Pestle Analysis of Toyota

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Executive summary:

There are mainly three types of organizations namely public, private and voluntary sector. The main difference in these three sectors lies in profit. Both the public and voluntary sector does not run for profit generation while the private sector is run mainly for generating profit. Toyota has established its organizational function policy in a way so that it can ensure quality and make Toyota a quality leader that fulfills customer expectations and solves the quality related problems with priority. This is relevant with their mission to produce vehicles that customers will choose and create customer satisfaction. The external factors addressed in the PESTLE analysis of Toyota’s macro-environment mostly indicate opportunities for the company. For example, the firm can improve business operations and market presence to exploit opportunities based on economic external factors. However, Toyota must consider the threats like the widening wealth gap and the rising occurrence of cybercrime. Toyota’s SWOT analysis addresses the key strength, weakness, opportunity and threats such as the increasing trend of ecofriendly products and the company’s weaknesses based on its organizational structure and culture. To address the threats based on competition, Toyota needs to maximize its competitive advantage by increasing its innovation capabilities. In addition, the company can change its organizational structure to maximize its flexibility in decision-making and problem solving.

Contents

Executive summary:        

1.1 Explain different types and purposes of organizations; public, private and voluntary sectors and legal structures.        

An overview of different types of organization        

Public sector:        

Private sector:        

Voluntary sector:        

1.2 Explain the size and scope of a range of different types of organizations        

A public sector organization: British council        

Mission:        

Business objectives:        

A private sector organization: Toyota        

Mission and vision:        

Business objective:        

A voluntary sector organization: Oxfam international        

Mission and vision:        

Business objectives of Oxfam:        

1.3 Relationship between different organizational functions and organizational objective:        

Task 2: Essay        

2.1 Identify the positive and negative impacts the macro environment has upon business operation supported by specific examples from the case study.        

Political factors:        

Economic Factors:        

Social factors:        

Technological Factors:        

Ecological/Environmental Factors:        

Legal Factors:        

2.2 Conduct internal and external analysis of Toyota UK in order to identify strengths and weaknesses.        

Toyota’s Strengths (Internal Factors)        

Toyota’s Weaknesses (Internal Strategic Factors)        

Opportunities for Toyota (External Strategic Factors)        

Threats (related to external factors)        

2.3 Interrelations of strengths and weaknesses with external factors:        

Conclusions:        

References        

Introduction:

There are mainly three types of organization in UK namely public, private and voluntary sector. Toyota Motor Corporation is a private organization. Starting its operation in 1937, Toyota Industries Corporation is now a Japanese manufacturer that manufactures and sells passenger cars, trucks, commercial vehicles and related accessories in japan, Europe, North America and Asia. Though Toyota is a leading player in the global automotive industry, the company should still take advantage of its opportunities and identify threats in macro-environments. The firm’s executives must develop strategies and programs by considering the external factors as well as internal factors to support business growth and stability and sustain its leading position

Task 1& 2: Produce a report    

1.1 Explain different types and purposes of organizations; public, private and voluntary sectors and legal structures.

An overview of different types of organization

There are mainly three types of organizations namely public, private and voluntary sector. The main difference in these three sectors lies in profit. Both the public and voluntary sector does not run for profit generation while the private sector is run mainly for generating profit (Hammack, 1989).

Public sector:

Public sector includes the organizations that are owned and run by the government of a country and established to provide services to the people of that country. Public sector organizations are mainly funded through tax revenues collected by government. In most countries the public sector includes such services as the military, police, infrastructure, electrical grids, public transit, public education, public roads, bridges, water supply along with health care.

Private sector:

Private sector organizations are those owned and operated by individuals and groups for the purpose of profit generation. Examples of organizations in the private sector include, Sole Proprietors, Partnerships, Small and Medium-sized Businesses, Companies

Voluntary sector:

The Voluntary Sector consists of organizations whose purpose is to help and benefit society, often without motivation of profit. They are often called the third sector or not for profit sector. Examples of organizations in the voluntary sector are Charities, Foundations, and Faith-Based Organizations: Mosques, churches, Temples.

1.2 Explain the size and scope of a range of different types of organizations

A public sector organization: British council

The British Council formerly named the ‘British Committee for Relations with Other Countries’ was established in 1934. They opened its first overseas offices in 1938. 

In the early 1930s global instability was increasing and it caused an increasing threat to British security, prosperity. The Great Depression followed by the Wall Street crash of 1929 resulted in a huge drop in international trade, degradation of living standards, and high and long term unemployment. The Bolsheviks gained power in the October Revolution of 1917 had brought to power in Russia, while in 1922 Mussolini was charged with the power of Italy. Due to these, Britain’s influence in trade and diplomacy was under significant challenge across Europe and around the world. The British government reacted to the growing threat to British interests through creating the British Council along with some other ways (BRITISH COUNCIL, 1961).British council provides a wide range of services ranging from educational support to raising social awareness to eradicate women inequalities in workplace. They also assist in designing and evaluating justice and security initiatives to ensure and protect human rights.

Mission:

The mission of British council is to develop closer cultural relations between the UK and other countries and promote a wider knowledge of the English language abroad and make a lasting difference to the UK’s international prosperity, standing and security.

Business objectives:

The main objective of the British Council’s work is to build cultural and educational opportunities for the people of the UK and other countries and build lasting relationships between them worldwide.

A private sector organization: Toyota

Toyota Motor Corporation started its operation in 1933 as a division of the Toyoda Automatic Loom Works, Ltd.  In April 1935 Toyoda produced the first archetype of an engine named the type A, and the first automobile, the A1. Its mass production began in April, 1936. This success in A1 leads to the establishment of Toyota Motor Corporation Ltd., on August 28, 1937.Toyota Industries Corporation is now a Japanese manufacturer that manufactures and sells passenger cars, trucks, commercial vehicles and related accessories in japan, Europe, North America and Asia. It is a public limited company which has an operation in almost all continents (Chambers, 2008).