Business and Business Environment Report: Toyota UK Analysis

This report provides a comprehensive analysis of Toyota UK's business operations, organizational structure, and its relationship with the external macro environment. It begins with an introduction to the company and its global presence, followed by an exploration of various types of organizations, including public, private, and voluntary sectors, along with their legal structures. The report then delves into the size and scope of different organizational types and explains the relationship between various organizational functions, such as marketing and finance, and their impact on the company's goals. Furthermore, it examines the positive and negative effects of the macro environment on Toyota's business operations, determining its internal strengths and weaknesses in relation to external factors. The analysis covers key aspects like market competition, customer relationships, and financial management, providing insights into how Toyota UK navigates its business environment. The report concludes with an overview of the findings and references used.

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION.......................................................................................................................................3
LO1.............................................................................................................................................................3
1. Describe various types and objectives of the organization. public, private and voluntary sectors and
legal structures.........................................................................................................................................3
2. Describe the size and scope of various types of organizations.............................................................4
LO 2.............................................................................................................................................................6
3. Explain the relationship between the various functions of the organization and its relationship with
the organization's goals and organizational structure...............................................................................6
LO3..............................................................................................................................................................8
1. Shows the positive and negative effects of the macro environment on business operations:...............8
LO 4...........................................................................................................................................................10
2. Determine the company's internal strengths and weaknesses and explain its relationship with external
macro factors.........................................................................................................................................10
CONCLUSION.........................................................................................................................................11
REFERENCES..........................................................................................................................................11

INTRODUCTION
This organization is managed by a group of people with specific goals, such as: Companies or
public services. There are several types of actions taken by managers in the organization, such as:
Planning, coordination, selection of structures, organizations, arrangements, administration, logistics and
administration. Toyota is a popular global car organization founded by Kiichiro Toyoda in Japan in 1937
(Toyota-global.com, 2016). In the early 19th century, this organization expanded its business in various
countries, including the United Kingdom (Prajogo, 2016).
Organizations critically observe changing business environments in the global world. Demand for
cars has reduced car prices and fuel prices have gradually increased. Apart from spending on vehicles and
equipment, they rose in the previous year. However, company cost effectiveness and innovative
manufacturing processes help maintain global competitive markets. As a result, the company's continuous
improvement strategy helps to get a credible place in the global automotive market (Antikainen and
Valkokari, 2016). However, based on the current racing scenario, students plan to make this report to
help Toyota UK understand the various functions in the organization and the organizational structure that
is different from other organizations.
LO1
1. Describe various types and objectives of the organization. public, private and voluntary sectors
and legal structures.
The company refers to the process of converting capabilities and materials based on customer
requests or providing services based on customer requests. The business environment includes factors
such as customers, resources, competitors, suppliers, distributors, industry trends, substitutes, regulations,
government activities, the economy, population and demographics, innovation and technology
development. Resources such as human, physical and financial resources have proven to be the most
important components of any organization. Global organizations like Toyota can try to gain competitive
advantage through price, quality and marketing strategies. It turns out that the business prospects of an
organization are influenced by several factors, such as: B. technological change and government
intervention. Customers are very important for the survival and prosperity of the organization. It has been
found that competitors of this type of automotive industry are usually two types - direct and indirect.

Sole traders- It is an individual entrepreneurship or proprietorship, is a type of enterprise that is owned
and run by one person and in which there is no legal distinction between the owner and the business
entity. Example beauty salon, small grocery stores.
Advantage- A sole person is the owner of business
Disadvantage- They alone have to bear the loss.
Partnership- A partnership is an arrangement where parties, known as partners, agree to cooperate to
advance their mutual interests.
Advantage- Two partners can bear the loss.
Disadvantage- A partner cannot transfer interest in the business without the unanimous consent of the
partners.
Private organizations- Private organizations, public organizations, government organizations,
cooperatives, charities, and non-governmental organizations. The private sector refers to the ownership
and control of organizations controlled by individuals or groups. The aim of the organization is only
profit. Sainsbury's is considered to be one of the best private organizations in the world. There are several
types of private organizations, such as single owners, partnerships, companies, and cooperatives.
Public sector- It has been noted that the public sector economy is controlled directly by the government or
by government agencies. For this reason, business operations are managed by various types of
organizations on behalf of citizens and for their general welfare. National Health Services is one of the
most popular public organizations in the UK.
Voluntary work participates in various organizations such as charity, voluntary organizations and the
business community. These organizations are mainly non-profit and non-government organizations. It has
been found that Cancer Research is a voluntary organization popular in the UK.
The concept of business organizations such as Toyota UK covers various types of sectors such as
people, goals, management, and resources. Toyota's business concept depends on factors such as profit,
market share, technical excellence and corporate social responsibility. It has been found that Toyota is
usually a retail organization. Therefore, they can easily develop their business without legal formalities.
The owner or head of the center has full control of his business. It was found that the entire Toyota
business was managed by the Japanese headquarters. Management itself chooses working hours and work
patterns for the organization. The human resources department, which is able to build close personal

