Toyota Motors

Toyota Motors

Introduction

In this paper, we would be analyzing the external environment of Toyota Motors. Toyota Motors Corporation laid its foundation in the year 1937. The founder, Kiichiro Toyoda, saw the opportunity of a motor company that can provide high quality cars using the technology of Japan and can be a worldwide success. The success of his plans and ideas can be noted by the fact in 2009, Toyota was announced as the largest automobile manufacture in terms of production and sales. Toyota employees more than 320,000 workforce all over the world (Arkadi Borowski, 2010). The vehicles that fall under Toyota Motors are Toyota, Lexus, Hino Motors and Daihatsu. The product range is huge as well, as Toyota produces cars, Trucks, sports vehicles, luxury cars, electrical cars and among many others. The total annual revenue reported has been more than 30 trillion yen. Toyota is bringing their innovations to increased productivity and response of market, it's all part of the company's obsession with what its chairman called "the critic of speed." Toyota automobiles are sold in more than 170 countries, and their markets include Japan, Asia, Europe, and North America (Borowski, 2010).

Importance of External Environment Analysis

External environment is the one that cannot be controlled by an individual or the business in this case. However, most of the decisions that are made by the individual or by any firm are based on these external environment factors (Daft & Marcic, 2012). Without analyzing the external environment, it is difficult to make build a successful strategy. For this purpose, we would be doing the PESTLE analysis for Toyota and studying the factors that come into play.

Political

The political factors include the attitudes and actions of politicians and government leaders and legislators that may change with the emergence and development of applications and social beliefs. The government affects almost all businesses and all aspects of life (Scherrer, 2003). With respect to an organization, operates in two functions essential: promotes and limits business. Finally the government is the main customer who buys goods and services (Daft & Marcic, 2012).

Due the recent US government intervention in the recruitment processes for outside companies, Toyota is not able to hire their workforce from their home, but instead they have to hire from the home country they are working in. They now have to hire more US nationals for their operations. They also have to carefully consider all the political dimensions, policies and regulations that may create an unhealthy environment between the two opposite countries. Toyota also has operations in South East Asia (India and Pakistan), but they do avoid relocating their employees to the locations and for such, they hire the workforce from the respective countries.

Economical

Economical aspects study the immediate economic factors of the country the company is involved in. The external economic interests not only to organizations whose mission is the production and distribution of goods and services that people can buy, but is equally important for other types of companies organized as an office, whether for ...