to maintain market leadership.

To stand out amid the rigorous competition, Toyota strives to improve the quality of its products

and services, committed to providing the best to customers anywhere in the country and in all

market segments – Provide Best Total Customer Ownership Experience - in order to win

customer loyalty.

Overall, Toyota was able to maintain its nationwide position of car sales, although stringent

market competition did affect some segments, especially low MPV. Low MPV booked a lower

market share of 33% from 35% the previous year.

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In a challenging business climate, TAM consistently realized its investment plans of enhancing

national distribution network infrastructure to ensure service excellence, bolster customer loyalty

and strengthen relationships with customers and car owners. Toyota Sales Operation (TSO),

popularly known as Auto2000, conducts sales of Toyota cars as well as through another four

main dealers to maximize market reach throughout the country.

The distribution and service network is expanded with the opening of 12 new sales outlets and 12

new service outlets, totaling 276 outlets by the end of 2014.

PT Toyota Astra Motor Tbk is the sole distributor of Toyota cars in Indonesia. The company is

for 51 percent owned by Astra International, one of Indonesia's largest diversified

conglomerates.

Toyota Astra Motor is the clear market leader in Indonesian car sales. In 2013, the company held

a market share of 35.3 percent, followed by Daihatsu at 15.1 percent.

For the national market, in March 2015 Avanza managed to achieve sales of 13 210 units that

remain the best-selling car with a 52.6% market share in low MPV segment. Since its launch in

2004, Avanza sales have reached more than 1.3 million units. This shows that in the mature age

of 12 years, Avanza was able to maintain its position as the top choice of Indonesian people and

the average market share above 40%.

Yaris market share of 31.3 percent in 2014, an increase of a percentage of the previous figures

were only 21.6 per cent in 2013.

Yaris series sales figures according to the General Manager of Corporate Planning & Public

Relations TAM, Widyawati Soedigdo, reaching around 2000 units per month nationwide.

b. Strategic Posture

Vision

Being the most successful automotive companies and revered in Southeast Asia by providing the

best experience in vehicle ownership

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Mission

1. Continuously providing products and services of high quality and meet customer needs

through the best marketing program

2. Develop competent employees by creating a good working environment to support the

achievement of customer satisfaction

3. Strengthen collaboration with producers, primary dealers and dealers through communication

and better cooperation

4. To develop a healthy company operating in all aspects, such as regulatory compliance,

environmental and others.

Objectives

The aim of the company Toyota, both PT. Astra Motor and Toyota Motor Manufacturing

Indonesia is designing environmentally friendly vehicles in the future. With the vehicle engine

technology pioneer hybrid electric/gas, we are talking about machines that use energy from

oxygen, where the waste products in the form of water. And with the latest technology that

ensures safety, such as pedestrian recognition systems, inter-vehicle communication and radar

safety before the collision, the experts. We work to create a vehicle that is safe for everyone, and

to improve the quality of life of consumers.

Policy

Legal Disclaimer (Disclaimer/Legal Disclaimer)

Terms and Conditions of Use Site PT Toyota Astra Motor

PT Toyota Astra Motor appreciate your interest and your visit to this site. By using or accessing

this site, you agree to accept all terms and conditions listed herein. PT Toyota Astra Motor may

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the amended terms and conditions signifies your agreement to accept changes to the terms and

conditions. If you do not agree with these terms and conditions, then you should not use this site.

This site only for personal use, not for commercial purposes.

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When using our services, you may be asked to provide data/personal information. The provision

of such information is voluntary. Your personal data are used by the rules of Indonesian law on

data protection (in line with the Personal Data Protection Act). Personal data provided on this

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of your data for the purposes/interests of consulting, advertising and market research only takes

place under your approval. If when giving approval to these interests also allow your personal

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your data can also be transferred to other parties such.

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As a condition to access and use the site in accordance with the permission granted to you under

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you can identify Toyota products with a name or a link to the site if you comply with the

"Guidelines for External Sites" are defined below.

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When you download any content from one website, you understand that the content belongs to

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property laws. Toyota hereby grants, and you hereby accept, a limited, non-exclusive, non-

transferable, revocable, to download and use the object code version of downloads on your own

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commercial use your own.

You acknowledge and agree that you are not allowed to reproduce, copy, modify, display,

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to you in a human readable code, known as source code, download content, and no rights are

granted to you in the form of any patent rights, copyrights, trade secrets, trademarks or other

rights in connection with the contents of each download.

You are not allowed to describe any downloads on any merchandise or any product or use

downloads for commercial purposes. You must provide all the hardware and software necessary

to connect to the site, including, but not limited to, a computer (with internet access), suitable to

connect with the site.

You are responsible for ensuring that equipment and / or software do not disturb or disrupt /

prevent operation of the Toyota site.

You understand and agree that use of the site, any pages in it, and / or services of the site,

including but not limited to any weekly, at your sole risk and that you will be solely responsible

for any damage to your computer, other equipment, or loss of data that may result from the use

of such. You agree that the site, the service in any of the site, and any downloads, are provided

"as is" and "as availability".

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Products, Services and Third Party Links

Site may contain to other web sites ("Third Party Sites") such as articles, photographs, text,

graphics, images, design, music, sound, video, information, applications, software and other

content or items belonging to or comes from a third party ("Applications, Software or Third

Party Content"). Sites, applications, and software or third-party content are not investigated,

monitored or checked for accuracy, accuracy, legality, timeliness, authenticity, reliability, or

completeness by us, and none of the Toyota Entities (as defined below) is responsible for any

third party sites that are accessed through the site or third-party applications, software or material

displayed and available on the site, including (and not limited to) the content, accuracy, presence

or absence of an attack against a particular party, opinions, reliability, legality, practice privacy

or other policies contained within the site and or third party applications, software or content.

Inclusion, Your linking or permit the use or installation of each site and/or third-party

applications, both software and content, cannot be interpreted as an approval or endorsement by

us (or one of the other entities Toyota).

If you decide to leave this site and access to or use of third party websites or install third-party

applications, both software and content, you do so at your own risk. You should also be aware

that the terms and conditions of the Toyota does not have control anymore. You should review

the applicable terms and policies, including privacy and data collection practices of any third

party sites and any third-party applications, both software and content you navigate from one site

or related applications that you use or that you install from one of the sites. We can also supply

or provide access to products, services, or third party applications. Products, services, and

applications will be purchased and/or obtained directly from such third party.

Toyota is not responsible for any transaction products, services, or applications from any third

party, or for any content or information presented in connection with the product, service or any

third party applications. Toyota also not responsible for the contents/content website or any

mobile site linked to such sites, and the fact that the links provided in the site does not support

our signify approval or any of the materials contained in any linked site. Risk of any connection

and use of the site is with you own.

Terms and Conditions for Individual Products and Services

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All the requirements stated in this site should be read in conjunction with separate terms and

conditions for the sale or supply of products and services individually called on this site (if any).

If there is any inconsistency between this provision and the provision of certain products and

services, then the effect is the latter.

