Analysis of Toyota's Business Environment and Organizational Structure

This report provides a detailed analysis of Toyota's business environment, exploring the different types of organizations, including public, private, and voluntary sectors, and their impact on the company. It examines Toyota's organizational structure, highlighting the interrelationship of various functions like marketing, HRM, purchasing, and finance, and discusses their advantages and disadvantages. The report delves into macro factors affecting the organization through PESTLE analysis and highlights the strengths and weaknesses of the company using SWOT analysis. Furthermore, it analyzes the interrelationship between strengths, weaknesses, and macro factors, culminating in reflections on key findings and their influence on the decision-making process within Toyota. The conclusion summarizes the key insights, and references are provided for further study.

Business environment
and
environment

Table of Contents
INTRODUCTION...........................................................................................................................4
Task 1...............................................................................................................................................5
Different types of organisation and growth of the international business environment.............5
Public, Private, Voluntary, organisation background, details, scope and size...........................6
Structure & chart of the organisation, functions interrelated & advantages and disadvantages
which impact the organisation....................................................................................................9
TASK 2..........................................................................................................................................10
Pestle analysis and various macro factors imapct on organisation and highlight the positive
and negative factors...................................................................................................................10
SWOT-analysis of the organisation..........................................................................................12
Interrelationship of strength and weakness with macro factors of the organisation.................13
Reflection on key finding and influence the decision making process.....................................13
CONCLUSION..............................................................................................................................14
REFERENCE.................................................................................................................................15
Books and journals....................................................................................................................15
online.........................................................................................................................................15

INTRODUCTION
Business environment is the total sum of all the internal and external factors which influence the
organisation. The environment of the organisation has a great impact on the process and
functions of the business. It offers all the opportunity and threats of the organisation with the
pressure and limitation of organisation..Toyota engages in the manufacturing of the motor
vehicles and parts of the vehicles. It deals with the segment of designing sale of housing,
telecommunication etc. It describes the different types of organisation with their structure, scope,
size, products and services, stakeholders etc. This report will base on the interrelation of macro
ad micro factors and also the key finding's ad how to influence the decision making process.

Task 1
Different types of organisation and growth of the international business environment
Public organisation:-
Public organisation gives service to the citizens which is usually comprised by the firm
that are owned and operated by the government. it gives facility to the public which is rather
than maximize the profit(Akhmetshin. and.et.al., 2018. ).
Purpose:- The purpose of the public organisation is providing public service rather than
making profit. Public sector organisation usually providing the hight quality of service and
products to the society.
Example:- NHS is the largest public sector organisation which provide the health &
social care to the general people.
Private organisation:- Private sector is the part of economic system of the country which is run
by companies and individuals rather than the government. Private sector organisation offer or
trade its organisation stock to the public on the exchange of stock market, but rather they offered
the stock of the firm and traded or exchange privately.
Purpose:- The purpose of the private sector is to give priority to the profitability and
they end the services which is not generating the profits for the organisation.
Example:- John lewis organisation is the biggest private organisation which provide the
home accessories and increase the profitability by selling their products. It retains the customers
from fulfilling the needs.
Voluntary organisation:- voluntary organisation which helps the society in any possible way
and also provide facilities to the people. It is characterised by the functions which give aid of the
volunteers and which provide service to the individuals, groups or countries. This company is
created by the group of members or the community(Beatty. and.et.al., 2018 ).
Purpose:- The purpose of the voluntary organisation is to achieve aims on a wide range
of activities like providing the health care facility and helping the society and give advice to the
groups which they help for society.

Example:- Wellcome trust is voluntary company aim is to achieve the extra ordinary
improvements in the health care field and generate interest to help the needy people.
Public, Private, Voluntary, organisation background, details, scope and size
Explantation NHS John lewis Wellcome trust
Background details NHS(national health
service) is public
funded company in the
UK. it was founded in
1948 and there are 1.4
million employees
working.
John lewis is one of
the largest chain of
department stores
which is operated
throughout the UK. It
was founded in 1864 .
It primarily operates
the stores such as
supermarket, stores,
convince stores etc.
there are 38,100
employees are
working.
Wellcome trusts is a
biggest biomedical
trust researcher charity
which is based in UK.
It was established in
1963. There are 2057
employees in the
organisation.
Products & service It is one of the largest
& biggest health care
payer group in the
world. It provides the
service of health care
facility to the
public(Chang, 2016.).
It provides the medical
products and services
to the public.
The wide rang of
products and services
is provided by the
John lewis. The
products which
company offers garden
and home products, it
includes all the home
furnishing accessories,
dining products, DIY
They offer and provide
the service of health
care and create interest
in the society to help
the needy people.

