Toyota's Business Environment: Organizational Functions Analysis

This presentation provides an overview of Toyota's business environment and organizational structure. It begins by introducing Toyota as a leading automotive manufacturer and then delves into different types of organizations, focusing on public, private, and voluntary sectors. The presentation analyzes Toyota's legal structure, emphasizing its divisional structure with global hierarchy and product-based divisions. It examines the size and scope of organizations, including small, medium, and large businesses, and their corresponding legal forms like sole traders, partnerships, and private limited companies. Furthermore, the presentation explores the relationship between various organizational functions within Toyota, such as marketing, human resources, and finance, and their impact on business objectives and organizational structure. The analysis concludes that both internal and external environmental factors influence the company, with interrelationships between organizational functions contributing to effective collaboration and productivity. The presentation references academic sources to support its analysis of Toyota's business environment.

BUSINESS AND THE BUSINESS
ENVIRONMENT - TOYOTA

INTRODUCTION
• Toyota is known as world's second largest automotive manufacture which is founded by
kiichiro Toyoda in 1937. It produces more than 10 million vehicles per year. In the context of
chosen study shows different types of organization according to size and scope. This
presentation evaluates functions of the organization and the interrelation of these functions
with the another organizational functions in order to achieve an organizational goal.

DIFFERENT TYPES AND PURPOSE OF
ORGANISATION AND LEGAL
STRUCTURE
• An organisation is a structure of a group of people who has a same
purpose and work together for achieving that purpose. There are mainly
three types of organisation –
1. Public
2. Private
3. Voluntary

CONTINUE..
• Legal structure- The organizational structure of Toyota corporation is based on several business
operations of the company. The main aim of this organizational structure of Toyota is to support its
business goals and strategic planning and direction. It has the ability to use this structure as better to
maximize efficiency.
• Toyota organization uses the divisional structure which defines the various patterns in their processes. It
is useful and helpful for company because it uses various products in many regions. This organizational
structure has three main characteristics that are: Global hierarchy, division on product based and
geographic division.

SIZE AND SCOPE OF DIFFERENT TYPES
OF ORGANIZATION
• According to size and scope there are three types of organisation such as: Small size,
medium size and large size of organisation. The types of organisations are Partnership, Sole
trader and private limited companies

CONTINUE..
• Sole traders
• Partnership
• Private limited companies
• Small size business
• Medium size business
• Large size businesses

RELATIONSHIP BETWEEN DIFFERENT
ORGANISATIONAL FUNCTIONS
• Toyota has different functional departments that are –
• Marketing functions
• Human resource functions
• Finance

CONTINUE..
• Sales and marketing functions
• Finance and HRM functions

CONTINUE..
• Sales and marketing functions
• Finance and HRM functions

IMPACT ON BUSINESS OBJECTIVES
• The main objective of Toyota company is to provide the best services to customers and
enhance customer satisfaction. Finance department is concerned with funds and costs and
there are many decisions which marketing manager takes which is related to finance.

IMPACT ON ORGANISATIONAL
STRUCTURE
• There are many factors that affect organisational structure like organisational size,
environment, strategy, technology and functions of organisation. Toyota follows divisional
structure as it divide its functions into various department. This stricture help them in
decision-making process. This structure of Toyota was criticized for its slow response so it
decided to address safety issues. It has product based divisions.

CONCLUSION
• From this presentation it has been concluded that internal and macro environmental factors
affected company in positive manner as well as in negative manner. Interrelationship of
different organisational functions such as Human resource functions, finance functions,
marketing functions also helped manager in collaboration, communication, motivation,
effective work and productivity to employees