With more thanemployees, Toyota is a leading player in the global automotive industry. Also, free trade agreements involving Japan and other countries where Toyota operates present opportunities for improved market penetration. Furthermore, conglomerate companies who produce a wide range of products such as Sony, Disney, or BP may find it more useful to analyze one department of its company at a time with the PESTEL model, thus focusing on the specific factors relevant to that one department.
Additionally, factors that are more likely to change in the future or more relevant to a given company will carry greater importance. Environmental factors include ecological and environmental aspects such as weather, climate, and climate changewhich may especially affect industries such as tourism, farming, and insurance.
Social factors include the cultural aspects and health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. However, Toyota must address threats based on the external factors of the widening wealth gap and the rising frequency of cybercrime.
You can use these headings to brainstorm the "big picture" characteristics of a business environment this could be a country, a region, or a new or existing marketand, from this, draw conclusions about the significant forces of change operating within it.
Do any of your competitors have access to new technologies that could redefine their products? Specifically, political factors have areas including tax policylabour lawenvironmental lawtrade restrictionstariffsand political stability. How is this likely to change? Furthermore, governments have a high impact on the healtheducationand infrastructure of a nation.
These factors greatly affect how businesses operate and make decisions. Are there any new technologies on the horizon that could radically affect your work or your industry?
Are any other socio-cultural factors likely to drive change for your business? Political stability in most major markets opportunity Free trade agreements opportunity Governmental support for ecofriendly products opportunity The political stability of major markets is an opportunity for Toyota to grow with minimal political tension.
A company may also wish to divide factors into geographical relevance, such as local, national, and global. Or if technology is threatening a key product, can you master that technology and improve the product?
Economic factors include economic growthinterest ratesexchange ratesinflation rate. For instance, the firm can focus on product development to exploit opportunities in the market.
The middle class is the main revenue source of Toyota. Furthermore, companies may change various management strategies to adapt to social trends caused from this such as recruiting older workers.
Is there anything you can do to take advantage of this? Are these different for different age groups? These factors can affect how a company operates, its costs, and the demand for its products.PEST analysis (political, economic, socio-cultural and technological) describes a framework of macro-environmental factors used in the environmental scanning component of strategic management.
Analysis of Toyota Motor Corporation by Thembani Nkomo 1. TOYOTA CORPORATE OVERVIEW: Founded inToyota Motor Corporation is a Japanese company that engages in the design, manufacture, assembly, and.
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A PEST analysis is a process for identifying the political, economic, social and technological factors that affect supply chains. SWOT analysis of Toyota (6 Key Strengths in ) Ovidijus Jurevicius | July 16, 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.Download