Analyzing External and Internal Environment of Toyota Motors

Unit 32
Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. External environmental analysis. ..........................................................................................1
M1. Critical analyses of macro environment for determining as well as informing decisions
related to strategic management...................................................................................................4
TASK 2............................................................................................................................................4
P2. Appropriate frameworks for analysing internal environment as well as organisational
capabilities...................................................................................................................................4
M2. Critical analysis of internal environment fro assessing strengths and weaknesses of
business's internal capabilities.....................................................................................................6
TASK 3............................................................................................................................................7
P3. Applying Porter's five forces model......................................................................................7
M3. Appropriate strategies to improve edge of competition together with market position.......8
TASK 4............................................................................................................................................8
P4. Theories and concept for devising strategic planning...........................................................8
M4. Strategic management plan................................................................................................10
D1. Critiques and data interpretation with application of environment as well as competitive
analysis.......................................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCE.................................................................................................................................14

INTRODUCTION
Business strategy is working plan that organisational managers prepares to compete
successfully, optimise financial performance, prioritising objectives and accomplishing visions
with their business model (Alghazi, Shen and Fosso Wamba, 2017). It creates vision and
provides guidance to the entire organisation. Effective business strategy creates success
measures, drives decisions and gives direction to all the members of business. In addition, it also
helps an entity to decide where resources and efforts should be best spent. The present report is
prepared by considering Toyota Motors which is global automotive manufacturer having few
plants in United Kingdom. The report covers impacts that macro environment have on entity,
organisation's internal along with external capabilities. It also evaluates competitive forces along
with application of model of Porter's five forces. At last, various frameworks are applied together
with producing strategic management plan.
TASK 1
P1. External environmental analysis.
Organisational profile: Toyota Motor manufacturing (UK) is a manufacturing company
that operates business in United Kingdom. It was established in December 1989 for the purpose
of manufacturing auto mobile or cars. This is a large organisation that employs around 3000
employees. Its headquarter is situated in Burnaston, Derbyshire England. This manufactures
luxury cars with electric and hybrid features (Toyota Motors. 2019). The vision of Toyota
Motors is “To be the most successful and respected car company in United Kingdom”. The
mission statement is “To attract and attain customers with high valued products that can satisfy
the customers.” The objective of Toyota Motors is to attain the long term goals by harmonising
environment with global economy and the communities.
Macro Environment: This environment is related with economic condition of business
environment which states the some factors that cannot be control and influences decision
making. The strategic planning is uses by Toyota Motors to analysing the elements which can
impacts the businesses. It involves PESTLE analysis which helps to formulate strong strategies
to deal with negative impacts. PESTLE analysis of Toyota Motors are as defined:
1