Toyota's UK Operations: Macro Environment and Organizational Analysis

This report provides a detailed analysis of Toyota's organizational structure, encompassing its types, size, and scope, including public, private, and voluntary sectors, as well as legal structures. It explores the interrelationship of various organizational functions, linking them to organizational objectives...Read More

Unit 1

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
LO 1 Explain the different types, size and scope of organisations\.......................................2
P1 Explain different types and purposes of organizations; public, private and voluntary
sectors and legal structures................................................................................................2
P2 Explain the size and scope of a range of different types of organizations...................3
LO 2 Demonstrate the interrelationship of the various functions within an organisation and
how they link to organisational structure...............................................................................6
P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure.............................................................................6
TASK 2............................................................................................................................................8
LO 3 Use contemporary examples to demonstrate both the positive and negative
influence/impact the macro environment has on business operations....................................8
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples......................................................................8
LO 4 Determine the internal strengths and weaknesses of specific businesses and explain their
interrelationship with external macro factors.......................................................................10
P5 Conduct internal and external analysis of specific organizations in order to identify
strengths and weaknesses................................................................................................10
P6 Explain how strengths and weaknesses interrelate with external macro factors........11
CONCLUSION .............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Any organization is usually organised or managed by a group of people having their own
purpose which include public serving or businesses. A manager in the organaaaaaisation is
responsible for taking various types of actions which include planning, structure selection,
management, Logistics, management, running, organising, coordination and many more. Toyota
organization can be saved as a popular organization which is working globally in automobile
industry. It was established by Kiichiro Toyoda 1937 at Japan. This organization started
expanding their business in various countries. In 19th century it also expand their business
operations in United Kingdom. It is found that the organization have to follow all the changes in
the business environment in the Global market. Because of increase in the prices of fuel, the
demand of car decrease which leads to the decrease in their prices as well. But cost of the
equipments and vehicle parts the practices which are related to the innovative production helps
the organization in stunning in the Global competitive market. They started doing improvement
continuously which help the organization in gaining good competitive position in the market.
This report basically covers the various types, sizes and scope of organisation. It also
include a small discussion on the structure of organisation. Any type of structure of organisation
is successful only when all the departmental function have a good interrelationship between
other functions. Along with this, it is also dealing with the contemporary example in order to
demonstrate both positive as well as negative impact the macro environment has on the
operations of business. In addition to this, this report also include the internal strengths and
weaknesses of Toyota by explaining the interrelationship with external macro factors. In simple
words it can be said that this report is made for the purpose of assisting Toyota UK so that
several functions of various organization and organizational structure of an organization can be
understand.
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TASK 1
LO 1 Explain the different types, size and scope of organisations\
Introduction:
P1 Explain different types and purposes of organizations; public, private and voluntary sectors
and legal structures.
Business can be defined as the the collection of all those activities of convertible process of
material and skills so that they can satisfy the needs and requirements of customer by providing
products and services. Customer competitors distributors substitute government activity
population demography technological development resources suppliers industry Trends for the
various factors of business environment. Resources which include human physical and financial
resources can be considered as important factors of an organization for stop Global organization
Toyota is looking for gaining a competitive advantage on the basis of prices quality and
marketing strategies.
There are five types of business organization are found which include private, public
organization, Government cooperatives, charities and NGOs which are explained below: Public Sector: It can we defined to the control and ownership of organization which is
managed and controlled by the private individuals or group. The purpose of such
organization is only profit. Sainsbury can be taken as an example as it is the one of the
top private Global organization. Various types of private organization include sole
traders, partnership, limited company and cooperative. Public Sector: The economy of public sector is a directly managed and controlled by the
government or agencies of government. The operations of business runs in the various
types of Organization on the basis of their cities answer and for their general well being.
National Health Service can be considered as the organization of public sector as it is the
one of the most popular public organizations in England.
 Voluntary Structure: The activities or actions of the voluntary sector include various
organizations of Charity, business community and voluntary bodies. Search business
organizations are not made for profit gaining purpose. Are also known as Not for profit
organizations. In United Kingdom, Cancer Research the Highly popular voluntary
organization.
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The concept of business organization of Toyota UK include several types of factors which
include resources management objectives and people. There are various factors on which the
concept of Toyota is depend full stop corporate social responsibility technical excellence market
shares and profit can be considered as some factors on which Toyota is depend. Toyota can be
considered as a sole traders organization. Government has not issued any legal formalities for
solo traders. Hence Toyota Canon easily develop their business as there is lack of legal
formalities. The Centre head is responsible to control on their business non stop all the business
operations has been managed by the headquarter in Japan. It is the responsibility of Management
to select the working time and patrons of working. They are also focusing on establishing a close
personal relationships with their employees, it is possible only because of Human Resource
Management. Along with this marketing team is performing very good in establishing the close
relationship with their customers. That skills and interest of top management is the main factors
which helps in learning the whole business operations of Toyota. But having unlimited liabilities
implies risk for owners. Toyota is facing hard market competition in the Global market. Solo
trade cannot make the capital easily. While making any new status for the business organization,
the top management have to perform long frock Caesar as there is lack of continuity in such
organizations.
