Toyota Motor Introduction
Toyota Motor Corporation is one of the world‘s leading automakers, offering a full range of models, from mini vehicles to large trucks. Global sales of its Toyota Toyota and Lexus brands, combined with those of Daihatsu and Hino, totaled 6.78 million units in CY2003*. Besides its own 12 plants and 11 manufacturing subsidiaries subsidiaries and affiliates in Japan, Toyota has 45 manufacturing companies in 26 countries/locations, countries/locations, which produce Lexus- and Toyota-brand Toyota-brand vehicles and components. As As of March 2003, Toyota Toyota employs 264,000 people worldwide (on a consolidated basis), and markets vehicles in more than 140 countries. Automotive business, including sales finance, accounts for more than 90% of the company's total sales, which came to a consolidated ¥16.05 trillion in the fiscal year to March 2003. Diversified operations include telecommunications, telecommunications, prefabricated housing and leisure boats.
America American Samoa Australia Bahrain Brunei Darussalam China Fiji Guam Hong Kong, China
Europe India Indonesia Israel Kiribati Kuwait Malaysia Nepal New Caledonia New Zealand Oman
Pakistan Papua New Guinea Philippines
Africa
Asia Saipan Samoa Saudi Arabia Singapore Solomon Islands Sri Lanka Tahiti Taiwan Thailand Tonga United Arab Emirates Vanuatu Viet Nam
Toyota International Portfolio
Avalon
Camry
Tarago
Prius
Passenger Corolla
Avensis
Echo
MR2
Sports Camry Sportivo Co Corolla Sportivo
Rav 4
4 W/D LandCruiser Prado LandCruiser 100
LandCruiser 78 Hiace
Commercial Coaster
Town Ace
Toyota In Pakistan Pakis tan
Ce Celica
Hilux
Kluger
Indus Motors Indus Motor Company (IMC) is a joint venture between the House of Habib , Toyota Motor Corporation Japan (TMC) , and Toyota Tsusho Tsusho Corporation Japan (TTC) for assembling, progressive manufacturing and marketing of Toyota Toyota vehicles in Pakistan since July 01, 1990. IMC is engaged engag ed in sole distributorship of Toyota Toyota and Daihatsu Motor Company Ltd. vehicles in Pakistan through its dealership network. The company was incorporated in Pakistan as a public limited company in December 1989 and started commercial production in May 1993. The shares of company are quoted on the stock exchanges of Pakistan. Toyota Motor Corporation and Toyota Tsusho Tsusho Corporation have 25 % stake in the company equity. The majority shareholder is the House of Habib with 50 % of the equity. IMC's production facilities are located at Port Bin Qasim Industrial Zone near Karachi in an area measuring over 105 acres. Indus Motor company's plant is the only manufacturing site in the world where both Toyota and Daihatsu brands are being manufactured. Heavy investment was made to build its production facilities based on state of art technologies. To ensure highest level of productivity world-renowned Toyota Production Systems are implemented. IMC's Product line includes 6 variants of the newly introduced Toyota Corolla, Toyota Toyota Hilux Single Cabin 4x2 and 2 versions of Daihatsu Cuore. Quality Policy
WE AS A TEAM AT INDUS MOTOR ARE COMMITTED TO FOCUS ALL OUR ACTIVITIES LEADING TO: MANUFACTURING HIGH QUALITY PRODUCTS. CUSTOMER SATISF SATISFACTION. ACTION. SERVICE TO SOCIETY SO CIETY.. MAINTAIN MARKET LEADERSHIP. • • • •
Environmental Policy
WE AS A TEAM AT INDUS MOTOR ARE COMMITTED TO CONTINUOUSLY IMPROVE OUR ENVIRONMENTAL MANAGEMENT SYSTEM TO: IDENTIFY AND AVOID/MITI AVOID/MITIGA GATE TE THOSE ENVIRONMENTAL ENVIRONM ENTAL ASPECTS WHICH HAVE HAVE NEGA N EGATIVE TIVE ENVIRONMENTAL ENVIRON MENTAL IMPACTS. IMPACTS. COMPLY WITH ALL APPLICABLE LEGAL, REGULATORY AND OTHER REQUIREMENTS. ASSIST SOCIETY BY MAKING THE ENVIRONMENT MORE FRIENDLY. •
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Marketing A social and managerial process whereby individual and groups obtain what they need and want through creating and exchanging products and values with others. Marketing starts long before the company had a product. Marketing continues throughout througho ut the product life trying to find new customers and satisfying the current customers by improving products appeal and performance, learning from product sales results, and managing repeat performance. In case of Toyota Toyota producing the automobile industry manufacturing the cars for the Pakistan market for the last many years, with the consideration of needs, wants and demands from the customers. Today every human being need a car in order to fulfill the need of transportation. But this need varies in different terms. Some of the customers buy a car in order to fulfill the basic need of traveling while some customers buy a car in order to fulfill the social need, or may be some other buy a new car for the status symbol. So this different types of buying of consumers reflects what customer actual needs, and what he want and what he demands. Toyota in Pakistan study the customer need in depth to actually understand what the majority of customers demands. Toyota Toyota according to the different segments manufacture the different products
OBJECTIVES OF THE COMPANY COMPANY
To be the market leader and satisfy the requirements of its customers, customers, the company has set certain objectives. These are: 1. 2. 3. 4.
