Global Retailing
June 2024 Examination
1. You are supposed to set up a store for an exclusive brand Platinum and Titanium jewellery
for the mid and niche segments? What is the kind of display that you can think of to increase
the sale of this jewellery? (10 Marks)
2. If you were given the task to setting up a store in terms of location, display, promotions,
visibility, layout how would you go about doing up the store and also use technology to put
the signages? (10 Marks)
3. Case study
Toyota Motor’s quarterly profit tops estimates, shares hit all-time high
Net sales for the fiscal first quarter rose 24 per cent to ¥10.6 trillion, topping the prediction
for ¥9.8 trillion. For the full year, Toyota kept the revenue outlook at ¥38 trillion Toyota.
Toyota Announced Plans to Strengthen Its Competitiveness in China By, Among Other
Things, Accelerating the Development of An Electric Powertrain with Its Two Biggest
Suppliers, Denso and Aisin.
Toyota Motor’s quarterly profit exceeded estimates as improvements in supply of
semiconductors and a weak yen helped it capitalize on a global rebound in demand for
vehicles. The stock closed at a record high.
Operating profit for the three months through June was a record ¥1.1 trillion ($7.7 billion),
the world’s No. 1 carmaker said in a statement Tuesday. That compared with ¥880 billion
projected by analysts. Toyota kept its outlook for operating income for the fiscal year at ¥3
trillion.
Demand for automobiles is robust following the pandemic downturn, prompting carmakers to
boost production and raise prices. Toyota made and sold a record number of vehicles in June.
It is also on track to increase production between August and October, according to recent
reports.
“When considering exchange rates, production and the market environment, Toyota
keeping its outlook was a bit of a surprise,” Bloomberg Intelligence analyst Tatsuo
Yoshida said.
Net sales for the fiscal first quarter rose 24 per cent to ¥10.6 trillion, topping the prediction
for ¥9.8 trillion. For the full year, Toyota kept the revenue outlook at ¥38 trillion.
The company’s shares rose 2.5 per cent in Tokyo, building on Monday’s 3.3 per cent gain to
reach ¥2,445.5 — a record based on data compiled by Bloomberg going back to 1974. The
share price reflects a five-for-one stock split in October 2021
Toyota said it was able to command higher prices for vehicles, helping to “reduce the impact
of the sharp rise in materials prices.”
Japanese carmakers’ sales in 2023 could rise 19 per cent domestically and 18 per cent in the
US, but fall 4 per cent in China, according to Yoshida.
“Toyota’s declining business in China is a point of concern,” he said. “The impact is
industry-wide but concerning for a firm like Toyota.”
Toyota announced plans to strengthen its competitiveness in China by, among other things,
accelerating the development of an electric powertrain with its two biggest suppliers, Denso
and Aisin.
As pressure builds on manufacturers to phase out fossil fuels and embrace the shift to electric
vehicles, Toyota has promised to expand EV production while continuing to offer a broad
selection of hybrid and gasoline cars.
Soon after former Lexus head Koji Sato became chief executive officer, the company pledged
to sell 1.5 million battery EVs annually by 2026. Further out, it has promised to sell 3.5
million by 2030, halve its carbon dioxide emissions by 2035 and become carbon neutral by
2050.
In May, Sato said Toyota would produce 200,000 BEVs this fiscal year. He also said it would
invest ¥3.1 trillion on sustainable growth, including efforts to decarbonize and electrify.
Questions
a) What is Toyota’s future strategy and how is it gearing up for achieving that goal and how
are things looking up after the pandemic downturn? Why should the car companies raise
prices at this point and is Toyota’s sale falling in China a cause for concern and what is its
plan to compete in that market? (5 marks)
b) What is the reason Toyota wants to continue its focus on Gasoline and Hybrid cars along
with its electric cars? What has Koji Sato pledged and where is the focus turning towards an
electric and clean energy vehicle and what are the effects of the current Gasoline engines that
are impacting our planet and why do they need to be phased out? (5 marks)