ATHE International Business Environment Report: Toyota Motors

This report provides a detailed analysis of Toyota's international business environment. It begins with an introduction to the international business environment, including political, economic, regulatory, social & cultural, tax, legal, and technological factors. The report then examines Toyota Motors, a multinational automotive manufacturer, using various techniques to study the international business environment, including PESTEL and SWOT analysis. It explores the impact of globalization and international trade on national economies, both positively and negatively. The report also conducts a macro analysis of Toyota, considering political, economic, social, technological, and environmental factors. Furthermore, it evaluates the benefits, challenges, and opportunities of globalization and international trade for Toyota, focusing on the UK market. The analysis covers internal strengths, weaknesses, opportunities, and threats (SWOT) to provide a comprehensive overview of Toyota's position in the global market. Finally, the report highlights the impact of cultural diversity and the importance of Corporate Social Responsibility (CSR) in the international market, concluding with key findings and references.

ATHE International Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Techniques to Study International Business Environment..........................................................1
Impact of Globalization and International Trade on National Economy.....................................3
TASK 2............................................................................................................................................4
Macro Analysis of Toyota...........................................................................................................4
Benefits, Challenges and Opportunity of Globalization and International Trade.......................5
TASK 3............................................................................................................................................7
Impact of Cultural Diversity on Organization in international Market.......................................7
Important of CSR.........................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
International business environment is a multinational dimensional study that includes the
political risks, cultural differences, taxation issues and exchange risk on international level.
That's why international business environment consists of various environments like political,
economic, regulatory, social & cultural, tax, legal and technological environment (Hamilton and
Webster, 2018). This are the important factors that need to be considered while studying
international business environment. This report is providing study of Toyota motors for
international business environment. Toyota Motors id a multinational automotive manufacturer
company. It was established in year 1937 by Kiichiro Toyoda. Toyota is providing range of
automotive vehicles to its customer. The core products of Toyota are auto mobiles, luxury
vehicles, commercial vehicles and engines.
This report is providing brief of different techniques that can be used to analyse the
condition of international business environment. Impact of globalization and international trade
is also studied for national economy. External and internal factors of Toyota are studied to know
international business environment for an automotive organization. Benefits, challenges and
opportunities of globalization nd international trade are analysed for Toyota.
TASK 1
Techniques to Study International Business Environment
There are different techniques that can be used to perform the study of international
business environment. International business affected by various factors that are presented on the
international level. This factors are related to political, economical, social, cultural, legal and
technological; condition that can influence the international business environment. All this
factors are studied through PESTEL analysis (Kolk, 2016). The other tools also can be used to
perform international business environment study. Which are- Swot, analysis, scenario planning
and quick environment scanning technique.
Use of PESTEL analysis
To study or evaluate the international business environment it is important to study all
PESTEL factors to know their impact on international business condition for any business
organization.
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Political- Political factors provide the analysis of current political condition on the international
market and its impact on the businesses. This is it can be used to analysis different advantages
and disadvantages of current political situation on the international business platform.
Economic Factor- The economic factors evaluate the general information of economical
condition of global market and their impact on the particular industry (Cumming and Zahra,
2016). This is really important for the organization to know the current economical condition to
take further decision for business in international market.
Social and Cultural Factors- The cultural and social factors are related to workforce conditions
and behaviour and mind set of employees from the global perspective. To know better
possibilities in international market it is important to know about the social and cultural changes
in recent time.
Technological Factors- Technological changes in the international market are directly related to
the business of organization by its productivity and performance. Organizations need to stay
aware of technological changes in the international market to make respective changes in
company.
Environmental Factors- Environmental conditions are not constant and different business
organizations are highly dependent on the international environmental conditions because these
factors are related to resources and business operation of company.
Legal Factors- To conduct business on international level organization have to follow different
rules and regulation that are decided by the legal body which is authorised to make law for
international trade and business.
This is how these all factors studies in PESTEL analysis to make company aware of
international business environment.
