A REPORT ON THE ORGANIZATION STUDY

Undertaken at

LANSON TOYOTA

Submitted to CMS Business School in partial fulfilment of the

Master of Business Management program offered by the Jain
University, Bangalore during the academic year 2018- 20

Submitted by

RITESH THAKUR 18MBAR0007

Under the supervision and guidance of

DR. SHRUTI DHANANJAY NAIK

No.17, Seshadri Rd, Gandhi Nagar, Bengaluru,

Karnataka 560009

1
DECLARATION

I do hereby declare that this report is a bonafide record of the

organization study done by me under the supervision of DR.
SHRUTI DHANANJAY NAIK, CENTER FOR MAGANEMENT
STUDIES. During the academic year 2018-2020 from03/01/2019- ,
in partial fulfilment of the requirements for the award of the
degree of Masters programme in Business Administration at
centre for Management studies, Jain University, Bengaluru.

This work has not been under taken or submitted elsewhere in

connection with any other academic course.

Place:

Date:

Signature

2
 Acknowledgement

I wish to take this opportunity to express my sincere expression

of gratitude to each and every one who helped me in the
completion of the work
First of all, I thank god almighty for giving me all the grace and
assistance throughout my work
I am very glad to express my gratitude to Dinesh Nilkant,
Center Head, center for management studies business school,
Jain University, for giving me this opportunity.
I would like to extend my gratitude to DR. SHRUTI
DHANANJAY NAIK for Management Studies, Bangalore,
Jain University, for his valuable suggestions, advice and
encouragement throughout the course of this work.
I express my deep gratitude to my dear friends for their co-
operation and helping hands, who were always friends in need.

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SL PARTICULARS PAGE
NO. NO.
1. INTRODUCTION TO INDUSTRY
PROFILE

 INTRODUCTION TO STUDY
 INDUSTRY PROFILE
 GLOBAL SCENARIO & INDIAN
SCENARIO
 PESTEL ANALYSIS
 KEY PLAYERS IN THE INDUSTRY
 PORTER’S 5 FORCE ANALYSIS

2. COMPANY PROFILE
 BACKGROUND AND ABOUT
COMPANY
 BRANCHES
 DEPARTMENTS
 PRODUCT AND SERVICES
 SWOT ANALYSIS

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3. STUDY OF THE ORGANISATION
DESIGN
 ORGANISATION STRUCTURE

4. A STUDY OF KEY BUSINESS LEVEL

FUNCTION AND PROCESS
 SUPPLY CHAIN
 MARKETING OF PRODUCTS
 TPS’s Six Sigma

5. FINDINGS, RECOMMENDATIONS &

CONCLUSION

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 CHAPTER-1

INTRODUCTION TO STUDY
AND INDUSTRY PROFILE

6
1.1 INTRODUCTION TO STUDY

This project report is a part of our M.B.A. Curriculum, which requires working in a company
and making a project report about the study of the structure of the organization allowing putting
theory into practice. This helps to gain practical knowledge of the various functions and
functional parts of a business firm.

1.1.1 OBJECTIVES OF THE STUDY

 To Study the organizational structure.

 To analyse the benefits of starting the industry.
 To study the production and finishing process of the Industry.
 To better understand the decision-making process.
 To get a better understanding of large-scale industries.
 To know how different department of organization works and what task they perform.

1.1.2 SCOPE OF THE STUDY

The study has been conducted to become familiar and to have a look with the various aspects
of large-scale industry.

Hence this study would be very much helpful for any new entrepreneur as well as the student
of the concerned subject. As a part of my studies in MBA, this organizational study has given
me a chance to enrich my knowledge and talent. It has given me an opportunity for a practical
exposure of how a business works.

Toyota

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Toyota Motor Corporation is a Japanese multinational automotive manufacturer headquartered
in Toyota City, Aichi, Japan. In 2017, Toyota's corporate structure consisted of 364,445
employees worldwide and, as of September 2018, was the sixth-largest company in the world
by revenue. As of 2017, Toyota is the world's second-largest automotive manufacturer. Toyota
was the world's first automobile manufacturer to produce more than 10 million vehicles per
year which it has done since 2012, when it also reported the production of its 200-millionth
vehicle. As of July 2014, Toyota was the largest listed company in Japan by market
capitalization (worth more than twice as much as #2-ranked SoftBank) and by revenue.

Toyota is the world's market leader in sales of hybrid electric vehicles, and one of the largest
companies to encourage the mass-market adoption of hybrid vehicles across the globe. Toyota
is also a market leader in hydrogen fuel-cell vehicles. Cumulative global sales of Toyota
and Lexus hybrid passenger car models achieved the 10 million milestone in January 2017.
Its Prius family is the world's top selling hybrid nameplate with over 6 million units sold
worldwide as of January 2017.

The company was founded by Kiichiro Toyoda in 1937, as a spinoff from his
father's company Toyota Industries to create automobiles. Three years earlier, in 1934, while
still a department of Toyota Industries, it created its first product, the Type A engine, and its
first passenger car in 1936, the Toyota AA. Toyota Motor Corporation produces vehicles under
five brands, including the Toyota brand, Hino, Lexus, Ranz, and Daihatsu. It also holds a
16.66% stake in Subaru Corporation, a 5.9% stake in Isuzu, as well as joint-ventures with two
in China (GAC Toyota and Sichuan FAW Toyota Motor), one in India (Toyota Kirloskar), one
in the Czech Republic (TPCA), along with several "nonautomotive" companies. TMC is part
of the Toyota Group, one of the largest conglomerates in Japan.

