Business Environment Of Toyota

Business and the Business
Environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 The different types and purposes of organizations; public, private and voluntary sectors and
legal structures.............................................................................................................................3
Public organization......................................................................................................................3
P2 The size and scope of a range of different types of organizations..........................................6
LO 2...............................................................................................................................................10
P3 The relationship between different organizational functions and how they link to
organizational objectives and structure......................................................................................10
LO3................................................................................................................................................13
Constructive and unconstructive impacts the macro environment has upon trade....................13
LO 4...............................................................................................................................................17
P5 The internal strengths and weaknesses of specific businesses and explain their
interrelationship with external macro factors............................................................................17
P6 The strengths and weaknesses interrelates with external macro factors...............................17
CONCLUSION .............................................................................................................................19
REFERENCES..............................................................................................................................20
PRESENTATION..........................................................................................................................21
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INTRODUCTION
The organization compromises of people who are working together with a motive of
serving a common purpose or goal related to business. The managers play an important role by
taking up various roles and responsibilities such as planning, synchronization, framework
assortment, organizing, array, operation, logistics and administration. Toyota is a multinational
company that deals in automobiles which was launched in 1937 in Japan. The company was fast
expanding and has already spread to different countries like UK. Off late the company is
witnessing change in the trading environment in the international scenarios. As the prices of the
fuel have increased a slowdown in the demand of the cars is seen due to which the prices of the
cars are reduced. Although a considerable increase in the cost of the spare parts and other vehicle
parts is seen from the previous year (Sekaran and Bougie, 2016). The company has adopted
innovative production techniques and due to the value of money the company is able to maintain
its stand in the international markets. The incessant and unremitting innovative and enhanced
strategies adopted by the company which helps it to acquire a reliable position in the
international automobile markets. Keeping the recent competitive scene into consideration the
researcher has carried out the study to help Toyota UK to learn about the various functions of the
organizations and organizational framework of other organizations.
LO1
P1 The different types and purposes of organizations; public, private and voluntary sectors and
legal structures
Public organization
The trade or business is termed to be a translatable procedure of talents and goods and
articles which are produced or manufactured as per the demand of the consumers or deliver
services as per the demand of the consumers. The operational structure of the business consists
of varied elements like clientele, consumers, patrons, capital, assets, competitors, suppliers,
distributors, commerce trends, alternatives, convention, administration commotion, the financial
system, populace and demography and modernization and technical growth and expansion.
Additionally it is cited that the elements like human resource, physical resources and financial
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resources form a vital constituent of the companies. The multinational companies like Toyota
can incur competitive benefits by monitoring the cost of the product and services, quality of
product and services and the effective marketing strategies. In addition to that it has also been
found that the trade proportions of the company have been duly impacted by a number of other
factors like technological advancements and government involvement and interference.
Legal structure: The role of the customers has also played an important role in
formulating the course of actions of the company to bring about growth and expansion of the
company’s prospects. The competition in the segment of the automobile industry is basically
found to be of two types that is direct competition and the other is indirect competition. Apart
from direct competitions there exists competition between the other types of competitors as well
who belong to the category of private or public ownership group. About five kinds of
organizations that exists which held a direct or indirect competition with any of the organizations
that belong to any of the following segments. The other organizations are private institute, public
institute, government institutes, co-operatives institutes, charitable institutes and Non- profit
organization (NGOs.) Hence it can be said legal strict structure of public organization are fully
governed and controlled by Government and legal authorities who hold 51 % of the private share
liable for public listed organization.
Private Organization
The private institute is one where the decision making power and the control is in private
hands either by a group of people or sole individuals. The main aim of such organization is to
earn profits. Sainsbury is regarded as a prominent private organization that deals in the
international markets (Sekaran and Bougie, 2016). The private organizations are of different
kinds such as individual business holders, partnership firms, limited companies, cooperatives or
governmental units. The different business organization carry out activities that are necessary to
be met the different needs and requirements of the customers on behalf of the citizens for the
well-being of all the public and population. National Health Service is among the most famous
public organizations that is operational in England. Many of the organizations incorporate
involuntary activities which are functional into the operating systems of the organizations are
charity, donations, and contributions. Such organizations that focus on the conductions of social
work and social welfare activities are considered to be non-profit organizations and non –
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governmental organizations. Cancer research is regarded as one of the most popular voluntary
non-profit organizations that is functional in UK.
