assignment toyota company

Elaborative Business Model Of Toyota – Biggest Car Manufacturer of Japan

By Aditya Shastri

Last time, we took a deep dive into the business model of the Indian cab service provider, Meru Cabs . This time we will take a hard look into the business model of Toyota.

Starting from humble beginnings as the small Toyoda Automatic Loom Works, Toyota went on to become the “Best Selling Automaker “ in 2021, building a business empire from scratch. Toyota’s cars are known to be reliable and affordable, with a great reputation for their amazing engineering. The Japanese multinational automaker has been making innovative vehicles for nearly a century and its thriving in its position has been maintained very well. 

Now you must be thinking about how Toyota succeeded in being the preferred choice of most people? And the answer lies in its powerful and targeted marketing strategies. As users across the world go digital, marketing has followed them to the digital realm as well. If you are interested in new-age digital marketing, then you should definitely check out IIDE’s Free MasterClass on Digital Marketing 101 by our CEO and Founder, Karan Shah.

If you are curious about knowing what Toyota does right in their business model and w hat helped them in achieving heights of success, then you are in the right place. In this blog, we will be going through the Business Model of Toyota, revealing the company’s promotional and marketing strategy, competitor analysis, market share, product offerings and pricing model.

So let’s begin by learning a bit more about Toyota first.

About Toyota 

Toyota Motor Corporation, commonly referred to as Toyota, is a Japanese multinational automaker. It is headquarters are located in Aichi, Japan . I t was founded by Kiichito Toyoda on 28th August in 1937, as a part of Toyota Industries which started as a machines manufacturer. Since then business has been managed by the successors of the Toyoda family. Currently, Akio Toyoda is the incumbent CEO of Toyota. 

Today, Toyota is the richest car company in the world, manufacturing 2.3 million cars a year around the world. Just in 2021, the company was making $275.4 billion in revenues in the first quarter of the year. 

The company got its initial boost because of the need for domestic vehicle production in Japan due to the war declared with China. The company produced its first passenger car (model A1) in May 1935 and the first truck (model G1) in August 1935.

Fast forward to today, Toyota has a car for every person to meet their individual needs. With competitive pricing and the use of cutting-edge technology, Toyota is preferred as a “Value for money” choice by the people.

Business Model of Toyota

The car manufacturing behemoth has survived and thrived over the last century and become a global force. The business model of Toyota is important to understand as it holds many keys to success in running a business and making it expand successfully. Their key focus has always been the customer and their satisfaction. In today’s age, that is more relevant than ever and the only way to keep a customer happy is with after-sales services and prompt communication. If you wish to learn more about reputation management in the modern era, visit the Online Reputation Management Course page offered by us.

In order to decode the business model of Toyota, let us start by looking into the company’s market share.

Market Share of Toyota 

As of March 2021, Toyota Group is at the top of the Global market with a 12.6% share with 2.3 million Toyota cars being sold this year to date indicating an increase of 7.9% in overall sales. Toyota has great coverage worldwide and manages its product offering portfolio skillfully.

The brand is currently sold in approximately 200 countries around the world, with roughly 45% of total vehicle sales derived from Japan, and 52% of total revenue generated outside of Japan. In addition to sales by its core Toyota brand, the company also sells vehicles under the Lexus and Daihatsu brands. The major automakers Toyota, Nissan, and Honda control a combined 93% of the Japanese market.

This builds the market dominance for Toyota leading with a competitive advantage amongst the rest of the automobile brands. The next step to understanding the business model of Toyota is to understand a bit more about their target audience, let us have a look.

Target Audience of Toyota

Toyota has its target group of customers who are in the age group of 30-50 having a middle-level income, with the need of a vehicle that offers good value for money. The uniqueness of Toyota cars is quality, safety, durability, sustainability, reliability, and innovation – a perfect combination of attributes that is looked forward to by its customers.

To successfully reach its target customers, Toyota uses multiple suitable strategies to meet its ends. Now let us look at how Toyota mobilizes its strategies in different aspects to stay ahead of the curve.

Business Strategies of Toyota

Toyota is a large company dealing in multiple segments, countries across multiple brands. In order to do a better analysis of the company and their efforts, we have divided the strategies utilized by them into four parts. Toyota is especially known for its amazing marketing efforts, if you wish to know more about that, check out a previously written article on Toyota’s Marketing Mix.

Without further ado, let us begin.

1. Product Strategy

Toyota has a wide range of vehicles designed to meet mass mobility needs. Each product has its segment and its specific group of customers. Following are the product line of Toyota automobiles.

• Toyota automobiles (includes sedans, Minivans, SUV, Commercial Vehicles, Special-Product Vehicles, Evs)
• Lexus automobiles( Luxury segment of  cars and SUVs) 
• Welcab series of automobiles (for people with disabilities) 
• Car Engines, spare parts, and accessories

Toyota’s annual report mentions that it is making great sales despite the worldwide pandemic. Below information is a snippet of the Toyota sales report for June 2021 from the Toyota newsroom.