Information on Products and Services

Although we have made every effort to ensure the information on the website is current and

accurate, neither we nor the authorized Toyota dealer or other third parties are not responsible for

your reliance on the information on this site. Before ordering the vehicle, please always check

availability of models and appropriate information about the vehicle features, specifications on

the official TOYOTA dealer. Always check the requirements of a given product or service

before making any commitment. You should seek your own financial advice in relation to

taxation or accounting issues mentioned on this website.

Legal authority Government

Legal Disclaimer (Disclaimer Law) will be assumed to be made in the Republic of Indonesia.

The whole purpose, goals, and interests shall be governed and construed in accordance with the

laws of the Republic of Indonesia. Any disputes will be resolved in the jurisdiction/exclusive

jurisdiction of the courts in Indonesia, but PT TAM free to take the fight to you in the courts of

other countries in which power/jurisdiction can be established, or through arbitration.

Termination/Separation

If any provision of this Legal Disclaimer deemed illegal, invalid or unenforceable under the laws

or regulations applicable and effective in the present or the future, these provisions must be fully

separated. And provisions that are interpreted as if the illegal, invalid or unenforceable it will not

affect the overall Legal Disclaimer. Other provisions of this Legal Disclaimer shall remain in full

force and will not be affected by the provisions deemed illegal, invalid, or unenforceable it.

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Copyright

© Copyright PT TOYOTA ASTRA MOTOR. All rights reserved. Text, images, graphics, sound

files/audio, file (file) animations, video files, and all compositions on the website TOYOTA

entirely subject to the Law of Protection of Copyright and other Intellectual Property Rights. All

content/material on this website may not be copied for commercial use or distribution, nor can it

be changed or distributed to other sites.

II. Top Management

a. Board of Directors Toyota Astra

President: Hiroyuki Fukui

Background*Hiroyuki Fukui has been Managing Officer and Deputy Chief Executive Officer of Asia & Middle East Region at Toyota Motor Corporation (TMC) since April 1, 2015. Hiroyuki Fukui served as Senior Vice President and Chief Coordinating Officer of Toyota Motor Sales, U.S.A., Inc. until April 1, 2013. Hiroyuki Fukui has been the Chairman of P.T. Toyota Motor Manufacturing Indonesia (TMMIN) since April 1, 2013.

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Vice President: Suparno Djasmin

Background*Mr. Suparno Djasmin serves as Chief Executive of Toyota Sales Operation and Astra Motor II - Honda at Astra International tbk PT and served as its Chief Executive of Daihatsu Sales Operation. Previously, Mr. Djasmin served as Deputy Director in Charge of ASMO 3 (non-Toyota). He served as the Chief Executive Officer of Daihatsu Sales Operation. served as the Chief Executive Officer of Isuzu Sales Operation and Marketing Director PT Astra Daihatsu Motor. Mr. Djasmin serves as a Commissioner of PT Astra Sedaya Finance. Mr. Djasmin has been Director of Astra International tbk PT since April 2014. He obtained his Bachelor's degree from Faculty of Agriculture & Technology, majoring in Food Technology & Nutrition, Bogor Agriculture Institute in 1986.

Marketing Director: Rachmat Samulo

Marketing Director: Mamoru Akiyama

Director: Samuel Manasseh

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b. Board of Commissioners Astra

President Commissioner: Budi Setiadharma

Background*Mr. Budi Setiadharma has been the President Commissioner of Astra International tbk PT since May 2005. Mr. Setiadharma has been Commissioner of PT Hero Supermarket Tbk since June 2006. Mr. Setiadharma served various positions in Astra Group. He served as President Director of Astra International tbk PT (also known as, PT Astra International Tbk) since June 2002 up to 2005. Mr. Setiadharma served as Vice President Director of Astra International tbk PT from 1998 to 2002 and President Director of PT Federal Motor (currently PT Astra Honda Motor) from 1978 to 2000. He served as General Manager of Honda Division at Astra International tbk PT from 1975 to 1978. Mr. Setiadharma served as Commissioner of Astra Otoparts tbk PT. He graduated from Parahyangan Catholic University, Bandung, in 1970.

Independent Commissioner: Soemadi Djoko Moerdjono Brotodiningrat

Background*Mr. Soemadi Djoko Moerdjono Brotodiningrat served as Ambassador and Permanent Representative of Indonesian Mission to UN and various International Organization in Geneva from 1991 to 1995. Mr. Brotodiningrat served as a Director General of Department of Foreign Affairs from 1995 to 1998. He served as an Ambassador of the of Indonesia in Tokyo from 1998 to 2002 and served as Ambassador of the Republic of Indonesia in Washington DC from 2002 to 2005. Since 2005, Mr. Brotodiningrat served as Indonesian Head Delegation for Indonesia – Japan Economic Partnership Agreement Negotiation. He serves as a Commissioner at PT Bank DBS Indonesia. He has been an Independent Commissioner of Astra International tbk PT since May 2006. Mr. Brotodiningrat graduated from Gajah Mada University Yogyakarta in 1965 and Institute International D’administration Publique, Paris in 1969.

Independent Commissioner: Hisayuki Inoue

Independent Commissioner: Erry Firmansyah

Independent Commissioner: Main Sidhartha

Commissioner: Anthony John Liddell Nightingale

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Commissioner: Benjamin William Keswick

Commissioner: Mark Spencer Greenberg

Commissioner: Chiew Sin Cheok

Commissioner: Jonathan Chang

Commissioner: David Alexander Newbigging

III. External Environment

a. Natural Environment

Regulation

Industry Regulation And Policy

The regulatory framework for the automotive industry in Indonesia involves various government

departments, including industry, finance, trade, energy and mineral resources, home affairs and

transportation and the state Minister for the environment. However, the Ministry of Industry is

the most important player.

Foreign Direct Investment Limitations And Ownership

Foreign investments must be conducted through the formation of a limited liability company

(Penanaman Modal Asing, PMA). In these circumstances, the foreign investor must partner with

an Indonesian person or entity as a shareholder. Limited liability companies are referred to as

Perseroan Terbatas (Pt).

PMA licences are granted by the Indonesian Investment Coordinating Board (Badan Koordinasi

Penanaman Modal, BKPM). The government issues a list indicating which business areas are

open to foreign investment and which are closed. the remaining industries are open to foreign

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investment upon the fulfilment of specific conditions. while 100 percent foreign ownership is

allowed in the manufacturing of automobiles and parts, foreign companies are prohibited from

owning equity in retail vehicle distribution.

The minimum total investment for a PMA company (excluding investments in land and

buildings) is IDR 10 billion. The minimum issued and paid-up share capital of a PMA Company

is IDR 2.5 billion and the minimum equity of a shareholder is IDR 10 million. For companies in

the automotive industry, capital must be at least IDR 100 trillion. Although at the outset majority

foreign ownership is permitted, the law encourages foreign shareholders to divest a minority

share to one or more Indonesian shareholders within a specified timeframe.