I mp r o v e Q u a li t y E n h a n c e E ff i c i e n c y M i n i mi z e C o s t Incre ase Pr Pr o d u c ti v i t y
Over the previous years, the company has put in its best efforts to manufacture quality cars designed for its customers. To improve their efficiency, the company gives great importance to its human resource as the company believes that satisfied satisfied and quality conscious team can produced quality products. The company is using the philosophy of Kaizen for continuous improvement. It has become a way of life for the management of the company by doing these efforts towards their objectives.
Indus Motor Business Portfolio BUSINESS PORTFOLIO:
“The collection of businesses and products that makeup the company. “ Business portfolio of Indus motors includes •
Corolla
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HiLux
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Cuore
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CBU Unit (completely built up unit)
Corolla, HiLux and cuore are manufacturing in Pakistan, 65% of the car manufactured in Pakistan which includes body and other parts except the engine which is being imported from Japan Known as CKD (completely knocked down) Engine.
Portfolio Analysis: “A tool by which management identifies and evaluates the various businesses various businesses that makes up the company.” Techniques or Tools for the Portfolio Analysis:
There are two different techniques used for the portfolio analysis: •
Boston Consulting Group Matrix
BCG Approach
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General Electric Matrix
GE Approach
The The Boston Consulting Group Matrix (BCG Matrix) is the best-known portfolio planning framework. The GE / McKinsey Matrix is a later and more advanced form of the BCG. Matrix BCG matrix is a tool that can be used to determine what priorities should be given in the product portfolio of a business unit. The The GE / General Electric / McKinsey matrix is a model to perform a business portfolio analysis on the Strategic Business Business Units of a corporation.
TOYOTA COROLLA BCG MATRIX
STAR 2.0D 2.0D Saloon
CASH COWS SE Saloon GLi
QUESTION MARK Xli 1.3
DOGS
The McKinsey / General Electric Matrix The GE / McKinsey Matrix is more sophisticated than the BCG Matrix in three aspects: Market (Industry) attractiveness replaces market growth as the dimension of industry 1. attractiveness. Market Attractiveness includes a broader range of factors other than just the market growth rate that can determine the attractiveness of an industry / market. Compare also: Porter's Five Competitive Forces model Competitive strength replaces market share as the dimension by which the competitive 2. position of each SBU is assessed. Competitive strength likewise includes a broader range of factors other than just the market share that can determine the competitive strength of a Strategic Business Unit.
3. Finally the GE / McKinsey Matrix works with a 3*3 grid, while the BCG Matrix has only 2*2. This also allows for more sophistication.
Typical Typical factors that affect Market Attractiveness: - Market size - Market growth rate - Market profitability - Pricing trends - Competitive intensity / rivalry - Overall risk of returns in the industry - Opportunity to differentiate products and services - Demand variability variability - Segmentation - Distribution structure
GROWTH STRATEGIES STRATEGIES
Typical Typical factors that affect Competitive Competitive Strength of a Strategic Business Unit: - Strength of assets and competencies - Relative brand strength - Market share - Market share growth - Customer loyalty - Relative cost position (cost structure compared with competitors) - Relative profit margins (compared to competitors) - Distribution strength and production capacity - Record of technological or other innovation - Access to financial and other investment resources
MARKET PENETRATION PRODUCT DEVELOPMENT
MICRO AND MACRO ENVIRONMENTS Macro Environment The larger societal forces that affect the microenvironment- demographic, economic, natural, natural, technological, technological, politica political, l, and cultural cultural forces. forces. These Thes e factor f actorss represe r eprese nt constraints constr aints within which all organizations including the automobile industry must function. The various components of general environment are: 1. P o l i ti c a l 2. Eco no mic 3. D e mo g r a p h ic s 4. C u lt u r a l 5. Tec hno lo g ica l 1. Poli Politi tica call Fact Factor orss Government at all levels is an important component of the general environment no organization or industry is immune from the various decisions made by the government. The Pakistan, Government’s in consistent policies, frequent change in duty tariff and smuggling are main reasons of unstable market con duction. Like other motor companies Toyota is also affected by the current changing policies of the government.
