An Analysis of the Business Environment Using SWOT and TOWS Approaches

This assignment content comprises a collection of academic articles and books related to strategic management, business environment, and competitive forces framework. The sources cover topics such as Basel III norms, manufacturing flexibility, supply chain responsiveness, risk identification, PESTLE analysis, SWOT matrix, and intuitionistic fuzzy DEMATEL methodology. The materials also include studies on the legal environment of business, strategic management of information systems, and promotion of Thai kitchens in ASEAN markets.

Running Head: BUSINESS AND BUSINESS ENVIRONMENT
BUSINESS AND BUSINESS ENVIRONMENT

BUSINESS AND BUSINESS ENVIRONMENT 2
Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
P1: Explain different types and purposes of organizations; public, private and voluntary sectors
and legal structures.......................................................................................................................4
P2: Explain the size and scope of a range of different types of organizations............................9
Task 2.............................................................................................................................................14
P3: Explain the relationship between different organizational functions and how they link to
organizational objectives and structure......................................................................................14
Task 3.............................................................................................................................................17
P4: Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples from the case study..............................................17
Task 4.............................................................................................................................................26
P5: Conduct internal and external analysis of Toyota UK in order to identify strengths and
weaknesses.................................................................................................................................26
P6: Explain how strengths and weaknesses interrelate with external macro factors.................27
Reflective analysis.....................................................................................................................28
Conclusion.....................................................................................................................................32
References......................................................................................................................................33

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Introduction
Business environment considers both internal and external factors which affect the business.
Hence, company focuses on both factors to get competitive advantages. This report describes the
business environment in context of private, public, and non-profit companies. Moreover, it
selects three companies for this report named Toyota, Vodafone, and St. John Ambulance.
Furthermore, it presents the structure, size, objectives, and scope of these companies. It explains
different model to assess the competitiveness of automotive industry such as Porter's five force
model, PESTLE analysis, SWOT and TOWS analysis. It also connects the strength and
weakness of Toyota Company with external factors. In the last, this report demonstrates the
reflection regarding main findings.

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Task 1
Introduction
This presentation defines the background of Vodafone, Toyota, and St. John Ambulance. It also
discusses the purpose and type of different organization. Further, it describes the size of different
kinds of organization. It also explains the scope of the different type of organization.
Vodafone is an international organization that is known for delivering telecommunication
facilities. Its headquarters is based on London, UK. It was originated in the year of 1982. It is
one of globe leading telecommunication providers which deal in approximately 26 nations and it
makes a partnership with more than 55 networks. It also provides services in all over the world.
It has influenced about 444 million customers in all over the world and about 19.5 million in the
UK. It facilitates a number of products and facilities like digital television, fixed line, internet
connection, and mobile telephony (Vodafone, 2017).
Toyota Plc is a secondary of Toyota Motor Company. It was established in the year of 1965
which headquarter is established at Burgh Heath, United Kingdom. Toyota facilitates wide range
of products as well as facilities named commercial vehicles, comfort vehicle with automobiles,
and mechanism (Toyota, 2017).
It is registered charity company which is established in the year of 1877. Companies headquarter
is based in the UK. This organization delivers a distinct range of products and services like
wellbeing with society facilities, first aid kits, along with learning and guidance facilities (St.
John Ambulance, 2017).
Slide 1: Introduction

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Slide 2: Background of Vodafone Company
Slide 3: Background of Toyota Company

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Slide 4: Background of St. John Ambulance
P1: Explain different types and purposes of organizations; public,
private and voluntary sectors and legal structures.
Vodafone is a public limited corporation which deals with telecommunication industry. A public
Liability company (PLC) is the legal description of a limited liability corporation which has

