Business and Business Environment Report: Toyota's Strategic Analysis

This report presents a comprehensive business analysis of Toyota, a global automobile company. It begins by defining business and its environment, differentiating between private, public, and voluntary organizations, and outlining their legal structures, purposes, and scopes. The report then delves into the relationships between various organizational functions, such as marketing, finance, research and development, and production, and how they link to business objectives. It further examines the positive and negative impacts of the macro environment on business operations and conducts an internal and external analysis of Toyota, identifying its strengths and weaknesses and how these relate to external factors. The report concludes with a summary of the key findings and insights regarding Toyota's strategic position within the business environment.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
P1. Types and purpose of different types of organizations and their legal structure as public,
private and voluntary...................................................................................................................1
P2. Size and Scope of different types of organizations...............................................................3
TASK 2............................................................................................................................................4
P3. Relationship between different organizational functions which link with business
objectives.....................................................................................................................................4
TASK 3............................................................................................................................................6
P4 Positive and negative impacts of macro environment on business operations......................6
TASK 4............................................................................................................................................8
P5 Internal and external analysis of specific organization for identifying strengths and
weakness ....................................................................................................................................8
P6 Strengths and weakness interrelate with external macro factor...........................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business is defined as the enterprise which starts by individual for the purpose of earning
money and generate profits. There are various kinds of businesses are existing that have different
nature such as private, public and voluntary which have various purposes to run an organisation.
Business environment has direct relations with the successful managements and impact of the
change of climate (Cantwell, 2010). There are different types of companies like public firms,
private organization which are divided into two categories such as manufacture and sales and
service business. All businesses are surrounded by various internal and external forces which has
major impacts on business. This report is based on Toyota which is a well-liked global
automobile business established by Kiichiro Toyota and it is situated at Japan. This assignment
will define various types and purposes of different kinds of organisation and their legal structure
regarding public, and private. It also will describe the size and scope of different types of
organisations and their functions which are linked with objectives and structures. Positive and
negative impacts of macro environment upon business operations also will be discuss here. This
report analyse internal and external of organisations for identifying strengths and weaknesses as
well as how they are interrelated with external micro factors.
TASK
(Covered in PPT)
P1. Types and purpose of different types of organizations and their legal structure as public,
private and voluntary
Business refers to the adaptable procedure of skills and materials as per the request of
consumers or provides service according to request of the customers. Business environment
contain various factors like competitors, suppliers, distributors, customers, resources, industry
trends, substitutes, regulations, government activity, the financial system, people and
demography and innovation and industrial growth. It has been experiential that resources
including human, material and fiscal resources are most important aspects for any business.
Global businesses like Toyota always look to increase competitive advantage during price, value
and promotional strategy. nalysed that company prospective of association has been influenced
by various forces like technology changes and government interference. It can be said that the
customers are vital for industries survival and wealth.

There are different types of organizations such as;
Private Organizations: private sector refers to the possession and control on the own
firm which is controlled by the private persons or group of people. The main objectives of the
organization is only making or generating more profit. For example; Toyota plc, that is
considered as one of the famous private global business. There are several kinds of private
organizations including limited company, cooperatives, sole traders, partnership.
Purpose : The main purpose of this firm is to create goodwill in the market and generate
profits by limited investment. In this, individuals and group of people invests funds and starts
businesses for getting maximum returns from available resources.
Legal structure: in this considered as the various legal structures which are integrated in
various firms such as partnership, sole proprietors and other limited companies.
Public Organization : Public sector has directly controlled by government authorities or
government agencies and legal bodies. Therefore, the operations of any business organizations
run the various types of firms on behalf of its society and for their common well-being. National
Health Service (NHS) is one of the best examples for public organizations.
Purpose of public firm : In this defined that public organizations always concentrate on
people well fare and their well being through providing better facilities and services in an
appropriate manner.
Legal structures: in this defined that public organisations concern with separation of
particular regions in which included the central government, state as well as local legal
authorities in an appropriate manner. In which consist different legal bodies and many more.
Voluntary sector: In this sector, it involve in different types of organizations such as
voluntary bodies and business community as well as charity etc. These firms are generally non-
profit organizations and non-governmental association. It can be understood by taking an
example such as Cancer Research which is popular voluntary organization in UK.
Purpose: In this defined various kinds of firms so they have their different purposes such
as provide help to those people who are not able to spend money. They focus on people and it
can be understood by taking an example such as cancer research centre.
Legal structures: in these kinds of firms, it can be found that there are various board of
directors who works as the trustees. They have rights to make entire decisions as well as actions
to set an effective organisational structures or cultures in better ways.
2