• Best Selling in June 2021: Toyota APV, Total – light truck, Highlander & Corolla Hybrid Prius Prime, Tacoma, Venza;
• Best Sales In LUV Cars: Totaled up to 115,929 vehicles, total sales are up by 44.9 per cent on a volume basis and 46.8 per cent up on a DSR basis;
• Best selling in Two Quarters: total APV, total LUV, total LC, total NX, total RX, and total UX.

2. Place Strategy 

Toyota’s best source for distributing its products​ are dealerships, so it is vital to determine the venues where consumers can view the products. The strategy of Toyota stands on easy to find venues and good customer service.

Toyota tries to find how its customers can access automobiles through surveys and market research. Once the customer locates and reaches a Toyota dealership, they nurture hospitality while attending to their customers. They ensure that their visitors leave with a good experience in services provided by the staff.

The staff is recruited based on being able to discuss the company’s products, collect orders, take data and fill insurance. In addition, they also recommend the right models of Toyota cars for different customers to satisfy their demands.

They do not just focus on sales. All the product information and automobile data are precisely organized in Toyota’s system, which could provide reliable communication and convenient service to customers at affordable prices.

3. Pricing Strategy 

Toyota has an automobile to meet every person’s needs. Toyota has a range of automobiles starting from the lowest tier daily commute cars to luxury cars. Its pricing strategy has covered every price bracket range so that their customer can choose as per their needs and requirements.

This makes Toyota’s cars compete in every price segment and due to the number of Toyota car models and variants, it becomes a necessary step for Toyota to do cost optimization in some aspects.

Secondly, Toyota pays specific attention towards eliminating waste which leads to an increase in profits over time due to fair pricing, high quality, and low cost on maintenance.  Creating a difference in the product helps the company to gain an advantage against the competition in the automobile industry. Toyota utilizes those cost-cutting profits on their promotion of products.

4. Promotional Strategy

Toyota uses different mediums for its promotional strategies to meet its sales target volume.it advertises through radios, billboard hoardings, television advertisements, brand collaborations, product placements, word of mouth, and recently it has had a growing focus on digital marketing. Toyota has its unique way to promote itself:

• Toyota uses its dealership to personally promote its brand to its potential customers. 
• Special offers and deals are often launched on occasions of festivals and grand sale days.
• Facilitates direct selling from manufacturer to corporate clients.

The consumer targeting strategies do wonders for Toyota: from pitching their products along with tie-up with dealerships to solve the problems of logistics and powerful and targetted advertisements, make the customer more attracted to buy a Toyota car.

Let us learn more about the way the company generates and manages its cash flow. 

Revenue Model of Toyota

In the business model of Toyota, the company generates 90% of its revenue with automobiles sales exclusively. The automotive business has four strategic subsegments through which cash flows in the industry and Toyota capitalizes on all of them:

• Toyota Passenger Cars
• Toyota Commercial Vehicles
• Daihatsu & Welcab series of automobiles.

Toyota automobile has been created not only to achieve synergies between similar vehicles but also to enable greater specialization in pursuing worldwide market growth for each product category.

A fair percentage of revenue is obtained by Toyota in ways such as :  

•  Patent & exclusive rights sharing of assembly parts and software of Toyota motors.
•  Direct financing services to provide insurance, loans, leases, credit facilities.
•  Repairs & maintenance along with spare parts for the aftermarket sales. 

Undoubtedly, Toyota is the #1 leading brand in the automobile industry according to multiple news articles papers, surveys, and the internet. Now, as we near the end of understanding the business model of Toyota, let us understand the Unique Selling Point or USP of Toyota.

USPs of Toyota

The automobile industry is saturated with competition, with price being a key differentiator. Due to this, the industry is shifting from product differentiation to low-cost production. In a marketplace in which consumers are increasingly sensitive to price, Toyota has been able to build cars that are both fuel-efficient and affordable to maintain its lead in the auto market.

To tackle this problem, Toyota has come up with several core competencies that represent its uniqueness, or its USPs. Toyota’s key unique competencies include:

• Continuously developing sustainable competitive advantages through lean manufacturing
• Wide-ranging product development
• Quality management practices
• Flexible mass production capacity with high responsiveness

These were the pillars of Toyota’s business model which supported them to become the leader in the automobile sector globally in 2021. Let us now conclude this case on the business model of Toyota.

Toyota is all about a product that stands on customers’ needs and delivers more than customers’ expectations. For over 90 years, Toyota has been proving that affordable does not mean “cheap.” Instead, it represents a better value for your hard-earned money. To reach every customer of its kind, Toyota strategically uses its powerful and targeted advertising campaigns. Nowadays promotion of products takes place on online platforms.

