HND Business: Analysis of Toyota's Business Environment and Structure

This report provides a comprehensive analysis of Toyota's business environment, organizational structure, and functions. It begins with an introduction to the business and its environment, followed by an examination of different organizational structures, including public, private, and voluntary sectors, along with their purposes and legal structures. The report then explores the size and scope of various organization types, using examples like Tata Motors and Toyota Pvt. Ltd., and explains the relationships between different organizational functions such as production, marketing, finance, IT, and HR, and how these link to organizational objectives and structure. Furthermore, the report identifies the positive and negative impacts of the macro environment on business operations, supported by specific examples, and conducts an internal and external analysis of Toyota to identify its strengths and weaknesses. Finally, it explains how these strengths and weaknesses interrelate with external macro factors, concluding with an overview of the company's effective organizational structure and its ability to manage various business factors.

Business and business
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 different purpose of organisations as per their structure; public, private and legal structure.
................................................................................................................................................1
P2 Explain the size and scope of a range of different types of organisations........................2
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure..................................................................................3
TASK 2............................................................................................................................................4
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples...........................................................................4
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses.......................................................................................................4
P6 Explain how strengths and weaknesses interrelate with external macro factors...............4
CONCLUSION................................................................................................................................4
REFERENCES ...............................................................................................................................5

