Some of the questions may not find enough resources to support it, you can skip one or two questions. (C to g) Don’t skip A AND B questions.Toyota Corporate ResourcesFinancea.
What are the corporation’s financial objectives, strategies, and policies and programs?Toyota has devised various financial objectives to suit different operating environments where it conducts business. For example in Australia, its main financial objective is to offer the shareholders with maximum financial benefit commensurate with their investment efforts while ensuring sustainability at all levels of operation. In 2007, the corporation provided the objectives contained in the corporation’s sustainability report. Thus, it is evident that most of the policies the corporation applies are uniform for all the affiliates and subsidiaries as revealed in the suitability report 2007 pages 34-43 (Toyota Australia 2007).
The strategy used by the company is one that places the customers’ interest at the center of focus. For this reason, it has a customer service award for excellence which provides dealers with the opportunity of unleashing their best efforts in serving customers hence earning recognition for that. With respect to the corporation’s most advocated policy of sustainability, it advocates for social sustainability and environmental sustainability. To be in line with these objectives, the company’s strategies relate to garnering respect and trust from the society and ensuring production of environmentally friendly products (Toyota Australia 2007).
These perspectives strongly indicate that the financial objectives of the company go hand-in-hand with its mission, objectives and its policies.b. How well is the corporation performing in terms of financial analysis? (Consider ration analysis. Common size statements and capitalization structure.
) How balanced. In terms of cash flow is the company’s portfolio of products and businesses? What are investor expectations in terms of share price?Toyota trades on various stock exchange bourses across the globe. It trades on NYSE, London Stock Exchange and in Japan stock exchanges. As of Friday, June 04, 2010 the market capitalization for Toyota Corporation was 110 892 230 000 dollars with a beta of 0.
9. The return on investment was 1.07 while return on earnings was 2.05.
This is the information available for the corporation’s trade in Japan Stock Exchanges (Reuters 2010). With respect to performance over the years, the company’s capital structure and balance sheet, Toyota Motor Corp had a total of 99 823000 of current assets in 20007. The figure increased to 120633000 in 2008 though it reduced to 115025000 in 2009. The net tangible assets were 100263 million dollars in 2007.
The figure increased to 118470 million and dropped to 102 425 million dollars in 2009. The company posted a net income of 13927 million dollars on common shares in 2007. The profit increased slightly to 17146 million dollars the following year and dropped to a loss of 4448 million dollars in 2009 (Yahoo Finance 2010).1.
Does finance provide the company with a competitive advantage?Toyota enjoys a long history of good performance and customer loyalty since its inception in the mid 1930s. The fact that the company is the largest producer and seller in the automobile industry (at least by 2009, records showed that Toyota was the largest maker and seller of automobiles on a global scale employing a workforce of about 71, 1000 people globally. This gives the company a competitive advantage given that it is well known among consumers as a result of the long history of performance and the large capital base that has ma de it possible for the company to engage in mass production.c.
How well does the corporation’s financial performance compare with that of similar corporations?Toyota’s performance in the automobile industry has been on good record track and in 20008 it was the best seller company in the automobile industry. In addition, one of the most selling car brands in the automotive industry is made by the Toyota Corporation and that is Toyota Corolla. Nevertheless, the financial crisis that hit the global economy also affected the company where the last quarter of 2009 and through the first quarter of 2010 the corporation recorded net loss of over four billion dollars (Reuters 2010).d.
Are financial managers using accepted financial concepts and techniques to evaluate and improve current corporate and divisional performance? (Consider financial leverage. Capital budgeting, ratio analysis and managing foreign currencies.)e. Does finance adjust to the conditions in each country in which the company operates? f.
Does finance cope with global financial issues?Toyota has been capable of dealing and coping with global financial issues through the Toyota Financial Services, which gives a financial and leasing guarantee for the Toyota Corporation. Through this arm of the corporation, Toyota has been able to deal in consumer credit and offer banking services for its dealers of various auto models.g. What is the role of the financial manager in the strategic management process?Given that the strategic management process is mainly concerned with evaluating and controlling various strategies to ensure the achievement of the desired benefits to stakeholders, the financial manger is a very imp0ortant figure in the process to ensure that the necessary financial resources are well managed to achieve the objective of the strategic management.
Otherwise, if the financial resources are not well managed it would not be easy for the strategic management techniques to be smoothly employed to ensure smooth running of the company. REFERENCE:Reuters (2010) “Toyota Motor Corporation” http://www.reuters.com/finance/stocks/overview?symbol=7203.TToyota Australia (2007) “Toyota Sustainability Report 2007” http://toyota.republicast.com/sr2007/republicast.asp?page=10004&layout=1&control=yes&zoom=50&excerpts=yes Main page URL: < http://www.toyota.com.Au>Yahoo Finance (2010) “Toyota Motor Corp: Income Statement” http://finance.yahoo.com/q/is?s=TM+Income+Statement&annual
