Business and the Business Environment

This document explores the impact of the business environment on Toyota, focusing on the political, economic, social, technological, environmental, and legal factors. It includes a PESTLE analysis of Toyota and a SWOT analysis to evaluate the company's strengths, weaknesses, opportunities, and threats. The document also reflects on the key findings and their impact on decision-making processes.

BUSINESS
AND THE
BUSINESS
ENVIRONMENT

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Table of Contents
INTRODUCTION ..........................................................................................................................2
P1 Pestle analaysis of Toyota .........................................................................................................3
P2 Swot analysis.............................................................................................................................4
P3 Reflection on the key findings as well as evaulate how they impact the decision making
process..............................................................................................................................................5
CONCLUSION ...................................................................................................................................5
REFERENCES ....................................................................................................................................6
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·INTRODUCTION
Business Environment is consider as a collection of the internal as well as external factors
for examples employees, expecations, supply and demand ,clients, suppliers ,economic
changes,social trends ,innovation in technology and many more (Hamilton and
Webster,2018) .These are the factors that affects the functions of the firm as well asalso determines
that how a firm works direclty or indireclty. Present report lay emphasis on the Toyota company,it
was founded through Kiihiro Toyoda within 1937.It creates its first product known as type A engine
and also made first passenger car within 1936. Furhermore it highlights on various macro
environment factors by using pestle analysis as it hghlights on the positve and negative impacts of
the firm. It also lay empahsis on the SWOT analsysis of the company that determines strengths and
weakness . It also presents a critical refelction that involves the key findings and also evalution on
the impact on the cesion making process.
l壱P1 Pestle analaysis of Toyota
Politcal - Toyota has expanded its various countries to fullfill the demands of the venhcle in the
year 1992. Politcal factors' importance have kept growing day by day b y with the increase in the
golablisation. The Politcal stability of the tyota totally depends on the government and its policies
and also compare it with the intenrtional brands that will able to do business withi the country.
Nations who are in a state of the polical turmoil are not conisder as the suitable. Govenrment
policies as well as red tape too have an impact on the business' profit.
Economic – The econmic recession is past and the world economy is growing day by day as the
regions of the Asia are more focused on this region for higher profits and faster growth.The
situtions is not same for all the countries as somer of the nations is still facing the economic
slowdown. As economic situations focuses on the higher level of the employment that turn into
the higher purchasing power regarding consumers . Here the higher prucahing power of the public
meansa that the better sales and profits regarding the global brands for example Toytoa.
Social – There is a major impact on the social as well as cultral trends regeding on the sales of the
interentional brands . Here the brand is to focuses on the localization to connect woth the local
consuemrs within the regional markets. Nowadssys people are more focused on the environmt
friedkly as well as electrical vehicles. It is heard that the firm is planning to jump into the mass
prodution regeding the electric vehicles by the year 2020. It can also able to produce a hybrid
vehicles such as 'Toyota Hybrid Vehicles'' that reached the sales around 8.90 million units as on
the March 31,2016.