HISTORY

Towards the end of the nineteenth century, Sakichi Toyoda invented Japan's first power loom,
revolutionising the country's textile industry. January 1918 saw him create the Toyoda
Spinning and Weaving Company, and with the help of his son, Kiichiro Toyoda, Sakichi
fulfilled his lifelong dream of building an automatic loom in 1924. The establishment of
Toyoda Automatic Loom Works followed in 1926. Kiichiro was also an innovator, and visits

8
he made to Europe and the USA in the 1920s introduced him to the automotive industry. With
the £100,000 that Sakichi Toyoda received for selling the patent rights of his automatic loom,
Kiichiro laid the foundations of Toyota Motor Corporation, which was established in 1937.
One of the greatest legacies left by Kiichiro Toyoda, apart from TMC itself, is the Toyota
Production System. Kiichiro's "just- in-time" philosophy - producing only precise quantities of
already ordered items with the absolute minimum of waste - was a key factor in the system's
development. Progressively, the Toyota Production System began to be adopted by the
automotive industry across the world.

Rising from the ashes of industrial upheaval in post-war Japan, Toyota has become the largest
vehicle manufacturer in Japan with over 40% market share. Toyota began to make inroads into
foreign markets in the late 1950s. The first Crown models arrived in the USA in 1957, and by
1965, with models such as the Corolla, Toyota began to build its reputation and sales to rival
those of domestic producers. The first Toyota imported into Europe was via Denmark in 1963.
Toyota has continued to grow in Europe's sophisticated and complex market, and in 2000 the
company delivered its ten millionth car to a customer in Germany. In fact, growth is currently
one of the main words in Toyota's European vocabulary, and the company plans to reach annual
sales of 800,000 in Europe by 2005. Toyota is number one for customer satisfaction in the
majority of European countries and has built an excellent reputation across Europe for
reliability and customer service. This enviable reputation, along with the support of a network
of more than 25 distributors and 3,500 sales outlets, are important factors in supporting
Toyota's European sales growth in the coming years.

Toyota Kirloskar Motor

Toyota Kirloskar Motor Pvt Ltd is a subsidiary of Toyota Motor Corporation of

Japan (with Kirloskar Group as a minority owner), for the manufacture and sales of Toyota
cars in India. It is currently the 4th largest car maker in India after Maruti Suzuki, Hyundai,
and Mahindra.

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On 7 June 2012, Vice Chairman of the company revealed that the company is planning to enter
the healthcare sector and its first hospital would open in Karnataka in May 2013. and inc. to
announce new plans for the next phase out this week and the company is expected next month
to update its current operating results for a quarter million shares outstanding shares today as
compared between last year and over half a year over month TO year basis to approximately
average annual revenue per second annual revenue growth

History

Toyota Motor Corporation entered India in 1997 in a joint venture with the Kirloskar Group
Toyota Motor Corporation (TMC) holds 89% of the share and the remaining 11% is owned by
Kirloskar Group.

Manufacturing facilities

TKMPL's current plant at Bidadi, Karnataka is spread across 850 acres and has a capacity of
110,000 vehicles per annum. TKMPL's second manufacturing plant on the outskirts
of Bangalore, Karnataka has a capacity of 210,000 vehicles per annum. Both plants have a
combined capacity of 320,000 vehicles per annum. On 16 March 2011, it announced that it was
increasing production to 210,000 vehicles per annum[7] due to increase in demand for its
models especially the Etios and Fortuner.

With effect from 1 June 2012, Toyota Kirloskar Motor will be increasing the prices of Etios
diesel and Innova by 1 per cent and Fortuner and Etios Liva diesel by 0.5 per cent. The price
hike is on account of the weakening of Rupee. Toyota announced that Etios sedan and the Liva
hatchback has posted sales of over 100,000 units, hence Toyota is all set for giving its
production a big boost.Toyota Kirloskar Motor (TKM) plans to hike the production capacity
of its Etios series models by 75% by early 2013. Toyota Kirloskar Motors would launch its
motor racing series in 3 cities in India next year.

Industrial relations

On 16 March 2014, Toyota Kirloskar Motor temporarily suspended the production at two of
its assembly plants in Bidadi, Karnataka whose production capacity was 310,000 units
annually and has employee strength of 6,400. Cause for the shutdown was failure to reach an
agreement with the union over the issue of wages, deliberate stoppages of the production line

10
by certain sections of the employees and abusing & threatening of supervisors thereby
disrupting the production for the past 25 days. Toyota Kirloskar Motor announced on 21 March
2014 to lift the lockout at the plants effective from 24 March 2014 with subject to an acceptance
of a service condition which requires all the employees signing an undertaking on good
conduct. On 22 April 2014, employees called off the strike after 36 days of standoff and
resumed full operations.

Etios motor racing

Toyota India started a One make racing series in India with the Etios car called the 'Etios Motor
Racing Series'. The series started in 2012, it witnessed an overwhelming response from the
Indian youngsters, with 3300 applicants. They held 2 rounds of exhibition races in 2012, one
at a purpose built race track in Chennai called the Sriperumbudur race track and other in the
form of ROC (Race of champions) in Gurgaon. The 25 selected drivers then competed in the
main championship held in the later half of 2013. The cars were prepared by Red Rooster
Performance (based in Bangalore), and designed by TRD (Toyota Racing Development). With
stock engines producing almost 100 bhp, the cars were a good platform for youngsters to step
from karting to touring cars.Also the relatively cheaper budget of just $3216 for the entire series
which includes an entire OMP racing kit makes it one of the best one-make series to compete
in.

Models

Toyota Camry Hybrid

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Toyota Corolla Altis

Toyota Fortuner

Toyota Innova Crysta

Manufactured/assembled locally

1. Toyota Corolla Altis (Launched 2003)

2. Toyota Etios (Launched 2010)
3. Toyota Etios Cross (Launched 2014)
4. Toyota Etios Liva (Launched 2011)
5. Toyota Fortuner (Launched 2009)
6. Toyota Innova Crysta (Launched 2016)
7. Toyota Innova Touring Sport (Launched 2017)
8. Toyota Camry (Launched 2002)
9. Toyota Yaris (Launched 2018)

Imported

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 1. Toyota Hiace (Launched 1995)
2. Toyota Land Cruiser (Launched 1990)
3. Toyota Land Cruiser Prado (Launched 2004)
4. Toyota Prius (Launched 2010-2015; 2017–present)

Discontinued

1. Toyota Qualis (2000-2004)

2. Toyota Innova (2004-2016)
3. Toyota RAV4 (1998-2012)

Sales and service network

As of April 2011, it has more than 205 dealerships in 98 cities across 22 states and 3 union territories of
India.