Every brand prefers online promotion because it provides statistical data of the advertising campaign and gives useful insights about how the advertising is creating an impact on its customers base. You can also learn how to create an impactful and targeted advertising campaign by being a part of IIDE’s Online Digital Marketing Course in India which upskills you in all aspects of the rising digital marketing field.

Want to know more about the marketing strategies and business models of different companies? Head on over to IIDE’s Knowledge Portal to learn more!

Thank you for reading the case study and if you wish to add to the discussion, please leave your thoughts in the comment section below.

Author's Note: My name is Aditya Shastri and I have written this case study with the help of my students from IIDE's online digital marketing courses in India . Practical assignments, case studies & simulations helped the students from this course present this analysis. Building on this practical approach, we are now introducing a new dimension for our online digital marketing course learners - the Campus Immersion Experience. If you found this case study helpful, please feel free to leave a comment below.

IIDE Course Recommendation

" * " indicates required fields

Get Syllabus

By providing your contact details, you agree to our Terms of Use & Privacy Policy

Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs...... [Read full bio]

Submit a Comment Cancel reply

Your email address will not be published. Required fields are marked *

Submit Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed .

Related Posts

Elaborative Business Model Of LinkedIn – Detail Explanation

by Aditya Shastri | Aug 16, 2024

Quick Read   The business model of LinkedIn leverages a robust freemium structure, offering...

Extensive Marketing Strategy Of Manappuram Finance – In-Depth Analysis

Quick Read   The marketing strategy of Manappuram Finance Limited focuses on leveraging...

Unveiling HSBC’s Robust Marketing Strategy – Detailed Insights

Quick Read   The marketing strategy of HSBC focuses on leveraging digital transformation,...

I’m Interested in This Masterclass

• Search this site

Unit 1 Business Assignment-Toyota

Introduction

Business environment can be defined as the addition of numerous factors which are responsible for the success and failure of business organization. These various factors involve internal and external factors of business operations. This Business Toyota Assignment studies the understanding of organizational purpose of business, behaviour of market environment, significance of external factors and nature of national business environment with respect to global car manufacturer Toyota.  

1.1 Types of organization and their purposes

An organization can be defined as the unit of people or group of people working together to achieve collective goals. There are various types of organizations involved in business activities; they can be divided as primary, secondary and tertiary sectors. Services, sales, ownerships, ownerships, etc. are the different purposes of organizations. Organizations working in different sectors have different purposes, for example, agriculture, mining, fishing, etc. are the activities associated with primary sector. Secondary sector include automobile production, textile production, etc. and the tertiary sector include entertainment, tourism, media, etc. In United Kingdom (UK), different types of organizations are working with different purposes (Arthur&Sheffrin, 2003). The four types of organizations in the UK are as follows:

• Government – There are various organizations that are owned by government. The legal entity such as state-owned entity, state-owned company, government-owned corporation, publicly owned corporation, etc. are created by government. For example, National Health Service (NHS, England), National Nuclear Laboratory, etc. are government owned entities in UK
• Charities - A charitable organization is non-profit organization that works for welfare of the society. There are different legal definitions of charitable organizations that vary according ot the country. In UK, the charitable organizations are exempted from taxation such as value added tax, income tax and capital gains tax. The advancement of education, religion, art, heritage and science, prevention of poverty, ill health, helps of those in disability, financial hardship, etc. are the purposes of charities. For example, Cancer Research UK, TEARFUND, etc. are charities working in UK.
• Co-operatives – A cooperative is an organization that is controlled and owned by people who use its products and services. The purpose of cooperative will be established by its members.  Retailer’s cooperative, Consumer cooperatives, worker cooperative, etc. are the different types of cooperative. For example, MidcountiesCo-operative Society is one of the cooperatives in UK.
• Private limited – It is a type of organization that has following purposes such as maximize profit margins, generating highest possible revenue, increasing market share through sales maximization and to survive in competitive market. It is a company owned by private individuals and have limited liability on its directors and shareholders (Sawyer, 2004).

Toyota Motor Corporation which is a Japanese company and has engaged in the design, manufacture, assembly and sales of passenger cars, commercial vehicles, related accessories and parts. It is private limited company and working in multinational locations. The  Business environment of toyota's  main purpose is to generate maximum revenue.

1.2 Objectives of different stakeholders of Toyota.

Stakeholders – The individuals or group of people who are affected by the organization’s objectives, policies and actions are the stakeholders. Stakeholders are basically individuals or group of people who own a share in business. Stakeholders can affect the business, be affected by business and both affected the business and affected by business. Direct and indirect stakeholders are the two major groups of stakeholders in business organizations. Employees, customers, owners and shareholders are the direct stakeholders that directly impact the business (Peloza& Shang, 2011). Government, trade unions, competitors, etc. are indirect stakeholders that do not affect the business directly. Hence the list of stakeholders is:

