Business and Business Environment: An Analysis of Toyota

Desklib provides past papers and solved assignments for students. This report analyzes Toyota's business environment.

1
BUSINESS AND BUSINESS ENVIRONMENT

2
Table of Contents
LO1..............................................................................................................................................................3
LO2..............................................................................................................................................................6
LO3..............................................................................................................................................................7
LO4............................................................................................................................................................11
Reference list.............................................................................................................................................15

3
LO1
P1 various kinds causes of companies; legal structures, voluntary, private and
public sectors
There are various types of companies in the market. The organizations operate their business in
various industries and they have also their personal structures of business.
The structures can offer few impacts on the company activities and the trade. But the
international organization such as Toyota can look to attain correct competitive benefits with the
assistance of the marketing strategy, quality, and the price (Lawler, 2018). Apart from that, it can
happen that the organization gets overblown by a few factors like change of technology and the
intervention of the government. The customers are a highly important component of the
organization and their procedure of the business. There are two types of industry competitors and
they are indirect and direct. There are five kinds of companies and the companies are NGOs,
charities, government companies, public and private companies (Leal-Millan, Peris-Ortiz &
Leal-Rodríguez, 2018).
Considering the private sector organization, it can be observed that, in that case, the control of
the business and the ownership is in the people group or the individuals. The main objective of
the business of an organization is to increase their net profit. It can be understood that the
government agencies of the nation and the government can control the public sector.
Voluntary section is also an effective sector of the trade. This kind of company is interrelated
with various activities such as the business community, voluntary bodies, and charity. This sector

4
or organization is the non-governmental and the non-profit organization. In that case, it can be
observed that research done on cancer can be identified as a voluntary UK organization.
Toyota is mainly a large international company. Thus, this is vital that they can effectively thrive
their business without any types of lawful procedures. Mainly, the proprietor of this organization
keeps efficient control over the business and their ventures.
The headquarter of the organization Toyota is situated in Japan. Therefore, the entire procedure
of the business of this company can be handled by headquarter in Japan. The Toyota
organization gets huge profits in their business and they also efficiently yield more profits in
their business and they also buildup some competitive benefits over its competitors with the
assistance of their impactful strategy of the business.
P2 Range, scope and size of the various kinds of companies
There are many kinds of companies like charities, NGO, co-operatives, government, public, and
the private company.
The private organizations can be managed with the assistance of the private individuals and the
owner of the organization (Gunasekaran et al. 2018). They keep concentrating on satisfying the
clients with the right services and the products. But the organization might provide a big share
among those persons who wish to sign the contract of business with the organization. Toyota
company belongs to private sector organization and this organization provides competent cars to
their clients. There are three vital Toyota shareholders names NYSE, LSE and TYO (Guarda et
al. 2018). This organization has effective directors in every office who properly manage the
Toyota business. This organization has shared capital of $1.5tn in the United Kingdom. The

5
entire decision of business of Toyota can be prospered by the shareholders and the management
of the organization.
The UK government and the shareholders have some effect on the company business since
sometimes organization requires managing the UK regulations and the rules. Apart from that, the
public limited company has been beginning them as the public limited company. There are three
kinds of public sector organizations like large, medium and small size company. The small size
organizations face few issues in order to survive in the market. They have a small business and
the number of employees in a small size company cannot be more than 50 persons (Cascio,
2018). Therefore, the business scope is highly restricted. The medium size companies offer solid
competition to the small size organizations and this is also a threat for the small company's
business. The medium size companies are bigger than the small size organizations.
The company business can reckon on stakeholders and the shareholders. Therefore, the
organization requires taking care of stakeholders and the shareholders in their business. Apart
from that, the organization such as Toyota can receive various effects from the environment of
the business (Beatty, Samuelson & Abril, 2018). The environment of a business can be modified
from time to time and the organization requires taking care of territory in order to make a steady
trade.
However, the large companies can be categorized according to their products such as tertiary,
secondary and the primary. In this case, it has been observed that primary organizations normally
use crude materials and these materials are natural. These materials can be sent to secondary
organizations. Therefore, the secondary organizations properly transform these raw goods in the
finished commodities and send these commodities to tertiary organizations.

6
In some cases, the tertiary organizations are those retailers who sold these commodities to the
clients also and they offer few services to their clients. The overall purview of organizations can
depend on the kinds of commodities. When the clients appreciate the commodities of the
organization and frequently purchase the commodities then organizations can have purview of
victory in the cutthroat market.
In periods of operating an organization properly in the retail, the organizations develop some
perception, business, intention, and intention. By satisfying the objectives, perception, and goals
the organizations can perfectly advance victory in their business process. The perception can be
defined as the post where the organization wants to reach in the future. Apart from that, the aim
is the entire aspiration of the company. Therefore, the ambition of the organization can be
accomplished in an efficient way.
LO2
P3 Describe the relationship between variouscompanies functions and how
they link to company structure and objective.
There are various types of functions in companies such as accounts, customer service,
production, operation, development, research, marketing, sales, and human resource
management. With assistance from the marketing department, the organization can reach easily
to the clients and the suppliers of the company gain profits.
With assistance from the marketing department, Toyota gives effective product information and
details related to the services to their customers (Rezaee et al. 2018). Apart from that, the
organization can attract easily clients by offering them cars at competitive prices. Therefore, the

7
strategy of competitive pricing can also assist the organization and the high demand assists them
to grow in the market of the United Kingdom.
Source: Zhao, Pan & Chen, (2018)
After analysis of the part above it can be seen that the Toyota organization has been executed the
objectives of the corporate. It is related to various company functions. All the functions have
been deploying the purpose and designs their action plan of functional strategy.
Similar to this their business can thrive from time to time. The Toyota company uses mainly the
strategy of bureaucratic leadership in a period of handling their operation. They can fulfill
properly their objectives of the business with their entire functions and acquire a win in the
market efficiently.
LO3
P4 Recognize the negative and positive effects on the macro environment upon
operations of business, backed by certain examples.