In terms of flexibility, the operating permit for a PMA is unlimited as long as it remains active,

and foreign investors are free to manage the company fully, including having the power to

appoint directors and, if necessary, foreign technicians when suitably skilled Indonesians are not

available.

When it comes to finance, BKPM and the Indonesian Central Bank monitor the source and

disbursement of funds approved for foreign-owned companies. Navigating the Foreign

Investment Law in Indonesia can be a complex exercise involving legal uncertainties, so robust

legal advice is critical.

Regulations Governing Vehicle Manufacturing And Ownership

Over recent years, the Ministry of Finance has been working with key financial institutions in

order to bring about change within the automotive industry. Beginning in the first half of 2012,

the Ministry of Finance, together with Bank Indonesia, introduced new regulations for vehicle

ownership. From this point onwards, consumers are required to make a downpayment of 30

percent when taking a vehicle ownership loan from a bank, or a payment of 20 to 25 percent

when borrowing from a financing company.

Ministry of trade legislation has a direct impact on vehicle manufacturers. In May 2012, it

annulled a law allowing vehicle manufacturers to import finished goods due to concerns that this

would have an adverse effect on parts manufacturers in Indonesia. In addition, the ACFtA

(AseAN-China Free trade Area) came into effect in early 2010, which allowed more Chinese

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products to enter the local market. The initial signs are that the automotive industry in Indonesia

has not suffered as a result of ACFtA, with import duty for CBU automotive vehicles being cut

from 50 to 40 percent. The domestic automotive industry continues to thrive thanks to healthy

demand and supportive regulations from the government.

The government intends to secure Indonesia’s position as a production base for international

manufacturers by 2025. It expects Indonesia to become a key manufacturer of sUVs and MPVs

within the region, and to be involved in the design of 80 percent of all engines for four-wheeled

vehicles. Added to this, the government would like to develop Indonesia as a major producer and

supplier of premium vehicle components.

Amid concerns about the rising cost of fossil fuels, and the fiscal pressure created by significant

fuel subsidies (which date back to the time when Indonesia was a net exporter of oil), the

government is also encouraging the production of Low Cost Green Cars (LCGCs). It is planning

to introduce significant tax cuts for LCGCs which could reduce their costs16 to belowIDR 100

million (UsD 10,000) per unit, a figure within reach of the growing middle class. the

government also wishes to cut carbon emissions in five main sectors, including transportation, by

26 percent by 2020.

Tariff And Non-Tariff Barriers

Indonesia has been a low-tariff country by developing country standards and has successfully

implemented tariff liberalization programs over the past decade.

The widening trade deficit has led to new measures, including increasing the import tax for

consumer goods, from the present level of 2.5 percent, to 7.5 percent. To boost exports, the

government plans to modify the tax payment scheme for exporters (KIte) and make it easier for

export-oriented industries to absorb raw materials and capital goods.

In 2012, the Finance Ministry also pledged to expand import duty exemptions on machinery,

goods and materials for the development of the domestic automotive manufacturing industry and

provide various incentives in the form of an income tax exemption for motor vehicle

components.

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Corporate Social Responsibility

As a form of contribution to Indonesia, Toyota Astra Motor strives to provide the best for

Indonesia through various Corporate Social Responsibility (CSR), which consists of four areas

of the environment, education, traffic safety, and community development.

In the field of the environment, among others Toyota Forest, Karawang (2003), Toyota City

Forest, Plumpang (2005), Toyota Park, Cempaka Putih, North Jakarta (2009), 30 trees for each

one Toyota Duty Free unit purchase, Parks National Gunung Rinjani, Lombok, (2009), Toyota

Eco Youth (since 2005), Astra Park in collaboration with its subsidiary Astra (2010), Main

Dealer's eco activity, Nasmoco Green Forest in Semarang (2010), Auto2000's 3500 cotton

planting ( since 2007), and Toyota Car for Tree - Toyota Eco Island (since 2010).

In education, among others, the Toyota Technical Education Program (1991), Toyota and Astra

Foundation (Since 1974). Meanwhile, in the field of Traffic Safety is Toyota's Smart Driving. As

in the field of Community Development, namely in the form of donations and empowering

environment to achieve a harmonious relationship (education, health, economic, cultural,

environmental, and religious).

TAM CSR program implemented on an annual basis. In the future, TAM will continue to

improve CSR activities that focus on education, the environment and traffic safety, which is part

of TAM's commitment to provide the best social contribution.

b. Societal Environment

PEST Analysis

Political

Indonesia's increasingly political condition today is getting better which is characterized by the

presence of national leadership succession did not occur a riot which means. The condition is

seen very conducive so that investors willing to infuse its investments to Indonesia or those who

move in the motor vehicle assembly industry is relocating facilities production of industrial

components in Indonesia so that Indonesia is still attractive.

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Legal certainty that the Government enforced the rules and start ketenaga command that the

better the automotive field certainly makes investors no doubt to its production capacity in the

zoom berekspasi Indonesia. In addition to meeting the needs in the country, which has a huge

market potential, they also do exports to some neighboring countries.

Government policy (Presidential Instruction No. 2/1996) about the automotive industry in

Indonesia opened up opportunities to expand automotive components company is better because

the local content must be met. Such policies create opportunites for new players to break into the

industry of automotive components in Indonesia, so that companies that already exist by now it

should also prepare themselves against the possibility.

Economic

Purchasing power is declining due to rising fuel prices by the Government this year that is

expected to lead to inflation this year will be high. These conditions are in addition to changing

consumption patterns also change the pattern of community transportation community, where it

used to be if he came home and went to work using their personal cars will switch to using

public transport or use motorcycles. Industrial components will be affected directly, where the

level of substitution to be longer because the vehicle is not operated on a regular basis mainly

private cars. But on the other hand, the motorcycle industry is becoming increasingly attractive

due to the shift from the private car transportation modes into motorbikes.

Policy import duty exemption on raw materials was imposed by the automotive component of

the Government so that it could reinforce the incentive structure of the component industry in the

country. But the presence of fluctuations in currency exchange rates of Rupiah against foreign

currencies makes production costs become unpredictable with good material for automotive

components are still imported. Most of them are buying raw materials in foreign currency but

they sold in rupiah. This exchange rate fluctuations that resulted in the company increased the

risk because their selling price must be added to reduce losses occurring in the future if the

fluctuation in the exchange rate of the Rupiah.

Sociocultural

Distribution of population in Indonesia are uneven where majority of the population resides on

the island of Java while Sumatra island was ranked second. This happened also on the

distribution of motor vehicles, where the island of Java and Sumatra tops the world number two

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because the main object for the mobility of the population. These conditions result in a major

automotive components must be able to distribute their products to both the island if it wants to

enter the segment after market addition should also be distributed to other regions in Indonesia.