• Managers & Owners
• Communities
• Trade unions

Toyota motor cooperation has also developed various strategies to meet the objectives of its stakeholders. Company’s brand image, financial strength and  human resource  capabilities are affected by stakeholders. Toyota has recognized the significance of stakeholders and to address the interests of various stakeholders, the company maintains corporate social responsibility activities. Maintaining a strong position in global automobile market, Toyota continues to satisfy the interests of relevant stakeholders. Toyota’s attempts to meet the objectives of various stakeholders can be explained further as:

• Owners – These are the major stakeholders for the Toyota and have interest in business profitability. Toyota addresses the objectives of these stakeholders through focus on global business strength. Owners are involved in day-to-day business activities of Toyota.
• Employees – Toyota gives important to its employees and considers them as most important stakeholders. Toyota meets its employee’s objectives through satisfactory salaries, allowances and career development programs for advancing employees. For example, various training courses to career paths and On-the-job Development (OJD) program has adopted by Toyota.
• Customers – These are significant stakeholders that impact the growth and development of Toyota. Toyota has addressed the objectives of these stakeholders by providing high quality automobiles and services with reasonable pricing. Increased demand of vehicles and higher revenue of the company suggests that Toyota has successfully met the objectives of customers as stakeholder.
• Government – Toyota has regular discussions with government at various operational locations and perform its operational activities in comply with governmental rules and regulations. Toyota has fulfilled the objectives of government by paying corporate tax on a regular basis and obeys all the rules and regulations developed by the government of UK.
• Communities – As stakeholders, communities interest is their socioeconomic development. Various support and community development has been organized by Toyota toaddress the objectives of communities. For example, In UK Toyota has organized support programs for science and technology education (Sustainability data book, 2016).

1.3 Responsibilities of TOYOTA and the strategies employed to meet expectations of different stakeholders

Toyota has worked with various stakeholders such as employees, government, communities, customers, etc. Toyota’s corporate social responsibility activities have deals with various stakeholders and play a vital role to meet the responsibilities of various stakeholders. The various responsibilities of Toyota that has identified on its stakeholders are:

• Economic responsibilities
• Legal responsibilities
• Ethical responsibilities
• Environmental responsibilities
• Management responsibilities

Strategies to meet these responsibilities

• Economic responsibilities –Toyota is one of leading automotive company and it has committed to provide economic benefits to the stakeholders. Toyota’s responsibility is to produce goods and services and maximize profit for its owners and other stakeholders (COLLINS, 2010).
• Legal responsibilities – Organizations are expected to fulfil their economic goals within legal framework. Toyota has followed governmental rules and regulations and developed strategies to support automotive manufacturing industry in UK
• Ethical responsibilities – Respecting the rights of stakeholders and less to their problems are ethical responsibilities of business organizations. Toyota has managed effective business strategies and always pays attention to the problems of stakeholders.
• Environmental responsibilities – Toyota, through its corporate social responsibility address various environmental related problems. The company has fulfilled environmental responsibilities through Toyota Environmental Activities program and the company has also donated automobiles and funds for environmental conservation (Werther& Chandler, 2010).

Get assignment help from full time dedicated experts of Locus assignments.

2.1 Economic system and influence on TOYOTA

Economic system refers to the means by countries and governments distribute services and resources and trade goods. Distribution networks, production, organizing labour, etc. are the various steps and processes involved in economic systems. In the development and growth of any organization, economic system plays important role. As Toyota is Japanese company, economic system in Japan is different as compared to other countries where Toyota has developed its operational activities. Therefore different types of economic system haveaffectedthe progress of Toyota also. But Toyota has developed certain strategies to deal with various economic system adopted by countries worldwide. Before starting any business activities Toyota has analysed the whole economic system and governmental rules and regulations that affects its operational activities. The different types of economic system can be described as:

Mixed economy – This type of economies are the mixture of both public and private ownerships. Organizations can develop their business but need to comply on governmental policies. In a mixed economy, organizations have authority to develop their own business strategy  but also need to follow labour regulation, consumer regulation, taxation policy, etc. decided by government. In order to allocate resources mixed economy is very effective because both government and organizations are equally involved (Schiller, 2011). In UK, mixed economy system is used which benefits the automobile manufacturing facilities of Toyota also. In mixed economic system allocation of resources can be done effectively so Toyota get support from UK government to establish a manufacturing operation in UK. Toyota has established tow manufacturing plant in UK and also gives employment to number of people. So mixed economy system in UK has benefitted both Toyota and local citizens of UK

Free market economic system – In this type of economy system, the control of government is low and private sector has high control. Free market develops opportunities for organizations to produce new products and services. Organizations do not depend on government agencies and provides services and products when public needs. In free market economy, the main objective of any company is to make profit and sometimes organization avoid certain laws impose by government to achieve goals and objectives. Free market system is also good for Toyota. The company can develop strategies and earn huge profits in free market system. The automobile manufacturing market has developed at rapid rate and there are various companies that established their manufacturing plant because of free market economy system.

