Business and Business Environment Report - Toyota UK, LO1-LO4

This report provides an analysis of the business and the business environment, focusing on Toyota UK. It covers various aspects including different types of organizations (public, private, voluntary sectors) and their legal structures, as well as an examination of the size and scope of various organizations. The report delves into the relationships between organizational functions and their alignment with objectives and structure. Furthermore, it explores the constructive and unconstructive impacts of the macro environment on trade, and assesses the internal strengths and weaknesses of specific businesses, illustrating their interrelation with external macro factors. The report also includes an introduction that provides background information on Toyota, highlighting its global presence and the challenges it faces in the changing trading environment, such as fuel price increases and increased costs of spare parts. The report aims to help Toyota UK learn about the various functions of the organizations and organizational framework of other organizations.

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..............................18
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
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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
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
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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.
Legal structure: The private organization mainly operates their business for earning the
profit by giving products and services ot 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
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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.
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
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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
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
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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
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.
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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
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.
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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
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
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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
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
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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.
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
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