Toyota Company Decision-Making Report

Toyota Company Decision-Making Report





Toyota Company Decision-Making Report


Toyota Motor Corporation is a multinational corporation being the send largest manufacturer of automobiles, robots, trucks, and provision financial services to its clients. They also produce sewing machines that have been spread to all parts of the globe. Basing on the global structure of Toyota Corporation, it has numerous factories that are located nearly in all the countries to serve the local markets. Examples of countries that have huge factories for assembling Toyotas include; United Kingdom, Mexico, United Nation, Malaysia, Thailand, China, Vietnam, Philippines, South Africa and Turkey among others. Its headquarters is situated in Toyota, Aichi in Japan (Allen, et al 21).

Background of study

The report aims at using descriptive information obtained from Toyota Company to come up with decisions concerning specific underperforming department. The data was collected from Toyota official website. The departments that will be considered are marketing, production, and competition export trends. In addition, the descriptive data to be used in decision-making are mean, variance, and standard deviation. The report will also offer recommendation on how the company will improve these weak sections.

Data Set 1

Toyota company Production data 1 2012

Types of cars Produced 2011 Production 2012

Corolla 300000 250000

Camary 250000 200000

Avalno 150000 120000

Land cruiser 200000 180000

Parado 100000 60000

Toyota 4Runner150000 120000

Allion200050 145000

Alphard189000 120000

Toyota Avalon206700 180000

Toyota Avanza300000 230000

Toyota Crown124000 120000

Toyota iQ70000 30000

Toyota Isis240000 210000

Toyota LiteAce210000 190000

Toyota Mark X234000 210000

Toyota Sequoia140000 150000

Toyota ToyoAce120000 70000

Toyota Vanguard10000 8090

Toyota Tundra206700 200000

Toyota Zelas235000 215000

Totals 3604450 3,008,090

The study was undertaken from a sample of 20 Toyota vehicles with the highest and lowest production and defective rates, among the cars with the highest production mode are Toyota Corollas and Toyota Avanza with a mode sale of 300,000 vehicles in 2011. The production of 201s decreased significantly across all types of brands except for Toyota Sequoia.

Chat 1: Showing the Number of Produced Cars in 2011

The chart indicates that production rate was significant Corolla leading the list while Parado down in the list of production. However, as compared to other years the company should consider producing more Camary as it seems competitive in the market.

Decision Making

It can be deduced from the above chart that the production of cars in 2011 was outstanding as almost every brand shared some significant equality. It can be statistically stated that the difference between the highest produced brand and the lowest is very huge (300,000 and 10,000 respectively). The decision that can be explained with this difference is that it seems Toyota Corolla and Toyota Avanza has the highest demand hence the increase in their production as compared to Toyota Vanguard which has less production.

Chart 2: Showing the Number of Produced Cars in 2012

The 2012 production rate is same as that of 2011, however, the production of 2012 reduced significantly as compared to that of 2011. There was a decrease of more than 40% of the total production rate. From a total of 3604450 in 2011 to 3005090 in 2012.

Decision Making

The two charts above have two different perspectives about the decisions to be considered for the company. However, it is evident that Toyota Company did not make the best production in 2012 as compared to that of 2011, meaning that is faced a depression of production. As a matter of fact this could be as a result of various managerial problems that the company might be facing. From the chart 1 and 2 it is clear that Toyota Company should come up with strategies to improve it production in the coming financial years.