2.2 Effect of monetary and fiscal policy of UK on Toyota

Fiscal policy – This policy can be explained as the ways through which government can adjust its tax rates and spending levels to monitor the nation’s economy. Fiscal policy determines central and local government spending, Public Sector Net Borrowing (PSNB) and Public Sector Net Cash Requirement (PSNCR).

Monetary policy – It can be described as the process through central bank, currency board or other regulatory committee determines the rate of growth of money supply which affects the interest rates. The objectives of monetary policy are to lower unemployment, maintain exchange rates with other currencies (Afonso& Sousa, 2012). The United Kingdom’s economy is considered as fifth largest national economy in the world measured by gross domestic product (GDP) and it is comprised of 4 per cent of world GDP. In UK the service sector has dominated the economy and contributes to near about 78 per cent of GDP. The British economy is mainly impacted by oil and gas production and by the end of year 2014, the growth of UK is very good and rate of unemployment was decreased.

Impacts of fiscal and monetary: Fiscal policy affects the collective demand through changes in government spending and taxation. Employment and household incomeare influenced by taxation and government policies. On the other hand money supply in the UK economy is impacted by monetary policy which affects inflation rate and interest rates. Desire to make quality products are the reason of Toyota’s success both on international and Japanese market. The fiscal and monetary policy has impact Toyota’s business activities. When government increases corporate taxation then Toyota revenue has affected. The increase or decrease in interest rates in UK has impacted financial stability of Toyota (Hall, 2012).

2.3 Effect of competition policy and other regulatory mechanism on Toyota

Competition policy – UK competition policy can be defined as the ways by which government promote competition in the market and developed competitiveness of UK business within the European Union single market.  The main of competition policy is to ensure:

• Effective price competition between suppliers
• Widening consumer choice
• Development of technology innovation to increase efficiency (Rubalcaba, et. al., 2010)

Impact of competition policy on Toyota activities

The government of UK has developed competition policy for the efficient working of markets. As Toyota is engaged in automobile sector and there are also other competitors in the market which give tough competition but with competitive policy other companies do not exploit their monopoly power by charging high or low prices. Competition policy aims to provide fair competition in market for all companies, Toyota UK has worked successfully because of competition policy. UK government wants to develop the manufacturing sector so the government has encouraged Toyota to develop more operational activities. The UK wants that Toyota would give employment to local community and helps to raise the standard of living in the remote areas (Damro, 2012).

3.1 Market structure determine the pricing and output decision

Market structure can be defined as the characteristics which move the buying behaviour in the market and change interaction of business. These characteristics can be the product type, conditions for entry or exit, transparency, quantity and volume of sales. There different types of market structures such as monopoly, oligopoly, perfect competition, monopolistic competition and duopoly market structure. The two types off market structure are explained below:

Perfect competition - Perfect competitive market denotes no influence over the prizing in the market by any participant. There is no barrier to entry for buyer or seller and the information has a free flow. The buyers and sellers both seek to increase their profit margins and have free access to the market entry and leaving. The information regarding the products such as quality, quantity and availability is available to everyone. These types of market structure can be observed in agricultural trades of wheat and corn. There are a large number of buyer and sellers and product is homogeneous with no price taker.

Monopolistic competition - The monopolistic competition is the marketing structure which produces differentiated products. In other words the producer changes the product slightly in order to maximise their profit. For example retail sector which has similar product but not a perfectly substitutable product. The monopolistic competition provides independent decision making  and free entry and exit for the long run of business. The buyers and sellers have all the relevant information regarding the products and the differentiation creates a diversified product range. The market structure is responsible for the pricing in business organization and its output decision. The pricing and output decisions are based over the competitiveness of the market. If the market is highly competitive in nature then the pricing and output decisions are governed by production capacity and market traits. While in a less competitive market the pricing and output decisions are based over the business organization itself (Wetherlyand Otter, 2008).

3.2 Market forces shaping organizations response

Market forces are the effects which causes change in the price of goods and services on the basis of supply and demand in the market. The price of goods and services are inversely proportional to demand in the market. So, if the demand of a product is increased, the prices will relatively increase and if the demand of the product is decreased, then the price of the product decreases subsequently. There are number of market force factors which can alter the pricing such as demand & supply, price elasticity, porter’s five forces and price decisions. The two types of market forces are explained below:

• Supply and Demand - Supply and demand is the price determination model in business economics. It emphasis it’s concentration over the quantity of product for supply and quantity of demand in the market. The supply and demand force is concluded over the competitiveness of the market. This means that the economic equilibrium of price and quantity can be achieved with the quantity of goods and the want of the good in the market.
• Price decision - The price decision can be explained as, it is the measure of establishing the price of a product. The pricing decision is done with covering all the initial cost of manufacturing with profit margins. It can be decreased with lowering the input cost or the production cost of goods and services. A review system is present in the price decision where the market demands, cost dynamics and competition is reflected to alter the pricing. Also, the price decision assures sales for the business organization. The pricing decision has internal factors which influence pricing such as market share, market profit, returns on investment and marketing objectives. And the external factors affecting pricing decisions are government regulations, customer expectations, elasticity of demand and competitiveness (Worthingtonand Britton, 2009).