Legal structure: The private organization mainly operates their business for earning the
profit by giving products and services of the customers. The main motive of the private
organization is to earn profits and not to provide service to the customers. Hence the legal
structure 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 different
segments like human resource, vision, mission administration and capital which are collaborated
together to produce quality products and services. The trade motive of the global company
Toyota is based on a number of factors like market gains, market allocate, technological
competence and corporate communal accountability. It is cited that Toyota is generally an
individual trading unit, hence it can organizes its business activities and develop them without
the involvement of any legal complications. The proprietor of the company is the head of the
company and takes the overall charge of the company and its all the business activities. The
entire functionaries of the global company Toyota is managed by a set of managers which has its
headquarter located in Japan. The administration has the liberty to select the working conditions
as well as time constraints for the functionaries of the company. The human resource department
of the organization has created an affluent environment to ensure that a healthy and close
relationship is developed between the management and the marketing group and working force
which helps to establish a close relationship with the customers. It is found that the entire trading
conductions and administrative responsibilities is carried out by the high level administration
officers in comparison to the employees contribution. The company posses’ unlimited liability
and credits upon itself which possess a greater threat to the interest of the owners, investors and
stakeholders of the company. The company is experiencing a tough competition with other
automobile companies that are functional in the open markets (Sekaran and Bougie, 2016).
Toyota faces direct competition with other multinational companies like Volkswagen group that
are operational in the international markets. The difficulty level for the individual trading units to
bring about additional increase in the collection of capital is far more than the other
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organizations. The top grade officials work extra hard and devote a lot of time to bring about
new 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 who
mutully agreed to share their profit and loss as per the agreed contract. They perform unlimited
libality and operstions in rder to succseesful implenmtain f their leagal as well as functional
activity. A partnership is iperated as per the Partnership Agreement 1947 which is governed and
controlled by the government.
Charitable Organization
The charitable organization is considered as non voluntary organization, which has main
motive to provide service to the people and not to earn the profit. For example NGO, charitable
trust like orphanage, Women charitable trust old age homes etc are considered in this type of
organization.
Legal structure : In order to analyze the legal structure of the charitable organization it
can be said that these types of organization is operated and based on donation , government
funds, financial support given by financial support authorities which has main motive to provide
and give financial support , needful support to the people. Hence it can be said that the whole
portion of the charitable organization are fully controlled by the government or charitable
authorities.
P2 The size and scope of a range of different types of organizations
The prevalence of about five kinds of organizations is observed in the operational levels
of the markets which are private sector companies, public sector companies, cooperative
companies, charitable trusts organizations and non-profit organizations (NGO).
Public Limited organization: It is cited that the organizations which belong to the public
of limited organizations are generally a form of corporate associations who follow the legal
aspects which are applicable to its own right and identity. The possessions and the other
belongings of the company are owned by the company itself and not by its members or
employees. In the same way the belongings acclaimed by the employees or the members are
owned by the employees or members and not by the company. Hence the legal responsibility and
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accountability of the individual is also restricted in nature and limited to the individual. The
formulation of limited companies compromises of two or more persons wherein the concerned
persons involved in the partnership need to provide certain documents like memo of organization
or products of organization that are necessary for require to be submitted for proper
incorporation of the limited firm. Hence, the size of the public limited company is big with a
minimum share capital of £50,000.
Private Limited Organization: Whereas in the case of private limited organizations the
organizations must possess at least one stakeholder wherein the organization can add huge
numbers of shares for the public use later on and it contain between 2-200 shareholders. In the
company every shareholders invest funds. How big the company is depends from that how many
shareholders the company have and how big their investments are. The organization also
possesses the liberty to share its shares with the business associates who are linked with the
organization and have good business relations with the organization. It is also cited that some of
the public limited companies have also been found to start incorporating their shares and issuing
IPOs for the company (Sekaran and Bougie, 2016). Even the global company Toyota has also
initiated its business and trading activities as a public limited organization in the year 1937. The
three major stakeholders of Toyota are TYO, LSE and NYSE with each branch having its own
individual director. The company is expanding at a large pace and currently is a major
contributor of about $ 1.5 tn shared revenue in UK. The Toyota UK company has made
provisions for the general issuing of the shares of the company where in the general public could
purchase and sale the shares of Toyota company. The company has formulated different sets of
rules and regulations that is followed and maintained by the company in its operational and
trading profile to be considered as public limited company. The company is well registered with
the London Stock Exchange so that the general public could deal in the purchase and sale of
shares of the company.
