CORPORATE MANAGEMENT

Corporate Management in Action

Corporate Management in Action

a) i. PESTLE is an acronym for Political, Economic, Social, Technological, Legal and Environmental factors, which are used to assess the market for a business or organizational unit strategic plan.

PESTLE analysis examines the external market, the customers needs and wants can be ascertained. But most importantly, through the PESTLE analysis the organisation can assess if they are able to deliver what the customer wants providing i.e there are no laws that prevent it or the technology is available etc. A good example is the changes in law on smoking(Donaghue, 2007). These political changes have had a massive impact on clubs and bars. A PESTLE analysis in advance of the changes in law would have given the bars the opportunity to make changes in advance. An example of keeping a customer happy in this incident may be with the provision of heated lamps for cold winter evenings. However, this information would not be obtained without first conducting a PESTLE analysis.

PESTLE analysis used as a strategic tool

Strategies are formulated by Chief Executive Officers, approved by the Board of Directors and implemented by Senior Management. The PESTLE analysis is part of the environmental scanning branch of strategic management.

PESTLE Analysis OF Toyota

Toyota analysts have identified main reasons for this.

1. Toyota's are everywhere;

2. sell to everyone;

This is because Toyota has taken into account the implications for consumers, employees, stakeholders, associated organisations and the company's mission statement(Dixon, 2006). Each external factor would have been and continues to be examined and categorised in terms of whether its implication is negative or positive, large or minor significance, intermittent or continuous impact and so on.

PESTLE analysis factors examined

TOYOTA have branded themselves as selling to everyone and therefore offer a range of products and services from Value to Finest prices thus appealing to all segments of the market.

The Sociological aspect of the PESTLE analysis involves considerations such as the increase in immigration of Eastern Europeans or increase in young professionals. Naturally there is therefore a demand for new goods for example, the career minded professional who is a single person. This has seen a rise in the meals for one or quick microwaveable meals to make cooking quick and easy for those always on the go.

Technological factors which have perhaps had the most impact on TOYOTA has been the growth in the use of the internet. They have capitalised on the use of online shopping and provide a delivery service through their website at www. Toyota.com.

A PESTLE analysis is therefore vital to the development and the success of Toyota's in addition to the day to day management of each store in line with strategic decisions. Without knowing what external factors affect the organisation, it is difficult to manage the business in an efficient manner.

ii) a. Customer driven

The opportunity cost associated with the failure to recognize customer-driven product innovations represents yet another cost for firms that have not adopted a customer orientation. These innovations represent incremental improvements to existing ...