Business Environment Analysis & Structure of Toyota UK - Unit 1

This report provides a comprehensive environmental analysis of Toyota Manufacturing UK Ltd, utilizing PESTLE and SWOT frameworks to assess the organization's strategic position within the automotive industry. The PESTLE analysis examines political, economic, social, technological, environmental, and legal factors impacting Toyota UK, highlighting opportunities such as political stability and the rise of eco-friendly products, as well as threats like slow economic growth and complex environmental laws. The SWOT analysis identifies Toyota UK's strengths, weaknesses, opportunities, and threats, focusing on its strong brand image and global supply chain, while also acknowledging hierarchical structure and competitor innovation. The report concludes that the UK automobile industry is highly competitive and that both internal and external factors significantly influence Toyota's operations, profitability, and strategic decision-making. The analysis emphasizes the importance of adapting to market demands and leveraging strengths to address industry challenges.

ENVIRONMENTAL ANALYSIS OF
CAR MANUFACTURING INDUSTRY

Introduction
Toyota Manufacturing UK Ltd, is
a part of the manufacturing
based operations which have
been conducted by Toyota in the
country. The organization had
been established in the year
1989. The first of the
organization was rolled out in the
year 1992 in UK.

PESTLE ANALYSIS OF Toyota
UK
The threats and opportunities
which are provided to Toyota
Motors UK can be analysed with
the proper implementation of
PESTLE framework. The
organization has employed
greater than 30000 employees
and has been able to become a
leading player in the automotive
industry on a global basis. The
opportunities need to be
exploited effectively by the
organization in order to maintain
its profitability.

PESTLE ANALYSIS OF Toyota
uk
Political factors –
■ The political stability which exists in
different markets is considered to be a
major opportunity.
■ The free trade based agreements are also
considered to be important factors.
■ The support provided by the government for
the eco-friendly products is important.
Economic factors –
■ The slow growth of the UK economy is a
major factor which affects the organization.
■ The rapid growth of the different developing
countries is able to affect the operations of
Toyota.

PESTLE ANALYSIS OF TOYOTA
UK
Social factors –
■ The increase in interest which has been seen in
the hybrid cars is considered to be a major
social factor that has affected Toyota.
■ The interest of consumers in electric cars has
also increased.
■ The wealth related gap has started increasing in
the last few years.
Technological factors –
■ The rise that has been experienced in the
usage of e-commerce is considered to be a
major factor which has a major impact on the
operations of Toyota.
■ The trends based on mobile based technologies
can also be considered to be a major factor.

PESTLE ANALYSIS OF TOYOTA
UK
Environmental factors –
■ The changes which have taken place in
the climate are important environmental
factors.
■ The decline in global oil based reserves
has affected the organization in a huge
manner.
Legal factors –
■ The improvement of intellectual property
based laws can affect the policies
developed by Toyota.
■ The complexities based on environmental
laws and the consumer laws can impact
the organization.

SWOT ANALYSIS OF Toyota
UK
The internal and the external
strategic factors of Toyota UK
can be addressed by the
organization with the help of
proper application of SWOT
analysis framework. The analysis
which has been made with the
help of this process is able to
depict the opportunities and
threats which are offered to the
organization. The strengths can
be used by the organization in
order to address the issues
which are faced.

SWOT ANALYSIS OF Toyota
UK
Strengths –
■ The strong brand image which has been
developed by the organization.
■ The global supply chain of Toyota is
considered to be a major strength which
has been developed in the automobile
industry.
Weaknesses –
■ The hierarchical structure of the
organization is a weakness of Toyota.
■ The secrecy levels which have been
maintained in the organizational culture
have started affecting the operations of
Toyota.

SWOT ANALYSIS OF Toyota
UK
Opportunities –
■ The growth in the markets which have
been formed in the developing countries
is a major opportunity for Toyota.
■ The rise which has been seen in the
demands for the automobiles with high
fuel efficiency are is an important
opportunity.
Threats –
■ The presence of low-cost competitors in
the industry has increased.
■ The innovation based speed of the
competitors is high.

INFLUENCE OF INTERNAL AND EXTERNAL
ANALYSIS ON DECISION MAKING IN
Toyota UK
The internal strengths and
opportunities of Toyota UK are
able to affect the methods by
which the company is able to
function and gain profitability in
the industry. On the other hand,
the external environment is also
able to have a huge effect on the
processes of Toyota UK.

CONCLUSION
The analysis can be settled by stating that the
automobile based industry of UK is highly competitive
in nature. The internal environment based factors in
the industry are able to impact the operations and
levels of profitability of Toyota in a vast manner. The
external environment and industry based situation has
a major effect on the strategies which are formed and
decisions which are made by the management of
Toyota as well.

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