The London Stock exchange follows stringent rules and regulations and keeps a watch on
all the activities of the organizations that are listed with it. The company held general meetings
with its stakeholders which is organizes annually every year. The global company Toyota
renders most its activities and conductions by the Directors of the company. The members of the
Board of Directors and the shareholders take the decision to appoint a certain responsible person
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who can take important decisions like those related to investments marketing or operations
decisions on the behalf of the directors and shareholders. Three kinds of public organizations
exists which are small scale public organizations, medium sized public organizations and large
scale public organizations. It is observed that small scale public organizations find it difficult to
sustain their stance in the open markets due to high incidence of heavy competition with the
large public organizations and the small public organizations are functional in very small
markets where little scope is there for the organization to alter its administrative policies. Usually
it is found that in such small scale public organizations entrance of any competitor damages the
trade of the small scale public organizations considerably (Sekaran and Bougie, 2016). The small
scale public organizations do not possess sufficient resources to protect themselves from the
competition 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 in
an able position to safeguard their interests from the new emergent competitors by creating price
hike to sustain in the market. However it is observed that medium sized public organizations
have better working conditions than the small scale public organizations. The medium sized
public organizations are experienced in serving to a large markets needs and bring about
constructive 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 market
especially the large player’s existing in the markets. The organizations can be classified into
three 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 which
require raw material either natural or man- made which are transferred to the secondary industry
for further process wherein the goods produced by the primary industry are processed and
converted into finished products which is then transferred to the tertiary industry which operates
as retailer and sale the product and provides services to the end users. The scope of the product
depends upon the type of product the organization is producing like the Coca Cola Company is
producing soft drink and all kinds of beverages for the public use whereas OXFAM is a
charitable 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 company
to stay focused and improve its performance. Vision is the position the company aspires to
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achieve. Mission is the motive and the commandment of the company. The mission of the
company formulates the scope and sets objectives for the company. Objectives are the more
concentrated and short targets set by the company (Sekaran and Bougie, 2016). However the
functionaries of the company highly depend upon the stakeholders, shareholders and the
investors view. Stakeholders are the individuals who are concerned with the working of the
organization as their own interest relies on the growth of the company and are highly affected by
the conductions of the company. The business working environment of the global Toyota
Company also compromises of varied attributes which govern the course of functionaries of the
organization. The business environment of the Toyota Company highly depends upon the
customers and keeps on changing as per the change in customer’s tastes. The conductions and
the changes are not predictable in nature and the workings of the operational system are based
upon macro environment forces and attributes. Hence, it can be said that the size and scope of
the organization are as follows:
Businesses: The Corporation is an enterprise which can comprise between 2-2 hundred
shareholders. In the agency every shareholders make investments price range. How massive the
company is relies upon from that how many shareholders the enterprise have and how large their
investments are. The business enterprise may be very small like a’Nurat Ltd’ which is a small
distribution organisation, can be medium length like a ‘Kingsmill’ and can be world famous like
‘Coca-Cola’
Franchises: A franchise is a gadget wherein entrepreneurs buy the rights to open and run a
enterprise from a larger corporation. Franchising inside the country is significant and is a chief
monetary powerhouse. One out of twelve retail corporations inside the country. Are franchised
and 8 million people are hired in a franchised commercial enterprise.
Charity: A charitable enterprise is a form of non-profit organisation (NPO). It differs from
different forms of NPOs in that it centers on philanthropic goals in addition to social well-being
(e.g. charitable, instructional, religious, or different activities serving the public interest or
commonplace precise). Charitable organizations regularly rely partially on donations from for-
income-corporations. Such donations to charitable organizations represent a primary shape of
company philanthropy.
Micro enterprises:
The micro enterprises are the small business where there are small numbers of employee as well
as it needed samll amount of capital for starting the business.
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 Size: Micro scale firms have less than 10 subordinates and its turnover is less than €2
million. Scope: Micro enterprises require to enhnace market position, for which wide range of
business operations are conducted. Along this, sophisticated technologies are
implemented in system for utilisation of resources properly.
Small enterprises:
The small entraprises are those, where investment in plant and machieney is more than 25
million but it do not exceed 5 cores Size: Small firms have less than 50 staff members and their turnover is €10 million. Scope: Small enterprises scope is to become increase business and market share. Along
this, they require to become medium scale firm with aid of modification in system.