P2 Explain the size and scope of a range of different types of organizations.
It has been found that there are 5 types of organizations i.e. private organization public
organization government organizations Cooperative charities and NGOs.
It has been found return Limited companies are usually corporate Association. Such
organization carry their own legal identity which describe there own right. The company itself
owns all the properties and other assets but not by their members. The personal Assets of
members cannot be used for the organization purpose. Hence it can be said that the liability of
members is limited. Such companies can only made by two or more than two members. For the
purpose of making limited company, the organization is required to submit various documents
which include memorandum of association and article of association.
Private Limited companies have a minimum one share holder but later on the organization
can offer their shares to the public. It is found that the organization provides large number of
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shares to the people who want to sign business contract with the organization. In 1937, Toyota
has started their business as a public limited company. The shareholders of Toyota include TYO,
LSE and NYSE. They had appointed at least one director for each and every branch of the
organization. It is analyzed that the shared capital of Toyota in United Kingdom is $1.5 tn.
Toyota in United Kingdom is offering their shares for ceiling to the general public.
The organization had made several rules and regulations for the purpose of maintaining the
profile of their business as a public limited company. They had also registered with the London
stock exchange so that they can sell the shares to the general public as well. It is the
responsibility of London stock exchange to strictly monitor the share trading process. This
organization arrange Annual General Meeting with their stakeholders once in a year. Toyota
perform their work as the directors want. It is the right which is provided to shareholders of
organization to select any individual who is responsible for taking the decisions about the various
important matters of investment and marketing development.
Small, medium and large are the seven three types of public limited companies. It get very
difficult to survive in the competition for the small businesses with the large businesses. Small
business is a work in a very small market. Along with this they have a very small scope of
organization to make changes in their management strategies. On the entry of any competition in
the market can destroy the business. As they have a lack of resources in order to protecting
themselves from their competitors. Large businesses have various resources in order to
protecting themselves from new competitors by creating a high cost of entry in the market.
The business of medium sized have to face less difficulties in the competition as compared to
two small businesses. They have to serve a large market where they can change their strategies
once or twice in a year. Along with this they have the opportunity to expand real business of
patience in various New Market with the existing products. They have a values resources in
order to protecting themselves from the entry of any new competitor in the market. Medium
sized organization always have to face risk which journey from the competition available in the
market. As the resources are very high in a large organization, it implies that the risk is also very
high to sustain protection.
Organization are always Classified on the basis of production which include Primary
secondary and territory. Primary organization is responsible for the production of raw materials
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from natural raw materials and transfer those raw materials to the secondary organizations. The
secondary organization are responsible for converting that raw material into to finished goods
and then it sends to the territory organizations. Charity organizations can be said as retailers as
the sale the product or services to the customers.
It has been analysed at the scope of organizations are depend only on the nature of
product. Coca Cola organization is responsible for producing and supply in soft drinks which
include concentrate ready to drink coffee sports energy drink water bottle carbonated drinks and
fruit juice. Hence the scope of The Coca-Cola organization is supplying such drinks. OXFAM
can be considered as Charity organization as it has wide targets which support more resources to
protect themselves from the entry of new organizations in the market.
For the purpose of improving the performance of the complete business organization, the
management of organization select vision mission goals and objectives. Reason can be e defined
as the position where the organization wants to go. Mission refers to the purpose and rules of the
organization. The main reason for the purpose of selecting mission is to providing the scope of
the organization so that they can fulfill their objectives. Objectives can be defined as the short
targets of the organization.
The operations of a business organization is totally depends on the shareholders and
stakeholders. Stakeholders include all the persons who are interested in the business full store
normally stakeholders are generally affected by the activities of the business organization. It is
also analyzed the data there are various features of the environment of business of global
organization searches Toyota which include disperse dynamic and uncontrollable. Because of
change in the trend of customers and Society, the business environment of Toyota is changing.
Hence it is a unpredictable as well.
LO 2 Demonstrate the interrelationship of the various functions within an organisation and
how they link to organisational structure
P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure.
The functions of a business organization is divided in various function so that the
effectiveness can be seen in all the operations. Human resource, research and development,
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customer service, Administration and IT, marketing, production and operations, finance and
accounts are the various functions in an organization. Marketing and Human Resource function: Marketing work as a relationship between
market and customer as it helps in establishing a relationship with the customer's.