Technological – Technology is growing fats day by day .The automobike firm like toyota based on
the Technology as it plays a crucial role as well as affects the brand's popularity. Brands like
topypta can inesed heavily on the technology as cisnumers also want to bu some innnovate
venicles.Cars that are low on the fuel consumption as well as environment influence have the
grown popularity day by day. To engage the customers social media has played a crucial role and
technology has consider as the crucial in the marketing tool.
Environment- It is consider as an crucial for all the brands as well as consumers. They are looking
for the brands that are consider as more environment friendly as the brands hhave possses the
higher popularity as well as better image .Toyota are more investing in the sustainbility. It winning
a reward for the Vehicle Mirai to emisson regarding reduction. They also undegone the new
vehicles reduces Carbon di oxide around 90 percent as comapreto the 2010 levels. It also promotes
the next genration venhcles that have the low or Zero carbon di oxide emissions.
Legal- It assures the brands tha continue to do business more sucessfully as well as without nay
worry. Such as from labour laws to the quality realted laws and also from various laws that differ
fromn one country to the other.Toyota deals with the focusing on th safety of the passenges as well
as implebted various internal controls to assure the compliance.
l壱 P2 Swot analysis
SWOT analysis is a kind of strategic planning tool that can be used by organizations to
conduct a situational analysis of the organization. It helps in evaluating strengths, weaknesses,
opportunities and threats of an organization. SWOT analysis of Toyota will help the organization in
understanding all the factors that help Toyota in its growth and factors that can work as a hindrance
or can create a problem for them in the future.
Strengths
Some of the main strengths of Toyota are as follows:
Toyota is one of those companies who have the strongest goodwill and brand image in the
market. Apart from this company is the one who adapt the change rapidly.
Weakness-
The structure of the company is hierarchical which reduces the amount of flexibility of
operations. The response time is also high as there is a lot of secrecy in the culture of the company
which increases the no. of problems. In 2009 the company called many cars due to some technical
issue at the time of production which has affected their image.
Opportunities-

Rate of development is high in the market which creates the opportunity for the company to
increase their revenues. The company has also the opportunity to change their portfolio and offer
electric cars as it is the current the demand of the market.
Threats-
There are many companies who offer their prices in low cost which increases the level of
threat that the company is facing. There are many companies who comes in the list of rapid
innovators such as Ford, general motors, Honda they are also a threat for the company. To reduce
the level of threat company has to increase the competitive advantage with the help of innovation.
Interrelationship
Pest focuses on the external environmental of the firm while the Swot focuses on both the internet
and external factors
Pest focuses on the legal and political conditions such as taxes, political issues ,employment laws
and many more .Swot has a more balanced approach regarding the firm as it consider the internal
factors and also the external factors over which it has no control but at the same time it is well
prepared for it.
·P3 Reflection on the key findings as well as evaulate how they impact the decision making
process
·As we know that it is crucial to highlights the impacts of the pestle analysis as if the govenrment
changes the taxes polices than the toyota ca be affected by that such as the Brexit polices in the
Whole European affects negativley on the business.
·Econmic issues such as Recssion in a nation that hit toyota as people are not in the position to buy
cars. As per my view, sales can decreased that impacts the desio power of the firm as now the
company has to review their pricing strtegy as per the economy condtions of the nations.
·For examples changing the fuel prices can leads to change the needs of the people as now people
wants small or electric cars that are fuel efficent as per my point of view .
·Due to the goodwill of the firm ,it creates the brand image to a high level that makes its more
populoess and attract the consumers towards it.
·
·CONCLUSION
From the above study it had been sumarised that Politcal stability toyota depends on the
government compare it with the intenrtional brandss economic situations focuses on the higher
level of the employment social as well as cultral trends focuses on the localization to connect woth
the local consumers within the regional markets . Technology plays a crucial role as it affects the

brand's popularity . Such as Cars that are low on the fuel consumption have grown popularity day
by day. Toyota investing more in environment friendly vehicles and also promotes low or Zero
carbon di oxide emissions. Toyota deals with the focusing on th safety of the passenges as it has the
strongest goodwill .Company is hierarchical there is a lot of secrecy in the culture technical issue
affected their image. Here the development is high to change their portfolio and current demand is
high. To increase the competitive advantage by the help of the innovation.
·REFERENCES
Books and Journals
Andrews, J.C. and Shimp, T.A., 2017. Advertising, promotion, and other aspects of integrated
marketing communications. Nelson Education.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Khan, F.R.M., 2017. Business opportunities of ecological packaging: the Biobag® shopping bag.
Li, Z., 2018. Business Network Positioning Analysis of Toyota. American Journal of Industrial and
Business Management, 8(07), p.1693.
Monden, Y., 2019. Toyota management system: Linking the seven key functional areas. Routledge.
(Hamilton and Webster,2018)
(Li, 2018)
(Andrews. and Shimp, 2017)
(Monden, 2019)
(Khan, 2017)