Medium enterprises:
These mediam entraprises are those, who invest there funds in plant and machieney is more than
5 crore but do not exceed there funds upto 10 cores. Size: Medium scale firms require to have employees not above than 250 their turnover is
€50 million.
 Scope: Medium enterprises scope is to expand business and open outlets in different
nation to have large market reach and customer base. This helps firm to transform into
large scale to enhance sales volume and profitability.
LO 2
P3 The relationship between different organizational functions and how they link to
organizational objectives and structure
Marketing function – it includes various marketing activities such as advertisement, using
print media, publicity, making personal relationship with the customers that helps the Toyota
company to make a good relationship and good brands image in the competitive market. The
workings of the companies are based on varied attributes like the working force of the company,
sales department, research and development segment, manufacturing units, administration,
consumer support, book keeping methods, operational activities and inclusion of information
technology. Effective marketing is supposed to bridge the gap between the company and the
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customers. The marketing strategies adopted by Toyota helps the company to learn about the
reaction of customers and are able to receive customer’s information which enables the company
to make innovations and manufacture new products that will meet the requirements of the
customers and provide them immense satisfaction and contentment. Toyota has adopted
competitive pricing strategy to sustain itself in the competitive business environment. The
company has planned effective product and service allocation system which enables the
consumers to easily get information about the product and services.
Operation function- It includes various operational strategies that are included by the
Toyota Company, such as arranging the raw materials, making coordination between the
supplier, analyze the demand of the customer in the market etc. The demand for Toyota cars has
increased and the sales of the cars have enlarged which had made it possible for the company to
expand its workings and functionaries and gather more gains from UK markets. The
establishment of effective communication has further helped the company to enhance its
communal conduct in an optimistic way. The company is actively involved into conducting
social awareness programs like ant-smoke campaigns and creating awareness about unsafe drink
and driving conditions.
Finance Function- The financial aspect of the company must be readily studied to get a
better knowledge and understanding about the monetary related conductions of the organizations.
The financial reports of the company provide valuable insights about the monetary dealings of
the company which are directly linked with the business plans of the company. The funds of the
company are allocated to varied departments in accordance with the financial budgetary plan and
are monitored and controlled as per the budget of the company. The company to channelize its
cash flows so that the different monetary requirements of the company in the various
departments can be met in a proper manner. The inclusion of internal auditors is incorporated by
the company to monitor the conductions of the different departments. The surplus finds
estimated are further invested in profitable projects to gain more profits (Pearson, 2017). Some
of the companies are maintaining treasury accounts to meet the different trade requirement of the
company because of which the company is able to receive good returns with fewer risks from the
reserves. Any investments which is done on the basis of resources is measured to be risk by the
book keeping segment which investments in extra manufacturing units, price enhancement
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projects, purchasing innovative technological equipments and other related investments. The
monetary statement of the global company Toyota makes it possible that the company is
effectively able to meet the huge needs of the UK markets.
Human Resource Function-It includes management the employees working in the
company in an effective way by adopting strategic human management service, training and
development of the staff members, needs assessment of the worker etc. The tracking of all
transactions that are made on everyday basis like buying, selling, application of trading funds for
internal and external use of the company. The cash flow of the company established by the
Toyota Company ensures that the liabilities and the debs of the company are efficiently met as
and when required to be paid to the creditors. Even the monetary department also looks after
meeting the extra financial needs of the company which will help the company to progress in its
expansion procedure faster.
The human resource department effectively meets the needs and requirements of the
working force of the Toyota Company. The active Human resource department keeps the morale
of the employees high which increases the proficiency of the employees and they contribute
wholly for the growth and development of the company (Kolk, 2016). The HR department
performs its responsibilities as per the regulations of the company and performs varied roles of
hiring, management, training, adherence to employment law, remuneration issues etc. The vision
of the company is to meet the expectations of the people by providing them with quality products
and services by making better quality products with constant inclusion of best technologies,
enhanced human skills to make the life of people safe and better.
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Figure 1Functions Relate to Mission and Objectives
The Toyota Company has incorporated trading targets which are met by the
implementation of corporate strategic action plan. The plan incorporates various operational
features of the company. The plan is been organized by the top grade officials who are
responsible to meet the objectives. The every function will prepare its own strategy and applying
the objectives and due time will formulate its own functional strategic action plan mentioning the
clear of the all the sub -heads that are formed by describing about the sub- tasks and sub -
deliveries of each sub -head. The company follows bureaucratic headship policy to attain control
over the operational feature of the company. The top grade officials are responsible to make
important decisions and development of operational and management policies which is then
propagated to the employees and the managers to meet the set targets. The Toyota Company also
laid stress on achievement of targets in particular time duration (Hillary, 2017). The company
has adopted various other strategies like bottle neck factor, cycle time concept, idol time
strategy, specific process of production system, thought put time, for effective utilization of
assets.