P2. Size and Scope of different types of organizations
There are various types of businesses which have different scope as well as sizes as per
their nature. From above information, it has been analysed that various organizations are there
with purposes as public, private and voluntary. These are as following;
Public organizations: It can be said that these companies are corporate associations
which have certain legal identities with its own rights. In this, the all rights and properties are
owned as well as possessed by the companies rather than their members. On the other side, all
types assets of the members are not for using within an organizations so they both are different
from each other. Therefore the liabilities of every individual in the firm are limited.
For the public firms, there should be followed a proper legal structure such as it has been formed
by two or more individuals for the purpose of running an organization. In this found that
business partners must have to submit their different important documents like memorandum of
associations as well as articles of associations.
Private Companies: In this defined several legal criteria that company there should be
required a minimum a one share holder for running business enterprises. On the other side
company can offer large share to the public in the market. In other words, organizations have
rights to issues shares to those individuals who take interest as well as want to sign the contract
of business with particular firm. Size and scope of private associations such as:
 Sole traders: Every firm has operated as well as collaborated by a person who have
rights to owned properties and resources and also able to handle risks or uncertainties in
an effective manner to run an organisation and its business operations.
◦ Scope: The main aim of these organisations are maximising profits and generate
higher revenues for the purpose of organisational development.
◦ Size: They have very small size as there are few stores available in the market. They
provide various foods or materials in an appropriate manner.
 Partnership: In this defined that those kinds of businesses which are owned and run by
two or more persons with aim of shares profits as well as risks while operating firms.
◦ Scope: They focus generating profits as well as revenues while running an
organisation.
◦ Size: it is medium size of enterprises which are operated, controlled as well as
owned by two or more individuals in an effective manner.
3

Voluntary organizations: In this consider those firms who work for the public welfare
as they focus on society rather than earning profits. These organizations are generally known as
non-profits and nongovernmental firms. Their main aim is to develop society and work for
providing benefits, facilities as well as social services to them in an effective manner. They also
have wide scope in the market. It can be medium and small size of firms which can be depends
on the several situations as it can be understood by taking example of WELCOME which is
popular firm and it works as NGO. It has included approx 51 stores as well as total number of
employees are 3000 within an organisation. It is for people welfare such as poor children, old
persons and young generations who are disable.
Purpose and size of these firms:
 To take care of orphaned children and focus on executing cultural factors for providing
effective products and services to the people.
 They always try to prevent the crimes and focus on growing rapidly including
corruptions, violences, women rapes and labour child etc.
TASK 2
P3. Relationship between different organizational functions which link with business objectives
In this defined that organizations are depends on the different functions like human
resource, research and development, marketing and sales, productions and operations, accounts
and finance, customer services and administrations or IT etc. these play vital role in every firm as
they support in running an organizations effectively as well as efficiently (Shabana, 2010). Every
firm is links with different functions which helps in achieving predetermined goals or objectives
in an appropriate manner. These can be understood by considering all these in detailed form such
as:
Marketing department consider the bridge of relationship in the market for the purpose of
satisfying customer needs or wants. Therefore, marketing is beneficial for both as suppliers and
consumers because it helps in identifying current situations, conditions and trends of the market
by analyzing the environment. Toyota focus on providing information to the customers regarding
development of new products which support in their quality life so that company adopt several
strategies for passing information such as advertisements, promotions and many more to create
awareness regarding particular car model or other features.
4