Government policy concerning labour to do so far support for the growth of the company, so

labour management becomes easier. However, because the cost of living and health of the

increasingly costly, the company should be addressing this matter so as not to get stuck with a

problem labour. The rule about unions certainly should be able to

If you see a huge potential market in Indonesia with a population of over 220 million people in

2007, according to the Central Bureau of statistics, then the motor vehicle manufacturer will

market its products to Indonesia to be used as a mode of transportation. To make Indonesia as the

market of the products they produce, though facilities perakitannya not in Indonesia so the

market after market components of the vehicle itself was created.

Technology

Technology play an important role in the automotive components industry since the invention of

the automobile's new technology will bring impacts on components with the old technology. The

policies of other countries that implement certain standards regarding environment and health

make the company must meet these criteria. In addition to opening opportunities for producing

new-tech vehicle components, but on the other hand the invention of new technology in the

automotive industry would eliminate the components still use gradually. Like the invention of

the CDI are starting to eliminate the use of platinum for the electrical contact on motor vehicles,

although for segments after market components are still needed because the old model vehicles

already circulating are still using old technology.

Technology has also become one of the barriers for new players to dive into this industry

because of the new players must have technology on the product or the production process.

Companies that currently have entered in industrial components must always develop well

technology related products so that new products are marketed is able to adjust with the changing

automotive technology. In terms of the production process efficiency must also be done with the

new production process technology so that the sale price could be competitive.

In the production process, the discovery of new technologies have an impact on the efficiency of

the production process so that the production cost be lower, which in turn encourage other

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companies to undertake efficiency. On the product, the discovery technology provides the

operational impact on a more comfortable vehicle and or more efficient in operation.

c. Task Environment

Porter’s Five Forces Model is a very important tool to analyze the industrial parameters and to

develop business strategy. Here five different factors would be discussed to highlight the

attractiveness and productivity of a market. Now we will discuss it for PT. Toyota Astra Motor.

Threat of New Entrants

The threat of new entrants is very low in the automobile industry. The industry is very mature

and it has successfully reached economies of scale.

In order to compete in this industry a manufacture must be able to achieve economies of scale.

For this to occur, manufacturers must mass-produce the automobiles so that they are affordable

to the consumer. Another barrier to entry is that it takes an incredible amount of capital to

manufacture the automobiles. It takes an extreme amount of capital not only to be able to

manufacture the products but also to keep up with the research and development that is necessary

for the innovation requirements. Access to distribution channels is another high barrier to entry.

A company must find a dealership to sell their automobiles or have their own dealership. Space

in the dealerships lots is very limited making it difficult to have a wider variety of inventory.

Bargaining Power of Suppliers

The bargaining power of suppliers is very low in the automobile industry. There are so many

parts that are used to produce an automobile, that it takes many suppliers to accomplish this.

When there are many suppliers in an industry, they do not have much power. There are so many

suppliers to this industry; manufactures can easily switch to another supplier if it is necessary.

Bargaining Power of Buyers

The bargaining power of the buyers is moderately high. The buyers being consumers purchase

almost all of the industries output. The manufacturers depend on them to stay in business. The

buyers also are a significant portion of the industries revenue. If they cannot keep their buyers

happy then they risk losing them to their competitors.

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The buyers have low switching cost if they are not happy. All the buyer has to do is sell the car

they own and purchase a new one. The reasons why the power is not completely high is that the

buyers are not large and few in number. The buyers do not have the ability to integrate

backwards into the industry. If they want a car then they have to purchase it from a dealership.

Threat of Substitute Products

There are not many substitute products for automobiles. Some of the substitutes are walking,

riding bike or taking a train.

Substitutes products all depend on the geographic location of the consumer. In some cities such

as New York or Chicago, a car is not as necessary. In cities such as those, the subway is the most

effective means of transportation. However, in most places a person must have access to an

automobile in order to get around.

Rivalry among Competitors

Rivalry among the competitors is very strong is this industry. The major competitors are so

closely balanced that it increases the rivalry. In order to gain market share in the automobile

must gain market share by taking it from their competitors. One of the other reasons there is

such high rivalry is that there is a lack of differentiation opportunities. All the companies make

cars, trucks or SUV's. The competitors are compared to one another constantly.

The price, quality, durability, and many other aspects of different manufacturers are greatly taken

into consideration when deciding what type of vehicle to purchase. When the different

manufacturers advertise they even compare their products to their competitors. For example, the

commercials will focus on areas where the company outperforms its competitors.

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IV. Internal Environment

1. Corporate Structure

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2. Corporate Culture

Organizational Culture Toyota-Astra

Toyota's view of a leader of the Toyota Production System, which is the operating management

system to achieve the goals of the highest quality, lowest cost, and shortest lead time by

encouraging people to get to the target. In other words, the management tried to conduct an

efficient and effective production in the use of natural resources and its human.

Leaders developed from the company is a leader as well, which has long and correctly

understand the history and culture of this Toyota from day to day. This is in order to eliminate

the concept of imbalances in the workplace on the part of the executive. Thus, the position of the

authority be quite stable.

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A leader must give a tremendous impact on a company. How a leader can bring a tremendous

cultural change to cure or restore an ailing company. Therefore, the responsibility of leadership

here is very high.

A leader must have a critical element of cultural and Genchi Genbutsu which means deeply

understand the actual situation in detail and leaders must demonstrate the ability and understand

how work gets done at the level of the Toyota factory floor. So, do not just read the situation. But

understand any problems that you and immediately deal with solutions that do not harm.

In addition, other important teachings about the leadership of the Toyota Way is the effort to

create a culture that supports learning organization environment. By the term Deming, Toyota

uses "adherence to the goal" throughout the organizational elements that provide the basis for a

consistent and positive leadership as well as the environment for learning. It can be said that

there are deficiencies in the companies is a method of learning to do better improvement.

The application of GenchiGenbutsu can be easily followed on the production floor, it also

applies to executives and managers who have to look directly, and fully understand the actual

situation at the level of workmanship. The main core of Toyota's philosophy is that the culture

must support people in their jobs.

Management must demonstrate commitment to quality every day. Culture to be created is to

prioritize quality and prioritize safety. In essence, the culture is to be built is to develop leaders

who truly understand the work, live the philosophy, and teach it to others.

Toyota Way involves organizational learning from his mistakes, determine the root cause of the

problem, provide effective countermeasures, empowering employees to implement these

measures, and have a process to transfer new knowledge to the right people. The main principle

is to identify the root cause of the problem and develop countermeasures.

Toyota Way into a learning organization through relentless reflection (hansei) and continuous

improvement (kaizen). Kaizen, is essentially a learning attitude and mindset of all leaders and

employees, an attitude of self-reflection and even self-criticism, a burning desire to develop.

While Hansei, which means self-reflection, responsibility, and organizational learning. With

Toyota has continued to reflect the culture of self, then Toyota will have the opportunity to see it

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grow and develop in a new way. If someone admitted to having made a mistake, they will learn

from that mistake.

Another difference can be seen from hansei culture (self-reflection), which is to honestly admit

mistakes/weaknesses and improve weaknesses. Workers in Indonesia would be nice if more

discussing the weaknesses of the success, so it can be used as a learning process to correct

themselves with the aim of better improvement and sustainable.