Sales performance

TKMPL sold 74,759 vehicles in India in the year 2010 registering a growth rate of 38%
compared to 2009 sales.

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GLOBAL SCENARIO & INDIAN SCENARIOGLOBAL SCENARIO: -

Worldwide Operations

Toyota Motor Corporation competes in the automotive industry. The past five years were tumultuous
for automobile manufacturers. Skyrocketing fuel prices and growing environmental concerns have
shifted consumers' preferences away from fuel-guzzling pickup trucks to smaller, more fuel-efficient
cars. Some automakers embraced the change by expanding their small-car portfolios and diversifying
into the production of hybrid electric motor vehicles. Other automakers were more reluctant to shift
their focus from big to small cars, expecting the price of fuel to contract eventually, bringing consumers
back to the big-car fold. When fuel prices did fall during the second half of 2008, it was due to the US
financial crisis ripping through the global economy. This had a domino effect throughout the developed
and emerging worlds, with many Western nations following the United States into recession. Industry
revenue fell about 15.4% in 2009. 2 Pent-up demands will aid industry revenue growth, estimated at
2.1% in 2013, thus bringing overall revenue to an estimated $2.3 trillion. 3 Overall, the large declines
followed by recovery are expected to lend the industry average growth of 2.2% per year during the five
years to 2013. Throughout the past five years, growth in the BRIC countries supported production.
Rising income in these countries led to an increase in the demand for motor vehicles. Also, Western
automakers moved production facilities to BRIC countries to tap into these markets and benefit from
low-cost production. Over the next five years, the emerging economies will continue their growth, and

14
demand for motor vehicles in the Western world will recover. Industry revenue is forecast to grow an
annualized 2.5% to total an estimated $2.6 trillion over the five years to 2018.

INDIAN SCENARIO: -

Terming India as a tough market, Japanese auto major Toyota today said it is not satisfied with
its current market share in the country.

Toyota's Executive Vice President Didier Leroy said India is a strong market with huge
potential for growth.

"This is a very important market for us...today we are still kind of small player in India and it
is clear that we cannot be satisfied with our current level of market share in India," Leroy told
reporters here at the side-lines of Tokyo Motor Show. Toyota Kirloskar Motor (TKM), which
is a joint venture between the Japanese auto major and Kirloskar group, has a market share of
less than 10 per cent in India.

Leroy said Toyota is capable of bringing much more value to the customer based on its product
line up, quality, durability and reliability. Leroy said the key point for the company is to see
"how to make it affordable, how to make it to produce the right products to fit the expectations
of customers in India". Commenting on low demand for Camry Hybrid in India post increase
in tax under GST, he said the development has led the company to curtail production of the
model.

Leroy, however, made it clear that the company is not giving up on the flagship model.

"We are sure that we will be able to restart and make a real breakthrough in the market with
our hybrid technology vehicle," he added. On electric vehicles, he said the company has strong
potential and it can strongly contribute towards the Indian government's focus on such vehicles.
Commenting on the global scenario, Leroy said countries were changing regulations at a fast
clip with special emphasis on electric mobility

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Toyota today showcased a Concept-i ride, which can capture the state of mind of the person
who is driving and can reduce the risk of accidents. It also unveiled a concept SUV FJ Cruiser
besides Japan Taxi, which is expected to be launched keeping in mind the Olympic games here
in 2020.

Leroy said the auto major has also created a new company with Mazda and Denso to develop
electric vehicles architecture with a view to mass production.

PESTEL ANALYSIS OF TOYOTA: -

Political:

Political factors have kept growing in importance with globalization. Whether the environment
of a country is good for business or not depends a lot on the level of political stability there. It
depends upon the government and its policies that how well the international brands will be
able to do business in a country. Political stability means a calm environment suitable for
business. Countries that are in a state of political turmoil are not as suitable. Political havoc
can result in business disruption and disruption of the supply chain and distribution network.
Government policies and red tape too have an influence on a business’ profits. Business
friendly environment requires friendly policy environment. The political turmoil in Europe
during the recent years has affected the business environment there. In Asia, the environment
has remained relatively stable and that has had a positive effect on the businesses’ revenues
and profits.

Economic:

The relationship between economic factors and market conditions is well known. The better
the economic conditions globally, the better the situation of the world market. The economic
recession is now past and the world economy is growing fast. Particularly, the Asian region is
leading in this regard. Most of the vehicle makers are focusing on this region for faster growth
and higher profits. The situation is not even globally, as some countries are still trying to
emerge from the economic slowdown. Economic situations affect the condition of
employment in any country. Better economic situation means higher level of employment

16
which in turn means higher purchasing power of the customers. Higher the purchasing power
of the people, the better will be sales and profits of the global brands like Toyota. Better
economic activity also means higher dispensable income for people, which means people will
feel more inclined to make big ticket purchases.

Social:

Social and cultural forces and trends have a major impact on the sales of international brands.
The global market is made of smaller markets where social and cultural factors can become
barriers. It is why brands focus on localization to connect with local customers in regional
markets. Social trends like changing preferences etc also have a direct impact on the business
of the brands. Now-a-days, environment friendly and electrical vehicles are getting more and
more popular. Their sales have increased fast over the past few years. It is heard that Toyota is
planning to jump into mass production of electric vehicles by 2020. It has already produced a
hybrid vehicle Prius. “Toyota hybrid vehicles’ cumulative global sales have reached 8.90
million units as of March 31, 2016 since the sales launch of the Prius—the world’s first mass-
produced hybrid passenger vehicle— in December 1997” Toyota Global Sustainability Report,
2016).