BUSINESS AND BUSINESS ENVIRONMENT 7
provided shares to the wide-ranging public and has restricted liability. Toyota Corporation is a
Private Liability Company (LTD) which deals with the automotive industry. This type of
corporation facilitates limited liability and legal security to its shareholders. However, it places
some liability on its possession. The prime purpose of this organization is to facilitate the safe
and effective services to its customers. This company is listed as charitable association (NHS)
which deals with the industry of healthcare. The key intention of Vodafone organization is to
provide link with modern facilities for enhancing the level of comfort as well as enhance the
improvement in life of people. The prime objective of the company is to organize the business
process judiciously as well as ethically (Vodafone, 2017). A charitable organization is a non-
profit organisation which key objective is compassion and social welfare such as education,
religious, charitable, and other activities which serves to public interest. The prime purpose of St.
John Ambulance is to expand attentiveness on the subject of first aid facilities and openly inform
the public about their services. It makes a link with different partners such as private healthcare
groups, NHS trust, and individual and local systems.
Slide 5: Types of organization

BUSINESS AND BUSINESS ENVIRONMENT 8
Slide 6: Purpose of organization
P2: Explain the size and scope of a range of different types of
organizations.
Vodafone has recruited more than 111,556 people across the UK. Its revenue is approximately
£47.631 billion in 2017. It has different stakeholders such as supply chain partners, employees,
shareholders, government and the local community (Vodafone, 2017). Vodafone is a global
leader in the area of mobile telecommunication. It has strongly represented at the global level in
over 30 nations and it creates a partnership with approximately 50 countries. Since 1985,
Vodafone has been building the millions of people’s lives all over the globe. It not only involved
in business projects but also involved in money transfer payments. The company is passionate
about building a simpler life and more rewarding. This brand loves to make changes hence it has
the capacity to make long-term growth due to its adaptability skill. It also provides different new

BUSINESS AND BUSINESS ENVIRONMENT 9
ways to people to make communication (Vodafone, 2017). The company can continuously
improve by enhancing their operation and recruit best people.
Toyota PLC has recruited about 3,800 people across the UK. Its revenue is approximately
£300,000 in 2017. The company has the vision to become more appreciated and successful
company by facilitating wide category of products and services in UK automobile industry. In
addition, the company recruits proficient people and use advanced technology to satisfy the
customers because these technologies will enable the organization to develop hygienic
atmosphere and save its energy. There are different key stakeholders of the company named
employees, customers, dealers, shareholders, community, government, and suppliers (Toyota,
2017). Toyota Plc is primarily dealing in the automotive industry. It conducted business in
different areas such as finance and marketing, and operation. Its business segment includes the
financial service operation, automotive operation, and other operation. Its operation of
automotive involves the manufacture, assembly, design, trucks, manufacture, and sale of
passenger cars, minivans, trucks and associated accessories.
Moreover, financial facilities of business offer the backing to traders along with those consumers
who will acquire the Toyota vehicles. Financial facilities of Toyota offer hire services in which
products can be purchased on lease contract with the Toyota dealers. The intelligent transport
system of Toyota consists of different IT relied on a system such as advance transporting system,
onboard intelligent system, car multimedia systems, transportation infrastructure, and logistics
system (Toyota, 2017). Its business operation segment involves the design and production of
prefabricated housing and IT linked business such as e-commerce marketplace is known as
Gazoo.com.

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St. John Ambulance recruits approximately 500,000 volunteers in 2017 in order to offer the
services. It deals with more than 42 nations in all over the globe. This company is competent to
deliver services and its operation as it has obtained about £125.7 million net income in 2016 (St.
John Ambulance, 2017). The mission of the company is to recruit the proficient people as it can
enhance the health and provide safety and quality life to society. The scope of this company is
wide such as it provides the health and safety training to people and community services. It may
attain the mission of company by providing distinct services like CPR training, first aid, and
community facilities. It also enhances the health and quality life to customers. It also develops
the equity, integrity, teamwork, love, tolerance, and respect among people (St. John Ambulance,
2017).
Slide 7-8: size
Slide 8

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Slide 9-10: Scope
Slide 10

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Slide 11: Conclusion

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As per the interpretation, it is concluded that Vodafone, Toyota, and St. John Ambulance is
engaged to provide different products and services with each other. These organizations operate
their business effectively due to their significant size, purpose and organizational formation.