8
The macro environment is a domain of a nation in which the organization does business
efficiently. The macro environment is defined as those forces which impact the process of
business of the organization.
Monetary policy, fiscal policy, rate of inflation, rate of GDP and different forces of the
microenvironment impacts the process of business of the organization. The negative and positive
effects the macro environment has upon the organization as given below
Political Aspects
Toyota is covering various political barriers relating to the expansion and growth of the trade.
Political aspects regularly impact the procedure of business of the organization. The companies
are covering various opportunities due to the political aspects (Zhao, Pan & Chen, 2018).
Chances related to the political aspects are given below
Opportunity
 Political adherence in the market of United Kingdom can assist the companies to
successfully improve the trade.
 Free agreements of business between the nations can also assist the company to
successfully operate their business in this competitive atmosphere of business
 Government help for the eco-friendly commodities can also assist these companies to
easily gain their profits.
Economic aspects
Various external fiscal aspects impact the procedure of business of Toyota. Various fiscal aspects
which impact the Toyota macro environment are given below

9
 The fast growth of the developed nations
 Stable UK currency
 Development of the United Kingdom market
Toyota can receive various chances due to the fiscal condition of the nation and the chances are
related to the financial aspects as given below
 Stronger GBP vs. Weak Yen can offer various chances to the organization Toyota and
thus this can assist the organization to easily hike their profits in the United Kingdom
competitive background (Trad &Kalpic, 2018).
Social
Social aspects of the United Kingdom offer some chances and danger to global organizations.
The danger and chances regarding the social aspects of the United Kingdom are given below
 Rising interest in electric cars (opportunity)
 The rising importance of hybrid cars (opportunity)
 The increasing gap in wealth (threat)
Technological Aspects
The United Kingdom is a developed nation technologically and thus outside organizations are
receiving various advantages while operating their business here. Toyota is covering various
risks and opportunities due to external technological aspects. The problems and opportunities
regarding the technical aspects are given below
 Various problems and cybercrime (risks)
 The e-commerce activities (opportunity)

10
 Development of mobile technology (opportunity)
Environmental aspects
The external environmental aspects of United Kingdom always have few risks and opportunities
for the organizations. The risks and opportunities regarding the environmental aspects have
given below
 Change of climate (opportunity)
 Decreasing reserves of international oil (risks)
 Rising importance on business sustainability (opportunity)
Legal aspects
The United Kingdom has various regulations and rules and this constantly offers few chances to
the organizations outside. The chances and risks regarding the legal aspects are given below
 Rising laws of environmental protection (opportunity)
 Rising complex laws of customer protection (opportunity)
 Improving the laws of intellectual property (opportunity)
LO4
P5 Perform external and internal analysis of certaincompanies in order to
recognize weaknesses and strengths.
Toyota SWOT analysis
Strength Weakness

11
• Excellent supply chain management
• Sturdy brand image
• Fast innovation
• Trained staff
• Providing innovative and quality cars at
attractive prices
• Development of the car market
Modification in the business environment
Pyramid organizational structure
impact of recalling the product in the past
few years
Unemployment problems
Confidentiality in the company culture
Rising legal price
Focus operations
Opportunity
Can assure the staff receiving more profits
from them easily
Bringing new cars in terms of developing
their sales
Threat
• Decreasing share of the market
• Rising competition
• Wrong decisions of management
Porter’s Five forces
Threat of substitute products
This threat is high. Various contestants are available in the market of United Kingdom and thus
Toyota is covering various problems here. Clients can easily receive replacement commodities
here and thus it can be observed that there is a rising risk of replacement commodities in the
market of the United Kingdom.
Threat of competitors

12
This threat is high for the company. The anxiety of event clash is also huge for the organization
Toyota in the United Kingdom. Various giant car organizations are feasible here and they want
to acquire the share in the market. This can make an adverse effect against the procedure of
business of Toyota (Solodilova, Malikov and Grishin, 2018).
Power of buyers
The buyer power is high. The trading capacity of the customers in the United Kingdom is very
immense in comparison to different nations. Various organizations are accessible here and thus
clients are receiving various options. Therefore, the trading capacity of consumers is rising in the
competitive atmosphere of the United Kingdom.
Power of suppliers
This power is low. The trading capacity of the suppliers in the United Kingdom is small in
comparison to various nations. Various suppliers are accessible here and thus the organization
can easily receive the fresh goods here. Therefore, it offers an affirmative impact on the Toyota
organization.
Threat of new entrants
The risk of recent entrants is less in the market for Toyota. This is mainly a successful
organization so the new companies cannot easily take the market of Toyota.
P6 Describe how weaknesses and strengths relates with external macro factors
The weaknesses and strengths related to the external factors as given below
Strength-