Toyota’s Business Environment: A Case Study of Macro and Micro Factors

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BUSINESS AND BUSINESS ENVIRONMENT
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Contents
Task 1..........................................................................................................................................................3
LO1..............................................................................................................................................................3
LO 2.............................................................................................................................................................9
Task 2........................................................................................................................................................12
LO3............................................................................................................................................................12
LO 4...........................................................................................................................................................17
References.................................................................................................................................................19
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Task 1
Introduction
A company has created through an association made from persons for the special objective like
public or business serving. There are various kinds of operations employed by the managers in
the company like management, logistics, running, arrangement, organizing, selection, structure,
coordination, and planning. Toyota is a famous international automobile company set in 1937 by
Kiichiro Toyoda in Japan. This company has spread its trade in various nations including the
United Kingdom in the 19th century.
The automobile demand has reduced since the prices of fuel and cars are increased gradually. On
the other hand, the parts of the vehicle and the cost of the equipment are rising in recent years.
But, the innovative strategies of production practice and value for capital assist them to bolster
them in the international competitive market. Thus, the steady growth strategy of the company
assists them to land them a safe position in the international market of automobiles. This
assignment is all about the company Toyota and its business environment.
LO1
1. Define various kinds including goals based on companies: legal structures,
voluntary, private and public sectors.
In terms of analyzing the business and business environment it can be seen that the company
there are different kinds of activities and process of skills as well as materials which can be
based on the needs and demands of their customers. In There are various companies in the
market and who meet the requirements of the customers they divide their business activities.
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Thus, the organizations run their business in several kinds of industries and they also have their
own business structures. These business structures effectively give some impacts on the
development as well as sustainability of the company. Toyota is an international organization
that easily manages their activities with the help of effective business strategies (Lawler, 2018).
The company Toyota can get affected by some factors such as government intervention as well
as technology change but the customers are very important part of the company and their
business process. The company also gets some impactful competition in the international market
it can also provide effects on their business plans as well. In this case it can be seen that there are
two kinds of rivals of industry like direct along with the indirect. Thus, in terms of running their
business proper in the competitive market it is important for the organization to have proper
ideas regarding their direct and indirect competitors. Along with this it can be seen that there are
five types of organizations such as private organization, public, government organizations,
charities and NGOs and so on. In terms of conducting the study three kinds of organizations need
to be analyzed in a well manner such as private, public and voluntary sector. So, the analysis
have been given below
There are some different types of organizations such as private, public and voluntary sector. In
the case of the public sector organization it can be seen that the public sector organizations are
handled or controlled by the government. This can be the governmental agencies.
On the other hand, the private sector organizations are owned by the individuals as well as the
group of individuals. Therefore, the owner or the people effectively controlled the organization
or their activities. So, they have the responsibilities to take effective decisions regarding the
business process.
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The activities of the voluntary sector are involving in different organizations such as charity,
voluntary bodies and business community. Those organizations are basically non-profit
enterprises and non-governmental organization. It has been noticed that Cancer Research is
popular voluntary organization in UK.
Toyota has been running their business effectively in the competitive market. They are mainly
the private sector company and therefore they run their business with the help of their owner.
According to Opoku, (2018, p.49), the environment of trade encompasses various aspects like
the growth of technology, addition, population studies, community, economy, action of
government, control, replacements, business direction, dealers, merchants, contestants, resources
along with the consumers. It has been seen that assets like financial, physical and human assets
are highly vital units for any company. An international company such as Toyota might be
looking to boost competitive benefit via marketing, quality and price strategy.
It has been seen that trade future of the company has been changed by the various aspects like
the intervention of the government and change in the technology. It has been seen that consumers
are important for organizational prosperity and survival. It has been observed that the contestants
of this kind of industry of automobiles are normally two kinds like indirect and direct.
There are basically five kinds of organizations like public, private, NGOs, charities, cooperatives
and government organizations. The main objective of the company is only earnings. Sainsbury is
a global and top-notch private company. There are various kinds of private companies like
cooperatives, limited company, partnership, and sole traders. It has been seen the socialzone
economy do controlled straight through law agencies either the state. Thus, effective action of
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trade is performed by various kinds of companies in favor of its civilians and for their generic
gain. One of the highly famous public companies in the UK is the National Health Service.