The workers in Japan is also a hard-working person and unyielding. Similarly there are

differences with the workers in Indonesia who work for money, so little regard for quality.

After viewing the profile organization culture of Toyota, is certainly crossed our minds the

comparison between Japanese companies and the Indonesian company in terms of its

organizational culture.

For Japan, basically every leader should be selected based on ability and understand the work

that will lead, but in Indonesia less nature teaches to his subordinates. As one of the cultural

genchigenchi, not all employees will see the problem in detail and comprehensively.

There are still a lot of employees who are committed to the company and are less likely to "cool"

and not too concerned about the profit of the company, since most workers in Indonesia are

working only for money. Where there is more money, that's where the workers would work

harder. Where there is a lure-lure of money, that's where the workers will fight to be the highest

position in order to get more money.

Moreover, in Japan it is upholding two priorities, namely prioritizing quality and prioritize

safety. Culture of quality and safety priority this is upheld by the company in Japan.

Slightly different in Indonesia, only the quality factors are much more preferred, while the

occupational safety and health problems less attention. This can be seen with the non optimal use

of Personal Protective Equipment on the operators and workers, which can be caused by the

company giving knowledge workers are also very less, so many workers are "underestimate" the

use of safety equipment.

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In accordance with the points stated above SP Robbins, the company Toyota has criteria such as:

between members of the organization loyal to the organization, guidance behave to those

outlined in the company with a clear, understandable, complied with and implemented by people

inside the company so that people who work becomes very cohesive, the values of the

organization adopted not just stop at slogans, but internalized and expressed in everyday

behavior consistently by people who work in the company.

Commitment

There is no similar way to defining Moving Forward. For Us, Moving Forward is about listening

to other people's needs and the needs of our planet. This philosophy is embedded in every step

that we did.

Moving Forward is about designing eco-friendly vehicles in the future. With the vehicle engine

technology pioneer hybrid electric/gas, we are talking about machines that use energy from

oxygen, where the waste products in the form of water. And with the latest technology that

ensures safety, such as pedestrian recognition systems, inter-vehicle communication and radar

safety before the collision, the experts We work to create a vehicle that is safe for everyone.

Our goal is to improve the quality of your life. This could mean an MPV that take children to

school. A sedan that shows confidence, "You Have the Right" or a 4x4 that work as hard as you

did.

Thus, any sense Moving Forward for you, we can help you to achieve it. Moving Forward is

about continuous improvement. When you look at the world from this side, you can feel the

improvement from day to day, in every aspect of life. So, when we look to the future, there is

only one way we move forward.

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3. Corporate Resource

A. Finance

The profitability of Toyota’s automotive operations is affected by many factors. These factors

include:

• vehicle unit sales volumes,

• the mix of vehicle models and options sold,

• the level of parts and service sales,

• the levels of price discounts and other salesincentives and marketing costs,

• the cost of customer warranty claims and othercustomer satisfaction actions,

• the cost of research and development and other fixed costs,

• the prices of raw materials,

• the ability to control costs,

• the efficient use of production capacity,

• the adverse effect on production due to the reliance on various suppliers for the provision

of supplies,

• the adverse effect on market, sales and productions of natural calamities and interruptions

of social infrastructure, and

• Changes in the value of the Japanese yen and other currencies in which Toyota conducts

business.

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Toyota’s finance receivables are subject to collectability risks. These risks include consumer and

dealer insolvencies and insufficient collateral values (less costs to sell) to realize the full carrying

values of these receivables. See discussion in “Critical Accounting Estimates — Allowance for

Doubtful Accounts and Credit Losses” and note 10 to the consolidated financial statements in

Toyota’s annual report on Form 20-F. Toyota continues to originate leases to finance new

Toyota vehicles. These leasing activities are subject to residual value risk. Residual value losses

could be incurred when the lessee of a vehicle doesnot exercise the option to purchase the

vehicle atthe end of the lease term. See discussion in “Critical Accounting Estimates —

Investment in Operating Leases” and note 2 to the consolidated financial statements in Toyota’s

annual report on Form 20-F. Toyota enters into interest rate swap agreements and cross currency

interest rate swap agreements to convert its fixed-rate debt to variable-rate functional currency

debt. A portion of the derivative instruments are entered into to hedge interest raterisk from an

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economic perspective and are not designatedas a hedge of specific assets or liabilities on

Toyota’s consolidated balance sheet and accordingly, unrealized gains or losses related to

derivatives that are not designated as a hedge are recognized currently in operations. See

discussion in “Critical Accounting Estimates — Derivatives and Other Contracts at Fair Value”

and “Quantitative and Qualitative Disclosures about Market Risk” and notes 20 and 26 to the

consolidated financial statements in Toyota’s annual report on Form 20-F. The fluctuations in

funding costs can affect the profitability of Toyota’s financial services operations. Funding costs

are affected by a number of factors, some of which are not in Toyota’s control. These factors

include general economic conditions, prevailing interest rates and Toyota’s financial strength.

Funding costs decreased during fiscal 2013 and 2014, mainly as a result of lower interest rates.

Toyota launched its credit card business in Japan in April 2001. As of March 31, 2014, Toyota

had 12.7 million cardholders, an increase of 0.9 million cardholders compared with March 31,

2013. Creditcard receivables as of March 31, 2014 increased by¥42.8 billion from March 31,

2013 to ¥380.9 billion.

Other Business Operations

Toyota’s other business operations consist of housing (including the manufacture and sale of

prefabricated homes), information technology related businesses (including information

technology and telecommunications, intelligent transport systems and GAZOO) and other

businesses. Toyota does not expect its other business operations to materially contribute to

Toyota’s consolidated results of operations.

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B. Marketing

Personal Selling

One of the personal selling activities by PT TAM (Toyota Astra Motor) is to sell directly from house

to house (Door to door), the author has experienced that where a seller of TAM (more precisely

dealer) offers its products straight to consumers and explaining about the product in the brochure.

Personal selling activities subsequently applied by TAM is the message through correspondence,

where the TAM promote their products through E-Catalog (such as links) are sent via E-Mail. This

usually takes place after the exhibition where visitors stand TAM asked to fill out a list of email

addresses that accompanied the visit.

In addition to both of the above, if we want a product of TAM also provides Telephone Selling and

Selling Websites (fill in a form on the website). Where prospective customers can order and obtain

the desired information by contacting the nearest branch office.

Sales Promotion

Sales Promotion is one of the promotional mix that is being intensively conducted by PT.Toyota

Astra Motor (TAM). Sales promotion consists of short-term incentives to encourage the purchase or

sale of a product or service (Kotler and Armstrong, 2006: 441). Sales promotion conducted by

PT.Toyota Astra Motor (TAM) is Consumer Prom0tion (CP), Trade Promotion (TP) and Salesforce

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Promotion (SP). CP is the promotion is done directly to the end consumer, while TP addressed to the

retailer or wholesale customers (Kotler and Armstrong, 2006: 445).

