Toyotas Work Model Financial Statements Free Essay Example, 2750 words

Critical analysis of financial statements indicated that Toyota has decreased its research and development expenditure as compared to the last financial year 2011 from 6.8% to 4.2% of net revenues (Toyota, 2012, p. 32). In order to provide customers with environment-friendly and desirable vehicles, Toyota performed recalling of over 200 thousand models in hybrid cars and Lexus. Despite the encouraging effect of overall cost reduction per unit i. e. Yen 102 748 million, which reflected in prices as well, it sustained an operating loss of 112,652 million as compared to last fiscal year. Therefore, despite substantial R D expenditure, the strategic goal of having a satisfied customer and increased revenue of Yen 1 trillion could not be achieved. Further analysis indicated that Toyota has invested in other non-automotive businesses that added to its operating income equal to 6.8 billion which is 19.8 percent as compared to last year s 7.9%. These non-automotive businesses include Inte lligent Transport Systems (ITS), information technology and telecommunications, e-TOYOTA, housing, marine, and biotechnology and afforestation businesses (Toyota, 2012, p. 26). Most of these ventures are live examples of its vision 2011 which included the development of smart communities through IT developments. We will write a custom essay sample on Toyotas Work Model: Financial Statements or any topic specifically for you Only $17.96 $11.86/pageorder now Commercializations of the Driving Safety Support System, an onboard navigation system for public highways are further examples of its commitment to the development of smart communities. Toyota has been known for its cost-effectiveness and high-quality consumer products since its very inception. Due to massive production and presence in various countries, Toyota has been able to utilize economies of scale and also act as a corporate citizen that develops communities wherever it is present. Toyota is one of the market leaders who have presented hybrid cars that are energy efficient and environment-friendly. Furthermore, its extensive research and developments plan also strengthen the quality of its existing product line and mitigate faults in new models. Toyota has been focusing on reducing gasoline consumption and making green cars that address concerns of environmentally conscious customers.