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Task 2
P3: Explain the relationship between different organizational
functions and how they link to organizational objectives and
structure.
Short Essay
There are different kinds of the organizational structure named functional and matrix. Vodafone
uses functional organization structure in which senior manager strictly follow top to down
approach and downwards with respect to particular departments to nationalized directors.
(Sources: Armstrong, et. al., 2015)
Functional structuring enables the company to set the homogeneous field of expertise along with
it helps to assign the duties of each member of the department. In this structure, the high-level
authority has recruited to assign the responsibilities and communicate tasks clearly to members
because each member has a different area of expertise. Hence, this structure enables Vodafone to
provide innovative services as well as connectivity to customers (Armstrong, et. al., 2015).
Apart from this, Toyota uses matrix organization structure which supports to increase size and
scope, accomplish business objectives and aims, as well as improves the business operation. This

BUSINESS AND BUSINESS ENVIRONMENT 15
organization structure is also effective to work in a team within a company. It also aids the
executive to cooperate each member of the team to facilitate safe as well as the long-lasting
journey. It aids the each member of the team to develop knowledge about the purpose and
accomplish the company’s objectives (Belás, et al., 2014).
(Sources: Belás, et al., 2014).
Besides this, St. John ambulance follows the matrix organizational structure which aids to
increase the size, scope, and objectives of the company. Under this organizational structure,
executively belongs with a distinct sector that helps the member of the team to operate each
business function. This is also beneficial to accomplish the business objectives. By using this
structure, manager co-operates team member to provide services, training, and education to its
customers. After accomplishing the scope and objectives, each member of the team is
disconnected with the task (Ben-Menahem, et al., 2013).
Advantages and disadvantages of functional organizational structure
The primary benefits of exercising the functional organizational structure is that staff is
controlled by only one expert who is a specialist in that field. It is beneficial for a team member
to understand the tasks and assess the work. Under this structure, high-level authority is

BUSINESS AND BUSINESS ENVIRONMENT 16
responsible for taking an entire decision regarding operation of the company. It also ensures that
senior executive has inclusive power over the organization (Bovée andThill, 2014).
This structure also facilitates the stability as well as effectiveness for the complex and big
corporation due to using homogeneous business operation. Moreover, it helps the large size
organization to get economic advantages and to improve the economies of scale. In contrast to
this, organization structure can lead to poor communication between departments hence different
department cannot work together due to clashes between inter-department members. At the same
time, the customer can be aggravated due to lack of customer support services in case company
work with more than one department (Cai, and Yang, 2014).
Advantages and disadvantages of matrix organizational structure
St. John ambulance and Toyota company exercises matrix organizational structure due to no
hierarchy authority for controlling the human resources. In this structure, employees act in the
team which was built and structured by the top level authority. Moreover, the workforce has the
liberty to transform their team members in case they are not interested to do work. These kinds
of organizational structure are usually exercised by the smaller groups due to having adequate
resources and skilled people to organize the activities. Under this structure, each member can be
shifted towards the required fields. It improves the proficiency and contribution of employees.
But, it can lead to workforce uncertainty and annoyance because there are uncertain lines
regarding reporting (Comino, and Ferretti, 2016). Along with this, matrix organization structure
can be multifaceted in terms of setting priority while employees are moving towards challenging
tasks.

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Task 3
P4: Identify the positive and negative impacts the macro environment
has upon business operations, supported by specific examples from
the case study.
PESTLE Analysis
PESTLE analysis can be exercised through Toyota organization for assessing their threats and
opportunities in the UK market. There is a large number of an external factor which affects the
Toyota and global automotive industry. This analysis is conducted by the organization to build
valuable strategies and plan because it helps to keep the business strength and development.
Toyota can maintain its good position as the leading global organization by addressing the
threats with different forces (E. Dobb, 2014). These factors are explained as follow:
Political factor
Political factor influences the product development and marketing judgment. It is analyzed that
UK federal government create effective laws to keep secure the companies from other
competitors. As a result, it provides great competitive advantages and added the high value to the
customers. In addition to this, UK government creates regulation and rules to save the people
from pollution and global warming, however, it could be risky with the purpose of the business
operation. It is also evaluated that customer do high demand for a hybrid vehicle that is
profitable for the company because the government provides support to company causes eco-
friendly production (Ebert, et al., 2014).
Political stability exists in the UK nation which benefits to Toyota for avoiding the negligible
political pressure. Moreover, free deal agreement made by the UK and other nation’s
government in which Toyota grab opportunities by penetrating into the market. Moreover,
government aids the eco-friendly products hence it is an opportunity for Toyota Company to