As these functions helps in achieving the organizational objective, it could be
understandable with the help of the example as the company to increase the production by 10%
and the management functions and the organizational structure helps for it. As an effective
structure increase the productivity as well as the performance of the employee and and the HR
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function of organization helps in giving the training to their employee as it increases the
productivity and also measures their performance and give the benefits according to them. As
these both work together for achieving the goals in an organization and it also increase the
production of products in the company.
There are several of organizational structures such as
i. Functional structure-It includes dividing all the functions, planning, organizing,
monitoring and training of development of the staff, functioning of the product,
arranging raw materials from the suppliers, making final outputs etc has been done by
the Toyota company as per the determined functional level. It helps company to achieve
their desired goals in an effective manner.
ii. ii. Divisional Structure- It is the structure in which every work and operation has been
classified in different departments such as production department, analysis department,
human resource department, research and development departments, and marketing
department. By classing the operations as per the departments helps the Toyota
Company to allocate their tasks as per the category and capability of the workers to
handle the operation successfully.
iii. iii. Matrix structure- It is a mixture of functional and divisional structure. Under this all
the operations has been classified has been divided into different categories and features
and it is fully monitored observed by the professional functions so that each and every
task will be fulfilled in a desired manner. It helps the Toyota Company to appoint those
experts and professional that helps to maintain the quality of work in progressive and
effective manner.
LO3
Constructive and unconstructive impacts the macro environment has upon trade
Macro environment is termed as the position of financial condition of a company in a
specific area. Macro environment involves the dealings with gross domestic product, overheads,
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finance, fiscal strategies and inflation. Macro environment is also responsible to exercise control
external and internal factors of the company which are essential for decision making procedure
of the company. The constructive and unconstructive implications on the company have been
determined through PESTLE examination:
Political
The cited company Toyota has experienced distinctive political restrictions in relation to
expansion and improvement of trade. In the case of the cited company, the outside political
components impact the nature of the conductions of the organization. The company has
experienced problems and openings due to few causes for instance.
1. Political power in nearly actual markets (openings)
2. Without charge switch over understandings (openings)
3. Governing authorities aid for eco-accommodating items (openings)
The political stance of the different markets is measured to be an opening for the Toyota
Company to progress in the insignificant political damage. The presence of free business
contracts prevailing in Japan and other nations aids Toyota to function their trade practices along
with the openings of enhancing market involvement (Goleman, 2017). Aside from that the
legislative terms concerning eco-accommodating products makes a clear opportunity for the
organization to improve their products. The eco-accommodating items additionally fulfill the
client’s satisfaction levels that are condition mindful.
The Positive impact of political factor in context to the organization is as, the
management of the Toyota adopt and accepts the changes occur form this factor. As changes in
government policies, rules and regulations and if it is not accepted by the organization it
converts to the negative impact for the company.
Economic
In the case of the cited company Toyota's monetary the financial exterior features that
impact the macro-environment are as follows:
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• Weaker Yen versus U.S. Dollar (openings)
• Steady growth of U.S. economy (openings)
• Fast growth of developing nations (openings)
Toyota has established improved trade relation with Japan and has taken every possible
move to tap the opportunity that is coming in its way of growth and development. The changes in
the values of the currencies construct a lot of challenges for the company. However, the
company has already established its hold in U.S. market and is growing at a fast rate. The
organization has developed its hold in Japan also and is known as the second market holder of
the company (Drucker, 2017). The other developing countries also provide ample growth
opportunities to the company to generate its future revenues.
When the element of economical factor are in the favor of the company such as inflation
rates, interest rates, deflation rates it leads to the positive impact and if rates are not acceptable
by the organization then it results in negative impact.
Social
The principle communal/socio-cultural outer factors in Toyota are as mentioned below:
• Increasing eagerness for cross breed cars (openings)
• Increasing eagerness for electric cars (openings)
• Broadening capital fissure (risk)
Toyota has the chance to give more items which fulfill clients' demands enhancing
eagerness in respect to cross breed and electric vehicles. The organization has to critically watch
the augmenting capital fissure (Crane and Matten, 2016). It is regarded as a threat because it is
decreasing by the middle class income groups. The middle class income group is the
fundamental income which acts as the main source of income for Toyota.