Previously the automobile industry had to cope with more than 77000 yellow cabs that were imported during the yellow cabs sche me and was later turned lose to the market after a change of government and the policy scrapped. In 1995, all the previous taxes taxe s and duties were rolled into one import duty of 30 percent on CKD kits as well as CBU vehicles. In 1996 the sales tax on CBU was increased cost to 18 percent. In 1997 the ministry of industries and production recommended that duty on CKD be reduced form 40 percent to 35 percent while the car sales should be exempted from CVT and the deletion programme should be accelerated. Just a few days back the general sales tax has been increased to 15 percent promoting more price like. So there is going to be a Rs.20000 increase in vehicles. 2. Ec Econ onom omic ic For Force cess Government economic policies at the federal level clearly influence the ability of the industries to survive and progress. Inflation is a major economic factor which has affected the Pakistan. Automobile industry including Toyota. The current inflation rate is 21% to 23% annually prices in the auto market were deregulated in 2000 and
grew almost 20 percent to 30 percent per annum to allow Toyota to bring their prices to profitable levels. After three years of “Still Market”, the market picked up. The recent increase of 15 percent sale tax is however, going to result in a price increase. 3. Demo Demogr grap aphi hics cs For Force cess Society holds a global or summary belief that an organization is proper and worthy of support. Toyota takes pride in being the most trusted name all over Pakistan. Its vehicles are regarded as a status symbol. It is the guiding principles of Toyota Toyota which has strongly developed trust in the people. 4. Cult Cultur ural al Fac Facto tors rs Toyota respects the culture and customs of every ev ery nation and community and contributes to the economic and social development through corporate activities in the communities. Toyota Toyota believes in honouring 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. This is the reason that Toyota is proud of the fact that Pakistani society considers Toyota Toyota vehicles to be a symbol of reliability, reliability, comfort, luxury luxur y and a have to be trusted. 5. Tech echnol nologi ogical cal Forces Forces Technology is of particular importance because it h as been and continues to be the main source of increases in productivity. Despite changes in the means used to motivate people and the variety of incentives that have been offered to stimulated production, the resulting increase has been negligible when compared to that of created by technology. technology.
The locally produced Toyota Corolla introduced in May 1993 is now in its 11th year. Its excellent quality, low maintenance cost and high resale value has won it the support and loyalty of its customers. Product diversification and a wide range of colours has allowed customers to exercise greater options and has sustained this threat. The total company’s product range comprises of 8 variants of Corolla and 5 variants variants Hilux. As a result of the “Safety First” commitment; commitment; for the first first time time in Paki Pakist stan an SRS SRS “Sec “Secon onda dary ry Rest Restra rain in Syst System em”” Airb Airbag agss have have been been introduced in the GLI Automatic and GLI manual models, side impact bars which protect vehicles for side collisions have however been routinely fitted in all Corolla variants since inception. The process of making a car more durable includes includes “Pitos “Pitospaat paatee Prime Primer”, r”, total total immers immersion ion in a catholi catholicc Electr Electro-de o-deposi positt primer, which assures long term anti corrosion and an extra thick colour coat that is better than all others, ensuring that “New Car” look “New” for years to come.
MICRO ENVIRONMENT
The Micro environment consists of those components of the macro environment which are directly relevant to an individual’s organization. An organization’s micro environment includes 1. C u st o me r s 2. S u p p li e r s 3. I n t e r n a l Pu b l i c 4. C o mp e ti to rs 5. Intermed iaries The boundary between an organization’ organization’ss Macro and Micro environment environment should not be viewed as static. Changes in the former will inevitably redefine the latter. The various components of micro environment for Toyota have direct influence on its perfor performanc mance. e. Moreove Moreoverr componen components ts of Toyota’ oyota’ss micro micro environm environment ent are also also related to its macro environment. 1.