The impact of market forces over the business of Toyota can be explained with porter’s five force analysis explained below:

• Competitive rivalries of Toyota (Stronger force): Toyota is in automobile manufacturing and deals with lot of competition on a global level. Thus competition is a strong force which depicts the pricing strategy of the products and services of the company.    
• Customers have bargaining power (strong force): The customers are the king in any market and Toyota is directly based over the influence of buying behaviour of its customers. If the pricing of the product will not suit its customers they can move over to any other company. Thus company needs to provide information to their consumers regarding the products and services to target its customers.
• Suppliers have bargaining power (Weak force): The suppliers of the company have a moderate population and the high availability of suppliers in automobile industry led the bargaining power of supplier as a weaker force as compared to other forces.
• Substitute product in market (Moderate force): Toyota has a strong brand value and a specific target audience, company can rely over them. But there are chances of changing business environment with shifting of consumers towards substitute products as well. Thus, it is a moderate market force over Toyota.
• New entry of competition (Weak force): Toyota has achieved its organizational success to a limit that it has a competitive edge in the market. Thus, in a car manufacturing industry new entrants pose weak threat to a global car manufacturer like Toyota (Donaldson and Farquhar, 2012).

3.3 Business and cultural environment or business organization

The business and cultural environment of Toyota can be explained with the environmental analysis of the company. The environmental analysis of Toyota can be explained with the following PESTLE analysis:

Get Complete Solution From Best Locus Assignment Experts.

4.1 Discuss the significance of international trade to TOYOTA UK business.

International trade can be explained as the exchange of products, services and goods across the international borders. In most cases the manufacturing of the goods takes place in another country and it is consumed or sold in another country thus completing the entire process of international trade. International trade is very significant for any country and company for their business and Toyota is no exception in that. Toyota has annual revenue of more than 230 billion USD and 75 percent of that revenue comes from international markets for Toyota. Their home market that is Japan is already a saturated market in terms of automobiles and there is stiff competition among players like Honda, Toyota, Suzuki etc making the market very stiff and little room for maneuvering. International markets and trading is the only available market for Toyota where it can grow and adapt itself with the changing needs of markets.

In markets like UK Toyota has a strong presence and a significant revenue share because UK is a developed and industrialized market with a healthy demand for its product round the year. UK is not just a single market for Toyota but it is a portal for their entry into entire European Union market because UK has the infrastructure and ability to handle large imports and exports and also acting as a financial capital of the western world. Thus presence in UK is very significant for Toyota as it gives them control over the entire EU market.

Presence of companies like Toyota in UK has its positive and negative impact on local businesses of UK. Toyota UK is responsible for sales, marketing and services of all Toyota vehicles and Lexus vehicle and it is generating more than 20000 jobs in UK directly and indirectly. They are making a contribution to the local economy by paying taxes for their business and generating various auxiliary services needed but in the longer run they are hampering the ability of local business to cater to the automobile needs of their population and being a MNC company would eventually take out their profits to their head offices from regional centres like UK (Schuster & Keith, 2004),

4.2 Analyse the impact of global factors on TOYOTA UK business.

The term Globalization represents union of the entire world’s culture. Thus globalization has led to the integration of the world views be it in terms of goods and services or be it the geographical shift of the production poles in order to satisfy the needs and wants of the customers. The meeting of marketing ideas, products, services, consumer behaviour is one aspect of globalization other aspect is that it is creating an ever increase in the difference of income between the rich and the poor worldwide. Transition and globalization has got a major impact on the global economy (Cannella, 2010). Rapid progression in the transition and full contribution in the global economy enables countries around the world to grab new opportunities and garner its benefits.

Technological development in field of IT and IT enabled services is one of the biggest drivers of globalization because it is ensuring a real time communication and connectivity between different work centres around the world and ensuring that business can be managed from remote locations as well. Services have the problem that they cannot be stored and they need to be consumed at the same time when they are produced and this can be done using IT services. Now services can be generated in a low cost country of world and it can be consumed anywhere in world.

Second driver of globalization is the development of supply chain management and logistics management. A global supply chain management is connected with the entire business world to develop their procurement procedure and distribution strategy. A global supply chain model is adopted by many organizations or large and midsize who are looking for a competitive presence in market. Benefits associated with global supply chain management are cost effectiveness and a reliable supply chain which will ultimately give the organization a sustainable competitive organization and dominance in market because of having an advantageous feature in the operational process of the company.  Both IT services and Supply chain can make an impact on Toyota’s business operations. Supply chain can ensure that manufacturing can be done in locations where it is feasible for company and then ship them to the markets like UK. on the other hand IT can ensure that all activities of the company well-coordinated.