Marketing functions of Toyota provides all the information for developing new product
to the customer. Toyota organization has developed a competitive business environment
by their competitive pricing strategy. They had also developed a product distribution
system under which the customer access to product and services. Along with this it is also
found that the demand of cars of Toyota is very high which leads to the growth and
expansion of the operations of organization. It also leads to the maximization of profit
from the market of United Kingdom. Sometimes it is also seen that organization provide
awareness maths is a which include anti smoke alarms and unsafe driving in drunken
condition leads to the responsibility of organization towards the society. Human Resource
department is responsible for doing recruitment of highly skilled and experienced
candidate. On the other hand, marketing team also require good and talented employees
in their team so that the can easily reach to the audience and convert them in final
customers. Finance and marketing function: Finance function of an organization is related with the
usage and expenditures of resources of Organization in different operations. It is useful as
it provides a valuable report on the performance of a finance and position which is related
to the the preparation of a business plan. Finance function of Toyota is responsible for
making a proper budget and marketing department also need money in order to
undertaking the promotional activities. Finance department present a proper budget and
money to the marketing department. Hence both are interrelated to each other. The
organization have to arrange the funds from various resources of the organization. Hence
it is necessary for them to prepare budget and measure all the financial resources through
which they can generate Finance. They are also responsible for managing the cash flows
in the organization as it ensures that there are various points to meet the requirements of a
business organization. It is also responsible for monitoring All the departments by the
internal auditors. The finance of large companies can be analyzed in the investment of
surplus funds.
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 Accounting with finance function: It is responsible for tracking all the daily transactions
of sales purchase and utilizing the business resources internal as well as externally. In the
organization of Toyota the cash flow insurance that the organization is paying sufficient
funds for the purpose of maintaining business liability is even when the organization need
to pay. Coordination within the finance department The financial accounting staff
responsible for preparing financial accounts might rely on the management accounting
staff for data about inventory records so as to place a value on closing inventory
 Human Resource and legal department function: Toyota also have advanced human
resource management department which look after the employee. The human resource
management department offer Toyota is responsible for managing the employees so that
they can result in an effective and efficient manner. They are also taking care about the
legislation and policies. The Legal Department oversees any legal issues that affect the
company and its departments. It closely works with the HRs regarding employee
assistance and training manuals. Thus, the alliance of these two departments ensures that
everyone in the company is aware and updated of the laws inside and outside the
workplace. The human resource management department include various activities which
are related to the employees of organization which include recruitment, job designing,
maintaining employment laws, managing compensation, employee relations, training and
development of employee skills, Administration and many more. The vision statement of
Toyota implies that they will leads the waste the future of mobility in reaching lives
around the world with the safest and most responsible ways of moving people.
It is found at Toyota has various corporate objectives which are supported by the various
corporate strategic action plans. The corporate strategic Action Plan include various functions of
the organization. Any of plan can be prepared by the higher level managers as they are
responsible for ownership for their objectives. That Action Plan distinguish the subtask and sub
objectives to the various employees in the organization. The organization is following a
bureaucratic leadership strategy so that they can manage their operations in an effective and
efficient manner. Under this leadership style that top level management decide or develop the
strategy.
Organisational Structure
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Toyota is following the divisional organisational structure which organizes the activities
of a business around geographical, market, or product and service groups. Each division within
this structure can correspond to either products or geographies of the organization. Each division
contains all the necessary resources and functions within it to support that particular product line
or geography.
TASK 2
LO 3 Use contemporary examples to demonstrate both the positive and negative
influence/impact the macro environment has on business operations
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.
PESTLE analysis can be defined as a tool of marketing which has the organisation in a
knowing about the various external macro environment which is going to affect the operations of
a business organisation in the near future. By knowing about all the factors any organisation can
prepare themselves for the purpose for facing the problems which they are going to face in the
near future. It include political economic social technological legal and environmental factors of
business organisation. It can be said that it is an important tool which an organisation should use
while making any strategy in their work environment. As it helps in knowing about all these
factors and their positive and negative effect on the business operations.
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 Political factors: While doing expansion and development of operations of a business
organization, Toyota headspace to various political boundaries. The external factors which
are related to the politics of the business organization a lot. The organization has faced
various issues and opportunities of because of some reason.
The political stability of a major markets can be said as an opportunity for the Toyota as it
leads to the growth with minimal political tension. Along with free trade agreements in Japan
and other countries leads to the various opportunities for the organization of a Toyota as it
provides opportunity is a feature improve the market penetration.
 Economic Factors: The external factors of economic which affects the Macro
environment are given below.
Toyota has creates the opportunity in order to improving the exporting business of
organization from Japan. It leads to the creation of value of currency which can be a
disadvantage for the organization. Along with this Toyota also getting the opportunity for
growing their business in the market of United States. Of they had already develop the second
largest Market in the Japan. The instant improvement of development of economy is generate the
opportunity for Toyota so that they can improve the revenue in near future.