Consumer Promotion (CP) conducted PT.Toyota Astra Motor (TAM) is a credit program Suka -

Suka, Inovaganza Program, Program Pestahun Baru, Lightweight Installment Program, Lottery Gold

10 Gram. The objectives to be achieved by PT.Toyota Astra Motor (TAM) on CP in the form of

loans procurement Love - Love and Light installment program above is memumbuhkan buying

interest for prospective customers and increase sales by providing ease in possession of the vehicle at

the time of rising product prices. While the programs and program Inovaganza NEW PESTAHUN

aims to attract potential consumers to purchase Toyota products of the competitors' products (selling

out competitors).

While the Trade Promotion (TP) conducted PT.Toyota Astra Motor (TAM) is a program for

Salesforce Discounts and Promotion (SP) held trade fairs (trade shows) in the center - the shopping

center and Buy 1 Get 1 Free for users Toyota in Amusement appropriate terms and conditions.

Public Relations

Public Relations is a promotional tool that is capable of forming public opinion quickly, so it is

called as an attempt to socialize or promote a product. In this case PT. Toyota Astra Motor also held

a strategy to promote the products of Toyota namely by holding Program HORE Toyota (Toyota

Holiday Rame-Rame), Toyota Truefriend consisting of Toyota Club, Kids Corner and Education

Media.

Toyota Club is a place for Toyota customers to share experiences related to Toyota products they use

as well as a liaison in event activities such as suave and social service as well as online activities.

Kids Corner is one of Toyota's special program for the delight of children of parents in the form of

Toyota Partner Robot users, Robna & Humanoid. Education and media that provides tips education

about particular automotive and other interesting info, info that would benefit the community in

general. And also held a charity Toyota Friend Mudik, which means free trip with the terms and

conditions apply.

In addition to the above publication, Toyota also issued a special application to easy access Toyota

and connect with other customers, namely Toyota Move Enjoy App On Your Car and Your Phone.

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Toyota Move Enjoy APP (http://www.toyota.co.id)

Direct Marketing

Direct Marketing activities of PT Toyota Astra Motor is to conduct direct sales with face to face,

where prospective customers can directly go to the nearest Toyota Showroom products and get the

best service and the desired information, as well as direct marketing is a means of direct companies

to meet consumer's offer products.

Direct Marketing (arabcarmegazine.com)

Advertising

Advertising is reaching the public at large (bulk), not private but directly to the audience

(impersonal) and can be convincingly convey the idea of cause and effect which dramatif

(expressive). In advertise their products PT. TAM using multiple media, both electronic and non-

electronic and advertising strategies that can support marketing purposes. Such as audio-visual

advertisements on national TV and private with its flagship tagline "Moving Forward", radio,

magazines and newspapers Automotive, Social Media such as Facebook and Twitter, and other

advertising media. All the way advertising is managed to help create a brand image (brand image)

Toyota as the best vehicle successfully birth in Indonesia.

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Toyota Product Ads Private TV Station (Capture youtube.com)

Toyota Product Brocure

http://www.toyota.co.id Print ads Toyota (goklas-tambunan.net)

C. Human Resource

Toyota to this day has approximately 300,000 employees worldwide, and nearly a third are in

Indonesia, in placement or acceptance of an employee, the company always held a test continued

with the training, according to its disciplines and expertise,

"Because people make our automobiles, nothing gets started until we train and educate our people."

As seen in these words, which were expressed by Honorary Advisor Eiji Toyoda, Toyota seeks to

develop human resources through the activity of making things. Toyota believes that the

development of human resources requires the handing down of values and perspectives. In

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conjunction with the geographic expansion of business and the growth of business areas,

undertaking global actions for the development of human resources has become a priority issue.

Toyota is building both tangible (a new learning facility) and intangible (course content) structures

relating to team member development that ensures a secure and steady flow of qualified human

resources to conduct Toyota's global business in the 21st century.

Fully Committed and Thorough Human Resources Development

Toyota conducts systematic company-wide and divisional training and assignments for training

purposes with an emphasis on on-the-job training (OJT) to ensure that associates can fully utilize

their abilities.

Toyota has defined the required qualifications of "professional staff"1 for office and engineering

positions, and "T shaped human resources"2 who are able to perform day-to-day activities and

expand their skills in technical positions. Company-wide training is conducted based on employee

qualifications, as well as specialized training for individual divisions, language training, and special

knowledge and skill training.

In October 2002, Toyota created the booklet "Toyota — Developing People" and distributed it to all

associates to create a common understanding that "the source of Toyota's competitiveness is human

resources development" and to promote the creation of workplaces where personnel development

takes place at all sites and at all levels.

1. Professional Staff: Associates who can create added value on their own and contribute to

society, as well as utilize their strengths and exercise teamwork

2. T Shaped Human Resources: Team members with a broad range of skills, such as English

language skills and operational knowledge (the crossbar of the "T") as well as highly

specialized knowledge and experience in a particular field (the vertical bar of the "T")

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•Company-Wide Training to Support Professional Staff

 

•Key Principles of The Toyota Way

2001

A Shared Toyota Way

In order to carry out the Guiding Principles at Toyota Motor Corporation, in April 2001 Toyota

adopted the Toyota Way 2001, an expression of the values and conduct guidelines that all

employees should embrace. In order to promote the development of Global Toyota and the transfer

of authority to local entities, Toyota's management philosophies, values and business methods, that

previously had been implicit in Toyota's tradition, were codified. Based on the dual pillars of

"Respect for People" and "Continuous Improvement," the following five key principles sum up the

Toyota employee conduct guidelines: Challenge, Kaizen (improvement), Genchi Genbutsu (go and

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see), Respect, and Teamwork. In 2002, these policies were advanced further with the adoption of

the Toyota Way for individual functions, including overseas sales, domestic sales, human resources,

accounting, procurement, etc.

Toyota Institute

In January 2002, the Toyota Institute was established as an internal human-resource development

organization that aims to reinforce the organic integration of global Toyota companies by way of

sharing the Toyota Way as well as to promote self-sufficiency. The purpose behind the Toyota

Institute's establishment is to promote the human resources development of global Toyota in order

to promote true globalization and to realize the advancement of Toyota's core values. TMC

President Fujio Cho is the Toyota Institute's first president, with 16 full-time associates managing

the business.

Within the Toyota Institute, the Global Leadership and the Management Development Schools

constitute the specific content of the training programs.

In 2002, the Toyota Institute conducted training programs targeting global leadership candidates

from TMC and overseas companies and for middle management personnel to enhance

understanding of the Toyota Way, enable best practice sharing and drafting of action plans, as well

as contribute to the creation of a global human network.

•Outline of Training Programs

D. Technology

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Common Rail

D4D Common Rail

Fuel GCC has been given by the supply pump pressure stored in the common-rail before being

distributed to the injector-injector. ECU (Electronic Control Unit) and EDU (Electronic Driving

Unit) controls the volume and the fuel injection timing to an optimum level by operating and

closing the injectors in accordance with the signals from the sensors. This process is similar to

the EFI system used in gasoline engines.