BUSINESS AND BUSINESS ENVIRONMENT 18
enhance its products with high satisfaction due to offering products as environmental
expectation. As a result, it can be stated that political factor provides a great opportunity to
business (Epifanova, et al., 2015).
Economic Factors
In the UK country, automobile prices have increased due to higher inflation rates. In addition to
this, the automobile industry is highly demanding due to infrastructure growth. Another
economic factor that has influenced external price elasticity is a dependency on oil. Moreover, a
price of petrol is high in the UK nation however it does not affect the demand of Toyota Vehicle.
Along with this, Toyota facilitates the more fuel resourceful vehicle as compared to its key
market players hence it enables the customers to save their cash. It is analyzed that increasing
internationalized market has a positive impact on the business operation because of currency
variation (Ethiraj, et al., 2016). In addition to this, the automobile industry has taken into
consideration on commitment and gain productivity. But, it is analyzed that alteration in the
exchange rate such as Euro has impacted on the productivity of Toyota business operation.
There is an opportunity for Toyota to increase exports in United Kingdom based due to effective
exchange rate. Moreover, the hasty expansion in developing nations demonstrates the
opportunity of company for increasing its revenue from these markets (Grant, 2016). This
dimension enables the business to create the opportunity for business growth.
Social Factors
Toyota is an internationally recognized brand in the automobile industry of UK. Moreover, high
amount of individual uses Toyota vehicle in the UK due to its status symbol. Along with this,
Toyota contributes towards the society and also works with respect to social and economic
development. Along with this, Toyota executes the fair and open company process with respect

BUSINESS AND BUSINESS ENVIRONMENT 19
to laws and regulations of UK nation. The company makes the regulations for workforces to
obey the traffic policies and also make regulation regarding safe and enjoyable lives (Hamilton,
and Webster, 2015).
Along with this, Toyota has the opportunity to deliver its more products and services which
satisfy the customer and meet their interest of electronic and hybrid vehicle. But, the company
has taken into consideration about the broader wealth gap i.e. threat because it communicates
about reducing middle class. It is assessed that middle class is the key revenue sources for
Toyota Company. Hence, it can be stated that social factor considers the broader wealth gap
which is a major issue in UK nation (Hill, and Jones, 2013).
Technological factors
The advanced technology is exercised by a large number of companies for making premium
goods and services. Hence, company has invested high money for R&D activities. It has
established Corolla model that is paying attention of large consumers due to its modern
characteristics like low maintaining expenses and gas expenditures. In addition to this, Toyota
creates the strategy to go forward as compared to its competitors. It also delivers the products
and services at the affordable rate due to manufacturing automobiles on the bulk amount and
using an assembly line (Hill, et al., 2014). As well as, it uses just in time inventory management
system to decline the cost of operation and production.
Company has possibility to enhance their e-commerce competencies and for developing
intermediary e-commerce service facilitators to sell some parts of product. Moreover, it has
chances to improve their mobile app for gaining customer commitment with trustworthiness
towards their products and services. But, the corporation should identify the major issues related
to a cybercrime such as corporate cyber-espionage. This factor shows that Toyota has technology

