Business Environment Of Toyota
Added on 2020-12-18
32 Pages8526 Words399 Views
Professional DevelopmentLaw
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Business and the BusinessEnvironment1
Table of ContentsINTRODUCTION...........................................................................................................................3LO1..................................................................................................................................................3P1 The different types and purposes of organizations; public, private and voluntary sectors andlegal structures.............................................................................................................................3Public organization......................................................................................................................3P2 The size and scope of a range of different types of organizations..........................................6LO 2...............................................................................................................................................10P3 The relationship between different organizational functions and how they link toorganizational objectives and structure......................................................................................10LO3................................................................................................................................................13Constructive and unconstructive impacts the macro environment has upon trade....................13LO 4...............................................................................................................................................17P5 The internal strengths and weaknesses of specific businesses and explain theirinterrelationship with external macro factors............................................................................17P6 The strengths and weaknesses interrelates with external macro factors...............................17CONCLUSION .............................................................................................................................19REFERENCES..............................................................................................................................20PRESENTATION..........................................................................................................................212
INTRODUCTIONThe organization compromises of people who are working together with a motive ofserving a common purpose or goal related to business. The managers play an important role bytaking up various roles and responsibilities such as planning, synchronization, frameworkassortment, organizing, array, operation, logistics and administration. Toyota is a multinationalcompany that deals in automobiles which was launched in 1937 in Japan. The company was fastexpanding and has already spread to different countries like UK. Off late the company iswitnessing change in the trading environment in the international scenarios. As the prices of thefuel have increased a slowdown in the demand of the cars is seen due to which the prices of thecars are reduced. Although a considerable increase in the cost of the spare parts and other vehicleparts is seen from the previous year (Sekaran and Bougie, 2016). The company has adoptedinnovative production techniques and due to the value of money the company is able to maintainits stand in the international markets. The incessant and unremitting innovative and enhancedstrategies adopted by the company which helps it to acquire a reliable position in theinternational automobile markets. Keeping the recent competitive scene into consideration theresearcher has carried out the study to help Toyota UK to learn about the various functions of theorganizations and organizational framework of other organizations. LO1P1 The different types and purposes of organizations; public, private and voluntary sectors andlegal structuresPublic organizationThe trade or business is termed to be a translatable procedure of talents and goods andarticles which are produced or manufactured as per the demand of the consumers or deliverservices as per the demand of the consumers. The operational structure of the business consistsof varied elements like clientele, consumers, patrons, capital, assets, competitors, suppliers,distributors, commerce trends, alternatives, convention, administration commotion, the financialsystem, populace and demography and modernization and technical growth and expansion.Additionally it is cited that the elements like human resource, physical resources and financial3
resources form a vital constituent of the companies. The multinational companies like Toyotacan incur competitive benefits by monitoring the cost of the product and services, quality ofproduct and services and the effective marketing strategies. In addition to that it has also beenfound that the trade proportions of the company have been duly impacted by a number of otherfactors like technological advancements and government involvement and interference. Legal structure: The role of the customers has also played an important role informulating the course of actions of the company to bring about growth and expansion of thecompany’s prospects. The competition in the segment of the automobile industry is basicallyfound to be of two types that is direct competition and the other is indirect competition. Apartfrom direct competitions there exists competition between the other types of competitors as wellwho belong to the category of private or public ownership group. About five kinds oforganizations that exists which held a direct or indirect competition with any of the organizationsthat belong to any of the following segments. The other organizations are private institute, publicinstitute, government institutes, co-operatives institutes, charitable institutes and Non- profitorganization (NGOs.) Hence it can be said legal strict structure of public organization are fullygoverned and controlled by Government and legal authorities who hold 51 % of the private shareliable for public listed organization. Private Organization The private institute is one where the decision making power and the control is in privatehands either by a group of people or sole individuals. The main aim of such organization is toearn profits. Sainsbury is regarded as a prominent private organization that deals in theinternational markets (Sekaran and Bougie, 2016). The private organizations are of differentkinds such as individual business holders, partnership firms, limited companies, cooperatives orgovernmental units. The different business organization carry out activities that are necessary tobe met the different needs and requirements of the customers on behalf of the citizens for thewell-being of all the public and population. National Health Service is among the most famouspublic organizations that is operational in England. Many of the organizations incorporateinvoluntary activities which are functional into the operating systems of the organizations arecharity, donations, and contributions. Such organizations that focus on the conductions of socialwork and social welfare activities are considered to be non-profit organizations and non –4
governmental organizations. Cancer research is regarded as one of the most popular voluntarynon-profit organizations that is functional in UK. Legal structure: The private organization mainly operates their business for earning theprofit by giving products and services of the customers. The main motive of the privateorganization is to earn profits and not to provide service to the customers. Hence the legalstructure of private authority and government has no role to make a control of their functions.The Partnership Firms The multinational trading units like Toyota enclose the functionaries of differentsegments like human resource, vision, mission administration and capital which are collaboratedtogether to produce quality products and services. The trade motive of the global companyToyota is based on a number of factors like market gains, market allocate, technologicalcompetence and corporate communal accountability. It is cited that Toyota is generally anindividual trading unit, hence it can organizes its business activities and develop them withoutthe involvement of any legal complications. The proprietor of the company is the head of thecompany and takes the overall charge of the company and its all the business activities. Theentire functionaries of the global company Toyota is managed by a set of managers which has itsheadquarter located in Japan. The administration has the liberty to select the working conditionsas well as time constraints for the functionaries of the company. The human resource departmentof the organization has created an affluent environment to ensure that a healthy and closerelationship is developed between the management and the marketing group and working forcewhich helps to establish a close relationship with the customers. It is found that the entire tradingconductions and administrative responsibilities is carried out by the high level administrationofficers in comparison to the employees contribution. The company posses’ unlimited liabilityand credits upon itself which possess a greater threat to the interest of the owners, investors andstakeholders of the company. The company is experiencing a tough competition with otherautomobile companies that are functional in the open markets (Sekaran and Bougie, 2016).Toyota faces direct competition with other multinational companies like Volkswagen group thatare operational in the international markets. The difficulty level for the individual trading units tobring about additional increase in the collection of capital is far more than the other5
