Analyzing Toyota's Global Business Environment: A SWOT Perspective

This report presents a SWOT analysis of Toyota, examining its position within the global business environment. The analysis identifies Toyota's strengths, including its strong human resources, innovative organizational culture, and powerful brand image. Weaknesses highlighted include dependence on suppliers, difficulties in entering potential markets, and negative publicity from vehicle recalls. Opportunities for Toyota include growth in developing countries and the advancement of green vehicle technology. Threats include intense competition and increasing input costs. The report further analyzes the relationship between these factors and functional departments such as finance and marketing, concluding that strategic adjustments are necessary for Toyota to capitalize on opportunities and mitigate threats in the automotive industry. The report references multiple academic sources to support its findings.

Global Business Environment

INTRODUCTION
Global market consists of various factors that are impacting the operations of business in
great manner and it is way stronger than domestic market (Bedianashvili, 2016). Global business
environment refers to several factors of business environment, such as, political, economical,
social, technological, environmental, legal factors and all of these elements are impacting
strengths and weaknesses of internal environment. For the purpose of formulating efficient
strategies, it is important that management is analyzing internal environment so that strengths
and weaknesses can be identified. In this report, focus is on Toyata which is an established name
in automotive industry. It was founded in 1937 by Kichiro Toyoda. It is headquartered in Japan.
MAIN BODY
SWOT analysis of Toyata
The strength of a business refers to the area which keeps it far ahead than its competitors. The
strong points of Toyota in the automotive market are as follows-
 Strong human Resource: A large manufacturing organization like Toyata, needs a large
human resource base so as to operate smoothly. In addition to this, human resources
should be completely skilled and professional. Toyata is having largest base of human
resources around the globe. This proves be the strongest point for the company as they
are capitalizing the contribution of human resources and are generating huge profits.
 Innovative organizational culture: Toyata has established its name as the most advanced
company in automotive industry. They are regularly coming up with new innovative
ideas that make the competent and also capable of holding top position in industry. Few
examples to support this argument can be widely practiced management system and also
lean manufacturing details for their vehicles. These all qualities ultimately lead to the
situation where company is setting an example for all fellow companies (Chasdi, 2017).
 Strong Brand Image– This is obviously one of the most important strong points of
Toyota. Whenever people look for cars, they search for the brand name ‘Toyota,’ and that
has kept them far ahead of their competitors.

Talking about the weaknesses of a business means the areas where it can improve a lot. These
are the areas where the business has much to do with further improvement. The weak pointers of
Toyota are as follows-
 Intense dependence on suppliers: Company is heavily dependent upon its suppliers of raw
materials (Damarwulan and Farida, 2018). If there is any fault from suppliers side than it
will directly reflect into company’s productivity. Thus, to make sure that there is no
obstacle in production process, than definitely most important thing is to consider that
company is not highly dependent on its suppliers.
 Inability in grabbing potential markets: Company is facing difficulty and challenges in
establishing itself into markets that possess a huge potential of sales. For example,
company is having strong technology of green vehicles and it can be implemented in
nation like China, but due to several trade barriers and marketing faults, company is not
able to establish itself into this market.
 Negative marketing or publicity: The main fault that causes negative publicity for
companies existing in automotive industry is that, it has huge vehicles recalls. This
causes a bad image on face of company. This has also happened with Toyata, thus,
company needs to concentrate on creating such programs that will clear this bad portrait.
Opportunities are those chances or points where business can mark their presence and by
exploiting these chances, it can make huge profits:
 Growth in developing countries: Company can always exploit the increasing demand of
cars in developing nations. As in present time, perspective of market is changing and is
intending towards buying cars, therefore, this presents a huge potential market for the
company.
 Green vehicle technology: Concept of sustainable development is continuously gaining
hike in the market. This leads to the idea of buying cars that supports the concept of
prevention of pollution and also limited use of fuel (Kokodey, Gnezdova and
Lomachenko, 2018). Thus, company coming up with the innovation of green vehicles is a
huge opportunity for the company and it will provide company with the benefit of
generating profits in addition of making good image in market, as a supporter of idea of
sustainable development.

Threats are those factors that if not taken into care or consideration can reflect in operations of
business through a hazardous downfall. In case of chosen company, these points are described
below:
 Intense competition: Automotive industry is a highly profitable industry, which makes it
attractive even for new entrants as well as, present players also makes it tough for the
company. Thus, company needs to continuously come up with innovative strategies so as
to gain competitive advantage.
 High price of inputs: As the cost of raw materials is increasing, that is also increasing the
cost of the end product.
From the above analysis, following relationship between functional departments and above
factors can be understood:
 Finance: Money is the backbone for any manufacturing company, thus this company also
needs to evaluate their strengths and weaknesses in such a way, that it supports the
optimum utilization of finance of the organization. High rate of inputs and also the force
to come up with new technologies can prove to be fatal for the pocket of company.
Furthermore, by exploiting opportunities identified in above part of this report, can prove
to be beneficial for the profitability measure (Shageeva and et.al., 2017).
Marketing: Company is facing marketing challenges in majorly two areas and they are,
first to gain entry into potential market and secondly to clear the bad portrait of company
in market. Thus, after understanding this need, it is essential that company is formulating
suitable marketing strategies that will assist the management of the company in making
higher profits.
CONCLUSION
Business environment is environment with two factors that can be defined in the unit. All the
internal and external factors will be defined in accordance to the business of all the situations that
should be handled by the company. The business environment contains the communications
skills its course takes the person on its goals. It shows the experience and previous study
knowledge of a person. This course defines the person who is eligible for this course. The
external and internal environment of business leads to business goals.

REFERNCES
Books and Journals
Bedianashvili, G., 2016. The Global Business Environment, European Integration and the
Cultural Potential of Social-economic Development of Georgia. Globalization &
Business.
Chasdi, R.J., 2017. Corporate Security Crossroads: Responding To Terrorism, Cyberthreats,
and Other Hazards in the Global Business Environment. ABC-CLIO.
Damarwulan, L.M. and Farida, N., 2018. The Role of Quality of Entrepreneurial Networking and
Responsiveness to Global Business Environment in improving the Marketing
Performance of Indonesian Exporting SMEs. Quality-Access to Success. 19(165).
Kokodey, T., Gnezdova, I. and Lomachenko, T., 2018, October. Modeling the global business
environment based on polycyclic theory. In The International Science and Technology
Conference" FarEastСon" (pp. 487-499). Springer, Cham.
Shageeva, F.T. and et.al., 2017, September. Training the achievement-oriented engineers for the
global business environment. In International Conference on Interactive Collaborative
Learning (pp. 343-348). Springer, Cham.