VVT-i (Variable Valve Timing-intelligent)

VVT-i technology is an advanced electronic system that regulates the fuel inflow valve action

(inteks) electronically both in terms of time as well as the size of the opening and closing of the

valve in accordance with a rotation engine to produce optimum power, fuel efficient and

environmentally friendly

• optimum power in every round of the machine

• Save Fuel. Electronic valve setting makes the fuel consumption to be frugal and efficient.

• Exhaust Environmentally Friendly. The supply of fuel and air are regulated by the combustion

system make the valve work to be perfect, and the exhaust gases produced into besih

EFI (Electronic Fuel Injection)

EFI system uses various sensors to detect the condition of the engine and the car driving

conditions. Furthermore, engine ECU calculates the optimum fuel penyemperotan volume,

which then instructs the injector to spray fuel.

V. Analysis SWOT

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Internal factorsStreght (strength)

internal factors information

Effective distribution channelsToyota uses a two-tier distribution network, it is easy for consumers to quickly obtain the desired product.

The success of product development

Toyota has developed a low-cost car products are already successfully getting sales terbayak on Toyota Avanza and is now being developed further with a brand new and more economical price with the brand Toyota Agya.

Application of technology

The application of technology in Toyota products sangatlaah shot, the car proved to be biased in creating it hovering over the road.

Gauging the effectiveness of promotions

Toyota is promoting products (1) Advertising, using the media: television, banners and banners, newspapers, brochures, T-shirts and uniforms, and a symbol or logo. (2) Sales Promotion, by way of consumer promotion and sale salesperson. Consumer promotion is done by providing coupons, price promotion, demonstration, competition, refunds compensation.While salespeople promotion is done by way of bonuses, contests salespeople and sellers meeting. (3) The turnover of individuals, carried out by means of seminars andcustomer gathering, FGD (Focus Group Discussion). (4) Public Relations, done by holding an exhibition (exhibition), showroom events, and souvenirs.

Human Resources

centered on human resources, which sustain consistent growth, innovation, profitability, and excellence. Through their access to the executives and managers of Toyota and Toyota plants worldwide, the authors show you that you can build a culture of continuous improvement

Owned assets to finance operations and investments

Astra's net asset value increased by 18% to Rp 47.2 trillion and the value of assets in the allocation to finance the operational and investment

Pengunaankandungan logamsampai 75%

With the additional investment in the components sector, Toyota aims to increase local component content of some models such as Ki which Innova from the current 75% to 85%.additional investment would give a double impact to

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encourage industrial development component in In donesia.

Toyota has become a generic name in the global market

Toyota has become a generic name in the global market. Every time the company launched a new car in the market which is always great support from a market already otientation so the car was introduced by easly include the introduction stage. People have many oftrust to name them and this is why Toyota is a leader in the automotive industry.

Toyota has a great power forits car 2.OD

Toyota has a great power forits 2.OD cars, Toyota diesel engine heat to sell the car and is the only company to offer a diesel engine in this car category.

Toyota vehicles are made according to the environment.

Toyota vehicles are made according to the environment. No doubt, if the car is available but Toyota has the edge because it has learned a variety of environmental conditions and community. So the new additions and changes that proved successful.

Total

Internal factorsWeakness (weakness)

Internal factors Information

A future employees

Toyota reportedly will remodel marketing division. Source companies mention their plans to move some office job positions that are in other states even though the company did not want to comment. The company policy is threatening the future of the employees, many of whom had served for many years.

Manufacturing facility

Toyota successfully proved various efforts to preserve the environment, among others, as a company leader hybrid technology and environmentally friendly manufacturing facility.

global positioning

TMC see Toyota Indonesia plays an important role in the global automotive market. These changes are expected to not only strengthen Toyota's position in the domestic market, but also become an important player in the automotive global market.

Development of domestic brands The development of well-known domestic brands on the market quite valuable car is not too expensive for example Toyota Avanza, while valuable vantastis cars such as the Toyota Camry is not too well known that

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only certain people can have a car that is worth 5.7 trillion.

Market informationMarket information is done by electronic media, print media, and through events organized by the company.

Production failure rate

In America and Canada, the world's largest car market and also for Toyota, the company must draw on millions of best-selling cars, including the Prius, Camry and Corolla. There are a number of serious problems with its gas pedal. The news was shocking indeed.

Machinery import

NZ-type machine that is used by the all-new Toyota Yaris. The engine is still imported from Thailand,The reason is still imported aluminum engine as they relate to the raw materials that are not available in Indonesia. "For the manufacture of shells machine, we do not use artificial pure aluminum INALUM

Many businesses that draw into sales forechating

Many businesses that draw into forechating sales due to changes in political and economic scenario

Differences in perception between the domestic market with the international market of the product class Toyota Rust

Differences in perception between the domestic market with the international market of the product class Toyota Rush. Toyota's own party claimed that the Toyota Rush placed on the Mid-Class SUV class. While the criteria cc capacity class Mid-Class SUV itself is 1500cc

Pivot systems that let consumers

Indent systems that let consumers.Sometimes the customer cancels the booking process because the disappointment of the promise given by the Toyota dealer.

Total

External factorsOpportunity (opportunities)

External factors information

The opening of the domestic marketThe opening of foreign markets, Toyota has spread to several countries, one of the Country is Indoneaia

Technology package Toyota continues to develop intermediate four-door sedan fuel cell technology, which has not been named, with a target launch in California starting in 2015. In addition, this vehicle is also intended to Japan and Europe. Jim assured, the technology package offered,

42

among other capabilities, packages, and other attributes will be able to push sales in the North American region.

Success of manufacture Daihatsu coure

Success of manufacture Daihatsu coure is a great opportunity for Toyota to excel furter careful planning and the right time to launch a new car can prove to be successful.

The opening of export markets

Effect of awards that raise the image of the company

The labor market

Export

Export is a great opportunity for Toyota Indus motors. Vehicles that are exported to Bangladesh only once to prove the plant capacity and efficiency of the company. It has to start again.

Contracts with government departments

Contracts with government departments eg motorway police, martyr strength and thedigniteries where han Corolla opportunity to face together the business market dealing with the consumer market.

Can offer discounts

Can offer discounts for government departments and large organizations in the purchase of vehicles in greater amounts.

Total

External FactorsTreaths (Threats)

External factors information

Threat of competition from Honda

Although Toyota enjoys the position of being the number one car company, still faces some competition, especially the threat of Honda. Honda has adopted a strategic aggressively to capture the market.

Trends can be a threat

Although Toyota carefully keep an eye on changing trends, customer needs are still changing and the trend could be a threat.

Import ACImport back car air conditioner which is also considered as a threat to the company.

