Business Environment Analysis: Toyota's Challenges and Opportunities

This report provides a comprehensive analysis of Toyota's business context within the global environment. It begins with an introduction outlining the report's focus on micro and macro environmental factors impacting Toyota. The report uses SWOT analysis to evaluate Toyota's strengths, weaknesses, opportunities, and threats. It then delves into the macro environment using PESTLE analysis, examining political, economic, social, technological, environmental, and legal factors and their influence on Toyota's operations. The report also addresses how individuals and organizations manage responsibilities, sustainability, and ethical behavior in social, cultural, economic, and environmental contexts, providing a holistic view of Toyota's business practices and challenges.

The context
of
business

Table of Contents
INTRODUCTION...........................................................................................................................1
PROJECT 1......................................................................................................................................2
Micro and macro environmental factors that in view, changed in nature of modern business in
global environment......................................................................................................................2
Macro environmental factors changed in the modern business in global environment..............4
Individuals and organisations manage responsibly, sustainably and behave ethically in the
relation to social, culture, economic and environmental.............................................................5
REFERENCES ...............................................................................................................................7

INTRODUCTION
The context of business is a way to analyse the environment from which business can easily
operate. The focus of the macro and micro environment is to scan the environmental conditions
in the context of analyse which consider the whole environment of the business. Toyota is a
second largest auto mobiles manufacturing company which leads to the sixth largest revenue
company in the world. The report will study on macro and micro environmental factors that in
view of changes in nature of the modern business in global environment. It highlighted the
Individuals and organisations manage responsibly, sustainably and behave ethically in the
relation to social, culture, economic and environmental.
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PROJECT 1
Micro and macro environmental factors that in view, changed in nature of modern business in
global environment
SWOT Toyota
Strength The strength of the Toyota as modern business
in the global environment is it makes the
global presences in the market and it is capable
to keeping its positions as one of the top auto
mobiles manufactures in the world(Phadermrod.
and.et.al., 2019.).
It makes strong brand equity in the market
which retain good customers from the market.
The instant and rapid changes in the Toyota
manufactures shows the capabilities to take the
challenges of the new technologies which
gives rapid innovation in the products and
services.
Toyota has wide range of the car variants and
highly diversified portfolio of their products.
Weakness Weakness of the Toyota in the global
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environment is the structure of the organisation
is hierarchical which prevents the maximum
flexibility for the regional operations.
The recalls of the products effect the
organisation in the recent years in the global
business environment.
The position of the Toyota in the Asian market
is so much weak as compare to the
international market.
The market growth of the Toyota is limited due
to the immense competition from the other
auto mobiles sector.
Opportunity The biggest opportunity and challenges for the
Toyota is it launch the new products for
expanding the auto-mobile market.
Diversification of the Toyota gives a big
challenge to open new channels for the revenue
and sales of the brand(Sharma. and Wood.
2018.).
New challenges for Toyota is to bring hybrid
and electric cars in the market for customers. It
looking on invest on the electric car segment
which is a huge opportunity for the brand.
The change in the nature of the modern
business of global environment in Toyota is
accepting the new autonomous technologies of
vehicles in the market and fulfil the demand of
the customers.
Threats The global environment of the modern
business is the competitive pressure which is a
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biggest threat for the organisation because it
deals with the different players in the market.
Day by day growing of the cost of the raw
material is the one of the threat for the Toyota
in the global environment. It reduces the
profitability of the brand and led to high
operational cost.
Macro environmental factors changed in the modern business in global environment.
PESTLE analyses
Political factor:- The political factor is keep growing their presence with the globalisation. Its
important to have a political stability because if the government has change than it affect the
business in so many ways such as the new policies, rules, laws and regulation. That shows the
stability of the organisation in the market and it's opportunity to grow with minimize the political
tensions(vom Brocke, J. and.et.al., 2016.). For Toyota its important to improve their market
presence because government only allows ecofriendly products to improve the product
satisfaction or exceed the environmental expectations.
Economic factor:- The macro environment factor with the importance of the global environment
in the Toyota is that the economy of the government affect the economic conditions of the
Toyota. It includes all the inflation rate, exchange of rates, labour cost and tax rates which have
direct and indirect impact on the revenues of the Toyota. It expanded their vehicles to meet the
demand of the several countries.
Social factor:-The dimensions of the PESTLE analyses in the modern business in the global
environment because the effects of the social culture factors because the test and preference of
the customers are changing day by day which increase the interest of the customers in the hybrid
cars, electric cars etc. which is a big challenge for the Toyota to fulfil the demand of the
customers and accept the new changes.
Technological factor:- Technological factors in modern business with the global environment
impact the organisation because it is a technological business. Toyota leading in the world when
its come to the technology or research development because it manufactured a good deal of fuel
consumption vehicle. It always reaches the modification and innovation of the cars in the market.
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Sometimes the new changes in the technology is not acceptable because it consumes time and it
affects the cost of the organisation(Phadermrod. and.et.al., 2019. ).
Environmental factor:- In modern business global environment the environmental factor plays
a vital role because global warming is causes the environment at extreme level. So that Toyota
makes ecofriendly green products which doesn't harm the environment or weather. It increases
the emphasis on the business sustainability which is a opportunity for the Toyota.
Legal factor:- Its important to have anti trust laws for the auto mobiles industry because in the
modern business it important to have the copyright, patients of the organisation which help to
continue the business successfully. Toyota ensure and focusing on the safety and control the
compliances throughout the firm. There are so many products which are recall from the
customers so its important to modified the products which is new change in the modern business
in global environment.
Individuals and organisations manage responsibly, sustainably and behave ethically in the
relation to social, culture, economic and environmental.
Organisation and individuals manage responsibly, sustainably and ethically in relation:-
Social:- Its important to manage the social responsibilities for Toyota because business leaders
have taken to comply with certain social responsibilities. Its responsibility of the manger that
make a positive environment in the organisation and take regular feedbacks of the employees
which is healthier. It is one of the standard social responsibilities which organisation has to taken
is to achieve positive feedback from the customers and make a strong brand image in the market.
For individual its important to have influencing behaviour in the Toyota and the attitude of the
individuals is positive for the organisation(Westman. 2018).
Culture:- The culture of the organisation is a system of sharing the assumptions, their values and
beliefs which governs for people and behave in the organisation. Organisation manages the
responsibility and sustainability and behave ethically in the relation to the culture because the
values of the organisation is strong which influence the individuals in the Toyota. The culture
behaviour of the individual must be positive with other employees because it increases the belief
and values of the organisation.
Economic:- Its important to have strong economic conditions because it is very useful in
developing Toyota's human resource management such as the policies, analysing how
organisation should organised, assessing risk of the business, implementing the system of
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rewards. It improves the management decisions. Its important to have strong financial resources
because it gives employment to individuals from which individuals earned income and increase
their revenue.
Environmental:- Its important to mange or sustain the environmental responsibility of the
organisation because its all depend upon the CSR because organisation has to fulfil the activities
which is related to the organisation.(Sharma. and Wood, 2018).
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REFERENCES
Phadermrod, B. and.et.al., 2019. Importance-performance analysis based SWOT analysis. International
Journal of Information Management. 44. pp.194-203.
Sharma, C. and Wood, B., 2018. Health and safety in an organisation.
vom Brocke, J. and.et.al., 2016. On the role of context in business process management. International
Journal of Information Management. 36(3). pp.486-495.
Westman, M. 2018. Positive Effects of Sustainability in Buisness.
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