BUSINESS AND BUSINESS ENVIRONMENT 20
opportunity in UK nation but the company needs to identify the cybercrime threats by using
appropriate technical security measures (Ivanova, 2015).
Legal Factors
Toyota has low political and legal restriction for extending its products and services into the UK
automobile industry. There is certain regulation has made by UK federal government such as
competition, gas emission law, and consumer protection. Along with this, government regulated
different policies associated with business operation in the automobile market such as vehicle
regulation, compatibility auxiliary manufacturers, and standard issue. As a result, it is effective
for getting business growth (Kapoor, and Kaur, 2017).
It is analyzed that Toyota has the opportunity to expand their business with minimum issues
regarding violation of intellectual property right. Since, governments make policies with respect
to enhancing intellectual property protection. Toyota has the opportunity to offer superior
products because it satisfies and meet the requirements of environmental laws. Moreover, the
corporation can grab the opportunities by delivering safer and satisfactory products and services
as well as the company can get success in the UK nation by meeting the consumer’s legal
requirement (Kew, and Stredwick, 2017). This factor demonstrates that Toyota has major
opportunity to grow in the UK economy.
Environmental Factors
There are a large number of environmental protection policies regulated through government for
providing safety and security to individuals. These policies are effective for company for
enlarging its products as well as facilities in United Kingdom nation. Since, company provides
secure as well as hygienic products and services hence it is beneficial for the success of the
business. For instance, Toyota focuses on environmental concern while manufacturing the car

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like focuses on customer usage, designing, production and product’s disposal. Hence, it can be
stated that products and services associated with Toyota entail the global environment standard
and environmental laws (Kim, et al., 2013). As a result, it improves the company’s value in the
customer’s mind and also supports the people to manufacture eco-friendly products by making
an effective relationship with traders and suppliers.
It is analyzed that Toyota has the opportunity to facilitate a wide range of environmentally
friendly products and services like electric cars which have higher fuel efficiency. It has also an
opportunity to gain its sustainability performance by making development in business procedure
efficiency (Kolios, and Read, 2013). This factor demonstrates the opportunity for a firm with
respect to future growth.
Porter’s five force model
The bargaining power of buyer
Toyota has strong bargaining power of buyers due to large competitors in automobile market
such as McLaren Automotive, Morgan Motor Company, Noble Automotive, and TVR
Automotive Limited. Hence, it can be stated that consumer has many options to purchase the car.
Along with this, Toyota has introduced distinct brands such as Prius model and a hybrid model
that creates the eco-friendly image for Toyota in the automotive industry. This company also
generates the trustworthy brand image because it delivers superior quality products and services.
This company has strong brand loyalty with the customers. However, vast Takata Airbag evokes
in Toyota which has ruined the brand image in the year of 2010 (Kubasek, et. al., 2016). As a
result, it has declined the company’s position in the automobile industry.
In the UK automobile industry, the switching cost is low which means consumer can shift
without difficulty towards the rival companies with no further charge. This shifting occurs while

BUSINESS AND BUSINESS ENVIRONMENT 22
customers purchase a new car. Moreover, a customer of Toyota can easily select the best
alternative as they can find the precise data like product idea from the website of the company. In
addition, substitutes are available in the market but Toyota cars are still effective with respect to
convenience (Mathooko, and Ogutu, 2015). In this analysis, it is stated that bargaining power of
buyer is high hence Toyota should make sure that its product should be matched with the
preference and desired of the potential customers.
The Bargaining Power of Suppliers
Company has strong bargaining power of supplier hence key intention of company is to
encourage existing supplier for dealing to organisation rather than increasing the suppliers.
Since, it is beneficial to influence the competitive price as well as the company can bidding with
their suppliers. In addition, Toyota had approximately 224 suppliers at the company level and
approximately 125 suppliers in the Toyota plant because customers have no more alternatives to
switch to other suppliers. Consequently, it can be stated that bargaining power of supplier is high
(Nikjoo, and Saeedpoor, 2014).
It is analyzed that in the UK automobile industry, there is a limited population of supplier around
the globe which generates the moderate forces and influences Toyota. Moreover, it can be stated
that when suppliers are fewer then the bargaining power of buyer would be higher. But, Toyota
uses a lot of resources which deteriorate the power of supplier. Further, the majority of suppliers
in the international automotive industry cannot provide the possession with power on distributing
the material which reaches as equal to Toyota (Paul, and Wollny, 2014). This force assessment
demonstrates that company is relative alleviated to identify the weak factor and bargaining
power of supplier.
Threat of New Entrants