When the company introduce the product and liked by the customers it leads to the
positive impact and when the manufactures the product and its sales is not so good, as it results
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in the negative effects of the company as they do not grab and attract the audience for selling
their product and services.
Technological
There are the distinctive prominent mechanical outer components for organization:
• Rising utilization of online business (openings)
• Mobile innovation drifts (openings)
• Cybercrime (danger)
Toyota has ample chances to develop and expand its online business opportunities. The
company has take initiatives to establish links with an outsider company which are supposed to
be experts in e-commerce services. The company also keeps the goals of the organization into
consideration before entering into any kinds of agreements. It has also been cited that the
company has provided its consumers with an opportunity to get a chance to interact with the
clients on the digital platform (Charter, 2017). The digital platform introduction has also helped
the employees to be connected to the organization. The risk factors like cybercrime, for example,
corporate digital activities have also been taken into consideration.
The updated technology in the organization is always beneficial effective for the
operation and functioning in business. If company do not adopt the latest or up dated
technologies it give the vast negative impact on their organization.
Environmental
The chief natural elements are mentioned below:
• Transformation in atmospheric conditions
• Reduction in global oil resources
• Increasing concentration on trade and commerce manageability
The company can show better openings to develop environmental products, for instance,
electric cars and high performance cars. The company has attained the advantage of environment
security law and influences the customers (Carroll and Buchholtz, 2014).
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The each and every business organization should focused on the developing the
environment and make sure that they are not harming the environment as they are using the
electric car which is not harming the environment. On the other hand the negative impact is that
the copany is using the natural resources and also not considering the minimization of resources.
Legal factors
There are some legitimate elements which lay great implications on Toyota's condition, for
example,
• Improving the licensed property law (opening)
• Enhancing complex natural laws (opening)
• Enhancing complex purchaser laws (opening)
The company prevails the opportunity to establish with least concerns for the violation of
its protected property privileges (Bryman and Bell, 2015. The comoany has alos identified that
the directves related to the implrmentaion of licensed property security is also viable. The
company has provided the customers with goods that were of high quality to meet their demands.
If the management of company Toyota should focused on using the effective rules and regulation
in organization. such as employment law, Improving the licensed property law, Enhancing
complex natural laws effectively and efficiently. If company is not accepting this it leads to the
negative impact to the business organization.
LO 4
P5 The internal strengths and weaknesses of specific businesses and explain their
interrelationship with external macro factors
Strength of Toyota
The characteristics of Toyota demonstrate that this company possess ample amount of
abilities to keep up a position among the top automobile manufactures in comparison to other
automobile manufacturers throughout the whole world. The model of SWOT investigation
provides a recognizable evidence of the vital components which will provide the details about
the strength of Toyota. Their vital traits are mentioned below:
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• A solid brand picture (Botha, Kourie and Snyman, 2014)
• Abilities of quick development
• Global inventory network
Weakness of Toyota
The essential shortcomings have been said beneath:
• A framework that follows hierarchical operational features
• Secrecy in the conduct of functionaries
• Off late implications of product reviewing
P6 The strengths and weaknesses interrelates with external macro factors
Strength
The Strength of Toyota basically inclined on the monetary aspect with addition to
innovative changes and adoptions. Such a constituent from the SWOT assessment identifies all
the essential factors that a firm can apply to bring about enhanced improvements in the trade.
The critical openings are mentioned below.
• Enlargement of market inside the nations that are still developing in nature.
• Increasing interest for cars which are fuel productive (Belás, Demjan, Habánik,
Hudáková and Sipko, 2015)
• Increasing demand for cutting edge gadgets inside vehicles.
Weakness
Dangers are fundamentally are influenced by the aggressive foundation. For Toyota the
essential dangers are mentioned below.
• Prevalence of the development of market with less-price competitors
• A quick development inside their prevalent rivals.