Effective actions about powerful independent region do linking latest various companies like the
business community, voluntary bodies, and the charity. Basically, those companies are a non-
governmental company and a non-profit company. Charmownact research cancer is a famous
chosen company of the United Kingdom.
The trade idea of Toyota bet on various aspects like corporate social responsibility, technical
excellence, market share, and profit. It has been seen that Toyota is basically a company of sole
traders. The management of this company selects the working patterns and time of working for
their company. The HR department apt to build imminent special relationships with marketing
team and employees builds a special relationship with consumers. The whole trade activity of
companydo established at the skills along with interest about powerful elite administration
irrespective of the staff. Apart from that, the absolute liability of the company makes a threat to
proprietors. It has been discovered that Toyota has confronted difficult competition in the market
by various farms such as the Volkswagen Company in the international market. It is very tough
for a sole trader company to hike extra money. The senior officials have to invest deep hours to
create a new strategy of trade. There is an absence of continuity in the company.
2. Analyze the scope and size of a spectrum of various kinds of companies
There are normally five kinds of companies such as NGOs and charities, co-operative,
government, public and private companies.
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It has been observed that limited organizations are basically joint company; they have lawful
existence. Thus, other assets and properties are purchased by the organization but members are
not. The member's assets are not used by the company. Each person has limited liability.
In 1937 Toyota begins the trade on the point of a civil ltd Organization. Toyota Company has 3
significant shareholders of like London Stock Exchange, NYSE, and TYO. The company get at
least 1 director in every division of the company. Presently the company possesses share money
of around $1.5tn in the UK (Lawler, 2018, p.115). Toyota UK provides its contribution since
auction to generic state.
The company managed various legislation along with rules via manage figure of business as a
limited public company. The company is listed at LSE through auction interest toward the
generic community.
The LSE closely supervises the process of share trading. The company has organized an
anniversary public meeting with its investors every year. Toyota operates via organization
directors. Stockholders of the company select the people that other yields a verdict regarding
vital things like the development of marketing and the investment.
There are three kinds of public limited organizations like medium, large and the small. Large
businesses operate in a large market, but small businesses operate in a small market. Apart from
that, there is less scope for the small companies to modify its strategy of management aimlessly.
Basically, the competitor's entry can significantly destroy their trade. But, the company has fewer
assets to safeguard themselves from the approach of the barter. Thus, big trades can safeguard
themselves from new contestants in this competitive market.
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As per Guarda et al. (2018, p.81), medium-sized trades have received the good post as compared
to small companies. They prepared the bigger market and modify the approach twice or once in
the period. Also, they develop the business in the advanced market with actual commodities.
They possess additional assets to safe guard them from current access in the market. But
intermediate companies cover threats because of the rivalry with very large companies. The large
company has more assets so the threats might be huge to continue safety.
Three types of companies are available like secondary, tertiary and primary. The primary
company basically made crude materials from essential basic materials and deliver this material
to dependent company. Purview for Coca Cola Company is supply along with yielding the soft
drinks like bottled water, sports energy drinks, tea, ready to drink coffee, fruit juice, concentrates
and the carbonated drinks. OXFAM is a philanthropy company and had vast destination which
backs extra assets for safeguard them from original approachin the market. But, towards a big
company with additional assets, the threats might very big to bear security.
The company chose mission, perception, objective and targets to enhance the work of the
business. Perception signifies that post where the company wants to tuck. Mission signifies the
role and organization purpose. Action of business of the company is bet on stakeholders along
with the shareholders. Partners are expressed as a class of person who want to do business. These
persons are basically impacted by actions of business. There can be many highlights of the
environment of business of international firm such as Toyota like uncontrollable, differs and
dynamic. Thus, the environment of business of Toyota is modifying constantly established on the
consumer's trend and community but it is also uncertain. The trade is increasing globally by the
support of industry. The businesses are unmanageable since the complete working of the
business is placed at factors, forces and macro climate.
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In terms of analyzing the overall scope of the companies it can be seen that the scopes of the
organizations are depended on their product as well as the service types. Thus, if the customers
buy the products of the company and they like the products then they can develop the sales of the
organization in a proper way. Thus it is the scope of development of the business (Bratianu,
2018, p.3). During the time of running a company in the competitive market it can be analyzed
that the organizations effectively develop few vision, mission, goals as well as objective. By
meeting the vision, mission and objectives the companies can properly gain success in their
business properly. Vision is an effective part of the business they can develop their vision for
their future and the mission is the purpose of an organization. The mission as well as the
objectives is interrelated with each other so the company can effectively achieve their business
goals or objectives by meeting their mission.