Mean, Variance, and Standard Deviation of Produced Toyota Vehicle 2011 and 2012

Types of cars 2012 2012

Corolla 119777.5 14346649506 99745.5 9949164770

Camary 69777.5 4868899506 49745.5 2474614770

Avalno -30222.5 913399506.3 -30254.5 915334770.3

Land cruiser 19777.5 391149506.3 29745.5 884794770.3

Parado -80222.5 6435649506 -90254.5 8145874770

Toyota 4Runner-30222.5 913399506.3 -30254.5 915334770.3

Allion19827.5 393129756.3 -5254.5 27609770.25

Alphard8777.5 77044506.25 -30254.5 915334770.3

Toyota Avalon26477.5 701058006.3 29745.5 884794770.3

Toyota Avanza119777.5 14346649506 79745.5 6359344770

Toyota Crown-56222.5 3160969506 -30254.5 915334770.3

Toyota iQ-110223 12148999506 -120254.5 14461144770

Toyota Isis59777.5 3573349506 59745.5 3569524770

Toyota LiteAce29777.5 886699506.3 39745.5 64770.25

Toyota Mark X53777.5 2892019506 59745.5 6440784770

Toyota Sequoia-40222.5 1617849506 -254.5 20210745060

Toyota Toyo Ace-60222.5 3626749506 -80254.5 2474614770

Toyota Vanguard-170223 28975699506 -142164.5 4191979770

Toyota Tundra26477.5 701058006.3 49745.5 3569524770

Toyota Zelas54777.5 3000574506 64745.5 3569524756

∑x-x= 31000 ∑(x-x)2=1.03971E+11 ∑x-x= 3000 ∑(x-x)2=88885625695

Mean, variance and Standards Deviation of 2011


= 3604450/ 20

Mean =180222.5

Standard Deviation

S= 73974.03



S2 = 1.03971E+11/n-1

S2= 1.03971E+11/19

= 5472157757


Mean, variance and Standards Deviation of 2012

Mean, variance and Standards Deviation of 2012

Standard Deviation

S= 68397.13


S2 = 88885175695/n-1

S2= 88885175695/19

= 4678167142


= 3008090/ 20

Mean = 150404.5

In 2011 Toyota had Mean= 180222.5, variance = 5472157757 and standards deviation of 73974.03, while that of 2012 was mean= 150404.5, variance= 4678167142 and SD= 68397.13. According to the data from calculation there was a decrease of value between 2011 and 2012 across all measures of central tendency.

Decision making

The total number of vehicles produced by Toyota decreased from 3604450 in 2011 to 3008090 in 2012. This indicates a 20% decrease in production. The decision means that the company production rate decreased in 2012. Thus, the company should consider identifying the weakness in portrayed over that year mostly what the competitors are doing to increase preference of their vehicles as compared to Toyota.

Toyota company Sales data 2

As indicated in the calculations above the mean of produced cars M= 200,000 and that of defective is 2636, indicating that the defective cars are 1.8th of the produced cars. This is also shown using their variance and standard Deviations.

Data set 2: Toyota Company Sales between 2011 and 2012

Types of cars Sales 2011 (billions) Sales 2012 (billions)

Corolla $17 $15

Camary $15 $12

Avalno $12 $10

Land cruiser $10 $8

Parado $5 $2

Toyota 4Runner$20 $17

Allion$56 $40

Alphard$26 $10

Toyota Avalon$24 $19

Toyota Avanza$59 $37

Toyota Crown$80 $100

Toyota iQ$19 $12

Toyota Isis$17 $9

Toyota LiteAce$17 $13

Toyota Mark X$100 $87

Toyota Sequoia$18 $16

Toyota ToyoAce$10 $10

Toyota Vanguard$15 $11

Toyota Tundra$18 $10

Toyota Zelas$13 $11

Totals $551 $449

According to the above table, there is a clear indication that the data shows there were a decline in sales in 2012 as compared to 2011.

Chart 3: Toyota Company Sales between 2011

The graphs show that 2011 was a year that the company made significant sales of its products to the market, although is varied in-terms of cars. The chart indicates that Toyota mark x had the highest sales in 2011 while Parado had the least sales the same year.

Decision Making

It is clear from the chart that Toyota Company has to come up with approaches on how to market some of its brands in the market. The decision is to ensure that the sales of the poor performing brands are raised so as to maximize profits. This decision is aimed at increasing the total sales as well as improving the profit margin.

Chart 4: Toyota Company Sales between 2012

As compared to the sales of 2011 the sales of 2012 reduced drastically however, other brands sold better in 2012 such as Toyota Crown. Averagely, Toyota Mark X did sale but not as in 2012. Parado continued to show poor sales performance in 2012 like in 2012.