Finance is an essential that must be required for every business organization as finance is
the backbone of the company and it is related with expenditure as well as utilizations of available
resources for different business operations in an effective manner (Cavusgil, 2014). It provides
valuable reports regarding financial performance as well as positions about business plans.
Toyota allocates funds among various parts of the company as per the line with budget and
measures the use the financial resources against these performances. In others, if company
manages its cash flows then they required to ensure about sufficient funds which can meet
business requirements. Internal auditors take responsibility to monitor the entire financial
performance of the organization
Research and development department is very important for every organisation as in this
Toyota organise such research program for analysing the market positions by adopting several
tools and techniques so that effective results can be get. Company use their various policies that
are depends on proper research and development projects (Cantwell, 2010). This is an essential
and one of the most important functions that performed by the business organisation as per the
needs of research reports so that they can increase productivity and profitability within an
organisation.
Production department is also very important which is very helpful in creating and
manufacturing innovative goods or services that are offering by the organisation to its potential
customers (Chavis and Klapper, 2011). It is necessary to satisfy consumers desired needs as if
they return buying goods to company than it will affects on the firm as well as impact on
financial growth and profits. Company has to focus on this functions as well as manufacturing
department for creating better goods or services which will affects on the buyers purchasing
behaviours. Apart from these, manufacturing department also consider on utilising available
resources by effective strategies so that maximum wastages can be decreased. Therefore, Toyota
company which manufacture cars also focus on minimising costs of productions and create more
incomes as well as increase productivity of the firm.
Human resources management consider the people management which is very necessary
for every organisation. It play vital in the firm which works for managing and operating
businesses and its activities or functions in better manner (Carroll, 2010). It is an essential that
make organisational environment in positive manner so that individuals can focus on achieving
predetermined goals or objectives (Love, 2011). This department take responsibility to conducts
5

learning sessions for the purpose of enhancing employees skills and abilities and also done
innovative functions or activities in an appropriate manner.
Accounting and finance department works for managing as well as operating entire
important informations regarding business firms. In this, the division take responsibility to
manage and maintain the entire commercial activities or functions which gives first priority to
give an enough as well as sufficient funds to the firm as per the demands and requirements of
the market place. Along with this, Toyota concentrate on entire functions and activities for
gaining profits and create wealth among competitors in an appropriate manner. Finance and
accounting department mange all activities and control on them such as cash flows as well as
budgets for running business in an appropriate manner.
TASK 3
P4 Positive and negative impacts of macro environment on business operations
In this defined that, every business firms are surrounded by various environmental factor
so they have to required for running and working as per these forces such as internal and
external. It has major impacts on the business operations and its performance in several ways. On
the other side, it also affects on the business decisions and strategies making of company in an
effective manner (Shabana, 2010). These factors also impacts on the entire business operations
which can be decrease profits as well as productivities. In this involved various kinds of
elements such as political, legal, social and technological and economical forces etc. apart from
these, macro factors included risks and several challenges that brings various opportunities that
look for paths and tracks to achieve success. Toyota firms required to adopt specific strategies
and tools for surviving from these forces because it is necessary to consider those elements so
that competitive advantages can be achieved.
Political and legal factor: In this defined those factors which are based on the
government policies and activities which has included several changes that affects on the work as
well as procedures of an organisation. Political and legal factors has directly impacts on the
business operations and functions that can be create barriers while making decisions. Toyota firm
required to identify the legal factors and also look for rules or regulations of the government.
Here are some laws which as follows:
6

 Positive impact: In this consider several laws in which consist rules or regulations so
they can impacts on the country in positive manner (Cavusgil, 2014). These are an
essential for reducing negative approaches as it helps in overcoming crimes or illegal
terms.
 Negative impacts: Government have rights to formulate several rules and regulation
against laws so sit has various protocols which support to cooperative firms in
implementing their procedures.
Economic factors: Various factors are involved in this which have direct impacts on the
business organisation. As it affects on the economic conditions of country as well as procedures.
It has broad structure that in which included legal and trade or business organisations etc.
 Positive impact: In this, it can be analysed that it has proper planing and strategies
which support in generating revenues and incomes so it directly contributes on the
economies of country as well as its growth.
 Negative impact: On the other side, inflations and tax rates are interrelated with
economic factors. It also some major negative impacts on the business firms that can
affects on the procedures or policies.
Social factors: In this required a determination for identifying customers needs or wants
so that it will be support to country in providing goods and services (Chavis, 2010). It is
necessary to analyse these social factors as Toyota also consider this for making or creating
products such as car model as per the customers demands and needs so that they can be satisfied
in an effective manner. Social factors can affects on the manufacturing department so it is
necessary for Toyota to conduct study and find customers needs according to environmental
situations in an appropriate manner.
 Positive impact: It is very important to have proper research as it helps to Toyota firm in
manufacturing best quality of model and car so that customers can be satisfied in an
effective manner.
 Negative impact: This can be based on the poor services or law quality of products that
can affects on the consumer buying behaviours as it will impact on the sales volume and
decrease the marketing image among competitors in various ways. These factors also
have negative impacts that reduce organisational growth and incomes as well.
7