SWOT Analysis
Swot analysis perform the analysis of internal condition of company to evaluate that
either the organization is ready or not for international business environment.
Strengths- The strengths of organization are used to evaluate in this to check the possibility of
organization in international business organization.
Weaknesses- The weaknesses of organization are important to study to know where the company
needs improvement to conduct business successfully on global level.
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Opportunities- In this step different opportunities of company for global business are analysed to
evaluate the possible success of company with various strategies in internal market.
Threats- Threats of international business environment are studied by the organization to draw
an effective plan to avoid the condition of failure on international platform.
Scenario Planning- In this technique the various scenarios of international businesses are studied
to make effective plan to elevate the organization to international market and perform operation
with high marginal profit.
Quick Environment Scanning Technique- In QES technique various technical tools and digital
and general sources are used by the company to evaluate the condition of international market
and a collective result is prepared to analyse the future possibilities of organization for global
perspective.
Impact of Globalization and International Trade on National Economy
Impact of globalization
Globalization is a procedure different countries come together on the international level
and form an united economy or system that deals trades on the international level. It has both
negative and positive impact on economy of country.
Positive Impact- The positive impact of the globalization are mostly related to foreign
investment and technological innovation and major positive impact on the economic condition
of country (Alcácer, Cantwell and Piscitello, 2016). Foreign investment and technological
development provide opportunity to country to improve economy of country and make it stable
for country.
Negative Impact- the negative impact of globalization is- the economy of global platform runes
on the interest of countries that are rich and have major impact on other countries. This can cause
damage to particular economy of a nation. It also make the economy of country dependent on
global conditions.
Impact of International Trade- Effect of international trade is dependent on the rules,
regulations and decisions make by the international council that decide taxation and trade rules .
For each country its impact on economy are dependent on current GDP and economical
condition. It could be positive or negative (Meyer and Peng, 2016)
. For example if a decision taken to reduce the tax rate for country that are developing. This
decision is profitable for developing country and for opposite decision impact will be negative.
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TASK 2
Macro Analysis of Toyota
It is important to study the external factor of organization to know their impact on
business of company.
Political Factor
The decisions made by government and international authorities are considered as
political factor for organization. The decisions and changes made by government in rules and
regulation of business in country can directly affect the business of organization and its methods
to conduct business on national and international level. Any kind of change in the policies that
are made by government will Toyota motors to make change in business strategy and policy to
stay productive in UK market.
Economic factors
Economical factors for Toyota are inflation, economic crisis and recession. This are
condition are nightmare for business organization and this factors can affect the business of
organization by reducing its sales and reduced marginal profit because in these cases of inflation
and economic crisis people will not be able to buy products of organization. And organization
can face problem to conduct international business.
Positive- Supporting economic policies can help the organization to gain higher profit in UK
economy and for example reduction in the tax rate will reduce the cost to company which will
improve their profit.
Negative-Economy factor can affect the financial condition of Toyota in UK and force company
to make change in investments and business process to keep organization economically stable.
For example increase in tax tare will force the organization to change its current pricing policy
which will reduce their ranking in international market.
Social Factor
The social factors for organization are related to the population and average of people in
international market (Meyer and Peng, 2016). As per the population and average income of
people company have to change features and business procedures to earn high marginal profit by
conducting business in target market.
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Positive- High education level helps Toyota to make people aware of technology which is used
by company in vehicles and it can improve sales of company to stabilised the organization in the
National and international economy.
Negative- Social factor like average income of people can force the Toyota Motors to change
price and quality of product to maintain sales for UK market. This will also reduce their revenue
and it will affect them in UK Economy.
Technological Factors
The technological advantage is the most important factor for Toyota. For the automotive
organization it is so important to use the latest technology to meet the demands of customers and
provide tough competition to competitors to gain high market share in global market (Meyer and
Peng, 2016). For market place advantage company must have to change their current technology.