C U S TO M E R S Toyota aims at developing deve loping loyal customers relationship. For this reappoint tries its best to understand who its buyers bu yers are and what are their needs. It tries to listen to its customers, realizing that they may be their best collaborators. Customers feedback drive their product development.
To be the market leader and satisfy the requirements of its customers, the company has set certain objectives. These are a) I mp r o v e Q u a l it y b) E n h a n c e E ffi c ie n c y c) M i n i mi z e C os t d) I n c re a se P ro d u c ti v i t y Over the previous years the company compan y has put in its best efforts to manufacture quality cars designed for its customers. In Pakistan, more and more people want to experience the unique pleasure of motoring. Exhaustive, in-depth research and consumer surveys conducted over the past p ast years revealed trends of customers and the environmental factors relating to use. Toyota’s Marketing Policy Toyota’s oyota’s slogan “Reliability n Motion” represents its emphasis e mphasis son strong trustworthy and life-long automobiles. It has many brand lo yal customers and is considered as market leader. In Pakistan, it has aimed at various segments with their variety of models in Toyota Corolla, so customers in every segments can be satisfied.
Different classes of Toyota Toyota Corolla introdu ced in Pakistan are ; Model Description
Segments
SE Saloon 1 600 cc G Li 1 30 0cc X li 1 3 0 0 c c 2 . 0 D / 2 . 0D S a lo o n
In d u s tr ia l is t s, Well e s ta b l i s h e d B u si n e s sm a n , Professionals. Busin ess man , To p Lev el Mgt. of mu lt in ationa ls, Professionals, Government High Officials. M id d l e -l e v e l E x e c u t iv e s , G o v e rn me n t D e p a r t m e n t s & Organizations, Professionals, Armed Forces. Profession a ls, Bu Busine ss Ex Exe cu tiv es wh who ar a re fu fu el co co st conscious.
Toyota has got an effective Nationwide dealer network comprising of 25 dealers at Karachi, Lahore, Faisalabad, Mirpur, Islamabad, Peshawar, Peshawar, Sialkot, DI Khan, Multan, Quetta and Larkana. This spread of network n etwork shows not how Toyota Toyota is sincerely busy in developing a company’ co mpany’ss customer relationship and winning the hearts h earts of brand loyal as well as attracting potential customers. 2.
S UPPLI ERS Suppliers constitute a second component in a typical organization’s organization’s micro environment. Toyota Toyota has to respond not only to the customers they supply, supply, but also to the sources from which they receive supplies. Suppliers are given importance and respect by Toyota. Toyota. It continuously aims at developing a strong relationship with its suppliers. This is done to ensure that Toyota Toyota suppliers provide quality qu ality materials which is the most important factor for Toyota Toyota vehicles.
Japan, is the major supplier of CBU or completely built up vehicles. Also CKD kits or completely Knocked down Kits are supplied from Japan. CKD kits kits mainly mainly compri comprise se of the engine of vehicles vehicles.. The vehicles vehicles which which are assembled in Pakistan comprise of 65% locally manufactured parts. Toyota oyota Indus Indus aims aims for for good good relat relatio ions ns with with both both the the local local and fore foreig ign n suppliers. “To achieve maximum level of customer’s satisfaction” is Toyota’s mission. mission. This can be proved by the fact that dealership dealership is authorized authorized to these selective people who offer 3 S’s. That is sales, services, spare parts. This is done to ensure convenience for its customers. They are offering the following services to cater to the needs of their customers: a) One One year ear free servicing from from any any Toy Toyot otaa service cen center all all over ver Pakistan. b) Free che checckup kup cam camp ps ar are se set ann annu ually ally.. c) Spar Sparee par partts eas easil ily y ava avaiilabl lablee all all over over Paki Pakist stan an.. d) The dealership network ork comp ompris rises of seven venteen dea dealerships all offering sales, services and spares. e) The cust custom omer er rete retent ntio ion n dep depar artm tment ent at the the dea dealer lershi ships ps is also also impr improve oved d and consolidated periodically. periodically. The company believes on the fact that favorable supplier relations lead to improve quality, quality, better shipping arrangements early warming of major price c hanges and
advance information about technological or marketplace developments. So, the aim is to develop friendly, professional relations with suppliers in which both will profit. 3.
I nt er na l Pu b li c It is the action, of employees by which a company’s objectives are accomplished. In order to achieve its goals and objectives Toyota Toyota makes sure that highly competent and skilled people are employed. Emphases is laid to ensure that the person being hired meet the criterion for the respective departments.
