(DOC) Factors Influencing the Business Environment of Toyota

Running head: BUSINESS ENVIRONMENT
Business Environment
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BUSINESS ENVIRONMENT1
Table of Contents
Introduction................................................................................................................................2
Macro and Micro factors........................................................................................................2
Micro factors..........................................................................................................................2
Macro factors.........................................................................................................................3
Recommendations......................................................................................................................3
Conclusion..................................................................................................................................3
REFERENCES...........................................................................................................................4

BUSINESS ENVIRONMENT2
Introduction
Business models such as SWOT, Porter’s five forces can be used to arrive at strategic
decisions. The paper will critically evaluate the performance of Toyota Motors with respect
to Micro and Macro Environmental factors. The followings sections will critically evaluate
the scope operations of the company with respect to the Micro and Macro environmental
factors.
Macro and Micro factors
There are various factors that companies have to adhere to in order to sustain
themselves in the short run and long run (Muda 2018). Toyota has been recognised all over
the world for the quality of the vehicles that they offer in the automotive industries
throughout the globe (Wilberforce 2017). The company was founded in 1965 and since then
they abide by the Toyota Production System. Kaizen, lean and agile operations are some
values that are followed by the company while they operate throughout the globe.
Micro factors
The micro factors affecting the operations of an organisation can be determined with the help
of a SWOT analysis. Following is the SWOT analysis of Toyota;
Strength: Efficient Operations management with the help of the TPS. Effective practices in
the form of Lean operation and agile manufacturing.
Weakness: High expenditure in research and development.
Opportunity: Capitalizing on issues such as environmental sustainability and innovative
technology.
Threats: Highly competitive automotive industry.