Integration of Business Functions

This report examines the integration of business functions within Toyota, a multinational automobile company. It analyzes Toyota's leadership styles (shifting from autocratic to democratic), organizational culture (evolving from task-focused to employee-centric), and the impact of market forces. The report utilizes frameworks like STEEP analysis (Social, Technological, Economic, Environmental, Political) and SWOT analysis to assess external and internal factors influencing Toyota's performance. Porter's Five Forces model is applied to analyze competitive dynamics. The report highlights the crucial roles of marketing, operations, finance, and human resources departments in achieving Toyota's objectives, emphasizing the importance of stakeholder analysis and adapting to market changes. The conclusion underscores Toyota's success through strategic changes and effective coordination among its various departments.

INTEGRATION OF BUSINESS
FUNCTIONS

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business integration is one of the effective strategies which works for synchronizing the
information with business culture. It helps in aligning the technologies with the respective
business strategy so that overall goal of the entity can be achieved. In the firm, there are many
departments which works together for accomplishing common goal of the corporation (Rashid
and et.al, 2013). The present report is based on the Toyota which is a multinational auto mobile
company. The cited firm is working well across the word and is providing extremely well
services to the consumers. The current assignment will discuss the leadership, culture, structure
and market forces of the entity (Rezaee, 2015). It will describe the impact of changes in these
elements on overall performance of the organisation
MAIN BODY
Toyota is the Japanese multinational company which is operating in this industry since
longer period. Decision of establishing the manufacturing operation in the UK was taken by the
Toyota in the year 1989. Its’ main objective is to provide satisfactory services to the clients so
that they can be loyal towards the brand (Chang, 2016). In addition, it treats its employees as
assets and motivate them so that they stay in the workplace for longer duration. In the Toyota;
several departments work in co-ordination with each other such as: marketing, operation, human
resource, finance etc. All these departments play a significant role in the organisation.
Human resource department of company is working well, its main purpose is to hire
skilled people at the workplace; those who can perform their duties effectively and can
contribute well in achieving goal of the entity (Anderson, Adams and Adams, 2015).
Organization has adopted the human resource approach and followed the autocratic leadership
style. Manager of the company do not involve employees in the decision making process.
Higher authorities guide & train them; so that they can improve their skills and can perform their
duties well. But it was noticed that due to autocratic leadership morale of the workers was
getting down and they were taking interest in operations (Adi, 2015). After certain time duration,
Toyota has made changes in its leadership style and has adopted the democratic style. It started
involving people in the decision making process. It is the great strategy that has helped the cited
firm in achieving its goal. In the meetings, managers take suggestions from the staff members, by
this way they started sharing their innovative ideas. This has helped the organisation in
improving its performance. Marketing department is one of the major section that helps the
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Toyota in identifying the needs of the consumers and delivering them products as per their needs.
Democratic managers motivates the employees and workers also like the workplace environment
(Barich, Ruiz and Miller, 2015). They serve quality products and services to the clients. They
communicate with the consumers well and try to find out their requirements. Thereafter, they
share their views so that company can modify its products as per the market needs. This strategy
has helped the organisation in gaining success and that helps organization in attracting more
people towards the organisation. This has enhanced the brand reputation of the organisation to
great extent (Zimmermann and et.al, 2013).
Finance department has improved its working, after adopting democratic leadership
Toyota realises that people are sharing their views and they discuss about market condition of the
company. By this way finance department got to know demand and forecasted return. It helped
accounting manager in allocating appropriate funds to the each activity and that has helped the
entity in gaining high return over its investments. This approach ahs helped the organization in
running its operation smoothly. That has improved quality of the auto mobile products and
reduced the operational cost as well. Toyota has made changes in its culture as well (Erasmus,
Pretorius and Wessels, 2015). Earlier cited firm was paying more attention on the task culture
but now it focuses more on employees and allots work as per their capabilities. So that they can
complete their work in effective manner. It has supported the corporation and improved its
overall performance. People those who have better knowledge about the work n put their best
efforts to make it successful. By this way it has gained loyalty of the consumers and they gave
positive feedback to others as well. That has supported in improving overall brand reputation of
Toyota (Hsu, Lin and Tsai, 2016).