Training is an integral part in Toyota’s various departments. Training was intensified and various courses were conducted through the previous year. Technicians at the dealers’ service departments underwent extensive by IMC service departments to improve their skills. Moreover, periodic training of manag manager erss is also also condu conduct cted. ed. This This incl include ude trai traini ning ng camps camps,, short short cours coursee conducted in various well-known universities, training programs conducted abroad and lectures of foreign exports. 4.
COMPETITORS Market competition is the cornerstone of managerial cap italism. The five forces that shape the degree of market competition operating within an organization’s micro environment are a) Rivalr alry am among ong ex existing or organi ganizzati ation. on. b) R e l a t iv e p o w e r o f c u st o me r s . c) Re lativ e po po wer of of su sup pliers. d) T h re a t o f n e w e n t r a n ts . e) T h re a t o f n e w s u b s ti tu t e s .
Present Presently ly Toyota Toyota is proud proud to have the most most market market share. share. Honda Honda stands stands second followed by Suzuki and Nissan. Since its start it was only in 95-96 that Honda managed to sale 200 more units of vehicles than Toyota. Still, Toyot oyotaa is prou proud d to be in a stro strong ng posi positi tion on.. Howe Howeve verr to the the spir spirit it of competition is strong and this has lead Toyota to continuously try to improve itself, at all levels. Continuous emphasis is laid on to attract more customers, maintains healthy relations with its suppliers and makes efforts to improve technology. Careful strategic planning at al levels has enabled Toyota to achieve the highest market share and have an edge over other automobile companies. 5.
I nt erm edi ar i es
Banks, Leasing companies and car agents are some of the intermediaries for Toyota. These intermediaries basically giving the boost to the sales of Toyota, Toyota, by offering the cars to the consumers, in easy ea sy installments and making the cars affordable for the customers to the higher extent.
Marketing Research
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Primary research Survey Research SACB (Sales Activity Control Board) Experimental Research Experimental Drive of HiLux Experiments on SRS Bag for safety purposes Research Instruments Questionnaires
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Secondary Research
SWOT ANALYSIS In formul formulati ating ng sound sound strate strategic gic plans, plans, an organi organizati zation on must must assess assess its interna internall strengths and weaknesses in relation to the external opportunities and threats it faces. An effective strategy will take advantage of an organizations strengths and opportunities at the same time it minimizes or overcomes weaknesses and threats. Regular assessment and SWOT analysis is thus given importance. STRENGTHS 1. Toyot oyotaa has has beco become me the the gen gener eric ic nam namee in the the Pak Pakis ista tan n mark market et.. When Whenev ever er the the company launches the new car in the market it has always the great support of the already market orientation so the car introduced by it easily covers the introduction stage. People have a lot of trust for their name and this is why Toyota is the leader in automobile industry. 2. Toyot oyotaa has a gre great at str stren engt gth h for for its its 2.OD 2.OD car car,, Toy Toyot otaa is the the hot hot sell sellin ing g dies diesel el engine car in Pakistan Pakistan and is the only company offering offering the diesel engine in this category of cars.
3.
The The impo import rtan antt edge edge ove overr the the comp compan any y edit editor orss are are the the ampl amplee avai availa labi bili lity ty of of the spare parts in the markets. The price of spare parts is comparatively comparatively low and availability all over the country has proved to be beneficial for the company.
4.
Toyot oyotaa is a fina financ ncia iall lly y stro strong ng comp compan any y. This This can can be see seen n by anal analy ysis sis of the the financial reports of the previous years.
5.
Toyot oyotaa vehic vehicle less have have got a much much str stron onge gerr resal resalee value value than than othe otherr car car in Pakistan. This is why people prefer to buy a Toyota.
6.
Toyot oyotaa vehic vehicle less are are made made acco accord rdin ing g to the the Paki Pakist stan anii envi enviro ronm nmen ent. t. No No doubt doubt the other cars are available but Toyota has an edge because it has learnt
various conditions of the Pakistan environment and people. So new additions and changes are proving to be successful. 7.
Toyota oyota has an edge edge over over other otherss beca becaus usee it it is is the the onl only y aut automo omobil bilee comp company any in Pakistan, while offers many variants of its vehicles. Also Toyota offered many variants of colors.
8.
