David Game College: Unit 1 Business Environment Analysis of Toyota

This report provides a comprehensive analysis of Toyota's business environment, focusing on the impact of macro factors and internal strengths and weaknesses. The introduction establishes the context, highlighting Toyota's global leadership in the automotive industry. P4 identifies the positive and negative impacts of the macro environment using PESTLE analysis, examining political, economic, social, technological, environmental, and legal factors. P5 conducts an internal and external analysis through SWOT analysis, detailing Toyota's strengths, weaknesses, opportunities, and threats. P6 explains the interrelation between strengths, weaknesses, and external macro factors, emphasizing how these factors influence each other. The conclusion summarizes the findings, emphasizing Toyota's effective organizational structure and its ability to manage challenges. References include relevant academic sources.

Business and business environment

Table of content
Introduction
P4 Identify the positive and negative impacts the macro environment has
upon business operations, supported by specific examples 4
P5 Conduct internal and external analysis of specific organisations in order to
identify strengths and weaknesses. 5
P6 Explain how strengths and weaknesses interrelate with external macro
factors.
Conclusion
References

INTRODUCTION
Business and business environment refers to a
combination of external and internal factors which have
impact over the business organisation. Toyota is a car
manufacturing company of UK. The company has
awarded as world's market leaders automotive company in
all over the world. The company was established in the
year 1937 by Mr. Kiichiro Toyoda.

P4 Identify the positive and negative impacts the macro environment has
upon business operations, supported by specific examples
 Macro environmental factors are those which are beyond the control of Toyota. Impact
of macro environment can be analysed by the PESTLE analysis of company.
PESTLE analysis of Toyota is as under:
 Political factors: stability of Govt. majorly effects the business of Toyota. Through
political stability can get an opportunity of grow its business without any political
tension. Further, company needs to produce eco-friendly products as Govt. supports
eco-friendly products more. It also leads to fulfilment of company's social
responsibility.
 Economic factor: rapid growth in present economy provides Toyota an opportunity to
grow in more faster way and increase their revenues.

CONT..
 Social factors: social factors like culture of the country, preference of
people, etc. have effect the company’s business. Because it results in
influence the sale of the product offered by the company
 Technological factors: as the Toyota is an automotive company, it has a
great influence of change in technology. Company needs to grow and
innovate its product in accordance with the technological changes

CONT..
Environmental factors: environmental factor influences the
decision making of Toyota. Increase in fuel price can effect
its business majorly. It can have negative effect over the
business if its product consumes more fuel. Whereas, it can
be turn as an opportunity if company starts making
electronic cars and environmental friendly cars.
Legal factors: Toyota is doing business globally therefore, it
has a major effect over legal system of different countries.

P5 Conduct internal and external analysis of specific
organisations in order to identify strengths and
weaknesses.
In order to analyse strength and weaknesses of the Toyota, we can analyse its
internal and external factors through SWOT analysis. The SWOT analysis will
discuss strength, weaknesses, opportunities and threats of the company.
Strength: Toyota is having the largest position in automotive market. It is the
most important strength of company. Strength indicates the internal strongest
factors of the company. Having a strongest brand image in the market of
automotive, spreading its business in all over the world and having global
supply chain, rapid innovative framework of the business are some major
strengths of the company.

CONT..
Opportunities: change in technology, environmental
trends, can be seen as opportunities for the company.
Opportunities are the external factors having positive
effect over the business. Enhancement of demand of fuel
efficient cars, technological development, increase in
interest of consumers in automobiles are some
opportunities for the company.

P6 Explain how strengths and weaknesses interrelate with external macro factors.
 Both strengths and weaknesses are interrelated with the external macro factors.
Although strength and weaknesses are different from macro environmental factors
where macro environmental factors are beyond the control of business, on the other
hand, strength and weaknesses of the business can be controlled by the company.
But they are internally related with each other they can influence each other.
 Strength: strength of business can be influenced by its macro environmental factors.
For example having a brand image, being awarded as the largest automotive brand
in all over the world, having global supply chain are strength of Toyota

CONT..
Weaknesses: weaknesses are some factors in which
company is working inefficiently. Although these can be
turned into company's strength through influence of some
macro environmental factors. For example being beyond
the approach of its general public is a massive weakness
of Toyota although it can be reduced if the purchasing
power of its customer increases

CONCLUSION
 From the above study it has been concluded that Toyota has adopted the
best organisational structure for its functioning.
 The company has some strengths and weaknesses along with opportunities
and threats but company has managed all these very effectively and has
done its business at its best.

REFERENCES
Books and journal
Eling, M. and Schaper, P., 2017. Under pressure: how the business environment
affects productivity and efficiency of European life insurance companies. European
Journal of Operational Research. 258(3). pp.1082-1094.
Hill, C., 2008. International business: Competing in the global market
place. Strategic Direction. 24(9).
Vickery, S.K. and et.al 2004. The performance implications of media richness in a
business-to-business service environment: Direct versus indirect
effects. Management Science. 50(8). pp.1106-1119.