Positive- Use of Innovative technology can improve the products of Toyota which is good for
sales of company. This improved will stabilised the organization in the UK economy and help
them to innovate more.
Negative-New emerging technology will make the company to innovate their product
technically in order to full fill the demands of consumers and help to achieve better consumer
satisfaction level which is important to increase the market base in UK.
Environmental Factors
The environmental factors are consisting the diversity of organization on globe. If the
positions where the organization is working is not suitable for organization than it can reduce the
business of Toyota Motors (Neelankavil, 2015).
Positive- Good company location will help Toyota to successfully perform business operations
in UK by reducing their extra expenses and draw more consumer towards the organization.
Negative- Availability of raw material and resources on international level and it can prevent the
Toyota from performing business in international market and UK economy.
Micro Factor Analysis
The study of internal factors for Toyota is important to design future strategy and policy
for UK and international market to conduct business successfully.
Strengths
High productivity and efficient products attract more consumer to buy products of
Toyota. Because of good product customer satisfaction is high. Company is providing wide
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range of products which help the Toyota to meet needs of various customers. Toyota is well
known brand in UK and on international level. So, High brand value develops better image in
consumer mind and it can influence them to purchase product of Toyota.
Weaknesses
Technical errors in currently sold vehicles is reducing the brand value of Toyota in
international market which is not good for sales of company. Weak presence in European
market is affecting demand and supply of product in UK market.
Opportunities
Emerging demand of vehicles in global and UK market is positive sign for Toyota. High
demand of fuel efficient vehicles can help the company to acquire larger consumer market. High
chances of growth in hybrid vehicles can help the organization to develop new market in UK.
Threats
Major competition form other competitors with same products is reducing sales of
Toyota. Uncertainty in global economy conditions and Brexit is affecting the business of Toyota
in UK. Natural disasters like flood and heavy snow fall can affect the operations of Toyota in
country.
Benefits, Challenges and Opportunity of Globalization and International Trade
Impact of Globalization
Positive- Globalization can provides better business opportunity to global companies in UK
market. Globalization can improve economy of UK better which is facing crisis due to Brexit.
Negative- Globalization increase consumption of natural resources which are available in
country. It also need huge investment to develop better market to create global market.
Benefits
There are various benefits of globalization for Toyota Motors. Main benefit of
globalization is organization get vast level opportunity to improve the trade and chances of
performing business are too high. By globalization organization can target more customers to
generate higher profit. The international trade provide chance to organization to boost up its
growth. Globalization allow the organization to set up business in other country where the cost of
manufacturing and production is low (Apetrei, Kureshi and Horodnic, 2015). Toyota can target
other rich and developed nation to increase its global image. This can improve the quality
standards of product and services. Globalization improve the information and knowledge of
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organization and it provides the opportunity to company to introduce innovation in procedures to
get production efficiency. This also reduce the cost to organization by reduce the taxes on the
international level. There are also a lot chances to grow economically in global market. As the
organization goes on international level it reduces the cultural barriers of company.
Challenges of Globalization
Globalization is a procedure that is used by different organizations and company to find
more opportunity to grow. Along with this improvement there are some risks of globalization
which are associated with company. The main risk is in shifting procedure. This is one of the
biggest challenge for the organization to move its business to the international level. Initially the
standards of organization are decided as per the rules and regulation of one country and it is
difficult for organization to meet the production and product requirement in global market.
Needs of people varies as per the local situation. So, company need to make large changes in
organization procedures and methods to match with international standards. Apart from this to
move on international level organization need deep research to start business on global platform
and to collect data of international market takes longer then usual time. Other challenges are
related to the regulatory changes (Apetrei, Kureshi and Horodnic, 2015). To operate in a single
nation company have to make policies for successful business conduction and but in global
market they need to cooperate with different rules and regulation by making changes in company
policies. This is also difficult to operate on various location with same quality and working
standards. Cultural differences of people force the organization to make changes in their
procedures and practices to meet maximum production requirement by satisfying employees and
customers. In base country it is easy to collect resources and raw material but in global market it
is a challenge for Toyota to arrange same quality raw material to maintain standards.