Toyota oyota is proud proud to have have a succ succes essf sful ul team team of of com compet petent ent manag manager erss and and skil skille led d work worker ers. s. Exte Extens nsiv ivee trai traini ning ng have have enab enable led d the the empl employ oyee eess to perf perfor orm m outstandingly.
9.
Toyot oyotaa is the only only com company havi havin ng the mos most sophi phisticated ated net networ work of dealerships where customers are treated by professional dealers. There are seventeen dealers in Pakistan where sales, service and spare parts are offered, leading to convenience for the customers.
WEAKNESSES 1. Ther Theree is som somee weak weakne ness ss in in the the case case of ergo ergono nomi micc inte interi rior or of Toyot oyotaa corol corolla la as well. The power steering is not speed sensitive and the air conditioning system in severe heat is in-effective. Interior dimensions are less and heavy body and small engine sometimes create problems in hilly areas.
2.
There There are are som somee weakn weaknes esse sess in in the the deal dealer ersh ship ip networ network. k. The deale dealers rs somet sometim imes es tend to deviate from the recommended course of action and principles of Toyota. This results in customers complaints sometimes.
3.
The The comp compan any y is besi besieg eged ed wit with inte intern rnal al oper operat atiing prob probllems ems whic which h are not not very serious. Because of dependency on Toyota’ Toyota’ss principles principles delivery of cars is done after 4-6 months. This is because CKD kits are ordered four months before and once they arrive from Japan, assembly and delivery takes some more time.
4.
A lot lot of of effo effort rt is is pull pull into into the the sale saless fore foreca cassting ting beca becaus usee of the the chang changiing political and economic scenarios. For this reasons inventory has to be kept low.
5.
T h e c o m p a n y f e e l s th a t o n e w e a k n e s s i s t h e c h a n g i n g p o l ic ie s o f t h e government and also the 30% cash L/c margin. This has lead to an adverse environment.
OPPORTUNITIES 1. Expor port is a major oppor pporttunit nity for Toy Toyo ota Indus dus Motors. Vehi ehicles cles were ere exported to Bangladesh just once in order to prove the plant capacity and efficiency of the company. This should be started again.
2.
The contr ntract wit with the gove overnmen nmentt depar partments nts e.g. Motorway Police, Shaheen Force and the digniteries where corolla has an opportunity to deal with the business markets along with dealing in consumer markets.
3.
Toyot oyotaa can do bet better ter by focu focusi sing ng on segm segmen entts much much more ore than than prese present ntly ly being done.
4.
Toyot oyotaa shou should ld also also try try to to lower ower its its pri price ce of Cor Corol olla la in in the segm segmen entt wher wheree Honda city has penetrated.
5.
It can can offe offerr disc discoun ounts ts to Gove Govern rnme ment nt dep depar artm tment entss and and lar large ge org organ aniza izati tions ons on purchase of its vehicles in more quantities.
6.
Succ Succes esss of the the man manuf ufac actu turi ring ng of of Daih Daihat atsu su cou coure re is is a major major opp oppor ortu tuni nity ty for for Toyota to excel further careful planning and the right time to launch the new car can prove to be a success.
THREATS 1. Even tho though Toy Toyo ota enj enjoys oys the pos position of bei being the no. no.1 autom utomob obiile company, still it faces some threat from competitors especially Honda. Honda has adopted aggressive strategies for capturing the market.
2.
Even Even thou though gh Toy Toyot otaa keeps keeps a caref careful ul eye eye on the chan changi ging ng tren trends ds,, stil stilll the the changing customer needs and trends can prove to be a threat.
3.
A maj major or thr threa eatt is the the chang changin ing g polit politic ical al and and econ econom omic ic sce scena nari rios os of of Paki Pakist stan an.. Chan Changi ging ng gove govern rnme ment nt poli polici cies es affe affect ct the the comp compan any y’s perf perfor orma manc nce. e. Devaluation Devaluation of rupee adverse shifts in foreign exchange rates, trade policies of government’s is a threat. Moreover the company is threatened by the ongoing rate of 30% cash L/c margin.
4.
Impor Importt of re-c re-cond ondit itio ioned ned cars cars is is als also o consi consider dered ed as as a thr threat eat for for the the com compan pany y.
5.
The The plan planne ned d car car manu manufa fact ctur urin ing g plan plants ts of of Hyun Hyunda daii and and Daew Daewoo oo can can pro prove ve to to be tough competition for Toyota Toyota if they are successful.