relationships with employees and the marketing team, establish close relationships with customers. All
Toyota businesses are based more on top management interests and skills than employees. On the other
hand, unlimited liabilities from the organization pose a risk to the owner. It turns out that Toyota faces
tough competition on the world market from various farms such as the Volkswagen Group. It is very
difficult for the only commercial organization to get additional capital. Older employees must spend
hours developing new business strategies. There is no continuity in the organization.
2. Describe the size and scope of various types of organizations.
Usually, there are five types of organizations, such as private organizations, public organizations,
government organizations, cooperatives, charities, and non-governmental organizations.
It has been noted that limited liability companies are usually business associations; They have their own
legal identity. As a result, property and other assets are owned by the Company but not owned by its
members. On the other hand, member assets are not intended for organizational purposes. Therefore
individual responsibility is limited.
A limited company is formed by two or one person. It is noted that business partners must submit various
documents such as memoranda and articles of association. A limited liability company must have at least
one shareholder, but the organization can offer large shares to the public. However, organizations can
offer to most people who want to enter into business arrangements with this organization. It was found
that the corporation was registered as a public limited company.
It was found that Toyota in 1937 began its activities as a public company. There are three major
Toyota shareholders, such as TYO, LSE and NYSE. The organization has at least one director in each
branch of the organization. At present, the organization has a total capital of $ 1.5t in the UK. It can be
seen that Toyota UK offers spare parts for sale to the general public. It has been determined that the
organization has complied with various regulations and laws to maintain its business profile as a public
company. The organization has registered them on the London Stock Exchange to sell shares to the
general public. The London Stock Exchange closely monitors the stock market trading process.
Organizations hold public meetings with shareholders once a year (Kolk, 2016). It was noted that Toyota
operates through its corporate executives. Organizational shareholders choose people who make decisions
about important topics such as investment and marketing development.
There are three types of public companies: small, medium and large. Small businesses struggle to
compete with large companies. It was found that small businesses operate on a very small market. On the
other hand, companies have few opportunities to change their accident management strategies. In general,

the entry of competitors can significantly affect their business. However, companies have fewer resources
to protect themselves from new income on the market. That is why large companies can better protect
new competitors by causing high entry costs.
Medium-sized companies have a better position than small organizations. They serve a larger
market and can change their strategy once or twice a year. You can even expand existing business
products to new markets. They have more resources to protect themselves from newcomers. However,
medium-sized companies are exposed to competition from very large organizations. Large organizations
have more resources, and the risks may be too high to maintain protection.
It should be noted that, depending on production, organizations are divided into primary, secondary and
high education. Primary organizations usually produce resources from natural resources and send them to
secondary organizations. Secondary organizations turn goods into products and transfer products to
tertiary organizations. Tertiary organizations are usually retailers who sell products or offer customer
service.
The scope of the organization depends on the nature of the product. Coca-Cola's goal is to
produce and deliver non-alcoholic beverages such as carbonated drinks, concentrates, fruit juices, coffee,
tea, sports energy drinks and bottled water. It turns out that OXFAM is a charity that uses more resources
to protect newcomers. However, in a very large organization with more resources, the risk may be too
high to maintain protection.
It was found that the organization had chosen its vision, mission, goals and duties to improve
business results. Vision refers to the position where the organization wants to go. Mission refers to the
purpose and role of the company. the reason for choosing a mission is to ensure the scope of the
organization so that the organization can achieve its objectives. Objectives are related to specific and
shorter goals of the organization.
Organizational activity depends on shareholders and shareholders. Shareholders are individuals or groups
of people who are interested in the company. However, these people are usually affected by business
activities. It has been found that the global business environment of companies such as Toyota has
different characteristics, such as: B .: Dynamics, diversity and irregularities. Therefore, Toyota's business
environment is gradually changing based on customers and society, but it is also unpredictable. The
company is developing internationally from supporting industries. This business cannot be controlled
because all business transactions are based on environmental, performance and macro factors.

