Toyota and External Environment

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  • Topic: Toyota, The Toyota Way, Lexus
  • Pages : 6 (1973 words )
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  • Published : August 1, 2010
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COURSEWORK:
With a product of your choice in mind, describe the key external environmental factors that have led to the product provider’s success, and identify and discuss the changes you think may affect the product in the future.

CONTENTS

Business organization in external environment.............................1 History of Toyota................................................................ 1 The economic environment factor............................................2 The political environment factor..............................................2 The social, cultural and demographic factor................................3 The technological factor........................................................ 3 The resources and resource market factor...................................4 The customers factor.............................................................4 The Competitors factor..........................................................4 Development in external environment.........................................5 Conclusion...........................................................................6

Toyota and external environment

In any business organization there are two different environments, internal and external environment. Both environments are affect the business in their own ways. Internal environment is about preparing and learning how to achieve the objectives of a product in external environment. External environment can be influenced by many factors for example, politically, socially, legally and culturally. External environment can be studies into two parts, general and immediate environment. Firstly, general environment which involves economic, political, legal, and social. Secondly, immediate environment which involves suppliers, competitors, labour, market, and financial intuitions.“Business activity is a fundamental and universal feature of human existence and yet the concept of business is difficult to define with any degree of precision.”(The Business Environment).The question is how to achieve success in business due to changing external environment. And also focus on how the organization can develop and improve itself in external environment. Toyota is the seventh largest company in the world and the second largest manufacturer of automaker, with production facilities in 28 nations around the world - and the highest-production facility of any non-domestic automaker in the United States. Toyota is a good example to analyze external environment. It was founded by Kiichiro Toyoda in 1937 from his father's as a development company from Toyota Industrial to Automaker. In 1934, while still a department of Toyota was purly Industrial, it created the first product which called the engine A, within two years, it made the first passenger car which used to be called Toyota AA. Toyota also owns and Lexus operation and Scion brands and has a majority shareholding stake in Daihatsu and, Hino cars and minority shareholdings in Fuji Heavy Industries, Isuzu Motors, Yamaha Motors, and Mitsubishi Aircraft Corporation. The company includes 522 subsidiaries. There are many factors which leaded Toyota to success in external environment.(www.Toyotland.com)

The economic environment is one of the factors that considerable as a general or contextual environment. It’s the most powerful factor in external environment. Business activity exists in and is affected by the broader macroeconomic environment. Economics is concerned with how societies allocate scarce economic resources to alternative uses and the real costs of the choices that are made. In 1979 Toyota had difficult times dealing with economic environment in UK because of oil crisis. Automaker sales fell, Toyota had to restructure as a result of car sales drop. The increased cost of energy in the UK’s economy to be specific is another economic factor, though this change is being to be felt all over the globe. This is affecting...
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