Contemporary Development in Business and Management

Contemporary
Development in Business
and Management

Table of Contents
Contemporary Development in Business and Management.........................................................................1
Introduction.................................................................................................................................................3
Task 1..........................................................................................................................................................3
Influence of External environment on Toyota.........................................................................................3
Task 2..........................................................................................................................................................6
Technological disruption and disruptive innovation................................................................................6
Effectiveness of Toyota’s response to disruptive technological innovations...........................................7
Recommendations.....................................................................................................................................11
Conclusion.................................................................................................................................................12
References.................................................................................................................................................13

Introduction
Business development involves processes as well as tasks for development and
implementation of growth opportunities within as well as in between organizations. Basically, it
is a subset of fields’ commerce, business and organizational theories. It denotes long term values
for organization in the form of relationship with market along with customers. It is a
accumulation of initiatives, activities and ideas which aims forward for enhancing overall
business. This report is based on Toyota; it is a sixth largest organization in the world by revenue
and largest automotive manufacturer. It is a Japanese multinational automotive manufacturer
which was founded on August 28, 1937 by Kiichiro Toyoda and is headquartered in Toyota City,
Japan. This report deals with manufacturing of motor vehicles, trailers as well as semi-trailers. It
furnishes overview of external influences along with their significance to organization.
Moreover, it also provides details about technological disruption as well as disruptive innovation
and way in which policies & decision making impacts organization. Effectiveness of response of
organization is also illustrated and enhancement in this.
Task 1
Influence of External environment on Toyota
Toyota is the market leader within sales of hydrogen fuel cell vehicles and hybrid electric
vehicles and it is largest organization to inspire mass market through the adoption of hybrid
methodology within their services. They furnish their services around the world and deals with
financing, banking and leasing with around 3, 70,870 employees. It is a leading player within
automobile with an aim to build better communities for an enhanced society. Influence of the
Toyota on automobile industries cannot be avoided. For this, it is essential that Toyota takes into
consideration external environment by usage of Pestle analysis. By taking into account these
factors, executives of organization can formulate strategies as well as policies for developing
their position within a evolving market. The Pestle analysis has been illustrated below:
Political Factors
Toyota has expanded in different countries for meeting the demands of their existing
customers. Political stability of Government has crucial role within the ways organisation carry
out their operations and sustain in the market. This stability will minimise the pressure on

organisation while they are rendering their operations and will lead to growth. Toyota is carrying
out their manufacturing in all most every country; therefore government of United Kingdom
needs to formulate free trade agreement in between Japan as well as other nations where they are
furnishing their services. This will lead to improvised opportunity in form of market penetration.
Toyota has faced decline in their operations, in 2017 after United States of America government
withdraw from Trans-Pacific partnership trade.
Depending on uncertainties with respect to Brexit Negotiation along with development of
Hung Parliament, the results obtained will lead to huge impact on manufacturing of Toyota UK.
As per Campbell (2017), investments within car industry of UK has declined by £322m which
shows that organisation will cancel any kind of spending after exit from EU. According to Jack
(2019), cars which were manufactured in United Kingdom dropped by around 45% in April 2019
with respect to last year. Around 90% of cars are manufactured by Toyota in United Kingdom. If
EU does not agree upon free trade with United Kingdom then it may lead to increased cost along
with tariffs and decline in efficiency.
Economic factors
In 2008, due to financial crisis car industry has been a leading industry within United
Kingdom. The UK has recorded around 1.3 million exports of car within 2015 which denotes
around 12% of total exports are carried out by auto mobile industry in UK. At present scenario,
Brexit is the major problem as per SMMT (Society of Motor Manufacturers and Traders) for
automobile industry and it will also impact sustainability as well as growth of economy of UK.
Another factor which contributes in economic factors is interest rates, inflation and
economic growth. They have a significant impact within economy of country as demands of
products are dependent on this specific factor. If economy is growing in a faster pace then it will
lead to higher demands of services as well as products but if opposite happens then there will be
decline in needs and requirements of services. This means that market is not able to attract more
number of buyers as well as investors. Free trade which been occurred in between UK and EU
has provided them with great opportunities for development and growth but due to Brexit
referendum as well as uncertainty will create an pessimistic impact on operations of Toyota in
Europe. Due to Brexit referendum, there can be decline within economic conditions of United
Kingdom but with respect t ongoing negotiation between EU and UK, there might be affirmative
impact if single market trade is allowed.