products etc.
Stakeholders The stakeholders of
the NHS are
Employees, managers,
board of members
The stakeholders of
the company is
friends, and family
members
Stakeholders of the
wellcome trust is only
the member of the
trust, patients etc.
Size & scope NHS expand their firm
day by day which is
the biggest success for
the NHS. It makes a
powerful impression
between worlds
top[ 10 countries. The
scope of the NHS in
the local and
international market is
so much wide because
it expands their brand
in so many countries.
Profit generated last
year is 1.851 billion
The size of the John
lewis generates the
profit and revenue
around 10.3 million
which is a biggest
thing for the firm.
There are 38100
employees working
with John lewis. They
have wide scope
because the customers
of the firm is
increasing day by day
from fulfilling the
demand. This thins
satisfied the needs of
the customers. The
profit rate of company
last year is 1.2 million.
Wellcome trust is a
very famous charitable
trust which is growing
in the terms of
research. It has a wide
scope because it
planning to expand
their business in terms
of research and
technology. Net
revenue of last year is
1,221
million(Hillary,2017. )
.
Objectives Objectives of the NHS
are it promoting all the
best clinical and
practice of the
business. It provides
the facility to the
Main objective of the
John lewis is to
satisfied the needs of
the customers and
generate profit for the
success of the
Wellcome trust main
objective is to
developed the
vacancies for people
and company.
Encourage government

different need of the
public to the different
range of populations.
It influences the health
care service on the
behalf of the NHS. It
contributes with the
key stake holders for
the recruitment,
retention and training
and learning process
of the organisation.
company. The main
objective of the
company is to
continued the
financial development
and each year it
distributes the profit
share to their
members. It operates
the sufficient profit to
retain its commercial
vitality.
and global business
take the participation
in global health for
more safety of future.
Vision The vision of the NHS
is to inspire public to
live healthier life and
more independently
life from high quality
seamless
care(Maduenyi
and.et.al.,2015.).
The vision of the John
lewis is to retain the
customers and increase
the profit and also
make a good brand
image outside the
market.
The vision of the
wellcome trust is to
research the global
health challenges
which is supporting
the research
institutions for low and
middle level countries.
Mission The mission of the
NHS is to provide the
facility of health care
services which public
and their family want
to use.
Mission of the John
lewis is to drive and
increase the success of
business and maximize
the rate of
profitability.
The mission of the
wellcome trust include
the highest quality of
the research. it
supports and mentor
the students of the
researchers.
Organisation structure NHS follows the tall
structure of the
organisation.
John lewis follows the
flat structure of the
organisation.
Wellcome trust
follows the matrix
structure of the

organisation.
Legal structure Major decision of the
organisation is take by
the chairmen of
organisation and NHS
sale their share to the
stock exchange of the
company.
The shares of the
company can not sale
on the initial offer of
the public companies
The legal structure of
the company is same
as the incorporation of
the organisation.
Structure & chart of the organisation, functions interrelated & advantages and disadvantages
which impact the organisation
Organisation structure:- Toyota follows the tall structure of the organisational behaviour. The
structure of the Toyota is referred to its operations in the organisation across the world. The
expandation of the Toyota is so much wide. The structure of the business is support the goal's
and objectives of the company(Moro Visconti, 2016.). It contains the strategic directions. It
covers the wide range of global presence to show the ability to use its maximise efficiency and
capacity of utilisation.
Interrelated functions of Toyota:-
Marketing ad HRM department:- Marketing is interrelated to the function of human resource
management in so many ways because they attract the customer which makes profitability and
increase the sales of product. Toyota need so many marketing strategy to sale the product and
services. Marketing and HRM work together for the collaboration of the benefits which is
provided by the company. The interrelationship of both the strategies increase the brand value
from marketing of the products and services in so many ways. If the demand of the marketing is
high than the human resource management have to recruit candidates for working. Marketing
need employees for making strategy of the marketing. Advantages of both the department for
Toyota is that they collaborate with each other which gives profit.
Purchasing & finance department:- Purchasing strategy of the Toyota is based on the high
quality , provide innovative, safe and better service that meet a wide range of clients demand. It