Decision Making

In order to come up with best decision concerning the sale of Toyota in 2011 and 2012 a comparison chart will be consider. The below chart defines the difference in sale between 2011 and 2012

Chart 5: Sales comparison between 2011 and 2012

The decision based on the comparison chart above is that Toyota Company should come up with sales strategies in order to improve their sales to outstanding platform. Such strategies include proper marketing and price consideration in comparison to their competitors.

Mean, variance and SD for sales 2011 and 2012

Types of cars Sales 2011 (billions)   Sales 2012 (billions)

Corolla $17 ($261) $15 ($225.00)

Camary $15 ($197) $12 ($144.00)

Avalno $12 ($116) $10 ($100.00)

Land cruiser $10 ($72) $8 ($64.00)

Parado $5 $509 $2 ($4.00)

Toyota 4Runner$20 ($372) $17 ($289.00)

Allion$56 ($3,108) $40 ($1,600.00)

Alphard$26 ($648) $10 ($100.00)

Toyota Avalon$24 ($548) $19 ($361.00)

Toyota Avanza$59 ($31) $37 ($1,369.00)

Toyota Crown$80 ($6,372) $100 ($10,000.00)

Toyota iQ$19 ($333) $12 ($144.00)

Toyota Isis$17 ($261) $9 ($81.00)

Toyota LiteAce$17 ($261) $13 ($169.00)

Toyota Mark X$100 ($9,972) $87 ($7,569.00)

Toyota Sequoia$18 ($296) $16 ($256.00)

Toyota ToyoAce$10 ($72) $10 ($100.00)

Toyota Vanguard$15 ($197) $11 ($121.00)

Toyota Tundra$18 ($296) $10 ($100.00)

Toyota Zelas$13 ($141) $11 ($121.00)

Totals $551 ($23,054) $449 ($22,917.00)

The Mean, variance, and Standard Deviation of sales in 2011

Standard Deviation

S= 33.96616


S2 = 23054/n-1

S2= 23054/19

= ($1,153.70)


= $551/ 20

Mean = $27.55

The Mean, variance, and Standard Deviation of sales in 2012

Standard Deviation

S= 33.86517


S2 = ($22,917)/n-1

S2= ($22,917.00)/19

= ($1,146.85)


= $449/ 20

Mean = $22.45

In 2011 Toyota had Mean= 27.55, variance = $1,153 and standards deviation of 33.96, while that of 2012 was mean= 22.45, variance= $1,146 and SD= 33.86517. According to the data from calculation there was a decrease of value between 2011 and 2012 across all measures of central tendency.

Decision Making

According to the above data from measure of central tendency, It is clear that the rate of sales reduced in 2012. This could have been due to various factors that the company should come up with ways of gathering information from the clients on why the preferred other brands from other companies rather than theirs. This is done to ensure the companies get better sales in the fourth coming financial year.

Data set 3: Toyota Export

Types of cars Exported

Corolla 350000 -1.225E+11

Camary 230000 -52899825350

Avalno 100000 -9999825350

Land cruiser 50000 -2499825350

Parado 5000 -24825350

Toyota 4Runner340000 -1.156E+11

Allion140000 -19599825350

Alphard200000 -39999825350

Toyota Avalon220000 -48399825350

Toyota Avanza160000 -25599825350

Toyota Crown187000 -34968825350

Toyota iQ66000 -4355825350

Toyota Isis67000 -4488825350

Toyota LiteAce190000 -36099825350

Toyota Mark X241000 -58080825350

Toyota Sequoia280000 -78399825350

Toyota ToyoAce120000 -14399825350

Toyota Vanguard237000 -56168825350

Toyota Tundra100000 -9999825350

Toyota Zelas210000 -44099825350

Totals 3493000 -7.78186E+11

Chart 4: Indicating Export of Toyota Cars in 2012

Toyota corolla remains the leading brand in the export market and the least was Parado. Camary also has a promising market as compared to others like Avalno and Land Cruiser.

