Introduction to Management for Toyota: PESTEL Analysis and Porter's Five Forces

Running head: INTRODUCTION TO MANAGEMENT
Introduction to Management
Name of the Student:
Name of the University:
Author Note:

1INTRODUCTION TO MANAGEMENT
Executive Summary:
The report is a discussion on the management aspects of Toyota that is a multinational
automobile manufacturer of Japan. The report commences with a PESTEL analysis of Toyota
by stressing on the political, economical, social, technological, environment aspects that are
influencing the company. The report also put across Porter’s Five Forces that helps in
understanding the competitive position of the company. There are also recommendations put
across for the company that helps the company in regaining trust.

2INTRODUCTION TO MANAGEMENT
Table of Contents
Introduction:...............................................................................................................................3
PESTEL Analysis of Toyota......................................................................................................3
Porter’s Five Forces...................................................................................................................6
Recommendations....................................................................................................................10
Conclusion:..............................................................................................................................11

3INTRODUCTION TO MANAGEMENT
Introduction:
The aim of the report is to provide an overview on the introduction to management for
Toyota. The company is a multinational manufacturer of automobiles with its headquarters in
Japan (toyota.com.sg, 2018). Found in the year 1937, the company is fifth largest in the world
in terms of the revenue and has corporate structure with close to 364, 445 across the world.
Toyota is also the first manufacturer of automobile across the world producing over ten
million vehicles every year. Toyota leads the market in terms of the sale of the hybrid electric
vehicles and encourages mass adoption of the hybrid vehicles worldwide. Toyota also is the
largest seller of the vehicles run by Hydrogen fuel cell whose global sales reached a
milestone of 10 million in the year 2017. The report will put forward a PESTEL analysis to
analyze the macro environment of the industry in which Toyota operates. There is also the
mention of the Porter’s five forces for determining the competitive environment of Toyota.
The report also puts forward necessary recommendations that would bring back customer’s
reliance on the company.
PESTEL Analysis of Toyota
Political Factors
Toyota is subjected to the influence of the political conditions. Therefore, the major
political factor that influences the macro environment of the company includes (Dunning,
2014):
 The free trade agreements
 Persistence of the political stability in the major markets
 3 Support of the government for the eco friendly products