Technological:

Technology has kept growing important in every area of business in the 21st century.
Businesses are using IT everywhere to grow their business and to manage it better.
The automobile industry is completely based on technology. The better a brand’s
technology, the higher are its sales. From passengers’ safety to the rider’s
convenience, everywhere technology plays a very important role and affects a
brand’s popularity. Brands like Toyota cannot do without investing heavily in
technology. Consumers too like to buy from technologically innovative brands. Cars
that are low on fuel consumption and environmental impact are considered better
and have grown in popularity. Technology has grown important in marketing too
where social media is being used to connect with the customers and to engage them.

Environmental:

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Environmental concerns are now all the more important for brands and customers alike.
Customers are looking for brands that are more environment friendly. Such brands have higher
popularity and a better image. Governments are also supporting such brands and encouraging
those which have managed their environmental impact better than others. Sustainability has
become a part of business strategy. All the big brands including Toyota are investing in
sustainability. Toyota has achieved several important milestones in environmental area. From
winning a reward for its fuel cell vehicle Mirai to emission reduction, Toyota has excelled in
several areas and continues to make efforts to raise its contribution in environmental protection.
It is also cooperating with environmental agencies for protection of threatened species. “While
the world is trying to move toward “below 2°C” scenario, Toyota has, under the “New Vehicle
Zero CO₂ Challenge,” decided to challenge itself to reduce vehicle CO₂ emissions by 90 percent
in comparison with 2010 levels, by 2050.

Legal:

Legal compliance ensures that brands continue to do business successfully and without any
worry. From labour laws to quality related laws and other laws that may vary from nation to
nation and market to market, there are several areas where legal issues can result in losses for
companies. Passenger safety and environmental impact are important areas where legal tension
can be problematic. Toyota is focusing on passenger safety and still recalls because of
problematic passenger safety air bags had troubled it in 2016. It has implemented internal
controls to ensure compliance throughout the organization. From education and training
programs to corruption prevention measures, it has taken care to ensure legal compliance all
over the company at all levels. “The Guiding Principles at Toyota states that Toyota will “honor
the language and spirit of the law of every nation and undertake open and fair corporate
activities to be a good citizen of the world.” It is through this process that Toyota seeks to fulfill
the responsibilities expected of it, which leads to compliance”.

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KEY PLAYERS IN THE INDUSTRY

Carmaker Units sold in FY 2017-18 Market share

Maruti Suzuki 1643467 49.98%

Hyundai Motor India 536241 16.30%

Mahindra & Mahindra 248859 7.56%

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 Tata Motors 210200 6.39%

Honda Cars India 170026 5.17%

Toyota Kirloskar 140645 4.27%

Renault India 102222 3.10%

Ford India 90061 2.73%

https://www.financialexpress.com/auto/car-news/top-10-carmakers-in-india-and-their-
market-share-maruti-suzuki-owns-half-of-the-indian-market/1129193/

PORTER’S 5 FORCE ANALYSIS

Competitive Rivalry or Competition with Toyota (Strong Force)

Toyota must deal with the strong force of competition. This component of the Five Forces
analysis determines how firms affect each other. In Toyota’s case, the following external
factors are the main contributors to the strong force of competitive rivalry in the industry
environment:

 High aggressiveness of firms (strong force)

 High variety and differentiation of firms (strong force)
 Low number of large firms (moderate force)

Automotive firms are aggressive against each other in terms of such factors as innovation and
marketing. Also, Toyota competes with a high variety of firms, which differentiate through
cost, electronics, fuel efficiency, style, brand image, and other variables. However, even though
there are many small auto firms, Toyota competes with only a small number of large firms.
Still, this part of Toyota’s Five Forces analysis shows that the company must have
comprehensive strategies to address the strong force of competitive rivalry.

Bargaining Power of Toyota’s Customers/Buyers (Strong Force)

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Toyota’s customers directly affect the business through revenues. This component of the Five
Forces analysis shows the influence of buyers on business. In Toyota’s case, the following
external factors are the main contributors to the strong force or bargaining power of buyers in
the automotive industry environment:

 Low switching costs (strong force)

 High quality of information (strong force)
 Moderate substitute availability (moderate force)

The low switching costs mean that customers can easily change from Toyota to competing
firms at no extra cost. This change typically happens when customers buy a new car. In
addition, Toyota’s customers can easily choose their best option because they have access to
accurate information, such as product information from companies’ websites. Substitutes are
available, although cars from firms like Toyota are still better in terms of convenience. In this
part of Toyota’s Five Forces analysis, the combined effect of these external factors is the strong
force or bargaining power of customers. Toyota needs to ensure that its products match the
preferences and expectations of its target customers.

Bargaining Power of Toyota’s Suppliers (Weak Force)

Toyota’s suppliers aim to influence the firm to improve their businesses. This component of
the Five Forces analysis reflects the interactions between firms and their suppliers. In Toyota’s
case, the following external factors in the automobile industry environment contribute to the
weak force or bargaining power of suppliers:

 Moderate population of suppliers (moderate force)

 High overall supply (weak force)
 Low forward integration of suppliers (weak force)

The limited population of suppliers around the world creates a moderate force that influences
Toyota. Theoretically, this bargaining power is higher when the suppliers are fewer. However,
the high availability of supply used for manufacturing Toyota’s products weakens suppliers’
power. In addition, majority of suppliers in the global automotive industry do not have forward
integration or ownership and control of the distribution of materials that reach firms like

21
Toyota. Thus, this part of Toyota’s Five Forces analysis highlights the company’s relative ease
in addressing the weak force or bargaining power of suppliers.

