Business environment
Environment, according to UBC Net Tutor Commerce (2008), is the sum of all factors surrounding the activities of a business at any particular moment and place. It is made up of interacting systems of cultural, biological, and physical that are both individually and collectively interconnected. Furthermore, the environment can be viewed as the summation of situations upon, which firms must contend to survive or maintain its life process. It has an impact on how living things grow and evolve.
External and interior environments are the two sorts of environments. These elements, which are described as the strengths, behaviour, resources, and weaknesses within or internal to the business, are typically factors that can be impacted via managerial decisions. Customers, competitors, government agencies, suppliers, labour, and financial firms are all examples of entities outside of a corporation. It is made up of elements that exist outside the organization’s boundaries.
Internally, “The Customer Always Comes First,” a philosophy stated in “The Toyota Precepts” in 1935, still guides Toyota’s operations (Shen, 2018). It is mirrored in the company’s whole business operations and procedures. Based on Toyota’s internal business climate, it can be shown that the company has managed to maintain its competitive edge despite the fact that competitors such as Citroen have automobiles, which are cheap and reliable to Toyota. It has achieved this through grabbing the public’s “imagination” as the first hybrid vehicle on the market and through excellent advertising.
Externally, the changing needs of the business environment have prompted Toyota to reorganize its strategy and business operations. Today, the company is concentrating to develop vehicles that meet sustainability needs as demanded by government agencies and regulatory bodies (Nkomo, 2019). The need for a sustainable future emanating political and environmental groups has prompted most multinational automakers such as Toyota to manufacture sustainable vehicles.
Analysis
One of the analyses conducted in the paper- one that includes an assessment of Porter’s Five Forces Model for Toyota. The Porter’s Five Forces Model is used to estimate a market’s profit potential or business sector. The corporate world, according to Michael Porter, is possibly impacted by five elements, which are termed as forces. Porter’s Five Forces’ combined power defines the company sector’s ultimate potential profit. Therefore, the Porter Five Forces Framework provides managers or businesses owners with information or data that can be used to explain the profit difference or competitiveness prevailing in the market.
Opportunity for growth
The age of electric vehicles (EV) has begun, as demonstrated by the production of battery-powered buses, trains, LEVC electric black taxis among other automotive machines. However, despite increasing numbers, the construction of the charging infrastructure has stalled. More so, many of the companies that have developed infrastructure in developing electric cars are still anonymous among consumers. Thus, Toyota has “room” for growth and development in dominating the future of electric cars. This can be cemented by the fact that Toyota holds a “real” market dominance on vehicle sales each year. This pattern can be maintained if Toyota invests significantly to produce cheap and reliable EV vehicles.
Recommend
Toyota can adopt a buy, build, and ally strategy to merge and acquire firms that can be useful in developing future technology needed to dominate the electric car market.
Reference
Nkomo, T. (2019). Analysis of Toyota Motor Corporation.
Shen, D. (2018). Influencing factors in Supply Chain Network-A comparative analysis of Fast-fashion and Automotive Industry. Logistics Engineering and Technologies Group-Working Paper Series, 2.
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