INTRODUCTION
Business and business environment refers to a combination of external and internal factors
which have impact over the business organisation. Toyota is a car manufacturing company of
UK. The company has awarded as world's market leaders automotive company in all over the
world. The company was established in the year 1937 by Mr. Kiichiro Toyoda. It has its business
in many countries like UK, US, China, India, etc. this assignment will cover a detailed study
about different purposes of the different kind of organisation along with their size, scope. This
study will also explain relationship between different organisational functions with their
advantages and disadvantages, impact of macro environment on businesses, a complete analysis
of strengths and weaknesses of the business and their interrelation with external macro factors.
TASK 1
P1 different purpose of organisations as per their structure; public, private and legal structure.
Public Ltd company
For the purpose of understanding purpose of a public organisation, Tata motors could ba
taken as the best example. It is an Indian car manufacturing brand.
Purpose of company
Being a public Ltd. Company, the main purpose of Tata motors is to maximize its share
holder's value. Share holders are owners of the company, so it is the purpose of business to
satisfy its shareholders by giving them interest, dividend etc.
Further, a public company also need to fulfil its corporate social responsibility against the
profit earned by it. As the shares can be purchased by general public, it is a goal of the company
to present itself as a ethical and honest company so that it can attract the consumers to buy its
shares (Eling and Schaper, 2017).
Private Ltd company
An example of Toyota pvt. Ltd. Can be taken for the purpose of knowing the main
purpose of any pvt Ltd. Company. The company manufactures luxury cars in all over the world.
Purpose of business
The major objective of any private company is to earn maximum profit from the market
along with having a large amount of market share. Having a monopolistic position in the market
can also be taken as main purpose if the company wants to earn extra profit from the
market(Pearson, 2017). Every company has a purpose of shaping its objectives and aims beyond
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a competitive market. a general purpose of company can be reaching on a size through which it
can be a public company.
Voluntary sector company
A voluntary company is a group of individuals who enter into an agreement as
volunteers, for achieving a common purpose. Red cross is a company related to voluntary sector.
The company has its business in around 80 countries (Gillanders and Whelan, 2014).
Purpose of company
Being a voluntary company, Red cross has framed to achieve a common purpose. The
main purpose of the company is to prevent humans from sufferings in case of emergencies
through technological power. It also has a strong network of donors therefore collecting
maximum donation is also a major purpose of business.
P2 Explain the size and scope of a range of different types of organisations.
Size, scope and range differs from company to company because these depend upon their
structure. Classification of size and scope of rage of different organisations are as under:
Company Size scope
Tata motors [public company] Tata company is most leading
company in the world. Being a
public company Tata motors
need to have a minimum 7
members in the company. Also
it need to have a minimum
paid-up capital of 5 lakhs.
Tata is a public company.
Hence, it can have large
number of members which
enhances the scope of
business. But it needs to fulfil
its stake holder's requirement
first before focusing on
earning maximum profit.
Toyota pvt. Ltd.[private
company]
Toyota is a private ltd.
Company therefore it can have
maximum 50 members in the
company although it need to
have minimum 2 members. It
must have a minimum paid up
capital of 1 lakh. (Belás, 2015)
A private Ltd company have
less scope than public
company. As it can not issue
shares to the public. But due to
this, it can have its full focus
on earning profit and grabbing
maximum market share rather
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than focusing on its stake
holder's value.
Red cross [voluntary company] Red cross is the largest
voluntary company. It has its
business in more 25 member
committees.
As the company is formed
with a set goal, the company's
scope is upto the set scope of
serving humans from
sufferings. Company can not
work beyond the scope (Kolk,
2016).
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.
Relationship Between Organizational Functions & Organizational Structure are as under:
Toyota has several functional units and all they have strong relationship with each others.
Production and marketing function of the firm are highly interrelated. Enterprise spend huge
amount to conduct market research (Belás, 2015). This helps in identifying needs of consumers
and analysing market situation. By this way production department makes changes in its
products and modify its services as per the needs of buyers. This helps Toyota in offering
satisfactory cars to the potential buyers. This is beneficial in order to generate more sales and
increasing profitability of organisation. If marketing department does not perform its duties well
then it would directly affect production (Eling and Schaper, 2017).
There is relationship between finance and information technology department. If
enterprise does not allot required funds to IT department then information technology functional
unit will not be able to implement latest technologies. This will affect operation efficiency of
business to great extent. IT and production are related and impact on each other. If entity
implements advance techniques then this will enhance productivity and Toyota will be able to
produce more unit. This is better for increasing profitability of business. Thus, this
interrelationship is always helpful in meeting with objective of company to great extent (Eling
and Schaper, 2017).
Human resource department and operations department are interrelated. If Hr department
of Toyota recruits skilled employees then they will perform well and will produce high quality
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products as per the needs of consumers. But if there is unskilled or inexperienced employees then
thus will affect overall quality of services to great extent. In such condition entity may get failed
to satisfy its buyers.
Toyota follows divisional structure, that helps business in allocating tasks to each
department carefully. All employees coordinate with each other well and this help firm in raising
demand and achieving goal of organisation to great extent (Belás, 2015).
Functional structure:
In this type of organisational structure, different functions are adopted by different
departments. All the departments have different managers. They have responsibilities of
performing their task and complete their departmental objective set by their senior managers.
This structure is directly related to the company's organisational functions as to achieve
organisational goal the goals are divide into different departments as per the function of
department in such a way so that whole organisational goal can be achieve efficiently. Hence,
their functions are interrelated to their organisational structure.
Divisional structure:
Divisional structure is applicable on those who have different branches for different work
(Eling and Schaper, 2017). Toyota have different lines of product. It manufactures luxury cars as
well as normal cars. Company has divided products into different lines. Each product line needs
to perform their own functions. Advantage of this structure is that large goal of the company
divides into different part. Each part of the company needs to achieve their part of goals only. It
reduces the pressure and make them work more efficiently. On the other hand it also has some
drawbacks like if the company's different parts start taking each other as competitors it may lead
to enhancement of inefficiency in within the business organisation(Vickery, 2004).
Matrix structure:
Matrix structure provides a great flexibility in the business. In this kind of structure,
employees of the organisation divide into different function based departments. Toyota has
divided its employees into some departments like finance, sales, accounting, etc. each
department assigns their own projects on which they have to perform their own task. Advantage
of this structure is that it changes organisational needs into departmental need. Although there is
a drawback too that it may result in creation of conflict in the business (Eling and Schaper,
2017).
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All the organisational structure and objectives are related to organisational structure because a
structure of an organisation decides what functions are need to be performed by any department
or employee of the organisation. Also, through the structure of any organisation, department wise
objectives are being decided by any company (Kolk, 2016).
CONCLUSION
From the above study it has been concluded that Toyota has adopted the best organisational
structure for its functioning. The company has some strengths and weaknesses along with
opportunities and threats but company has managed all these very effectively and has done its
business at its best. The study has also concluded that company has analysed all the factors
effecting its business and has made plans accordingly.
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REFERENCES
Books and journal
Belás, J. and et.al., 2015. The business environment of small and medium-sized enterprises in
selected regions of the Czech Republic and Slovakia. E+ M Ekonomie a Management.
Eling, M. and Schaper, P., 2017. Under pressure: how the business environment affects
productivity and efficiency of European life insurance companies. European Journal of
Operational Research. 258(3). pp.1082-1094.
Erasmus, B., Strydom, J.W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business
management. Oxford University Press Southern Africa.
Gillanders, R. and Whelan, K., 2014. Open for business? Institutions, business environment and
economic development. Kyklos.67(4). pp.535-558.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
pp.23-34.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business.51(1)
pp.23-34.
Pearson, R., 2017. Business ethics as communication ethics: Public relations practice and the idea
of dialogue. In Public relations theory (pp. 111-131). Routledge.
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