4.3 Evaluate the impact of policies of the European Union on TOYOTA UK business.

European Union is politico economic union of 28 members of the state which are primarily located in Europe. EU is formed with the logic of developing a unity between different member states of European region and creating a harmonious environment by opening borders for each other and maintaining same level of taxation and adopting similar currency for exchange (Stank, et al. 2011).

Toyota UK as a business has a huge impact because of European Union and its policies. One of the biggest advantages of having EU union for the entire 28 countries is the fact that they have similar business regulations, norms and policies for companies with headquarters outside Europe. This way Toyota would not have to develop different business policies for each market of Europe. Country wise markets are small in Europe and it is not worthwhile for a company like Toyota to cater to each of them individually, however making an entire EU provides a huge business market for the company and helps them gain the required business growth. No difference in taxes and levy in the neighbouring countries also reduce the competition from companies operating in different markets.

European Union as a market has much stringent emission norms called EU emission norms which are very tough for companies like Toyota to follow in every market. Some of the countries which are a part of EU like Greece do not have the required infrastructure and economic strength to support the requirements of EU fully and companies have to follow the rules in these markets which are not ideally suited and required for them. For example the emission norms, minimal wages and work hours related norms which are applicable Denmark considering its general climate cannot be same as that of required in Greece but being a part of EU makes them all follow the same norms   (Jamal, 2003).

It is concluded that this assignment has focused on the organizational purpose of business and also analyse the various stakeholders of Toyota and its strategies to meet the objectives of different stakeholders. The assignment explained behaviour of organizations in their market environment and also assess the importance of global factors that shape the national business activities. The report has presented different strategies used by business organization and the main focus of report on case study of Toyota.

Peloza, J., & Shang, J. (2011). How can corporate social responsibility activities create value for stakeholders? A systematic review. Journal of the academy of Marketing Science, 39(1), 117-135. Sustainability data book, (2016), Toyota [ online available at http://www.toyota-global.com/sustainability/society/stakeholder/sdb16_so07_en.pdf accessed on 21 November 2016 Afonso, A. & Sousa, R.M. (2012). The macroeconomic effects of fiscal policy. Applied Economics, 44(34), pp.4439-4454. Hall, S., (2012), The Implications of Fiscal Policy and Monetary Policy to Business [online], Available from: http://www.ehow.com/facts_6899691_implications-policy-monetary-policy-business.html [Accessed: 10 November 2016 Schiller, B. R. (2011). The macro economy today. Tata mcgraw-Hill Education. Rubalcaba, L., Gallego, J. And Hertog, P.D., 2010. The case of market and system failures in services innovation. The Service Industries Journal, 30(4), pp.549-566 Damro, C. (2012). Market power europe. Journal of European Public Policy, 19(5), pp.682-699. COLLINS, P. (2010). CSR AND ETHICAL ISSUES IN OPERATIONS MANAGEMENT. Organizational Immunity to Corruption: Building Theoretical and Research Foundations, p.225. Werther, W. B., & Chandler, D. (2010). Strategic corporate social responsibility: Stakeholders in a global environment. Sage Publications. Sawyer, M. (2004). The UK Economy: A Manual of Applied Economics, 16th edition Cannella S. (2010) Up-to-date Supply Chain Management: the Coordinated (S,R). In "Advanced Manufacturing and Sustainable Logistics" Dangelmaier W. et al. (Eds.) 175-185. Springer-Verlag Berlin Heidelberg, Germany

Delivery in day(s): 4

• Number of views: 418
• Unit: Unit 1 Business and Business Environment

Share this Solution

Other Assignments

Computing Skills Assignment Help

Delivery in day(s): 5

Organisational Behaviour Assignment Help

Delivery in day(s): 3

Business Law Assignment

International Management Assignment Help

Business Law Assignment Help

Related solutions.

Business Environment Assignment - British Airways

Unit 55 Business Economics Assignment

Unit 1 Assignment on Business Environment – Sainsbury PLC

Unit 1 Business Environment Assignment - Sainsbury Plc

Unit 1 Business Environment Pass Copy

Unit 1 ASDA PLC Business Environment Merit Copy

• Unit 1 Business and Business Environment
• Unit 1 Business Skills for e-Commerce
• Unit 1 Communicating in HSC Organisations
• Unit 1 The Contemporary Hospitality Industry
• Unit 1 The Travel and Tourism Sector

Other Solutions

Unit 6 Business Decision Making Assignment Help

Business Strategy Assignment Solutions

Managing Business Activities to Achieve Results Assignment Help

External Business Environment Assignment Help

Contemporary Issues in Travel and Tourism Assignment Help

• Share full article

The Perseids Meteor Shower Is Peaking. Here’s How to Watch.

Warm summer nights and swift colorful streaks make this meteor shower a crowd favorite, but this year, observers may have to compete with light from the moon.