Threat of Substitutes or Substitution (Moderate Force)

Substitutes affect Toyota’s business by competing with the company’s products. This
component of the Five Forces analysis determines the impact of substitute products. In
Toyota’s case, the following external factors in the automotive industry environment are the
main contributors to the moderate force or threat of substitution:

 Low switching costs (strong force)

 Moderate availability of substitutes (moderate force)
 Low convenience in using substitutes (weak force)

In most cases, it is relatively easy for customers to shift from Toyota to substitutes. These
substitutes to Toyota products include public transportation, bicycles and other modes of
transportation. However, these substitutes are only moderately available. In some areas,
substitutes to Toyota’s products are absent, such as in some suburban areas where public
transportation is not readily available. In addition, these substitutes are usually less convenient
than using the products of firms like Toyota. In this part of Toyota’s Five Forces analysis, the
combination of such external factors in the automobile industry creates the moderate threat of
substitution that Toyota must address by making its products more accessible, affordable and
convenient.

Threat of New Entrants or New Entry (Weak Force)

New entrants are potential competitors that threaten Toyota’s business. This component of the
Five Forces analysis shows the potential impact of new entry. In Toyota’s case, the following
external factors in the automotive industry environment contribute to the weak force or threat
of new entrants:

 High capital costs (weak force)

 High cost of brand development (weak force)
 High supply chain costs (weak force)

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Toyota faces the weak threat of new entry. The high costs of establishing, maintaining and
growing a new firm in the industry are significant entry barriers. These barriers weaken the
effects of new entrants on companies like Toyota. This force is less significant than competition
and the bargaining power of customers on Toyota’s business. Thus, this part of the Five Forces
analysis shows that the threat of new entrants is among the least of Toyota’s concerns in
growing its business and maintaining its positions as one of the top automobile manufacturers
in the world.

CHAPTER-2

COMPANY PROFILE
23
BACKGROUND AND ABOUT COMPANY: -

LANSON TOYOTA

On its Maiden Venture in the field of Automobiles, “Lanson Toyota” was launched in the year
2000, amidst a „Grand March of dancers‟ and a „Royally decked Elephant‟ bearing the
“Toyota Emblem” in “Glory & Grandeur”.

24
The World‟s most Prestigious TOYOTA MOTOR CORPORATION had set its roots in India
with a joint partnership with KIRLOSKAR, in the conglomerate “TOYOTA KIRLOSKAR
MOTOR” with its head office in Bidadi Industrial Area, Bangalore.

As the “Dealer Partner” of Toyota Kirloskar Motor, Lanson Toyota‟s segment of operation
comprises “North Tamil Nadu” and “Pondicherry”. In a short span of 5 years, Lanson Toyota
has started full-fledged Branches in Pondicherry and Vellore. With the Metropolis of Chennai
growing in all directions Lanson Toyota has also established a Service Centre at
Kandhanchavadi (near Old Mahabalipuram Road, Neelankarai to accommodate customers
from Adyar and Neelankarai area. With an expanded family of more than 11000 members,
Lanson Toyota celebrated its 5th year in operation with an ecstatic smile wearing two special
awards:

“Best Dealer for Sales – Award” and only dealer selected for “(TSM) Toyota Customer Service
Marketing”. Lanson Toyota started selling the Toyota Products with the Ever present QUALIS
in 2000, followed by the Completely Built unit CAMRY in 2002, the world‟s no 1 best seller
– corolla in 2003 and the luxury suv -prado in 2005.

Lanson Toyota was very happy to launch the new Vehicle in the TOYOTA STABLE – THE
INNOVA – successfully in February 2005. Lanson Toyota is proud to announce that it has
been selected for being the pilot dealer for tsm certification for body & paint shop in India.

Another value-adding feature is the 24-Hour mobile Helpline service and any time servicing at
Lanson Toyota Koyambedu/Kandhanchavadi, Chennai, Vellore and Pondicherry. The secret
of our success is a simple equation: - CSP + ESP = 200% SUCCESS ie., Customer Satisfaction
Programs + Employee Satisfaction Program always leads to SUCCESS Mr. M. Lankalingam,
Managing Director, Lanson Toyota says, “We strongly believe that Customer Delight and
Employee Satisfaction are the corner stone of Lanson Toyota’s Success”.

25
To this effect various Customer Delight programs have been evolved and implemented. Apart
from this, Lanson has a unique blend of delighting customers simultaneously aiding a worthy
cause like sponsoring Banyan and gifting the VVIP tickets to Netru Indru Nalai Shows, Basant
Utsav etc.,

There have been various other projects from which the customers have benefited from, eg:
Gold coins, MGM Coupons, and stay at Coconut Lagoon, Sony Wega TV, Arabian Nights at
Le Royal Meridien etc.,

Cultivating Attitudes and attaining high goals are a part of the values imbibed in the Staff of
Lanson Toyota. Various talks, and in-house trainings, Spoken English Classes are conducted
for the staff. Entertainments for the staff are present at the beginning of every year. This
includes Birthday Celebrations and outings. In the year 2000 the best performers were awarded
with a trip to Bangkok, Thailand and Malaysia.

Lanson Toyota believes in rewarding its employees with a rich experience besides monetary
emoluments. The best performers of 2001were sent to Sri Lanka on a Five-day vacation while
the best performers of 2004 were sent to Thailand.

Lanson Toyota believes in holistic respect and rewards its employees by sending them on
vacations to places like Kodaikanal, Munnar etc… Apart from these trips to local delights like
Resorts like Ideal Beach, Fisherman’s Cove in Mahabalipuram are also taken. Thus Lanson
Toyota has carved a niche of success and achievement and looks forward to give the ultimate
in Customer Delight.

The Lanson Mission Statement is:

Exceed customer expectations first time, every time. Placing customer satisfaction first,
integrating sales with service and service parts in a single convenient location. Contribute to
speedy and efficient service, allowing customers to experience the convenience and pleasure
of owning a automobile.