On the other hand, it can be see that, the development of the business can be depended on their
shareholders as well as the stakeholders. IT is the shareholders who can effective invest some
money and develop some effective business strategies for the development of the company. Also
the stakeholders have some proper effects on the activities of the organization. However, the
company like Toyota can get different effects from the business environment thus they need to
manage their activities proper with the help of their shareholders and stakeholders also (Beatty et
al. 2018, p.45). The employees are the back bone and effective stakeholders of the business so
they need to manage their activities as the business environment of the organization. The
business environment change time by time thus to handle the situation the staffs of the company
need to be motivated and impactful.
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LO 2
3. Describe the liaison between various central functions and how these functions tie to
central structure and goals
As stated by Cascio, (2018, p.78), the company function is depending on various operations like
IT, administration, accounts and finance, customer service, operations and production,
development and research, marketing and sales, and human resource. The term “Marketing” is
treated as a connection link with market to delight consumers. Marketing procedure is good for
suppliers along with consumers. Marketing Assists Company such as Toyota distributes
consumer detail to establish the latest commodities which will back life quality of consumers.
Toyota has built dynamic environment of business via its strategy of an aggressive pricing.
The company has designed a system of distribution of products which permits the consumers
handy access to service and product. The huge demand for the cars of Toyota permits the
company to expand and develop its operations and gather extra earning from the market in the
UK. It has been observed that messages of communication of the company assist them to
enhance community behavior in an affirmative manner. It has been seen that the company
occasionally offered messages of awareness like unsafe driving and anti-smoke alarms in
intoxicated condition might expand the organization responsibilities in community.
The finance department of the company offers important reports on financial position and
performance in affinity with the plan of the business. The company has allotted the assets to
different components of the company in a bar with cost and aligning the deployment of financial
assets towards performance cost. To handle the flow of cash, the company has to make sure that
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there are ample assets to fulfill the needs of the business. The internal auditors monitor the
monetary work of each division. According to Guarda et al. (2018, p.81), accounting in a
company such as Toyota will capture all regular deals of the sales, purchases, application of
resources of trade externally and internally to the company.
The HRM division of the company is managing different actions like development and training
of staff, managing compensation, employee relation, maintaining employment law, job design,
administrations, and recruitment. Toyota Company enforced joint goals and these goals are
backed via complete plan of action of the joint strategy. The strategic corporate action-plan
includes various actions of the company. Any idea has been created by the top-level managers
who yield control for their goals. It has been seen that the company pursue an official strategy of
leadership to handle their action. As per the official style of leadership, the top-level executives
develop to decide the action. The team leaders along with staff have to satisfy strategy and goals
at the quoted interval (Gunasekaran et al. 2018, p.385). The company pursues an individual
enforcing strategy like utilization of resources, thought put time, specific process of production
system, idol time strategy, cycle time concept, and the bottleneck factor for managing their
business in an effective way and this can also help them to sustain in this competitive market
easily.
As per early discussion it can be seen that the organization Toyota has to keep focus on their
staffs as the staffs are impactful stakeholders of the organization and they can provide some
benefits to the business (Cascio, 2018, p,89). Thus, the company has effective human resource
activities. This is how the employees can be effectively managed. So, Toyota can develop their
business practices as well as sales with the help of the staffs. Thus, this function is related to
other functions of the company. However, the structure of the company is also related to the
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functions of the business. With the help of the below graph the details of the company structure
of Toyota can be identified in a well manner.
Source: Trad and Kalpić, (2018, p.90)
Thus, Toyota has effectively implemented corporate objectives for their business process. With
the help of their all functions the company can effectively achieve their business goals. Basically,
the all the functions of the business have been using this objective as well as they have kept
focus on Functional Strategic Action-Plan. This is how the company can gain success in their
business process (Adegbite et al. 2018, p.26).
Task 2
Introduction
Macro environment attributes action of a company at certain part. Macro environment comprises
aim of inflation, fiscal policy, money, expenses and gross domestic product. Macro environment
curbs the large uncontrollable and external aspects which impact strategy making procedure of
the company.
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