Calculation of Mean, variance and Standard Deviation

Standard Deviation

S= 623.7724


S2 = (7.78186E+11)/n-1

S2= (7.78186E+11)/19

= (38909275351


= 3493000/ 20

Mean = 174650

Decision making

Based on the radar chart and the measure of central tendency calculation, the above tools are important in decision making which is will help the company to evaluate the performance of the brands in reference to the rates of export. This will help the company to confirm or change the existing exports for greater export sales in the future.


The rapid entrance of new markets and their potentials have greatly affected companies across the world in efforts to explore new markets to benefit from it. The UK companies have experienced so many challenges as they push into exploring new markets. In order for Toyota to experience a better marketing growth in the UAE, and extend to other new markets, it is rather important for them to ensure that the give a good focus on how to give fair treatment in order to facilitate tremendous expansion thereby enjoying the benefits that will be offered by the market.

In market expansion, it is preferable that Toyota Company identify the right market. In exploring the target market, Toyota will learn the weaknesses of other competing firms such as the Nissan, BMW and many other firms to maximize its potentials in those parts that are poorly performed by them.

The SWOT analysis is quite useful for Toyota, as it will help the company to realize its areas of strengths, its strengths are those values that are offered by Toyota and are never achieved by other firms. For instance, its marketing stability will be aided by this tool to fully analyze it. Toyota will be in a better position to continue shining over its rivals. Their strength in adopting into the new technology, which has brought in the issues of environment is yet another area that is best done through SWOT strategic tool. This will help to know the market to increase sales.

Opportunities will be well identified through the employment of SWOT analysis. In case there are new markets, it is the role of this tool to focus on it. With changing market trends, there are a times when opportunities arise. The best results will be reached at only if the tool is employed. The introduction of policies such as export policies is an opportunity to Toyota as earlier mentioned. Opportunities are less considered by porter’s diamond.


In the year 2012 (January to September), Toyota set a goal to achieve 15 percent market share, which would make it the biggest auto company in the world. The media reports suggest that focus on growth led the company into a downward spiral in sales, profitability, and quality and, finally, the crisis of 2011, however this production goal was not attainable in the first 9 months of the year. Yet all the data existing, other than specific stories, shows that by 2012 Toyota was an extremely financially stable company with an outstanding quality and safety record.

The Toyota production system does not seem to be the cause of the quality problems experienced over the prior decade. In the past, Toyota has exhibited a significant advantage over its mass-producer competitors in physical and value-added productivity. The competition should be improved, but it is unlikely that any firm has actually passed Toyota in manufacturing prowess. Data related to manufacturing or assembly quality, such as the number of defects reported by customers in newly purchased vehicles, generally has placed Toyota at the top of the auto industry or at least among the leaders. Therefore, it is evident that TPS will work well with Toyota.

Export Trends

In 2010, Toyota made record global profits, earning $19.9 billion. This was particularly impressive since it was the 50th consecutive year of profits for the company. Many companies deciding to ‘go lean’ have struggled to figure out what that means in their type of business.

They will see a highly repetitive and standardized process and cannot imagine how they can replicate what they see. I believe the problem is in the way companies such as Toyota is the mode of approach to implement competitive export strategies that work hand in hand with the company’s goals and objectives as well as the mission.


It can be concluded that descriptive analysis instruments mean, variance, and Standard Deviation can offer outstanding results when it comes to decision-making of a company. Based on the above example, it is clearly indicated that the instruments have been worth giving insights on various loopholes that Toyota should close in order to remain competitively as other companies such as Nissan and Honda.

Works Cited

Aso, Shinji, Mikio Kizaki, and Hideaki Mizuno. “Development Progress of the Toyota Fuel Cell Hybrid Vehicle.” Training 2013: 12-09.

Inoue, Tokuta, et al. “Toyota lean combustion system-The third generation system.” Energy  (2013): 04-08.

Sakata, Ichiro, et al. “Development of TOYOTA reflex burn (TRB) system in DI diesel.” Training 2014: 04-28.

Ward, Allen, et al. “The second Toyota paradox: how delaying decisions can make better cars faster.” Sloan Management Rev 36.3 (2012).