Environmental Analysis Paper

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Environmental Analysis
As many may be aware, Toyota is not shy to the media spotlight. Toyota has been the number one automobile distributor since 1935 when the founder, Kiichiro Toyoda revealed their first model the A1 and by the 1950s. Toyota had produced more than 100,000 vehicles. However, not all of Toyota’s fame has been popular. Many will remember the major automobile company by the massive number of recalls totaling nearly one million, occurring in several countries across the globe. Half of the recalls were in Japan alone, but others were in the United States, Zimbabwe, South Korea, China, and Tanzania, to name a few. The recalls were from acceleration problems in different vehicles such as the Prius, Hybrid, Camry, and Sequoia Sports Utility Vehicles. On February 1, 2010, Toyota Canada Incorporation made the announcement that it would be recalling approximately 270,000 Toyota vehicles equipped with a specific accelerator pedal assembly and suspending delivery of the eight models involved in the recall on January 26, 2010. In this paper, Team C will elaborate on Toyota and its marketplace, provide the latest corporate reports, compare the three macroeconomic variables of employment, GDP and how it relates to Toyota’s deficit performance, provide its environmental analysis, and analyze information that identifies any relationships between the United States economic trends and the operational performance of Toyota. Corporate Report

In pursuing corporate objectives, Toyota outlines its commitment to developing the highest level of governance and cultivating a value-based performance culture that rewards exemplary ethical standards, respect for the environment and personal and corporate integrity. Toyota believes that there is a link between high quality governance and the creation of shareholder value. The work of the board of directors is based on the existence of a clearly defined division of roles and responsibilities between the shareholders, the board of directors and the company's management. The governing structures and controls help to ensure that Toyota runs it business in a profitable manner for the benefit of shareholders, employees and other stakeholders in societies in which it operates (Toyota, July 2010). An article posted in Toyota Motor Sales (TMS), USA, Inc., corporate report released the following first quarter statistics: • July 1, 2010 - Torrance, California, report quoted June sales of 140,604 units. With equal selling days in June 2009 and June 2010, sales were up 6.8% over the year-ago month on a daily selling rate (DSR) and unadjusted raw volume basis. The Toyota Division posted June sales of 123,272 units, an increase of 7.4% over the same period last year. The Lexus Division reported June sales of 17,332 units, an increase of 2.7% over the year ago month. • For the first-half of the year, TMS reported sales of 846,542 units. With 151 selling days in the first-half of 2010, compared to 152 selling days during the first-half of 2009, sales were up 10.6% on a DSR basis over the same period last year. On a raw volume basis, unadjusted for one extra selling day in 2009, sales were up 9.9% during the first-half of the year (Toyota Motor Sales, July 2010) "Toyota performed well during the first half of the year, despite a difficult economic environment," said Jim Lentz, president and chief operating officer of Toyota Motor Sales, USA Inc. "Although the entire automotive industry struggled in June as weakening consumer confidence weighed on sales, Toyota maintains its leadership position as the number one retail brand in the industry year-to-date" (Toyota, July 2010, Para 4). The chart below displays the growth pattern and statistical data for the next 10 years. An estimated 1.5 billions vehicles are projected to be on the road in 2020 with Europe leading the way with the largest increase. Toyota recognizes that its challenges are to: • Push toward a long-term vision of...
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