strengthens the position for the growth of business. The finance service of Toyota is depended
upon the purchasing of the manufacturing products(Sammut‐Bonnici. and Galea, 2015. ). Its
important to purchase the good quality products in very cheap price which gives more
profitability to the organisation because if the price is cheap than company have to invest less on
the purchasing which is beneficial for the other investment of the organisation. Advantages of
the interrelation of purchasing and finance department is fulfilling the demand of the customers
and provide good quality of products and the disadvantages for Toyota is sometimes the
purchasing rate is high which affect the financial conditions of the organisation.
Marketing and financial department:- The marketing strategy is based on the finance budget
of the organisation. From marketing of the product is succeed in the market ad make a good
market brand image. Marketing of the Toyota is focuses on the marketing message which attracts
the customers for buying the products. A set of marketing includes all the communication
channels like advertising, sales promotion etc which takes financial support of Toyota. From lots
of marketing it takes so many current investment which is return with the profitability of the
organisation. Advantage of the interrelated of the marketing and finance department is that they
use the pricing strategy such as advertising of the product on a very wide range with financial
security(Sammut‐Bonnici. and Galea, 2015. ).
Disadvantages of the marketing and financial interrelation is that sometimes the marketing
strategy affect the finance department because it takes huge variety of marketing of the product
in the market.
TASK 2
Pestle analysis and various macro factors impact on organisation and highlight the positive and
negative factors
Political factors:- Political factor of the Toyota is growing its importance with globalisation. It
depends upon the policies and rules of the government which shows the business is capable to
stand in the market or not. Political environment can easily affect the business so the
environment of the organisation is calm and suitable which gives stability. Toyota makes a
global presence in the auto mobile industry. It can help in the result of the company disruption
chain of the supply and the network of the distribution. The changes in the rates of the tax such
as increase or decrease.

Positive impact on the business is that sometime the rate of the tax get decrease which increment
the profitability of the Toyota and having political stability can result in effective business
operations and mostly for those organisations who are operating internationally.
Negative impact on the business is that sometimes the government has been changed which
makes the new policies' ad rules for the industries which is not easily acceptable by the
organisation that time it affects the production and selling of the Toyota as company have to
change their operational activities in order to reduce the risk factors that may lead to significant
loss of the business.
Economic factor:- The relation of the market conditions and economic factor is well known.
Economic factor influence the functions of the Toyota. It includes all the inflation rate, currency
exchange rate, cost of labour, taxes rate and climate of the macro economy. If the situation of the
economic condition than the market conditions of the Toyota is good. From better economic it
increases the employment which increase the manufacturing process and rate of profit. It retain
the customers and higher the power of purchasing in the market.
Positive impact of the economic factor such as inflation rate or currency rate is good than it is
monetary benefit for Toyota from that it increase the sale and make a good brand image in the
market(Prajogo, 2016.). Having a good brand can increase the revenue and company can have
advance operational activities.
Negative impact of economic factor affect the marketing rate of the Toyota and decrease the sale
rate of the company. Rate of income usually affect business operations as density of employment
changes
Social factor:- It is a major impact on the sales in the international market. Social factor include
all the preference and new trends of the customers. The power structure in the society makes a
hierarchy for the organisation. Toyota has to understand the demand and new taste of the
customers which increase the awareness in the consumers. This also results in operational
changes as Toyota have to change there operational activities. Demographic factor is another
important factor which has certain implications on the volume of sales in Toyota.
Positive impact of the social factor is that the change in preference and new trends gives an idea
to manufacture the product according to the customers. For the same respective changes in
operations have to be done by Toyota.

Negative impact of the social factor is that the changes of preference sometime make loss for the
organisation because day by day changes is not possible for the company. Operational cost
usually increase in such situations.
Technological factor:- The development of the technology is fast disrupting for company across
the world. The rising trend of changes in the technology is a big opportunity for the Toyota. It is
a way to expand the organisation and operate it in a smart or technological way. It is way to work
easy and taking help of technology for developing of the organisation. For the same operational
activities have to be changed in order to implement new technology.
Positive impact of the technological factor is that it develop the organisation and make the work
easy and smart. Operations of the business get advanced and can bring competitive advantage to
the firm.
Negative factor for Toyota is day by day new changes in the technology gives a big
responsibility to accept the new changes and sometimes it takes so much time to understand the
technology. Extra cost may be included for such operations.
Legal factors:- Toyota is one of the biggest auto mobiles and products manufacturing company.
The refining and advancement of the legal laws pretend the customers to give a better
opportunity for trade globally in efficient way. Company has been produce the material that has
always as per the global laws and being able to sustain the positive image in the global market.
Positive factor for Toyota is that the rule's and regulation are in favour of the business than it
gives profitability and makes a brand image in the market. Accordingly business operations also
get improved and under legal considerations.
Negative impact for Toyota is that sometimes the new rule's and laws are not in favour of the
company than it might affect the image and brand of the organisation(Moro Visconti, 2016).
Operational changes have to done according to these laws so that company do not face any legal
issues.
Environmental factor:- Toyota includes ecological concern Certain changes in the climate,
weather and the laws and regulations for environment pollution of auto mobiles industry affect
the profit rate of the organisation. Toyota concern about the natural environment and make a
relation with business. Different operations of business must include environmental
consideration that is company have to take care that these business operations do not affect
environment.