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At Lanson we believe in delivering quality products to the evolving needs of customers.
We employ the highest standards of excellence in choosing our people, products and
practices. Our aim is to build a globally delightful customer fraternity by bridging the
best of the world to the rest of the world! Our core corporate values are –

the 4 H‟s
 Holistic Respect
 Harmony
 Humility
 Honesty

LANSON TOYOTA BRANCHES: -

 KOYAMBEDU
 PALLIKARANI
 KATPADI
 TEYNAMPETT
 ELLAPILLAI CHAVADI
 NEELANKAARAI
 AMBATTUR
 THIRUVANNAMALI
 WHITE GATE KANCHIPURAM
 ANNA SALAI
 KARAIKAL
 VILLUPURAM
 BAHOUR

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DEPRATMENTS THEY HAVE IN PALLIKARANI BRANCH :-

 HUMAN RESOURCE

 SALES

 MARKETING :-

SALES MARKETING AND SERVICE MARKETING

SERVICE MARKETING:-

TECHNICAL AND CLEANING

 FINANCE

 INSURANCE

 RTO

 DELIVERY

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 U-TRUST:-

SALES AND SERVICES

 DRIVING SCHOOL

 TEST DRIVE DEPARTMENT

PRODUCT AND SERVICES :-

 CARS

1. Etios liva

The Diesel engine is 1364 cc while the Petrol engine is 1197 cc. It is available
with the Manual transmission. Depending upon the variant and fuel type the Etios
Liva has a mileage of 17.71 to 23.59 kmpl. The Etios Liva is a 5 seater Hatchback
and has a length of 3884mm, width of 1695 mm and a wheelbase of 2460mm.

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2. Platinum Etios

The Diesel engine is 1364 cc while the Petrol engine is 1496 cc. It is available with the
Manual transmission. Depending upon the variant and fuel type the Platinum Etios has a
mileage of 16.78 to 23.59 kmpl. The Platinum Etios is a 5 seater Sedan and has a length
of 4369mm, width of 1695mm and a wheelbase of 2550mm.
3. Etios Cross

The Toyota Etios Cross has 1 Diesel Engine and 2 Petrol Engine on offer. The Diesel
engine is 1364 cc while the Petrol engine is 1197 cc and 1496 cc. It is available with the
Manual transmission. Depending upon the variant and fuel type the Etios Cross has a
mileage of 16.78 to 23.59 kmpl.
4. Yaris

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 The Petrol engine is 1496 cc. It is available with the Manual and Automatic
transmission. Depending upon the variant and fuel type the Yaris has a mileage of 17.1
to 17.8 kmpl. The Yaris is a 5 seater Sedan and has a length of 4425mm, width of 1730mm
and a wheelbase of 2550mm.

5. Innova touring sport

Innova Crysta Touring Sport Diesel MT Overview

Length 4735 mm
Fuel Type Diesel
Max Power (bhp@rpm) 148 bhp @ 3400 rpm
Max Torque (Nm@rpm) 343 Nm @ 1400 rpm

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Mileage (ARAI) 15.1 kmpl Fuel credit card offersAd

6. Innova Crysta

The Toyota Innova Crysta has 2 Diesel Engine and 1 Petrol Engine on offer. The Diesel
engine is 2393 cc and 2755 cc while the Petrol engine is 2694 cc. It is available with the
Manual and Automatic transmission. Depending upon the variant and fuel type
the Innova Crysta has a mileage of 10.75 to 13.68 kmpl.

7. Corolla Altis

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 Technical specs of Toyota Corolla Altis G Petrol

 1798 cc.
 140PS@6400rpm.
 173Nm@4000rpm.
 Compression Ratio. 10.6:1.
 Front, Transverse.
 Petrol.
 City Mileage. 9.5 km/litre.
 16.7 km/litre.

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8. Fortuner

Toyota Fortuner Overview

 Displacement. 2694 CC.

 Power. 164 bhp@5200 rpm.
 Torque. 245 Nm@4000 rpm.
 Mileage. 14.24 Kmpl.
 Transmission. Manual.
 Drive Train. 2WD.
 Number of Gears. ...
 Number of Cylinders.

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 9. New Camry Hybrid

Length 4850 mm

Width 1825 mm

Height 1480 mm

Seating Capacity 5 Person

Displacement 2494 cc

Fuel Type Petrol

Max Power (bhp@rpm) 202 bhp @ 5700 rpm

Max Torque (Nm@rpm) 213 Nm @ 4500 rpm

19.16 kmpl
Mileage (ARAI)

Alternate Fuel ELECTRIC

Transmission Type Automatic (CVT)

No of gears 6 Gears

Drivetrain FWD

Air Conditioner Automatic - Three Zone

Power Windows Front & Rear

Central Locking Remote

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 10.Toyota Prius

Toyota Prius Specifications

ARAI Mileage 26.27 kmpl

Max Power 96.55bhp@5200rpm
Max Torque 142Nm@4000rpm
Seating 5
Engine Description 1.8-litre 96.55bhp 16V 2ZR-FXE Petrol Engine

11. Land Cruiser Prado

Toyota Land Cruiser Prado Specifications

Engine Displ. : 2982 cc

Power: 170.63@3400rpm
Torque: 410Nm@1600-2800rpm
Top Speed (KMPH): 180
Sunroof: NA

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 12. Land Cruiser

Toyota Land Cruiser Specifications

ARAI Mileage 11.0 kmpl

Max Power 261.49bhp@3400rpm
Max Torque 650Nm@1600-2600rpm
Seating 7
Engine Description 4.5-litre 261.49bhp 32V 1VD FTV Diesel Engine

OBJECTIVES OF COMPANY: -

 Retain Current Customers

 Engage New Potential Customers
 Improve Customer Satisfaction
 Establish Earned Authority and Trust
 Increase Sales

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 Finance

*Apply for loan

Insurance

*Apply for insurance

U-Trust

* Buy now

* Sell now

* Exchange cars

Q Service

Toyota is proud to offer Q Service Experience, an assurance of Quick Service by Qualified