 Social Factors: The governmental provision regarding the products of Eco Friendly
journey a chance of growth for the organization so that they can improve their products
and services. Eco friendly products are also very useful as they satisfy the needs and
requirements of the customers who are environmental conscious. Below mention all the
various social factors which influence bad Toyota externally.
As the needs and requirements of customers is changing, Toyota is getting the opportunity
for providing various new products in order to satisfy their new interest which is related to the
hybrid and electric cars. Along with this the company is also analysing the spreading gap of
wealth school topper it can be said as it is a straight because it is a reducing the middle class.
Middle class people are the use source of generating revenue for Toyota.
 Technological factors: In the case study of a Toyota there are various technological
external factors has been analysed for the organization which are given below:
Increase in the advance technology leads to the increase in the cyber rime which state that the
data of organization is on risk anybody can easily the the private data and information of
organization. It is the huge negative factor of organization. But using e commerce and mobile
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technology trend is working as a positive factor for them. Toyota is getting the opportunity for
improving their E-Commerce presence. Along with this it is also noticed to Tata the organization
is creating the contract with the third party of e-commerce service providers so that they can sale
some products to them which helps in spreading the automobile industry. In addition to this
Toyota has also make a strategy in order to providing various opportunities to their customers by
the use of their mobile apps. This application which is going to run in mobile also leads to the
increase in the engagement and loyalty of their customers. Now a days the company can be
considered as the threat of Cyber crime such as corporate cyber sponge.
 Environmental Factors: Various factors of environmental are given below;
The organization is getting the opportunity for the development of their business operations
by doing manufacturing of more friendly products which include electric cars and high mileage
cars. The Toyota organization is also gaining the advantage of Environment protection laws and
attracts the customers.
 Legal Factors: Several legal factors which are creating mixed effect on the environment
of Toyota are given below:
The organization is gaining the opportunity for growing and reducing the concern for
infringement of its intellectual property right. The Government of country is also working on the
improvement of intellectual property protection. The Toyota organization is producing and
providing a good quality product to their customers in order to satisfy their needs and
requirements.
LO 4 Determine the internal strengths and weaknesses of specific businesses and explain
their interrelationship with external macro factors
P5 Conduct internal and external analysis of specific organizations in order to identify strengths
and weaknesses.
Strengths of Toyota
The strength of Toyota implies that the organization is providing enough capability so
that they can keep up a position under which they can be saved as one of the best automobile
manufacturer in the complete world. SWOT analysis can be said as a effective tool which helps
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in analysing and making the identification of a strategic factors which is a providing as a form of
capability of Toyota. The strength of the organization of a Toyota are given below:
 A train of supplying products worldwide.
 A strong brand image in the market. Ability is to do innovation quickly.
Weakness of Toyota
The major weakness of the organization of a Toyota are given below:
 Secrecy in the culture of organization.
 In the last few years the result of a production is recalling the product. Hierarchical structure of organization.
Opportunities of Toyota
Te opportunities which the Toyota is getting while performing business operations are:
 In the developing countries, the demand fr cars is exuberating. If the Toyota focus on the area, they can generate high revenue from this area.
Threats of Toyota
 As the cost of raw materials is increasing, that is also increasing the cost of the end
product.
 When the revenues are sent back to Japan in the Yen that becomes quite lower profit in
comparison to other currencies.
P6 Explain how strengths and weaknesses interrelate with external macro factors.
Economic
Development of economy of United Kingdom leads to the increase in purchasing power of
people which is an opportunity for them.
Political
Stability in the political environment also leads to the stability in policy and the organisation can
work well in such situation. Hence it can be considered as the strength of organisation.
Technological
The demand of auto mobile is increasing and introduction of new electronic car has been done. It
can be considered as the another strength for Toyota.
Social
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Change in the needs and requirements of customers is the another strength for Toyota as they get
the opportunity to fulfil that requirements.
CONCLUSION
From the above report it is concluded that business environment has a vital role in every
business. Business organisation are divided on the basis of various factors. This report is
showing at various types of business organisation with their purpose which include public
private and voluntary sectors and legal structures. Along with this the size and scope of range of
various types of organisation are also discussed under this report. In addition to this it is also
found at all the functions of an organisation are interrelated with each other. For the purpose of
knowing about the relations with functions a small part of a study of organisational function has
been also conduct under this report which state director how they are linked to organisational
objectives and structure. Macro environment factors can be defined as the situations of economy
of an organisation in a particular area. The macro environment involves the Trends of gross
domestic products monetary and fiscal policy and inflation and spending. It has been analysed
that the Macro environment has a complete control on the major external and uncontrollable
factors which affects the decision making power of an organisation. The second part of this
report is showing the PESTLE analysis week include the evaluation of external factors of an
organisation. At the end of this report it has been identified that the organisation has internal as
well as external strength and weakness of organisation.
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REFERENCES
Books and journal
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