Technological factors: It is defined as the important aspects that also has major impact
on the firm. This is an important components in the environmental factors because technologies
generally change as per the climate (Klapper, 2011). Therefore, it is necessary for every firms
that have better strategies and tools or techniques for running an organisation in the competitive
environment. Toyota consider this and focus on choosing smooth functions of work and make
them more appropriate by utilising various factors.
 Positive impact: In this defined that advance technologies are those that have same or
accurate path which support in achieving growth and profits of the firm in an effective
manner.
 Negative impact: There are several factors that can be affects in various ways such as
untrained staff members or poor skilled employees cannot be complete any task or
achieve set goals so that company has to required to adopt best technologies and
strategies to overcome these negative impacts in great manner.
TASK 4
P5 Internal and external analysis of specific organization for identifying strengths and weakness
It is very important to the organisation that to identify internal and external factors and
also analyse its strengths and weaknesses for making better strategies so that organisation can
achieve competitive advantages in an effective manner (Love, 2011). Toyota conduct research
and survey for study which support in analysing the current situations of market and company. In
this included the strengths, weaknesses, opportunities and threats which are required for making
or adopting appropriate strategies to create successful organisation. SWOT analysis is an
essential that is very useful to develop the business strategies so it can be beneficial for the firm.
Study can be done as internal and external analysis within an organisation to compete with
competitive world. Internal analysis is necessary to find several advantages and disadvantages
for the purpose of meeting company's targets. Here are some factors of strengths and weaknesses
of Toyota firm such as:
Strengths:
 This organisation is very popular in the world so it has good reputations in the market.
This firm focus on adopting new technologies fro adding unique features in the car
8

manufacturing and produce effective model for satisfying customers in an effective
manner.
 Every individuals prefers to purchase any automobile from Toyota plc because they are
satisfied from these products and services (Chesbrough, 2010). They focus on effective
functions of research and development so that better products can be manufactured.
 It is most famous and valuable automotive brand in the international market.
 This firm has various manufacturing plant across the countries and global market. As it
has Toyota production system (Chow, 2011). Competence in the hybrid vehicle
productions among competitors.
Weaknesses:
 There are several weaknesses of the Toyota firm as in this found lack of competences in
the Automobile sector.
 It has poor publicity just because of having large vehicle recalls.
 They also have weak presence in various areas such as China.
 It also have poor brand portfolio in the competitive environment at the market place.
Opportunities:
 Fuel prices can be rise as there are lots of inflations which affects on the natural resources
so it has expected that fuel prices can be increased in the future.
 Demand for the various autonomous vehicles as in the competitive environment there are
numbers of demands regarding new model of cars.
 The opportunities of Toyota plc is timing as well as frequency of the new models which
are going to be release and introducing.
Threats:
 There are several threats such as rising the exchange rates of Japanese yen.
 The automotive industries are the subjects that have several government regulations as it
increase the competitions at world wide or the market of automotive sector.
 The major threats of Toyota plc is that they can affects from the natural disasters which
has chances of occurring in the Japan.
P6 Strengths and weakness interrelate with external macro factor
Macro environment have several impacts on the business environment as every
organisation has surrounded from various factors related with business operations. Toyota firm
9

also affected in both way as negative and positive (Commander, 2011). The company has to
required to consider all external factors which are as followings such as political, economical.
Technological and legal as well as social which has major impacts on the business strategies.
Manager of this firm required to consider all these factors for creating and developing an
appropriate strategies which can enhance the company's productivities and growth in an effective
manner. External environment consist several changes that can impacts on the business
operations. It has interrelated with company's strengths and weaknesses as well as with the
macro environmental factors in various ways such as:
Social factors: This factors is based on several marketing demand as well as needs for
particular products and services. Therefore, it is necessary to analyse these factors that can
affects on the business operations (Svejnar, 2011). Toyota plc required to build an effective
marketing strategies so that they can find customers needs or demands regarding particular car
and its model so that company can meet with their desired expectations in an appropriate
manner. In this consider the social factors as various changes can be occurred in the customers
preferences, choices and taste as per the environmental affects. It also defined that how these
forces are related with organisations in achieving higher profits in an effective manner.
Technological factors: in this consider that there are several changes which occur due to
generations and technological changes. Toyota firm also concentrate on managing the entire
business operations as well as activities as per the innovative ideas and creative thoughts. They
are required to adopt best strategies and innovative ideas regarding technologies adoptions so
that better products can be manufactured. They can use several machines, equipments and tools
for producing parts and other things that helps in making more appropriate products and services
in effective manner.
Economical factors: In this consider several economical factors that can affect on the
financial positions of the firm as it has major impacts on the organisation (Drucker, 2017). It
operates in the wide areas such forces must be undertakes while making decisions in an
appropriate manner. Company can decrease their profitability and productivity through various
critical elements. In this included exchange of rates, inflations, sales and tax rates etc.
Political and legal factors: These forces are related with several legal policies, rules and
regulations that must be undertakes for the purpose of preventing various disputes and also
reduce some negative impacts on that. These legal laws as well as regulations must be required
10