LO 2
3. Explain the relationship between the various functions of the organization and its relationship
with the organization's goals and organizational structure
The function of the organization depends on various functions, for example. Staff, sales and
marketing, research and development, manufacturing and operations, customer service, finance and
accounting, administration and IT. Marketing is seen as a bridge in relationships with markets for
customer satisfaction (). The marketing process is beneficial for customers and suppliers. Marketing helps
organizations, such as Toyota, provide customer information to develop new products that support the
quality of life of customers. It turns out that Toyota creates a competitive business environment through a
competitive pricing strategy. This organization has developed a product distribution system that allows
customers to access products and services comfortably. Toyota's high demand for cars allows the
company to grow and expand its business and produce more on the UK market. It is noted that
communicating organizational messages helps improve social behavior in a positive direction. It was
found that these organizations sometimes issued intelligence messages such as smoke detectors and
dangerous driving in drunken countries, which could increase organizational responsibility to the public.
Funding is related to the cost or use of organizational resources for various operations. The
financial function provides valuable reports about the results and financial position in connection with the
business plan. The organization has allocated funds to various parts of the organization in accordance
with the budget and measures the use of funds related to the implementation budget. To manage cash
flow, organizations must ensure that there are sufficient resources to meet business needs. The financial
performance of each department is monitored by an internal audit. Large corporate funding is included in
investment in surplus funds. It has been found that many organizations have formed Treasury Funds to
manage the organization's business. That's why companies produce the best returns and reduce investment
risks. Investment in resources is generally considered a risk by most finance departments, including
internal projects for additional production lines, cost reduction projects and the purchase of new
technologies to support quality and efficiency (Hitt and Xu, 2016). It has been determined that Toyota's
financial statements ensure that the organization meets the UK's main requirements.
Accounting in organizations such as Toyota records all purchases, sales, and use of internal and
external business resources every day for the organization. Toyota's cash flow ensures that the
organization pays enough money to fulfill its business obligations when the organization has to pay. It is
noted that the finance team is responsible for providing additional funds to grow the business.

Toyota has previously hired the human resources department to oversee employees in the
organization. Human resource management curve to manage employees to achieve 100% effectiveness
and efficiency of God. The HR Department is also interested in law and policy. The role of human
resource management includes various activities such as recruitment, administration, work organization,
retention of labor laws, employee attitudes, compensation management, skills development and employee
training. In this vision statement, "Toyota will show the way to the future of mobility and enrich the life
of the world in the safest and most responsible way to move people through our commitment to quality,
continuous innovation and respect for the planet. We strive to exceed expectations and rewarded with a
smile, and we will achieve our challenging goals by bringing the talents and desires of those who believe
that there is always a better way. "
It has been determined that Toyota has implemented the company's goals supported by a comprehensive
strategic corporate action plan. The Company's Strategic Action Plan covers a variety of organizational
functions. Every plan is made by senior managers who are responsible for their goals. - tasks and sub-
results / targets, which are formed with the help of the department head in the function. It turned out that
the organization followed a bureaucratic leadership strategy to manage its activities. According to the
bureaucratic leadership style, executives decide or develop strategies. Then the employees and team
leaders must meet the goals or strategies within the stipulated period (Scheer, 2012).
According to Toyota's basic concept, the "bottlenecks" factor limits production to a certain period of time.
Organizations have their own implementation strategies, for example. Bottle closure factors, cycle
concepts, idol time strategies, certain processes of production systems, reflection time, and resource
consumption.
LO3
1. Shows the positive and negative effects of the macro environment on business operations:
Positive and negative effects on the organization are discussed in the PESTLE analysis:
Political - Toyota faces different political constraints in terms of business expansion and development. In
Toyota's case, external political factors influence the organization's business. Organizations face problems
and opportunities for the following reasons:
 The Most Important Political Stability
 Free Trade Agreement
 Country support for environmental products

