External Environment Analysis Assignment Toyota: Macro Analysis Assignment Introduction: In Toyota Motor Corporation was declared as the largest automobile manufacturer in terms of sales and production in the world.
By Abhijeet Pratap Filed Under: While the end of economic recession has led to rising sales and profits, there are other factors too affecting the automobile industry. Self-driving technology is already creating lots of excitement and Toyota, like Ford and others is investing heavily in this area to lay its hands first on the prize.
Global economy, politics and several other factors affect the business of Toyota. The Japan based company is now overtaken by Volkswagen as the biggest car maker in the world.
Apart from these things, competition is also a significant factor and the increased interest of customers in EVs is also affecting vehicle makers. However, this will be an area of opportunities for Toyota. Political factors have kept growing in importance with globalization.
Whether the environment of a country is good for business or not depends a lot on the level of political stability there. It depends upon the government and its policies that how well the international brands will be able to do business in a country.
Political stability means a calm environment suitable for business. Countries that are in a state of political turmoil are not as suitable. Political havoc can result in business disruption and disruption of the supply chain and distribution network.
Business friendly environment requires friendly policy environment. The political turmoil in Europe during the recent years has affected the business environment there. The relationship between economic factors and market conditions is well known.
The better the economic conditions globally, the better the situation of the world market. The economic recession is now past and the world economy is growing fast.
Particularly, the Asian region is leading in this regard. Most of the vehicle makers are focusing on this region for faster growth and higher profits. The situation is not even globally, as some countries are still trying to emerge from the economic slowdown.
Economic situations affect the condition of employment in any country. Better economic situation means higher level of employment which in turn means higher purchasing power of the customers. Higher the purchasing power of the people, the better will be sales and profits of the global brands like Toyota.
Better economic activity also means higher dispensable income for people, which means people will feel more inclined to make big ticket purchases. The level of economic activity has an important effect on business in any given market. However, to withstand the effect of economic forces, brands like Toyota and Ford have focused on building small cars that come for lower prices.
Social and cultural forces and trends have a major impact on the sales of international brands. The global market is made of smaller markets where social and cultural factors can become barriers.This Toyota SWOT analysis reveals how one of the most innovative automotive companies used its competitive advantages to become the dominant player in the automotive industry.
A Toyota Vellfire VL.
Toyota’s PESTEL/PESTLE analysis of external factors indicates major opportunities and a few threats in the company’s remote or macro-environment. PESTLE Analysis on Toyota Prius hybrid vehicle production by using PESTLE analysis. Toyota Prius is a compact sedan which Universiti Teknikal Malaysia Melaka.
In this dimension of Toyota’s PESTEL/PESTLE analysis, the main political external factors provide opportunities for the business. Economic Factors Important to Toyota Economic trends influence Toyota’s organizational development. Toyota Motor Corporation’s SWOT Analysis (strengths, weaknesses, opportunities, threats) case study identifies the internal and external strategic factors.
Toyota PESTEL Analysis Posted on January 25, by John Dudovskiy PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, .