for running smooth functions of organisation. In this also necessary of proper up gradation of
several rules and policies within the company.
Environmental factors: Every firm has operated in open areas which are surrounded
from several environmental forces, therefore firm need to focus on these factors and try to
generate profits for the company in the critical conditions of atmosphere.
CONCLUSION
From the above report, it has been concluded that smooth functions can be run by
adopting best business strategies for the organisation. Managers are required to consider several
environmental factors such as internal and external for making effective or successful
organisation, working conditions and appropriate environment by formulating several strategies
and tools or techniques so that proper management can done. It also help in reducing disputes
because it is necessary to monitor internal and external factors for the purpose of maximising
profitability as well as productivity in an appropriate manner. Organisation can be categories into
three major areas such as public, private and voluntary. In this discussed SWOT and PESTEL
analysis for identifying company's strengths, weaknesses, threats and opportunities in effective
and efficient manner.
11

REFERENCES
Books and Journals
Cantwell, J. and et. al., 2010. An evolutionary approach to understanding international business
activity: The co-evolution of MNEs and the institutional environment. Journal of
International Business Studies. 41(4). pp.567-586.
Carroll, A. B. and Shabana, K. M., 2010. The business case for corporate social responsibility: A
review of concepts, research and practice. International journal of management reviews.
12(1). pp.85-105.
Cavusgil, S. T., and et. al., 2014. International business. Pearson Australia.
Chavis, L. W., Klapper, L. F. and Love, I., 2011. The impact of the business environment on
young firm financing. The world bank economic review. 25(3). pp.486-507.
Chesbrough, H., 2010. Business model innovation: opportunities and barriers. Long range
planning. 43(2). pp.354-363.
Chow, A. T., and et. al., 2011. Broadband network with enterprise wireless communication
system for residential and business environment. U.S. Patent 7,944,948.
Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance. The Review of Economics and Statistics. 93(1). pp.309-337.
Drucker, P. F., 2017. The Theory of the Business (Harvard Business Review Classics). Harvard
Business Press.
Gecevska, V., and et. al., 2010. Product lifecycle management through innovative and
competitive business environment. Journal of Industrial Engineering and Management.
3(2). pp.323-336.
Iskanius, P., and et. al., 2010. The traditional industry sector in the changing business
environment–a case study of the Finnish steel product industry. International Journal of
Electronic Customer Relationship Management. 4(4). pp.395-414.
Klapper, L., Lewin, A. and Delgado, J. M. Q., 2011. The impact of the business environment on
the business creation process. In Entrepreneurship and Economic Development (pp.
108-123). Palgrave Macmillan UK.
Osterwalder, A. and Pigneur, Y., 2010. Business model generation: a handbook for visionaries,
game changers, and challengers. John Wiley & Sons.
Storey, D. J. and Greene, F.J., 2010. Small business and entrepreneurship. Financial
Times/Prentice Hall.
Teece, D.J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
Trkman, P., 2010. The critical success factors of business process management. International
journal of information management. 30(2) pp.125-134.
Welford, R., 2013. Hijacking environmentalism: Corporate responses to sustainable
development. Routledge.
Wild, J. J., Wild, K. L. and Han, J. C., 2014. International business. Pearson Education
Limited.Osterwalder, A. and Pigneur, Y., 2010. Business model generation: a handbook
for visionaries, game changers, and challengers. John Wiley & Sons.
Wirtz, B. W., Schilke, O. and Ullrich, S., 2010. Strategic development of business models:
implications of the Web 2.0 for creating value on the internet. Long range planning.
43(2). pp.272-290.
12

Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future
research. Journal of management. 37(4). pp.1019-1042.
13