Manpower & Inbuilt Quality of Toyota Genuine Parts for a joyful ownership experience.
Toyota's Q Service is a completely standardized Service process ensured through Evolutionary
systems & new age tools to ensure a hassle-free service experience & quickly respond to all
customer needs. From the Regular Service Reminders to Instant Service status updates, from
appointment booking to vehicle delivery, each process follows a series of steps which ensures
quality service with utmost convenience for our customers. Toyota's Customer First Approach,
unique Q Service features ensure that you enjoy trouble free ownership of your Toyota vehicles

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SWOT analysis of Toyota

Strengths: -

 Strong Human Resource– A Company needs skilled and professional human resource
to grow bigger. Toyota is blessed with huge human power throughout the world. They
have invested in getting resources, and the return they get is big. As of December 2015,
they have 348,877 skilled human resources around the world.
 Innovative Organizational Culture– While it comes to advanced operating system and
functional strategies, Toyota will always be on the top. From widely practiced
management system to lean manufacturing details, Toyota has set examples for the
fellow companies.
 Strong Brand Image– This is obviously one of the most important strong points of
Toyota. Whenever people look for cars, they search for the brand name ‘Toyota,’ and
that has kept them far ahead of their competitors.
 Strong Diversified Portfolio– Cars means Toyota. They have a large number of varieties
of their product. From electric cars to hybrid cars, Toyota has spread its wings to all
types of cars in this market.
 Advanced Technology– Toyota is not only a car manufacturing company, but they are
also considered as an innovator. Their hi-fi technology has introduced hybrid cars in the
market. The green vehicle technology of Toyota has been adorned by customers in large
scale when they consider the environmental concern and price of petrol.
 Global Supply Chain– They has outlets, branch companies, manufacturing factories
around the world. The strong and global supply chain of Toyota is really one of the
greatest strengths of this company.
 High Production Capability– Toyota is giving serious competition to its
contemporaries on this point as they have a high production capacity of producing cars,
almost 10 million per year.

Weaknesses: -

 Dependence on Suppliers– as Toyota has suppliers around the world; they have to
depend on them. It makes the production a bit sloth.

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  Not Grabbing Markets– Toyota has developed green vehicle technology, but it has been
failed in grabbing the actual market where it would be implemented accurately. The
market of China and India can be the best for launching these vehicles, but there is still
time.

 Negative Publicity– This happens due to large vehicle recalls. Any type of vehicle
recalls affecting the automaker, and Toyota is no exception. Also, the recall rates are
higher in Toyota, and that can cause more negative publicity.
 Poor Brand Recognition– There are 4 different flagships of Toyota- Hino, Lexus,
Daihatsu, and Among these, Lexus and Toyota have been successful in making the brand
recognition.

Opportunities: -

 The growth of Developing Nations– Perspectives is changing, and now, people are
more inclined to buy cars. In the developing nations, the demand for cars is exuberating.
 Green Vehicle Technology– Maybe slower, but the green vehicle technology is gaining
popularity around the world. If Toyota focuses on this area, they will get much revenue
from this innovation.
 Growing Concern for Environmental Pollution– People, around the world, is getting
more concerned about the environmental degradation and are also willing to do their bit.
This is the high time to popularize Toyota’s environment-friendly.

Threats: -

 Number of Competitors– Toyota is competing with huge names in the market,

like Volkswagen, Ford, Mitsubishi, and Hyundai. It makes quite hard to make strong
feet in the market.
 High-priced Raw Materials– As the cost of raw materials is increasing, that is also
increasing the cost of the end product.
 Lower Profits– The continuous threat of exchange rates is always there. When the
revenues are sent back to Japan in the Yen that becomes quite lower profit in comparison
to other currencies.

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 CHAPTER-3

ORGANIZATIONAL DESIGN

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 ORGANIZATIONAL STRUCTURE OF THE COMPANY:-

https://www.pinterest.it/pin/727120302314182492/

Classification of Grades
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 The company has a clear distribution of levels in the organization based on roles.

Apex Management MD/ JMD (Apex Board)

Sl No. Cadre Level Sales Service Support

1 L1 Vice President Vice President Vice President

2 L2 Associate Vice President Associate Vice President Associate Vice President

C1
3 L3 General Manager General Manager General Manager

4 L4 Deputy General Manager Deputy General Manager Deputy General Manager

5 L5 Associate General Associate General Associate General

C2 Manager Manager Manager

6 L6 Senior Manager Senior Manager Senior Manager

7 L7 Manager Manager Manager

8 L8/ Deputy Manager/ Deputy Manager/ Deputy Manager/

C3 L9 Associate Manager Associate Manager Associate Manager

9 L9 Senior Team Leader Senior Team Leader Senior Team Leader

10 L 10 Team Leader Chief Advisor/ Chief Team Leader

Tech/ Team Leader/ Chief
JC
11 C4 L 11 Sr. Exec- Mktg, Ret Fin, Sr. Service Advisor/ Sr. Sr. Exec- Procurement,
Ins, Aces, Coordinator Tech/ Sr. JC/ Sr. Officer Admin, HR, A/c, EDP
12 L 12 Exec- GRE, Mktg, Ret Service Advisor/ Tech/ Exec- Procurement,
Fin, Ins, Aces, Tele-Mktg officer/JC/ Receptionist, Admin, HR, A/c, EDP &
Coordinator Mktg Exec, Coordinators front office
13 L 13 Sr. Chauffeur/ Sr. Sr. Chauffeur/ Sr. Sr. Chauffeur/ Sr. Guard
Assistant Assistant Sr. Assistant

14 C5 L 14 Chauffeur/ Assistant Chauffeur/ Assistant Chauffeur/ Sec. Guard

Assistant
15 L 15 Trainee Trainee Trainee

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 CHAPTER-4

BUSINESS LEVEL FUNCTION AND PROCESSES

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SUPPLY CHAIN: -

https://www.slideshare.net/sabiobernard/supply-chain-management-of-toyota-study-by-sabio-bernard/

Inbound logistics

• toyota in obtaining raw materials, they do not process their own, or create your own, they use
a third party, they handed the small parts, such as leather seats, steering wheel, tire, to local
companies, but to the nature of strategic importance, like a machine, they import from Japan
(center), it's all to maintain the quality standard that was created toyota,

• Toyota put on the assembly system in the process, it has led to toyota raw material supply for
its assembly, need a place to store supplies, or warehouse, to avoid piling up too many assets,
Toyota to forecast demand,

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Operations

• Transforming inputs into the final product form, in assembly and manufacturing (its
production) Toyoto use various systems to be efficient and effective, we could also call it, TPS
is the Toyota Production System,

• the concept of the Toyota Production System can be described as a complete building which
consists of various components are integrated. The building was also called a The House of
Toyota.