organizations. The top grade officials work extra hard and devote a lot of time to bring aboutnew business to the company. A scarcity in the permanence in the company is observed. Legal structure: The partnership firms is a cooperation of more than two people whomutully agreed to share their profit and loss as per the agreed contract. They perform unlimitedlibality and operstions in rder to succseesful implenmtain f their leagal as well as functionalactivity. A partnership is iperated as per the Partnership Agreement 1947 which is governed andcontrolled by the government. Charitable Organization The charitable organization is considered as non voluntary organization, which has mainmotive to provide service to the people and not to earn the profit. For example NGO, charitabletrust like orphanage, Women charitable trust old age homes etc are considered in this type oforganization. Legal structure : In order to analyze the legal structure of the charitable organization itcan be said that these types of organization is operated and based on donation , governmentfunds, financial support given by financial support authorities which has main motive to provideand give financial support , needful support to the people. Hence it can be said that the wholeportion of the charitable organization are fully controlled by the government or charitableauthorities.P2 The size and scope of a range of different types of organizationsThe prevalence of about five kinds of organizations is observed in the operational levelsof the markets which are private sector companies, public sector companies, cooperativecompanies, charitable trusts organizations and non-profit organizations (NGO). Public Limited organization: It is cited that the organizations which belong to the publicof limited organizations are generally a form of corporate associations who follow the legalaspects which are applicable to its own right and identity. The possessions and the otherbelongings of the company are owned by the company itself and not by its members oremployees. In the same way the belongings acclaimed by the employees or the members areowned by the employees or members and not by the company. Hence the legal responsibility and6
accountability of the individual is also restricted in nature and limited to the individual. Theformulation of limited companies compromises of two or more persons wherein the concernedpersons involved in the partnership need to provide certain documents like memo of organizationor products of organization that are necessary for require to be submitted for properincorporation of the limited firm. Hence, the size of the public limited company is big with aminimum share capital of £50,000.Private Limited Organization: Whereas in the case of private limited organizations theorganizations must possess at least one stakeholder wherein the organization can add hugenumbers of shares for the public use later on and it contain between 2-200 shareholders. In thecompany every shareholders invest funds. How big the company is depends from that how manyshareholders the company have and how big their investments are. The organization alsopossesses the liberty to share its shares with the business associates who are linked with theorganization and have good business relations with the organization. It is also cited that some ofthe public limited companies have also been found to start incorporating their shares and issuingIPOs for the company (Sekaran and Bougie, 2016). Even the global company Toyota has alsoinitiated its business and trading activities as a public limited organization in the year 1937. Thethree major stakeholders of Toyota are TYO, LSE and NYSE with each branch having its ownindividual director. The company is expanding at a large pace and currently is a majorcontributor of about $ 1.5 tn shared revenue in UK. The Toyota UK company has madeprovisions for the general issuing of the shares of the company where in the general public couldpurchase and sale the shares of Toyota company. The company has formulated different sets ofrules and regulations that is followed and maintained by the company in its operational andtrading profile to be considered as public limited company. The company is well registered withthe London Stock Exchange so that the general public could deal in the purchase and sale ofshares of the company. The London Stock exchange follows stringent rules and regulations and keeps a watch onall the activities of the organizations that are listed with it. The company held general meetingswith its stakeholders which is organizes annually every year. The global company Toyotarenders most its activities and conductions by the Directors of the company. The members of theBoard of Directors and the shareholders take the decision to appoint a certain responsible person7
who can take important decisions like those related to investments marketing or operationsdecisions on the behalf of the directors and shareholders. Three kinds of public organizationsexists which are small scale public organizations, medium sized public organizations and largescale public organizations. It is observed that small scale public organizations find it difficult tosustain their stance in the open markets due to high incidence of heavy competition with thelarge public organizations and the small public organizations are functional in very smallmarkets where little scope is there for the organization to alter its administrative policies. Usuallyit is found that in such small scale public organizations entrance of any competitor damages thetrade of the small scale public organizations considerably (Sekaran and Bougie, 2016). The smallscale public organizations do not possess sufficient resources to protect themselves from thecompetition that is prevalent due to new entrance of the competitors in the markets. Consequently large scale public organizations are well organized and well defined and inan able position to safeguard their interests from the new emergent competitors by creating pricehike to sustain in the market. However it is observed that medium sized public organizationshave better working conditions than the small scale public organizations. The medium sizedpublic organizations are experienced in serving to a large markets needs and bring aboutconstructive changes into the operations of the company to meet the requirements of the markets.Even they need to safeguard their own interest from the emerging competitors in the marketespecially the large player’s existing in the markets. The organizations can be classified intothree segments on the basis of the products produced by the organizations. They are primary,secondary and tertiary. Primary organizations deal in the production of goods and services whichrequire raw material either natural or man- made which are transferred to the secondary industryfor further process wherein the goods produced by the primary industry are processed andconverted into finished products which is then transferred to the tertiary industry which operatesas retailer and sale the product and provides services to the end users. The scope of the productdepends upon the type of product the organization is producing like the Coca Cola Company isproducing soft drink and all kinds of beverages for the public use whereas OXFAM is acharitable organization that safeguards the resources from the large market competitions. Each company has its own set of vision, aims, goals and targets which helps the companyto stay focused and improve its performance. Vision is the position the company aspires to8
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