Positive factor for Toyota is it increase the emphasis on company's sustainability. There
operations get improved so that they do not pollute the environment.
Negative factor for Toyota is selling of ecological products and make eco-friendly products and
for the same extra operational cost get involved.
SWOT-analysis of the organisation
SWOT Toyota NHS
Strength Toyota strength is that is indicates the
company is capable of making the
strong brand image. It has strong
global supply chain and distribution in
the market. It rapidly innovates and
manufactured the products according
the preference of the customers.
Strength of NHS is its highly skilled
staff that work so efficiently that
patients are having confidence on them
and they get involved with the
organisation. Company is getting
charity also from different
participants(Prajogo, 2016.)
Weakness Weakness of the organisation is it has
weak position in the Asian market and
the product recalls because of faulty in
the airbags of the vehicles. The culture
of the organisation is secrecy.
The major weakness of the organisation
is that patients have to wait as there is
huge waiting lists as it is under funding
by government
Opportunity The opportunity of the Toyota is the
growing in the market for developing
countries and rising the demand of
diversification of products.
Company is having opportunity as it
can improve by making changes in
activities and training there staffs so
that they can work more effectively to
build better service for future
generation.
Threat Threats of the Toyota is day by day
growing cost of the raw materials and
cost of the labour. The competitive
pressure from outside of the
There are risks involved related to
patients health and this may affect
reputation of the organisation.

organisation(Prajogo, 2016.).
Interrelationship of strength and weakness with macro factors of the organisation
The biggest strength of the Toyota is strong global supply of chain and distribution which is
interrelated to the economic conditions of the Toyota because the financial condition of the
Toyota is strong from which it can easily supply or distribute the products in the global market.
The innovations and new changes in the manufacturing of the products is linked with the
technological factor in so many ways because organisation easily accept the new changes in the
technology from which it can easily modify and innovate the products according to the
preference of the customers.
Weakness of the Toyota is recalls of the products such as the faulty in the airbags of the vehicle
which is interrelated to the technological factor because the new feature and changes which is
generally important for the safety of the customers. Toyota has to bring the technological new
changes and features for the satisfaction of the customers and make a positive impact and
concerned about the safety of the consumers.
Reflection on key finding and influence the decision making process
all the key finding factors can easily affect the decision making process of the Toyota in so
many ways such as the political factor affects the political stability of the organisation which
influence the decision making process and decrease the performance in the market(Akhmetshin.
and.et.al., 2018). Social factor easily affect the decision making process because the daily
changes in the preference and trends of the customers affect the manufacturing of the products
which increase the cost rate of the raw material technological factor affect the financial decision
of the organisation because day by day changes in the technology affects the financial strategy
because its very tough to accept the day by day technological changes which increase the labour
cost and technological training programme cost to the employees ad it also consumes the time of
the organisation.
CONCLUSION
Above study we conclude that each organisation has their own perspective for achieving the
goals and objectives. Public sector provide the public facility rather than maximise the profit.
Private sector full fill the demand of the customer and increase the revenue of the organisation.
Voluntary organisation provide the health care facility to the society. Further study will conclude

that the structure of the Toyota organisation is tall and it shows the interrelation, advantages and
disadvantages which impact the organisation(Beatty. and.et.al., 2018 ). It highlighted the
PESTLE and SWOT analysis of the organisation and the interrelation of both the macro and
micro factors. The study will highlight the key findings and influence the decision making
process of the organisation.

REFERENCE
Books and journals
Akhmetshin, E.M. and.et.al., 2018. Motivation of personnel in an innovative business
climate. European Research Studies Journal. 21(1).pp.352-361.
Beatty, J.F. And.et.al., 2018. Business law and the legal environment. Cengage Learning.
Chang, J.F.2016. Business process management systems: strategy and implementation. Auerbach
Publications.
Hillary, R. ed.2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Maduenyi, S. and.et.al.,2015. Impact of organisational structure on organisational performance.
Moro Visconti, R.2016. Healthcare public-private partnerships in Italy: Assessing risk sharing
and governance issues with PESTLE and SWOT analysis. Corporate Ownership and
Control 13(4).
Phadermrod, B.and.et.al., 2019. Importance-performance analysis based SWOT
analysis. International Journal of Information Management.44.pp.194-203.
Prajogo, D.I.2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production
Economics. 171.pp.241-249.
Sammut‐Bonnici, T. and Galea, D., 2015. PEST analysis. Wiley Encyclopedia of management,
pp.1-1.
online
What Is Business Environment? - Definition & Factors, 2019. [online].
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