Business Environment: Toyota - PESTLE and SWOT Analysis

This presentation provides a PESTLE analysis of Toyota, focusing on political, economic, technological, environmental, and legal factors. It also includes a SWOT analysis of the company.

BUSINESS AND
BUSINESS
ENVIONMENT

INTRODUCTION
 Business Environment is consider as a collection of the internal as
well as external factors for examples employees, expectations,
supply and demand ,clients, suppliers ,economic changes, social
trends ,innovation in technology and many more .
 . 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.
Furthermore it highlights on various macro environment factors by
using pestle analysis as it highlights on the positive and negative
impacts of the firm. It also lay emphasis on the SWOT analysis of the
company .

Pestle analysis of Toyota
 Political - Toyota has expanded its various countries to fulfil the
demands of the vehicle in the year 1992. Political factors' importance
have kept growing day by day b y with the increase in the globalisation.
The Political stability of the Toyota totally depends on the government
and its policies and also compare it with the intentional brands that will
able to do business within the country. Nations who are in a state of the
pollical turmoil are not consider as the suitable. Government policies
as well as red tape too have an impact on the business' profit.
 Economic – The economic 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 situations is not same
for all the countries as some of the nations is still facing the economic
slowdown.

Cont..
 As economic situations focuses on the higher level of the
employment that turn into the higher purchasing power
regarding consumers . Here the higher purchasing power of
the public means that the better sales and profits regarding
the global brands for example Toyota.
 Technological – Technology is growing fats day by day .The
automobile firm like Toyota based on the Technology as it
plays a crucial role as well as affects the brand's popularity.
Brands like Toyota can increased heavily on the technology as
consumers also want to but some innovate vehicles .

Cont..
 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 have posses
the higher popularity as well as better image .Toyota are more
investing in the sustainability. It winning a reward for the Vehicle
Mirai to emission regarding reduction. They also undergone the
new vehicles reduces Carbon di oxide around 90 percent as
compare to the 2010 levels. It also promotes the next generation
vehicles that have the low or Zero carbon di oxide emissions.
 Legal- It assures the brands that continue to do business more
successfully as well as without nay worry. Such as from labour
laws to the quality related

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.
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.

Cont..
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.

Cont..
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.

THANK YOU

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