In the mid of 2000 Toyota was facing high competition and due to this mind of
consumers got influenced, they turned towards other brands. At that time cited firm has taken
support of STEEP analyses strategy. It helped the organisation in identifing the external
environmental factors and their impact on the business performance. This model is the
framework through which entity can get to know regarding impact of external environmental
factors on the strategic planning. There are five factors such as social, technological, economic,
environment and political or legal (Pimenova and et.al, 2016). Social component describes social
preferences and culture. Toyota has considered the demographic, lifestyle, religion, educational
factors in order to improve its performance. Accordingly, it has modified its operational
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activities. Operation management plays significant role in the organisation. It was noticed that
social factors are influencing the business environment to great extent. After analysing this
element cited firm has started producing the products by considering demographic element. For
young people it has manufactured sports cars and for old people it has launched the wintage cars
(Van Dongen, Dijkman and Mendling, 2013). This strategy has helped the organisation in
meeting with expectation of clients. That has improved performance of operational department
and due to this overall revenues of the Toyota got increased significantly.
Toyota always believe in changes so that it can run its business smoothly. In the mid of
2000 there were many advanced technologies came into existance Cited firm has adopted these
techniques and implement these technologies in the workplace. Mangers have given training to
the staff members and human resource department has arranged training sessions for the
employees. So that workers can improve their performance level and can meet with the market
requirements (Bak, 2016). With the help of advanced technologies cited firm has developed its
products that has increased satisfaction level of consumers significantly. Economic factor is
another element impact on overall business performance. In the poor economic condition of
UK, Toyota's marketing departments has promoted the brand well and offer attractive discounts
to the clients. So that they could afford the cars, it increased sales volume of the entity and has
enhanced profitability of the cited firm. Ecological component is another element that impact on
the business environment to great extnet. It is an external factor that influences overall industry
performance (Phadke, 2015). To face this critical situations, Toyota operational department has
played significant role and they have manufactured the eco-friendly cars that keeps environment
safe. That is why cited firm become able to develop its brand image.. Political condition of UK
can get changed any time that can cause difficulties to the entity. To overcome this issue cited
firm follows all legislation so that it can run its business legally.
Organisation culture can be defined as values and believes of the firm that defines
workplace place environment. It is the tool that contribute well in the success of the entity, with
the help of this cited firm can motivate its workers and can make them loyal towards the brand.
Earlier Toyota was not paying attention on innovation and it was operating its business by
following traditional methods (Kumar, 2015). But when competition was high then cited firm
has decided to make changes in its culture. This strategy has helped entity in accomplishing its
goal and by this way employees started sharing their ideas. Human resource department has
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played significant role in this respect. They have supported the corporation and start arranging
meetings for employees so that they can discuss their ideas easily. Through this process they feel
comfortable and share their feelings and innovative ideas with the management (Porter’s Five
Forces, 2017). Human resource department has contributed well in the success of the
organisation, HR department has arranged training sessions for employees so that they can
improve their feeling and can perform their work effectively. It became aggressive so that it can
gain competitive advantage.
Main stakeholders of the Toyota are employees, managers, customers, investors,
government etc. (business integration, 2017). They all are important for the organisation and
they contribute well in the success of entity. Sales volume of the firm was getting down, for
improving its sales cited firm has adopted strategy of stakeholder analyses. In which Toyota has
paid attention on its stakeholders so that it can make them satisfied that helped in accomplishing
its objectives. Earlier it was focusing on company's welfare but after adopting this approach it
has started focusing on benefits of stakeholders as well. Human resource department and finance
departments have played significant role in this respect. Accounting departments analyse the
needs of investors and prepare the budget in such manner so that it can gain high profit
(Pananond, 2013). For enhancing the satisfaction level of the consumers, cited firm has taken
support of its operation department. This unit has modified its products so that it can meet with
the requirements of consumers and can enhance satisfaction level of the clients. Human resource
department has given rewards and recognition to the employees on the bases of their
performance. It has motivated its workers and made them loyal towards the brand. After getting
rewards and recognition people like the workplace start putting their best efforts thus, they have
contributed well in achieving goal of the company. With the hard efforts of human resource
department Toyota become able to retain skilled people in the entity for longer duration
(Ferreira, 2016).
Organisational structure can be considered as system which is applied in the workplace .
It is necessary for the corporations that to be flexible and be innovative so that people feel happy
and they stay in the workplace for longer duration. Earlier Toyota was following the tall structure
(Xu, and et.al, 2014). Managers were following only rules and regulation and no one can break
any norm of the company. But due to this policy employees were feeling demotivated and that is
why employee turnover was increasing in the organisation. After certain time period cited firm
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has changed the structure of the company and it has adopted the flat organisational structure. In
the flat structure cited firm has to involve all people in decision making process and it has given
more focus on the innovative ideas. Flat structure has helped the Toyota in increasing its
performance level because people were free to perform their work (Coşkunçay and et.al, 2016).
It has helped the entity in motivating its staff members and making them loyal towards the brand.
By this way they stay in the workplace for longer duration and that is why retention rate of
employees in Toyota is very high now days.