Political stability in key markets is seen by Toyota as an opportunity to grow with minimal political
pressure (). On the other hand, free trade agreements in Japan and other countries help Toyota to run its
business and increase market penetration. In addition, government regulations on organic products allow
organizations to improve their products. It has also been observed that environmental products satisfy
customers who are environmentally friendly.
Economically
According to the Toyota case, the following external factors affect the macro environment:
 Lower Yen against US Dollar
 US economic growth in stages
 Rapid growth of developing countries
Toyota has developed opportunities to increase the organization's export activities from Japan. Then
the value of the currency creates a loss for the organization. However, organizations have the opportunity
to expand their business in the US market (Tregear, 2015). This organization has opened the second
largest market in Japan. In addition, the rapid increase of the developing economy allows Toyota to
increase revenue in the future.
Social - According to the case, the main social / socio-cultural external factors at Toyota are as follows:
 Increased interest in hybrid cars (option)
 Increased interest in electric cars (likely)
 Expansion of wealth gap (threat)
Toyota has the potential to offer more products to meet customer interest in hybrid and electric
vehicles. However, companies need to critically watch the widening of the wealth gap (Anandarajanet al.,
2012). This is considered a threat because it deviates from the middle class. The middle class, however, is
the main source of income for Toyota.
Technology - In this Toyota case, there are a number of major technological external factors for the
company:
 Increased use of e-commerce (opportunities)
 Cellular technology trends (options)
 Cybercrime (threat)

Toyota has the opportunity to improve e-commerce features. On the other hand, it was noted that the
organization had signed a contract with an external e-commerce service provider to sell several products
as a replacement part of the automotive industry. It has been found that Toyota has developed a strategy
to enable its customers to use mobile applications (Khan and Quaddus, 2015). Your mobile application
service also increases customer loyalty and loyalty. In the past few days, companies have been threatened
by cybercrime, such as corporate cyber espionage.
Environmental protection - In this case, the main environmental factors are:
 Climate change
 Reduction of global oil reserves
 Increasing emphasis on corporate sustainability
Organizations have been identified as having the potential to develop greener products such as
electric cars and long-distance cars (Tchamyou, 2017). Organizations benefit from environmental law
and attract customers.
Legal factor - There are several legal factors that have a mixed impact on the Toyota environment:
 Enhancing Intellectual Property Rights
 Improve Complex Environmental Law
 Increase complicated user laws
It was noted that the organization had the opportunity to grow with little concern about violating
its intellectual property rights. Organizations have found that the government also increases intellectual
property protection (Huang-Horowitz, 2015). The organization has sent quality products to its
customers to meet their expanded needs.
LO 4
2. Determine the company's internal strengths and weaknesses and explain its relationship with
external macro factors
Strength - Toyota's strength shows that this organization offers many opportunities to maintain its
position as one of the world's top carmakers. The SWOT analysis model identifies strategic factors that
function as a form of Toyota's ability (Jenkin and Williamson, 2015). Their main advantages are:

 Strong brand image
 Opportunities for fast innovation
 Supply chains throughout the world
Toyota's weakness - The main weaknesses are listed below:
 Hierarchically organized structure
 The secret of corporate culture
In recent years, the effects of product withdrawals
Explain how strengths and weaknesses are related to external macro factors
Strengths - Toyota's strength is mainly based on economic and technological trends. And elements such
as the SWOT analysis identify all strategic factors that companies can use to improve their business ().
Many options are presented below:
 Market growth in developing countries
 Increase demand for fuel-efficient cars
 Increased interest in modern electronics in vehicles
Weakness
The threat is mainly based on the background of the competition. For Toyota, the first threat is listed
below:
 The presence of market growth among low-cost competitors ()
 Fast innovation in the current competition
CONCLUSION
This report is based on various types and objectives of organizations such as the public, private
and voluntary sectors and legal structures. Students then discuss the size and scope of various types of
organizations. On the other hand, students have discussed the relationship between various organizational
functions and their relationship with the goals and structure of the organization. In this report it is
explained PESTLE analysis to evaluate the external impact of the organization. In addition, the

organization has established internal strengths and weaknesses as well as external strengths and
weaknesses of the organization.
REFERENCES
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Knowledge Economy. 8(4). pp.1189-1228.
Khan, E.A. and Quaddus, M., 2015. Examining the influence of business environment on socio-
economic performance of informal microenterprises: content analysis and partial least
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288.
Tregear, R., 2015. Business process standardization. In Handbook on Business Process
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