Toyota Environmental Factors
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Toyota Environmental Factors
In today’s competitive environment, every business has required to expand their business not just at the domestic level but have to explore business at the international level. All those business that are worked at both local and international level have to encounter the different factors that affect their operation of business on the daily basis. Majority of these factors has based on internal and external. Those factors that are under control of business operation have come under the internal factors and the factors that beyond the business control are considered to be external factors (Van & Bosch,1980). Most of the time, external factors have come due to the results of the external business and referred to the external factors. The successful multinational organizations have made their marketing decision and it's strategies for making encounter against the numerous environmental factors of the business. This paper has to aim for exploring the numerous environmental factors and the marketing decision for the world leading automobile manufacturing company “Toyota Corporation”. The car manufacturing company that headquarter has based on Japan is the largest motor manufacture in the world. The company has run it's operation in the domestic and international level to the aim of expand their market share and offers a variety of cars for their customers. Toyota Corporation has more than 3000 sales centers in their domestic market, and more than 1000 sales center all on the world (Basu & Miroshnik, 2000).
There are a number of factors that have a great impact on the decision of marketing for the Toyota Corporation. Factors have been including are global, social-cultural, economical, Legal, political and technological. These environmental factors have become very challenging for the business and encounter against them, even most of the time these environmental factors have become the major threat for the business. To tackle these threats firm have to the required number of strategic and marketing decision to overcome these factors.
Global Economic Interdependence
Toyota Corporation has required selling their product accordance to the prevailing internal market due to the global economic interdependence. When there is the less demand from the internal market Toyota has require to adjust their marketing strategies and manufacturing car according to the global need, while when international demand has rises they have uses extensive strategies of distribution and marketing decision to meet customer satisfaction and need. The practices of trade agreement have also affected the decision of marketing for Toyota Corporation; the company has a major influence to make a contract with the sole agent for the specific market (Cortez & Penacerrada, 2010), that would help fort the Toyota that do not sell the product directly towards customers even their distributors become bankrupt.
Demographic, Physical infrastructure & Cultural differences Social factors has relates to the demographic features and values. Characteristic of demographic has included the differences among genders among the consumers, perception of customers and attitudes, cultural difference between the certain communities, cultural diversities. Toyota Corporation has known that very well about various perceptions among their target customers towards the choice of motor vehicles (Basu & Miroshnik, 2000). The company has determined the perception and consumer taste especially in the continent Africa. Uganda consumer has mostly preferred the cars of single cabins while the buyer on the United States has preferred four wheeler cars with double cabins. Physical infrastructure on the other hand has relatively important for Toyota Corporation, for example in Dark Continent Toyota have to face...