Toyota is having ability to gain competitive advantage and to sustain in the market for
longer duration. It has capable human resource, financial capability of the cited firm is very
strong and its operational process is very effective. Cited firm utilizes its resources well so that it
can meet with the market demand (Huang and et.al, 2014). Earlier operational department of
Toyota was focusing on only production but now it identifies the demand and accordingly
produces product. It is the great strategy that has helped the cited firm in reducing its operational
cost. That is why profitability of the entity has been increased to great extent.
External market environment is too complex and uncertainties can get arisen any time.
For that it is essential for the organisation to make some contingency plan so that business can
face these sudden issues and can sustain in the market without any failure. Changes are very
important for the entity because it helps the corporation in running business as per the
requirement of the market (Ferreira, 2016). Toyota has faced many issues because political
conditions were changing frequently and due to this cited firm had to change its practices. Due to
this overall cost of the entity got increased to great extent thus, profit of the cited firm got down.
For improving the performance and to overcome from these issues entity has adopted the SWOT
analyses technique (Pananond, 2013). Management of the company has worked to identify the
improvement requirements in the organisation. Human resource department has conducted the
SWOT analyses so that company can get to know about strength and weakness of the firm. By
this way it has found that cited firm is facing the economic slowdown and people want eco-
friendly cars. For meeting with this need, cited firm has modified its operational process.
Research and development department has collected the information about the market and has
guided the operational management department. By this way operational team has modified the
process and had manufactured the hybrid cars which are environment friendly. Through SWOT
it is found by the mangers of Toyota that it has good brand reputation and strong command over
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the market (Kumar, 2015). Company has planned to utilize its strengths in effective manner so
that it can gain success and can sustain in the market for longer duration. Toyota can enter into
global market, new trade agreement can support in increasing revenues of organisation. In
addition, cited firm can face the threat such as high competition and economic fluctuation. In
such condition cited firm can prepare alternative plan so that it can face big trouble and continue
performing well. This modification strategy has contributed well and helped the organisation in
accomplishing its goal (Van Dongen, Dijkman and Mendling, 2013).
Porters five is the great model which helps the corporation in identifying the power of
members those which are related to entity. Power of suppliers in the Toyota is moderate. Cited
firm has strong chain of suppliers and if any complexity takes place with one supplier than
Toyota can turn towards other suppliers. So they have average power to influence the business
activities. Buyer's power is very high in the organisation. Consumers can influence the overall
business activities (Bak, 2016). For that cited firm always tries to provide them satisfactory
services and modify its products time to time so that it can meet with the expectation of
consumers. Competitors have high power because if strategies of the competitors are strong then
it will influence the mind of target audience. Threats of substitute are high because there are
many similar products that can affect the sales volume of the entity. Threats of new entity is
quite low because new firms cannot enter into the auto mobile industry easily. It needs lots of
investment and experience otherwise company will face huge loss (Porter’s Five Forces, 2017).
Integrated business functions of Toyota are marketing, operations, finance, HR etc. They
all are essential for success of the entity, with the help of this company can achieve its target and
can gain competitive advantage. Function of marketing department is to expand the brand image
across the world and to enhance sales volume of entity. Operational function of Toyota helps
the organisation in producing high quality auto mobile products which can satisfy needs of
target audience (business integration, 2017). Company makes changes time to time in its
operational process so that it can enhance its quality and can offer quality products to the end
users. This function has played significant role in organisation in building the brand image of
entity to great extent. Finance department is another unit of Toyota which continuously manage
the cash flow in organisation. Accounts team prepare budget for entire process and allocate
funds to each activity. It is the department that supports in reducing problem of shortage of
funds in entity. With the assistance of finance department cited firm is able to run its business
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smoothly in the international market. Human resource department is another department of the
Toyota which works for the betterment of organisation as well as for employees (Pananond,
2013.). HR manager hires the candidates those who are skilled and experienced and those who
can contribute well in the success of entity. It plays role of navigator and negotiator. If any
conflicts arise in the organisation then HR manager negotiate with involved parties and resolve
their issue. It arranges training programs for employees so that they can enhance their
performance. HR manager of Toyota has now changed its process of measuring performance.
Now it takes feedback from immediate authority of the persons and accordingly evaluate its
performance. On the bases of this, management provide those rewards and recognition (Kumar,
2015).
CONCLUSION
From the above report, it can be concluded that Toyota has changed its strategies and
practices that has supported cited firm in accomplishing its business objectives. It has identified
that marketing, operation and finance departments play significant role in the Toyota. With the
effective coordination and working of these units, Toyota has made changes in its process and
that has improved quality of the products. Now, the organisation is able to satisfy the needs of
the consumers which has enhanced profitability of the organisation.
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Online
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Porter’s Five Forces, 2017. [Online] Available through:
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