Influence government policy

In issuing its products Toyota always involve pemeritah policy through emission system, whether the products bisi pass the test to be used or not

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The intensity of competition

Intensity of competition Toyota is so strict, one Toyota Avanza and Daihatsu Xenia in addition there is the Toyota Agya and Ayla Dahatsu

Influence campaign environmentally friendly products

Toyota, Joko, very aware of the importance of protecting the environment from pollution.Therefore Toyota always developing new technologies that are environmentally friendly and have had international standards.In addition, Toyota's latest products are also saving fuel.

The economic downturn in the country

Astra did have to raise the price of cars and motorcycles this year for various s good, are mutually ber complication, suppose a weak rupiah value roomates Contributed to a 5 percent drop in first-quarter profit on automotive division, and Also the increase of in taxes for luxury cars in order to Overcome the domestic economic downturn

VI. Strategic Alternatives & Recommended Streategy

Toyota Develops Strategies for Environmental Technologies

The mobilization of this era, many car manufacturers are increasingly aware of the importance of

conserving nature. Hybrid cars are increasingly developed, economical car is also always

introduced in the market. Toyota has also developed a strategy for a more environmentally

friendly technologies.

The 20th century is a period in which industry and technology evolve globally, resulting in the

production of vehicles and rapid population growth. This led to a sharp increase in fuel

consumption and, if not prevented it can cause the fuel crisis in the next century. At this time, the

issue of environment and natural resources should be a major focus for both users and

manufacturers of oil-fueled vehicles. There are three main problems regarding this issue, that is,

finding alternative energy substitute for oil, reducing CO2 emissions, and prevent pollution. You

and thousands of users of natural resources must always strive to preserve the environment

around you to do the slightest change and starting from now.

Although the demand for alternative energy such as fuel gas, electricity and hydrogen will

continue to rise, any alternative sources of energy has always had its own weaknesses. Oils

available today has become the most widely fuel consumption, especially for vehicle users. Over

44

time, these fossil fuels will be exhausted and cause its price soaring. Before this happens,

precautions must be found and implemented. Oil may be the primary fuel of most vehicles, but

research on alternative energy might be able to give a big change in the future. Some motor or

powertrain vehicle that can be found on hybrid vehicles, electric vehicles and sell vehicles,

would be required to use various types of vehicles as a substitute for fuel oil.

Toyota as one of the leading car manufacturers in the world, will continue the development of

various types of these vehicles. By always trying to manufacture vehicles that are

environmentally friendly and fuel efficient. Toyota will develop future generations of cars that

use alternative fuels such as fuel gas, electricity and hydrogen.

Recommended Strategy

Marketing Mix

This study is given based on the concept of the marketing mix that is an inherent part of the

company's marketing actions. Marketing mix is the accumulation of four elements of the market

as product, price, place and promotion. All four elements have the same implications for the

effectiveness of the company's marketing strategy. Companies that operate in all types of

industrial businesses use the marketing mix in the formation of various marketing strategies

merekadantaktik

This can be understood in a way that stands out with the help of examples of Toyota motor that

operates in the automotive sector. The company has gained a great competitive advantage

through the application of the marketing mix in different marketing strategies and diverse.

Marketing mix makes Toyota with a competative advantage in many aspects of marketing

activities.

Product

Product mix is a key element of the company's marketing strategy. Toyota is famous for the

quality of the product. It has a very large range of products such as cars, trucks, vans, sports cars

and hybrid products. In the car, the most famous models of the company are the Corolla, Prius,

Matrix, etc. truck companies including Tacoma and Tundra. In the hybrid product, the Prius and

Camry Hybrid are the most popular products. Product features of all types of vehicles is very

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high tech grounded. It comes with fuel efficiency, the model attractive and happy driving.

Thankful enterprise customers with advanced quality products and the most effective and this

has provided great success for the company.

Determination of the product of the company is incorporated part of the marketing strategy of the

company. The company's marketing department mainly concentrates on market segmentation, in

accordance with the requirements set out from customers in order to meet the needs of market

segments odd effectual manner. In the marketing strategy, the company is also considering the

product's brand image as an important aspect. With innovative products branded, the company

wants to implement a strategy of understanding the entire car market (Chen & Green, 2009).

Price

Price is the most important element of the marketing strategy of Toyota Motors. The company

has a pricing policy which is very prominent in contrast other car companies. Toyota's pricing of

products only affordable by the customer. Confirmed the company's pricing policy associate with

the different geographical segments according to the customer's financial condition.

In the marketing strategy, the company did not increase the price even after the big rise of

competition in the car market. As part of the marketing strategy, the company mainly

concentrates on customer satisfaction with low-cost and quality-based products (Toyota Motor

Corporation, 2009).

Place

For the timely delivery of the vehicle, the company has spread out of the store in all areas of

customer approached. Supply chain companies are also very nutritious. Toyota dealers to supply

vehicles to the market places are accurate to within accurate. For the effectiveness of the

marketing strategy, the company concentrates on increasing sales and to adopt a strategy that

alliances and Joint Ventures with well-developed market. Marketing mix, especially a mixture of

a strike enlargement strategy of the company. Because this basis, the company proposes to make

a change in marketing strategy disrupted according to changing marketing conditions.

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Promotion

  Toyota invaluable promotional strategy. Through the web portal, the company provides

information that is precise and well-timed about the offer. The Company coordinates and

completes the marketing campaign demo vehicles as part of the promotion strategy (About

Toyota, 2009). In the implementation of promotional mix in the marketing strategy, the company

makes a profit for each customer as a very low rate of interest installments and discounts. In the

marketing strategy, the company also concentrates on market surveys for the promotion of its

products.

Therefore, the marketing mix is a central part of the marketing strategy of Toyota Motors. With

the implementation of the various elements of the marketing mix, the company has made a very

effective marketing strategy and tactics. With a marketing strategy, structured on the basis of the

elements of the marketing mix, the company derived a very good corporate image and

profitability of the entire car market today. It is also expected that if the company changed its

marketing strategy and tactics in accordance with the requirements of the customer associated

with the four elements of the marketing mix, it will be able to assert the same level of

profitability in the future.

Conclusion

Toyota in its development has been good but there are still problems - problems which should be

small in atasin with the application of kaizen methods in the form of six steps accurate in making

product innovation, supply chain efficiency, and implementation of internal manufacturing.

Kaizen has a core concept of "working smarter", not "working hard". For example in increasing

production. In Kaizen do not need to add time and labor, but that is done is to produce a quality

product worth selling in larger amounts by using manpower, machinery, and the existing time

constraints. Kaizen greatly minimize waste in various sectors. Efficiency is emphasized at all in

the process of working in training Kaizen method.

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SUGGESTION

Many things must be done marketing executive:

1. Where the production and marketing executives can do all three activities above, Toyota will

reach the target market with the most sales and become the primary.

2. In addition, executives must listen to consumers what they want on the car in order to be able

to innovate to create new products. With so consumers are satisfied with the purchase Toyota

products.

3. Improving ad that consumers feel interested and want to buy a Toyota.

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Reference

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