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Hence, it was examine that PESTLE and SWOT analysis for the Toyota Company has to analyze
various internal and external factors that highly effect the operation of the cited company. For
example the political factors include the change in the economic policies, technological factor
includes changes in the technological and innovative idea, changes in climate and weather,
changes in the demand of the customers and their perspectives are some of the external factors
that highly affects the manufacturing of the Toyota company. As a result the company has to
make focus and balance between the demand and supply of the products in the competitive
market. On the other hand SWOT analysis is the way to determine the various internal factors
such as strength, weakness, opportunities and threats of the Toyota Company which include the
situation of the competitive supplier that give biggest challenge for the growth of the company in
the competitive market. It also includes the changes in existing rules and regulations of the
company as per the demand of the customers. Thus, it can be said both external and internal
factors like SWOT and PESTLE analysis highly interrelated with each with reference to the
Toyota Company. In order to analyze the SWOT of Ford car Manufactuing Company, it was
found that as compared to Toyota, Ford car manufacturing company also have good barns image
in the competitive market that help the cited company will be able to make effective change in
the demands of their products. While making focus on weakness side it was found that Ford car
manufacturing company adopt less marketing strategies to promote their products and also faces
financial crises from last two years. In order to analyze the opportunity of Ford car
manufacturing company it was found that due to good market image the cited company will be
able to make a good presence in the global level in five years. On the other hand the entry of new
companies sand competitor changes in pricing policed etc are the threats that highly effect the
selling of car in a global market.
CONCLUSION
Concluding from the above detailed research it can be accomplished that to manage the
business environment makes great impact on the growth of a business (Armstrong, Kotler,
Harker and Brennan, 2015). It includes various factors such as internal and external factors that
affect the operation of a business. The student has established the PESTLE investigation to
review the external implications of the company. The company has also estimated the inner
quality and inadequacy and external quality and exterior inadequacy of the company.
20

21

REFERENCES
Books and Journals
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction.
Pearson Education.
Belás, J., Demjan, V., Habánik, J., Hudáková, M. and Sipko, J., 2015. The business environment
of small and medium-sized enterprises in selected regions of the Czech Republic and
Slovakia. E+ M Ekonomie a Management, (1), p.95.
Botha, A., Kourie, D. and Snyman, R., 2014. Coping with continuous change in the business
environment: Knowledge management and knowledge management technology. Elsevier.
Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
Carroll, A. and Buchholtz, A., 2014. Business and society: Ethics, sustainability, and stakeholder
management. Nelson Education.
Charter, M. ed., 2017. Greener marketing: A responsible approach to business. Routledge.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Drucker, P.F., 2017. The Theory of the Business (Harvard Business Review Classics). Harvard
Business Press.
Goleman, D., 2017. Leadership That Gets Results (Harvard Business Review Classics). Harvard
Business Press.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business, 51(1),
pp.23-34.
Pearson, R., 2017. Business ethics as communication ethics: Public relations practice and the
idea of dialogue. In Public relations theory (pp. 111-131). Routledge.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
22

PRESENTATION
Slide 1:
Slide 2:
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Speaker Note: The organization compromises of people who are working together with a motive
of serving a common purpose or goal related to business. The managers play an important role
by taking up various roles and responsibilities such as planning, synchronization, framework
assortment, organizing, array, operation, logistics and administration. Toyota is a multinational
company that deals in automobiles which was launched in 1937 in Japan. The company was fast
expanding and has already spread to different countries like UK. Off late the company is
witnessing change in the trading environment in the international scenarios. As the prices of the
fuel have increased a slowdown in the demand of the cars is seen due to which the prices of the
cars are reduced. Although a considerable increase in the cost of the spare parts and other vehicle
parts is seen from the previous year (Sekaran and Bougie, 2016). The company has adopted
innovative production techniques and due to the value of money the company is able to maintain
its stand in the international markets. The incessant and unremitting innovative and enhanced
strategies adopted by the company which helps it to acquire a reliable position in the
international automobile markets. Keeping the recent competitive scene into consideration the
researcher has carried out the study to help Toyota UK to learn about the various functions of the
organizations and organizational framework of other organizations.
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Slide 3:
Speaker Note: The private institute is one where the decision making power and the control is in
private hands either by a group of people or sole individuals. The main aim of such organization
is to earn profits. Sainsbury is regarded as a prominent private organization that deals in the
international markets (Sekaran and Bougie, 2016). The private organizations are of different
kinds such as individual business holders, partnership firms, limited companies, cooperatives or
governmental units. The different business organization carry out activities that are necessary to
be met the different needs and requirements of the customers on behalf of the citizens for the
well-being of all the public and population. National Health Service is among the most famous
public organizations that is operational in England. Many of the organizations incorporate
involuntary activities which are functional into the operating systems of the organizations are
charity, donations, and contributions. Such organizations that focus on the conductions of social
work and social welfare activities are considered to be non-profit organizations and non –
governmental organizations. Cancer research is regarded as one of the most popular voluntary
non-profit organizations that is functional in UK.