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Toyota has low threat of new entrant due to low difficulties for new organizations towards
penetrate in automobile market. But, participants have to pay high amount on the facility, safety,
design, motor management, and copious electronic role. Automotive industry should consider the
brand image because it provides benefit to current organization exists into the automobile
industry. Hence, Toyota should invest the high capital amount to persuade the more customers
rather than keeping them (Peppard, and Ward, 2016).
Toyota faces weak threats from new entrants in the automobile industry. The high cost related to
maintaining, growing and establishing the new firms in automobile market have momentous
penetrate restriction. These restrictions can deteriorate new entrant’s effect such as Toyota. This
factor is not as much of effective for Toyota as compared to rivalry and bargaining power of the
customer. Hence, this part of forces shows that company has concerned to grow company with
keeping its position like leading automobile producers in the global level (Pholpuntin, et al.,
2014).
Threat of Substitute products or services
Company has medium forces of Substitute products or services in automobile market due to
availability of substitute goods and services are lofty in this market. Moreover, it is analyzed that
when rate of a vehicle is gained then it will gain demand of its substitutes. Together with, while
gasoline price increases then the customer will lean for buying a car that incorporates less fuel.
Moreover, it is analyzed that an individual give preference for purchasing goods with minimum
operating expenses (Prajogo, 2016). Hence, it can be analyzed that company has medium threats
with its substitutes as it create not as much of fuel consumption vehicles and also has few
operating expenses.

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In a number of situations, it is comparatively effortless for customer to move towards substitutes
in the automobile industry. These substitutes involve the bicycles, public transportation, and
another mode of moving. But, these alternatives can be reasonably accessible in the automotive
industry. In some cases, there is lack of substitute of Toyota’s products like a suburban sector in
which community moving is not easily obtainable. Moreover, these alternatives are not as much
of suitable as compared to using the products and services of Toyota (Rothaermel, 2015). As a
result, it stated that there is the moderate threat of substitution hence Toyota should make easily
reached, reasonable and well-located products and services.
Rivalry among competitors (High)
It can be stated that rivalry among competitor is high in the automotive industry because of
globalization increases in the UK economy. It is also analyzed that there is a tough rivalry in the
automotive industry. Hence, a corporation should build a unique position in the automobile
industry to get competitive advantages. However, it is analyzed that Toyota has lost its unique
position in the automobile industry due to recall. Therefore, the company faces issue to make a
positive and unique image in terms of the eco-friendly segment and dense segments. As a result,
it can be suggested that corporation must invest more in R&D acts for attaining distinctive brand
image amid competitors (Shahabi, et al., 2014).
In addition to this, automobile companies are destructive against each other with respect to
innovation and marketing. Moreover, Toyota has competition with different kinds of companies,
which is distinguished from fuel efficiency, electronics, cost, approach, brand image and other
variables. It can be stated that there is large small companies hence Toyota can only compete to
the small number of large firms (Wetherly, and Otter, 2014). Therefore, it can be stated that

BUSINESS AND BUSINESS ENVIRONMENT 25
company should have inclusive approaches for identifying the well-built factor of aggressive
competition.