Perseid meteors fell over northern Spain in August 2021. Credit... Pedro Puente Hoyos/EPA, via Shutterstock

Supported by

By Katrina Miller

• Published Aug. 9, 2024 Updated Aug. 11, 2024

Our universe might be chock-full of cosmic wonder, but you can observe only a fraction of astronomical phenomena with your naked eye. Meteor showers, natural fireworks that streak brightly across the night sky, are one of them.

The latest observable meteor shower will be the Perseids, which have been active since mid-July and are forecast to continue until the end of August, at the latest. They reach their peak Aug. 11 to 12, or Sunday night into Monday morning.

To get a hint at when to watch, you can use a meter that relies on data from the Global Meteor Network showing when real-time fireball activity levels increase in the coming days.

A favorite among skywatchers, the Perseids are one of the strongest shows each year, with as many as 100 long, colorful streaks an hour. It reaches its peak as two other showers, the Alpha Capricornids and the Southern Delta Aquarids — which both peaked at the end of July — are petering out.

The Perseids are best viewed from the Northern Hemisphere, just before dawn. This year, viewers may have to compete with light from the moon, which will be nearly half full on the night that the shower peaks. But according to Sky & Telescope , the moon will set before midnight, leaving the early morning hours sufficiently dark for a spectacular show.

We are having trouble retrieving the article content.

Please enable JavaScript in your browser settings.

Thank you for your patience while we verify access. If you are in Reader mode please exit and  log into  your Times account, or  subscribe  for all of The Times.

Thank you for your patience while we verify access.

Already a subscriber?  Log in .

Want all of The Times?  Subscribe .

Advertisement

Electric Vehicles:

EV Giant BYD Plans to Build Karachi Plant as Part of Entry into Pakistan

• China’s best-selling car brand is pushing for global expansion
• Pakistan venture with Mega group to start sales this year

Chinese electric carmaker BYD Co. plans to build a factory in Karachi with a local partner to capture a share of Pakistan’s growing EV market, according to a person familiar with the matter.

The company will reveal three models it plans to sell in Pakistan, including an SUV and a sedan, at its brand launch on Saturday, said the person, who asked not to be identified discussing private information. BYD aims to introduce additional models, including both battery-electric and plug-in hybrid vehicles, to the market at a later date.

• 75-Year History TOP
•  >  A 75-Year History through Data
•  >  Current Conditions
•  >  Japanese and Overseas Facilities
•  > Liaison Offices
• Japanese and Overseas Facilities
• Liaison Offices
• Japanese Facilities
• Overseas Offices

• Toyota Motor Corporation
• Group Company Profiles
• Toyota Group Organization
• Five Main Principles of Toyoda
• Guiding Principles at Toyota
• Toyota Way 2001
• Toyota Code of Conduct
• Toyota Global Vision
• Overseas Coordinating Companies
• Overseas Manufacturing Companies
• Main Cultural and Exhibition Facilities
• Product Lineup
• Toyota's Japan and Overseas Production and Sales Volumes
• Toyota's Production and Sales Records
• Production Volumes by Country
• Sales Volumes by Country
• Vehicle Ownership by Country
• Export Volumes by Country

Reference guide

Toyota Dealerships in Moscow, ID

Looking to lease in a new Toyota coupe or a quality used subcompact? Get a look at your ideal Toyota in a range of colors and trims at a Toyota dealer nearby and let our helpful sales staff help with any financing questions.

Getting your new car should be love at first sight. Schedule a Toyota test drive in your local area to get to know your ideal Toyota coupe, sedan or SUV up close and personal.

It's good to know what your car is worth. Toyota dealerships near you are happy to help you find out more on your car's trade-in value and available cash-back incentives.

Buying a brand new or quality pre-owned car doesn't have to be a hassle. Your neighborhood Toyota dealerships make it quick and easy to get behind the wheel of the right brand new or quality used Toyota for you.

Toyota dealers in Moscow, ID are proud to help match you with the right Toyota for your lifestyle.

What's the best Toyota dealership nearby for an oil change or replacement air filter installation? You can use this page to connect with any of our certified service centers and highly experienced service professionals in your neighborhood.

Provide your car with the attention it deserves to receive. From routine auto care to more drastic problems, you can trust our certified mechanics at our area's Toyota dealership to provide for you the best quality certified Toyota car maintenance close to you.

Toyota dealers near to you can help you look for guaranteed Toyota parts to get your Toyota back to its feeling brand-new.

From qualified service professionals to welcoming sales representatives, your local Toyota dealers can provide for the stellar service that you expect.

Learn more about new Toyota deals, trade-in deals, and the best way to schedule a test drive at a local Toyota Dealer near you.

If you're on the hunt for a new compact or it's about time for a scheduled service, our Toyota Dealership search tool can help get you in contact with a certified Toyota dealership in your neighborhood.

Find A Dealer

Toyota of pullman, rogers toyota.