Toyota: Macro Analysis Assignment

Toyota: Macro Analysis Assignment

Macro Analysis Assignment, External Environment Analysis Assignment does the PESTEL Analysis of Toyota. Toyota Motor Corporation was established in year 1937 by its founder Kiichiro Toyoda, headquartered in Toyota, Aichi, Japan. It’s a part of ‘Toyota Industries’ which diversified into automobiles. In 2009 Toyota Motor Corporation was declared as the largest automobile manufacturer in terms of sales and production in the world. It has more than 320,000 employees worldwide (Arkadi Borowski, 2010). It includes Toyota, Lexus, Daihatsu and Hino Motors. The product range of Toyota Motors Corporation is very large and includes cars, sport utility vehicles, trucks, electricity driven vehicles, crossovers and luxury-type vehicles. Its total revenues per year are more than 30 trillion Yen. Some of the key persons are Fujio Cho (Chairman), Katsuaki Watanabe (Vice Chariman) and Akio Toyoda (President). Some of the major manufacturing and assembly location of the company are: China, Japan, Canada, South Africa, the United Kingdom, Australia, Argentina, Brazil, France, India and the United States of America. Some of the recent openings includes: Egypt, Venezuela, Pakistan, Portugal, Thailand, Sri Lanka, Indonesia, Turkey, Philippines, Colombia, Mexico, Vietnam, Poland, Czech Republic, Malaysia and Russia.
Importance of External Environment Analysis Assignment

WRITE THIS ESSAY FOR ME

Tell us about your assignment and we will find the best writer for your paper.

Get Help Now!

Often the external environment is the one which cannot be controlled by individual compared to internal environment. However, these factors are responsible for most of the decisions taken by the company and help in understanding the limiting factors. Without analysing the external environment it is difficult to draft a successful strategy (Michael A. Hitt, R. Duane Ireland & Robert E. Hoskisson, 2009). Without proper analysis of competitors it would be difficult to craft a strategy to compete with them (Robert E. Hoskisson, Michael A. Hitt & R. Duane Ireland, 2008). It is also necessary to understand the culture of the country in which the company is operating (Kip Becker, 2000). The kind of political stability and government ruling in a country is also a crucial factor in choosing the country (R. K. Singh, 2009).

The key analysis areas would be the political condition of the country where the company is situated, the economic growth of the target market, technological factors, legal factors and ecological factors. These factors provide the overall impact of these factors on the company. These all factors in combination can be termed as micro environment analysis.
Justification of Choice of Analytical Framework

For analysis of the above environment issues and factors PESTEL framework can be used appropriately since PESTEL framework provides the overall impact of the external environment on the given company/firm. PESTEL framework which is complete in itself since starting from the Political to Economic to Sociological, Technological, Ecological and Legal aspects of any firm and hence analyses the overall macro environment for any company.
External environment analysis: PESTEL Framework

In the below analysis the PESTEL model is used to see the effect of various parameters mentioned below on the industry and their impact on Toyota with respect to the human resource policies of the company. This will help us to get better insight of the effect of these external parameters in crafting of human resource policies.

Political: Political aspect of the framework consider the factors like trading policies, Funding grant and Initiatives, International pressure group, wars and conflicts, government policies, terrorism, political trends, government leadership and structure in which a company is dealing. Basically the political environment of the region in which company is dealing affects its policies a lot. Since due to recent economic downturns in which government in different nations played a major role in helping the company’s to cope up with extreme economic situations. And for a company like Toyota which is operating in so many nations and has such a wide range of products that the political interference by the government beco…………………..

Macro Analysis Assignment

Macro Analysis Assignment