Pestle Analysis of Toyota

Car Company Toyota

Table of Contents
INTRODUCTION...........................................................................................................................3
Pestle Analysis of Toyota.......................................................................................................3
External force having most implication on Toyota................................................................3
Extent to which organisations policy takes into account these forces....................................4
Ways in which managers prioritise various factors of Pestle Analysis..................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................5

INTRODUCTION
External environment of every organisation refers to various factors in the environment
which are affecting the working of an organisation directly or indirectly. In order to conduct
analysis of external environment pestle analysis is done on various organisations. In the
following report Toyota motor Corp which is a Japanese multinational company dealing with
automotive manufacturer is considered (Arya, S. and et. al., 2020). A pestle analysis on the
organisation is conducted and various factors which are affecting the organisation enormously
are discussed in the following report effectively.
Pestle Analysis of Toyota
Political factors: Toyota needs to take care of various political factors as it deals with a
number of countries. These include decreasing customer necessity, increase in investments and
concentration of developed and developing economies. The increase in oil prices and oil crisis is
also resulting in demand of hybrid cars.
Economic factors: Rising cost of energy, competitive market, and more demanding
customers in an economy are the economic factors affecting Toyota. Other than this company is
also affected by various fluctuations in foreign exchange rates, interest rates, gross domestic
product, spending power of consumer also affect Toyota.
Social factors: It is necessary for Toyota to manage their image in the market. Also use of
energy sources by Toyota is resulting in a positive social impact and positive media relations as
well. It is necessary for company to critically analyse buying behaviour of customers and
continuously changing needs.
Technological factors: Toyota invests heavily on sustainable and environmental
improvement projects. Company is continuously adopting methods to bring in new technologies
such as hybrid cars, fuel cell vehicles and so on. In this way technological changes in
environment of ana organisation effects Toyota (Cusumano, M.A., 2020).
Legal factors: As Toyota has presence in a number of countries it requires to fulfil the
laws and legislations of all these countries. These include trade taxes, various environmental and
labour related laws. If company fails to do so it might face legal proceeding which results in
heavy losses for company.