JUST IN TIME: One of the two main pillars of TPS. It refers to the manufacturing and
conveyance of only” what is needed, when is needed, and in the amount needed in the system”.
1. The Pull System 2. Continuous Flow Processing 3. Take time

JIDOKA: One of the two main pillars of TPS. It refers to the ability to stop production, by
man or machine. (equip malfunction)

Outbound Logistics

Collecting, storing and distributing the product to buyers • output of the production process at
the plant, is the finished product, a car, the car is directly sent to the toyota dealer,, it's for local,
or a region (not crossing the sea in distribusianya, if sending more distant or export,, its delivery
using container.

MARKETING: -

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FESTIVAL OFFER

TPS’s Six Sigma

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Below discussed are some of the TPS’s (Toyota production system) Six Sigma strategies:

1. Decreased setup times: All setup procedures are wasteful, since they do not add any value
and tie-up labor and equipment. By handling procedures, using carts and training employees to
carry out their own setups, Toyota has managed to slash setup times from month to hours, and
even minutes.

2. Minimum Production: Manufacturing things in bulk batches sometimes may lead to huge
setup costs, capital cost, large inventories, unlimited lead times and huge defect costs. As
Toyota has found this ideal method of minimum production to make setup inexpensive and
short, now it has become possible for them to manufacture various things in smaller quantities.

3. Workers Empowerment and Involvement: Toyota ordered their employees to form teams
and offered them the training and responsibility to carry out certain specialized tasks. Team
members were also given the task to repair equipment and take care of internal factory work.
Every team has a head, who also acts as one of the prospective employee in achieving
specialized task assigned to them.

4. Dealers Participation: Toyota treats its dealers as company partner, as integral part of TPS
(Toyota production system). Dealers are also well familiar with ways to decrease setup times,
defects, inventories and machine breakdowns and take responsibility to render their best
possible outcomes.

Overview

The Toyota Production System blends attitude, notion and specific techniques into a structured
socio-technical Six Sigma system for manufacturing. Gradually, this Six Sigma system spread
around Japan and finally to the West, and started gaining other names and variations. Toyota
itself was not having any name for its manufacturing strategy until the 1970’s.

Just in Time, Stockless Production, World Class Manufacturing, Demand Flow Technology
and several other terms are mostly the variations of Toyota’s Six Sigma system. Lean
Manufacturing, given by James Womack, is a name that appears to sticking very firmly.

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When everything has been well done, TPS fetches order of great improvements in inventory,
material handling, scheduling, and customer satisfaction. The payoff to dealers and
shareholders is important and well acknowledged.

The TPS’s Six Sigma system has been doing well for Toyota, its dealers, and several other
companies. Often, Six Sigma is an ideal starting point, but is hardly a substitute for a
personalized and well-throughout manufacturing strategy.

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 CHAPTER-5

FINDINGS, SUGGESTIONS AND CONCLUSIONS

50
FINDINGS:

 After the study, I came to know that the company has a Vertical structure. Which
operates various departments of the company. These departments play a major role in
the company’s decision-making process.
 They are very focused about the customer satisfaction.
 The main objectives of the Toyota Production System are to design out overburden and
inconsistency, and to eliminate waste.
 They have developed environment friendly products like hybrid cars which run in
battery and reduces the emission of carbon monoxide.
 The company has got a very good infrastructure factor. Which provides all kind of
facilities to the employees of the company
 They follow all the safety measures for the workers, the company looks after the welfare
of the employees as they are the assets of the company.
 Advertisement and promotional activities are very much used to promoting their
products into market. There is generally good response from the customers for the
product.
 The company has a monopoly market and has very few competitors in the market.

SUGGESTION:

 The co. needs to increase their branches

 To remain as a competitive player in the global market
 It should also need to adopt new technology as per modernisation
 To maximise the awareness of the product in rural as well as urban areas as much as
possible

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 CONCLUSION

Based on analysis & discussion made in study. The overall performance of

the company satisfactory. Compared to past record it has good captured to global
market and it has been able to utilize the opportunities and its strengths to top
most level.

The company is achieving sales of the cars in the market at a higher growth.
And they are adopting new technologies every year for maximizing their sales.
And they are also focusing on the launching new cars into the market.

Studying and making a report on this Organizational Study was a learning

experience of a very vast and interesting company. It helped me a lot in learning
different aspects of a manufacturing company and also helped me to learn how a
manufacturing company works and handle their organization. It made me realize
the stiff competition prevailing in the industry and how to cope with it. I got a
chance to learn about the difficulties that an individual has to face in order to
perform their task. There is always another person waiting to grab your job. One
has to be extremely careful in carrying out the duties and responsibilities. The
most important aspects that guide a person towards success are punctuality,
commitment, pursuance and tolerance. The things that I have learnt theoretically
in college, I got practical exposure to it. From distance job looks like easy thing,
but is realistic terms it is extremely hard job to perform. All the difficulties that a
company has to face in order to retain their employees and also their customers
have to be managed properly to get success in future. This organizational study
has given me a chance to get practical knowledge of all that which I studied in
the college and will study in future. This was a very joyful experience for me
working with LANSON TOYOTA, I wish for their success and prosperous future

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 BIBLIOGRAPHY

http://www.lansontoyota.com/
https://www.slideshare.net/
Information from Staff
https://in.pinterest.com/

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54