Opportunities Of Globalization
Globalization provides various opportunities to company ion global market. It allows the
company to access more cheaper and high quality raw material to improve the productions
strength of company to attract more customer. There is also huge opportunity to organization to
serve more customer by providing them company product and services. There is also huge
chance for company to give tough competition to multinational automotive organization. In
globalization there is also opportunity for organization to perform technological advancement by
making partnership with other companies that are already performing in international market.
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For example Toyota is working with Tesla Motors to develop better fuel cell that are used in the
electrical cars.
Mark Calaway
(XXXXXXXXXX)
[e-mail]
Qualification Bachelor of Business Administration form AAA university .
 High School From YY high school London.
Computer Skills
 Proficient with Both Mac and Windows
 Microsoft office.
 Management tools.
Language Skills
 English
 Spanish
 French
TASK 3
Impact of Cultural Diversity on Organization in international Market
Meaning of cultural diversity can be explained as- there are different people are related
to organization and on international level the cultural differences become more diverse. Diversity
is based on different things that are age, gender, religion, race and beliefs. It has both positive
and negative impact on organization. This cultural diversity help the organization to work with
high efficiency because they will have diverse work force which is able to perform different task
with maximum optimised quality. The negative impact of cultural diversity is- people from
different community and culture may have different beliefs and their personal beliefs can lead to
conflicts and issues which are not good for Toyota. On international this issues could be more
bigger and difficult to solve. Cultural diversity can help the Toyota to work more creatively in
the UK market and better productivity can be achieved through this. This will also improve the
knowledge and experience of organization which can improve the fututre scope of company in
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international and UK market. Like for example The business environment surrounding Toyota
Industries is continuing to evolve rapidly and dramatically. Regardless of changes in the business
environment and values, we remain unchanged in our belief that realizing our Basic Philosophy
is the cornerstone of the Toyota Industries Group’s corporate social responsibility (CSR). Acting
on this belief, in March 2009 we formulated and implemented the Toyota Industries Group CSR
Policy, which clarifies our relationships with stakeholders, namely customers, employees,
business partners,
Impact of Regulatory Diversity
There are different laws are used to implement by government on the business
organizations to keep their actions limited in country. Laws like Minimum wage act 1998, Health
and safety act 1974 and equality act force the organization to make change in their business and
operation process in order to full fill the terms and condition of laws. These diverse range of laws
and their terms force the organization to full fill the basic rights of employees to perform
business legally. The regularity diversity is about the adoption of laws in the organization and its
flexibility for new legal change in organization. This type of diversity can help them to run
business successfully in national and global marjet.
Important of CSR
Covered in PPT
Potential Conflicts Between Corporate Strategy and Corporate Social Responsibilities
For the Automotive manufacturer company like Toyota it is difficult to cooperate with
the corporate and CSR because the Corporate strategies are bases on goal to generate maximum
possible profit for company and on other hand CSR are based on the social and ethical values of
people. Main conflict between This is about profit of company and completion of CSR goals.
The targets made by Toyota to full fill Corporate Social Responsibilities work as barrier in
profitable operations of company. For example Toyota is consuming natural resources for
production and vehicles produced by it cause air pollution. This is how Corporate and CSR of
company have conflict with each other in UK and international market. Toyota have some
business goals that are associated with corporate strategies and these business goals some how
affect the environment. This thing lead to conflict between the CSR and Corporate Strategy in
Toyota
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CONCLUSION
This report is concluding the importance of globalization and study of international
business environment for Toyota. Different tools and techniques that can be used by organization
to perform analysis of international business environment has been studied in report. Macro
factors and micro factors of Toyota has been analysed to evaluate the scope of company in global
market. Benefits, challenges and opportunities of globalization and international trade. Impact of
culture has been studied for global business and corporate social responsibility has been evaluate
for globalization of business.
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