BUSINESS AND BUSINESS ENVIRONMENT 26
Task 4
P5: Conduct internal and external analysis of Toyota UK in order to
identify strengths and weaknesses.
Strengths of Toyota
It is recognized brand in international automobile market. The international supply chain of
company is also strong point as it provides elasticity with reduces the uncertainty from market.
Corporation has entailed hasty modernism competencies in the working traditions because it is
crucial to attain competitive benefits in long-term. In addition, it builds brand loyalty by
delivering durable, superior, and reliable products and services to its customers. As a result, it
demonstrates the Toyota’s strength to create a unique position in the international automobile
industry (Wheelen, and Hunger, 2017).
Weaknesses
It is evaluated that international hierarchy organizational structure declines the highest resilience
with district operation. Moreover, privacy in the managerial structure is destabilized because it
reduces the reaction time for addressing emerging matters. Company has implemented enormous
product evokes however it can be destabilized growth of company. Since, recall procedure get
through capacity of business that is exercised to allocate the product like a substitute (Wild, et.
al., 2014). Toyota has faced the financial crisis and declining revenue due to the unstable
political condition. It is also determined by the international importers.
Opportunities
There is a number of developing countries such as India, China and Brazil demonstrate the
opportunities for Toyota to gain its revenue by penetrating into these markets. In addition, the
current trend of increasing demand and concern related to advanced electronics and higher fuel

BUSINESS AND BUSINESS ENVIRONMENT 27
efficiency depicts the higher opportunity for Toyota. In such case, the company has to focus on
the innovation in the business operation ( Zalengera, et al., 2014).
Threats
Toyota faces the competition threat due to low-cost automobiles such as Chinese, Korean and
Indian producers because it operates in the international marketplace. Moreover, Toyota has a
threat with competitors due to quick innovation in the global automobile market such as General
Motors, Ford, and Honda. As a result, Toyota should try to get competitive benefits by making
innovation in operation. Toyota is particularly deal in the UK hence euro appreciation can create
difficulties to export the vehicle to other nations (Wheelen, and Hunger, 2017).
P6: Explain how strengths and weaknesses interrelate with external
macro factors.
SO Strategies
Company has a leading place in worldwide because it uses the effective resources for investing
in developing nations like China, India, and Brazil in order to get competitive benefits.
Moreover, the company can develop more new products in order to generate a positive image in
the customer’s mind. As a result, it would gain demand for new products and services. The
company can also penetrate into the existing market via using advanced technology and
customer-centric strategy (Peppard, and Ward, 2016). This company is a strong international
market leader because it facilitates the advantages to Toyota such as gain demand and profits in
the automobile industry.
WO Strategies
Toyota can facilitate the innovative products and services to overcome the losses in revenue as
well as prevent from adverse impact on brand image. The company can also exercise the cost-
effective approach to gain the demand of the customer. It should also use optimum utilization of

BUSINESS AND BUSINESS ENVIRONMENT 28
resources strategy as there will need to make less effort for performing the operating procedure,
especially, in that nations in which material is cost-effective (Mathooko, and Ogutu, 2015).
ST Strategies
Company has a threat with market expansion in another nation causes diminishing value of euro.
However, Toyota should shift their certain business process in other nation to gain competitive
advantages. It also facilitates the innovative products and services which can be effective to
avoid the increase in fuel price. It also offers the wide range of alternatives which delivers the
added value for its customers. Along with this, Toyota’s products and services are recognized for
its resilience, modernization, and superiority (Kubasek, et. al., 2016). Consequently, it can
reduce the price as compared to its competitors in the automobile industry.
WT Strategies
The feasible strategy is used by Toyota in which certain production of business operation has
moved towards another nation because it is less attracted by appreciation in Euro. In addition, the
company can improve its financial performance that would be influenced by stability and
inconsistency in political and economic condition. It is also analyzed that the consequences of
diffusion in automobile industry can be overcome by emphasizing on a certain segment (Kim, et
al., 2013). Moreover, Toyota can deliver the superior products and services so as a customer
would be able to afford expensive and high standard products and services.
Reflective analysis
As per the above interpretation, I have gained my understanding about the impact of external and
internal wide-ranging environmental factors on the performance of the corporation. In such
manner, I have developed my understanding about a microenvironmental factor which may
affect the business operation of Toyota. These factors are employees, competitors, shareholders,

