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Business and the Business Environment - Toyota

   

Added on  2020-12-18

14 Pages3842 Words173 Views
Business and the businessenvironment
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Table of ContentsINTRODUCTION...........................................................................................................................1LO 1.................................................................................................................................................1Different types and purpose of organisation and legal structure ................................................1Size and scope of different types of organization.......................................................................2Relationship between different organisational functions............................................................4LO 2.................................................................................................................................................5Positive and negative impact of macro environment upon business...........................................5Internal and external analysis of organisation.............................................................................7Interrelationship of macro factors with strength and weaknesses...............................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
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INTRODUCTIONBusiness is a process of making money by purchasing and selling goods or products. Thebusiness environment covers all the factors which affect business activity and its process likecustomers, suppliers, legal factors etc. Toyota is known as world's second largest automotivemanufacture which is founded by kiichiro Toyoda in 1937. It produces more than 10 millionvehicles per year. In the context of chosen study shows different types of organisation accordingto size and scope (Bah and Fang, 2015). Report briefly evaluates functions of the organisationand the interrelation of these functions with the another organisational functions in order toachieve an organisational goal. This study also shows the macro environmental factors and swot analysis of theorganisation which affects organisation. Macro factors like legal factors, economic factors andtechnological factors also influence strengths and weaknesses of Toyota company. Theinterrelationship of macro factors with strengths and weaknesses of firm impact on businessactivities and function by increasing its productivity, maximizing its profits and decreasing saleswhich directly affects decision-making process of organisation.LO 1Different types and purpose of organisation and legal structureAn organisation is a structure of a group of people who has a same purpose and worktogether for achieving that purpose. There are mainly three types of organisation which may bepublic, private and voluntary sector. The legal structure of that organisation is soleproprietorship, partnership and private limited company.Private sector: Private sector are the organisation which is not owned by thegovernment. It may be profit, non-profit and partnership. It usually focuses for their aims andobjectives. The example of private sector organisation is retail stores, credit unions etc. Public sector: Public sector is the organisation which provides public services to people.The example of public services are education and health, policing, roads etc. This organisationare owned and organised by government whose main purpose is to provide the best servicesrather than making a profit (Bull and et.al., 2016).Voluntary sector: Voluntary sector is different from private and public sector because itis not owned by government and also not for earn profit. The purpose of this type of organisation1
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is to give advice and support to those for they work. The another aim of its is to achieve systemicand long-term change. Example: Social welfare organisation, charities, foundations etc.Legal structure- The organisational structure of Toyota corporation is based on several businessoperations of the company. The main aim of this organisational structure of Toyota is to supportits business goals and strategic planning and direction. It has the ability to use this structure asbetter to maximize efficiency.Toyota organisation uses the divisional structure which defines the various patterns intheir processes. It is useful and helpful for company because it uses various products in manyregions. This organisational structure has three main characteristics that are: Global hierarchy,division on product based and geographic division (BV, 2017).Global hierarchy: It is the main characteristic of this structure as it rank their productsaccording to level of importance. It helps and increase the decision-making power of businessunit heads. Company's decision-making processes are becoming less centralised because of thisstructure.Product-based: It is the another feature of this divisional structure of Toyota. It has 4type of divisions that are Lexus international, Toyota no 1 for operation in North America, Japanand Europe, no 2 operations in all other regions and unit centre. In this division it divides theirproducts on the basis of products not on importance. The main aim of this division is to developtheir brands (Chang, 2016).Geographic division : This structure has 8 regional divisions that are China, Asia, Japan,Europe, North America, Africa, East India and Caribbean. This type of division helps Toyota inimproving its products according to regional market conditions.Size and scope of different types of organizationAccording to size and scope there are three types of organisation such as: Small size,medium size and large size of organisation. The types of organisations are Partnership, Soletrader and private limited companies.Sole traders: Sole trader is a type of business which is legal and owned and controlledby a single person. This owner is legally liable for all the profits and loss of the business. Thistype of organisations are easy for managers to set up because it requires a small investment. Thebenefits of this type of organisation is it is very cheap to start and sole proprietor can employothers. It has the direct control over the business which include decision-making, profits etc.2
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