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Slide 4:
Speaker Note: The multinational trading units like Toyota enclose the functionaries of different
segments like human resource, vision, mission administration and capital which are collaborated
together to produce quality products and services. The trade motive of the global company
Toyota is based on a number of factors like market gains, market allocate, technological
competence and corporate communal accountability. It is cited that Toyota is generally an
individual trading unit, hence it can organizes its business activities and develop them without
the involvement of any legal complications. The proprietor of the company is the head of the
company and takes the overall charge of the company and its all the business activities.
Slide 5:
26

Speaker Note: The multinational trading units like Toyota enclose the functionaries of different
segments like human resource, vision, mission administration and capital which are collaborated
together to produce quality products and services. The trade motive of the global company
Toyota is based on a number of factors like market gains, market allocate, technological
competence and corporate communal accountability. It is cited that Toyota is generally an
individual trading unit, hence it can organizes its business activities and develop them without
the involvement of any legal complications. The proprietor of the company is the head of the
company and takes the overall charge of the company and its all the business activities. The
entire functionaries of the global company Toyota is managed by a set of managers which has its
headquarter located in Japan. The administration has the liberty to select the working conditions
as well as time constraints for the functionaries of the company.
Slide 6:
27

Speaker Note: The human resource department of the organization has created an affluent
environment to ensure that a healthy and close relationship is developed between the
management and the marketing group and working force which helps to establish a close
relationship with the customers. It is found that the entire trading conductions and administrative
responsibilities is carried out by the high level administration officers in comparison to the
employees contribution. The company posses’ unlimited liability and credits upon itself which
possess a greater threat to the interest of the owners, investors and stakeholders of the company.
The company is experiencing a tough competition with other automobile companies that are
functional in the open markets (Sekaran and Bougie, 2016). Toyota faces direct competition with
other multinational companies like Volkswagen group that are operational in the international
markets. The difficulty level for the individual trading units to bring about additional increase in
the collection of capital is far more than the other organizations. The top grade officials work
extra hard and devote a lot of time to bring about new business to the company. A scarcity in the
permanence in the company is observed.
Slide 7:
28

Speaker note: Public Limited organization: It is cited that the organizations which belong to the
public of limited organizations are generally a form of corporate associations who follow the
legal aspects which are applicable to its own right and identity. The possessions and the other
belongings of the company are owned by the company itself and not by its members or
employees. In the same way the belongings acclaimed by the employees or the members are
owned by the employees or members and not by the company. Hence the legal responsibility and
accountability of the individual is also restricted in nature and limited to the individual. The
formulation of limited companies compromises of two or more persons wherein the concerned
persons involved in the partnership need to provide certain documents like memo of organization
or products of organization that are necessary for require to be submitted for proper
incorporation of the limited firm. Hence, the size of the public limited company is big with a
minimum share capital of £50,000.
Private Limited Organization: Whereas in the case of private limited organizations the
organizations must possess at least one stakeholder wherein the organization can add huge
numbers of shares for the public use later on and it contain between 2-200 shareholders. In the
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company every shareholders invest funds. How big the company is depends from that how many
shareholders the company have and how big their investments are. The organization also
possesses the liberty to share its shares with the business associates who are linked with the
organization and have good business relations with the organization. It is also cited that some of
the public limited companies have also been found to start incorporating their shares and issuing
IPOs for the company (Sekaran and Bougie, 2016). Even the global company Toyota has also
initiated its business and trading activities as a public limited organization in the year 1937. The
three major stakeholders of Toyota are TYO, LSE and NYSE with each branch having its own
individual director. The company is expanding at a large pace and currently is a major
contributor of about $ 1.5 tn shared revenue in UK. The Toyota UK company has made
provisions for the general issuing of the shares of the company where in the general public could
purchase and sale the shares of Toyota company. The company has formulated different sets of
rules and regulations that is followed and maintained by the company in its operational and
trading profile to be considered as public limited company. The company is well registered with
the London Stock Exchange so that the general public could deal in the purchase and sale of
shares of the company.
Slide 8:
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Slide 9:
Slide 10:
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