BUSINESS AND BUSINESS ENVIRONMENT 29
customers, and suppliers. Along with this, there are large numbers of external factors that have a
negative impact on the performance of Toyota. These factors are political, economic, social,
technological, legal and environmental forces (Kapoor, and Kaur, 2017). I have learned that
company must emphasize on these macro-environmental forces to enhance the effectiveness and
efficiency of the business process.
It can be analyzed that market trend analysis is required to influence the large end consumers
with respect to their goods and services. Consequently, this can be effective for mine to build
base of customer for corporation. Furthermore, it is observed that external with internal forces
have favorable or unfavorable impact on corporation condition. Therefore, an organization must
use resilience strategy to make rapid changes because macro-environmental factor may vary
frequently.
In addition, I have pointed that Toyota exercises innovative process with advanced technology
by addressing the macro-environmental forces that are effective to enhance the business
operation. In addition, I have improved my decision-making skills by increasing the knowledge
in the internal factor of the corporation. Hence, I am able to deal with the macro-environmental
factor. It can be determined that company’s strength enables them to make an alteration in
business operation as it would be beneficial to get competitive benefits in the automobile
industry.
Along with this, it is assessed that customers emphasize to get the healthy lifestyle which prone
to gain customer’s demand. A corporation can gain its sales by considering needs and desires of
the customer in its policy as well as it facilitates them to attain the long-term objective (Hill, et.
al., 2014). I have analyzed that strategy of Toyota support me to make a judgment within the
automotive industry. In such case, it is analyzed that Toyota offers the durable, superior and

BUSINESS AND BUSINESS ENVIRONMENT 30
reliable products and services to enhance its financial condition. I have increased my innovation
skill by gaining knowledge about online tools. In such case, it is evaluated that Toyota exercises
online method for selling their goods with delivering facilities because it can favorablly affect
the business function.
It can be determined that Toyota has enhanced its company’s productivity by providing a
superior car to its customer. As a result, it is effective to build a positive image in the mind of the
customer (Grant, 2016). Moreover, it is assessed that corporation acts worldwide that are
effective for promoting the brand at high extent. Hence, it can be advantageous for mine to
increase knowledge about how to improve the business process. In contrast to this, I have
observed that company has hierarchy organizational structure which may decline the flexibility
at the workplace. Hence, the corporation must increase the resources to deal with the macro-
environmental factor.
Along with this, I have improved my knowledge regarding value-added services. I have observed
that Toyota facilitates the added value to their customers by producing the cars according to the
customer’s preference. As a result, it can be stated that product of Toyota cannot be imitated by
its key market players. I have also pointed that Toyota emphasizes on making a rapid alteration
in its technology such as considering machine intensive technology as compared to using labor-
intensive technology to create successful business procedure within an organization.
Consequently, it enabled the company to increase its sales.
It can be stated that this report is beneficial for me to improve my leadership skill via addressing
the approach of Toyota. For instance, it emphasizes on creating a team for employees and
improves their efficiency. Consequently, it is effective for enhancing the satisfaction extent
among customers. It is beneficial for me to enhance my professional as well as personal skills as

BUSINESS AND BUSINESS ENVIRONMENT 31
it has developed my understanding in different fields. It also enabled me to develop my career in
the public, private and non-profit corporation in future.

BUSINESS AND BUSINESS ENVIRONMENT 32
Conclusion
As per the above interpretation, it can be concluded that there are distinct kinds of a corporation
like Toyota, Vodafone, and St. John Ambulance. These companies are enabled to meet their
vision, mission, and objectives by using the different business function. It can be evaluated that
there are different kinds of organization that is interrelated in terms of their size, business
objectives, and scope. Moreover, there are different kinds of companies which are associated
with their objectives and organizational structure.
It can be also summarised that there is a large number of external forces which have an impact
on the business operation named political, social, technological, ecological, environmental and
legal. Along with this, it can be evaluated that Porter's five force model is used by the company
to assess the competitiveness of the automotive industry. It is assessed that bargaining power of
customer is strong while the threat of new entrant is weak which is beneficial in terms of
expanding the business. In the last, it can be concluded that there are certain internal; and an
external factor which has an impact on the business operation named strength, weakness,
opportunity, and threats.

BUSINESS AND BUSINESS ENVIRONMENT 33
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