Environmental Scan
Environmental Scan of Apple and Toyota
University of Phoenix
Strategic Management
MGT/498
November 28, 2014
Environmental Scan of Apple and Toyota
Introduction
Toyota Motor Corporation is a leading automobile manufacturer in the world due to its unique principles and successful strategic management. Apple is an American company specializing in consumer electronics. The paper highlights the internal and external business environment of Toyota and Apple.
The internal and external business environment of Toyota
The external business environment in the US affects Toyota’s operations. The external business environment is elaborated using the PESTEL Analysis. The PESTEL Analysis entails political, environmental, socio-cultural, technological, economic and legal factors.
Political factors: Toyota’s operations in the US are affected by political factors like government policies. For example, the government policy is that all foreign companies must hire USA citizens to reduce the high rate of unemployment in the country. Furthermore, Toyota suffers from the high taxes levied by the US government to protect local automobile firms from foreign competition.
Economic factors: the taxation rules, economic trends, the economic slowdown and recession affect business operations of Toyota. The above makes Toyota forced to change its operation such as recruitment policy to avoid losses during recession (Cachon & Olivares, 2010).
Socio-cultural factors: Toyota must meet the demands and needs of the customers in the automobile industry because their tastes and preferences change very often. The rising rates of unemployment have forced consumers to purchase more economic vehicles that use fuel efficiently.
Technological factors: the US government has invested heavily in technology development, information and communication, Innovations and research funding. There is a fast change in technological environment among the customers that call for Toyota to embrace technological
University of Phoenix
Strategic Management
MGT/498
November 28, 2014
Environmental Scan of Apple and Toyota
Introduction
Toyota Motor Corporation is a leading automobile manufacturer in the world due to its unique principles and successful strategic management. Apple is an American company specializing in consumer electronics. The paper highlights the internal and external business environment of Toyota and Apple.
The internal and external business environment of Toyota
The external business environment in the US affects Toyota’s operations. The external business environment is elaborated using the PESTEL Analysis. The PESTEL Analysis entails political, environmental, socio-cultural, technological, economic and legal factors.
Political factors: Toyota’s operations in the US are affected by political factors like government policies. For example, the government policy is that all foreign companies must hire USA citizens to reduce the high rate of unemployment in the country. Furthermore, Toyota suffers from the high taxes levied by the US government to protect local automobile firms from foreign competition.
Economic factors: the taxation rules, economic trends, the economic slowdown and recession affect business operations of Toyota. The above makes Toyota forced to change its operation such as recruitment policy to avoid losses during recession (Cachon & Olivares, 2010).
Socio-cultural factors: Toyota must meet the demands and needs of the customers in the automobile industry because their tastes and preferences change very often. The rising rates of unemployment have forced consumers to purchase more economic vehicles that use fuel efficiently.
Technological factors: the US government has invested heavily in technology development, information and communication, Innovations and research funding. There is a fast change in technological environment among the customers that call for Toyota to embrace technological
References: Cachon, G. P., & Olivares, M. (2010). Drivers of finished-goods inventory in the US automobile industry. Management Science, 56(1), 202-216. Hasan, M. R. (2013). Apple Inc.-An Analysis: PESTEL analysis, Porter’s 5 Forces analysis, SWOT analysis, Comprehensive analysis of financial ratios, and Comprehensive analysis of share performance of Apple Inc. NY: GRIN Hines, P., Found, P., Griffiths, G., & Harrison, R. (2011). Staying lean: thriving, not just surviving. NY: CRC Press. Monden, Y. (2011). Toyota production system: an integrated approach to just-in-time. NY: CRC Press. Verlag. Zylla-Woellner, J. (2013). Business Analysis of Apple Inc. NY: GRIN Verlag.