Toyota Executive Summary

Pestle Analysis The PESTEL analysis covers the analysis of Political, Social, Technological, Environmental and Legal factors to scan the organization’s external macro environment. The PESTEL analysis of Best Buy Co. is as follows: Political: Best Buy operates majorly in U.S. and Canada. At present both countries has stable government, therefore, Best Buy do not face any significant political threat.

Cole, R. E. (2011). What really happened to Toyota? MIT Sloan Management Review, 52(4), 29-35. Retrieved from http://search.proquest.com.library.capella.edu/docview/875531966?accountid=27965

This framework describes environmental variables and shows opportunities and threats for the company 's strategies. Any changes of Political, Economic, Social, Technological, Environmental, and Legal factors man change the whole industry.

The environment is like a double-edged sword, providing companies opportunities but threats as well. Therefore, in an increasingly hostile marketplace, a systematic and careful environmental analysis is supposed to be considered by companies (Johnson et al, 2011). The macro-environment of a company can be analysed by the framework of PESTEL, which includes six categories: political, economic, social, technological, environmental, and legal (Johnson et al, 2011, Appendix A ).

Toyota must keep on producing vehicles that car customers want to buy. They must figure out what these buyers demand in a car. Once they tackle this then they can be successful, but if they don’t produce what they buyers want then they will not reach their goals.

With this in mind, the PESTEL model was developed to give researchers and practitioners a framework in which to consider the broader business environment. PESTEL stands for Political, Economic, Social, Technological, Environmental and Legal. Furthermore, a PESTEL analysis is a technique that evaluates the potential impact of political, economic, social, technological, environmental, legal factors on an organization. This set of factors represents a broad set of industry and environmental considerations that any organization should make when designing strategic goals

With domestic markets becoming saturated with competition, organizations with the financial reach look to international market segments to obtain growth potential. Though not all companies hold the capabilities to obtain such a feat, Toyota has and is competitive.

Toyota Motor Corp. is a company that produces vehicles and possibilities. Toyota was a trusted company till a defect in the gas petals was detected. This led to some massive recalls. In this paper I evaluated Toyota’s corporate governance and the relationship to the firm’s strategic plan.

This tool is used to measure and evaluate the macro-environment elements that may pose a threat to a firm. These elements affect firm’s business strategies. The PESTLE framework therefore judges 6 elements that influence the operating environment of the firm. These are political, economic, social, technology, environment and legal. These factors are all inter-reliant. For example, changes in the legal structure of an economy may affect the way a firm operates in that economy. There are other frameworks such as PEST, STEEP, STEEPLE, STEPJE, STEP AND LEPEST which firms can choose from depending on their nature of operations and the factors which are of interest to them (Morrison, 2013, Pg. 44-46; Johnson et

A macro environment analysis examines external factors that are beyond the control of the business. This study aim to leverage those factors for the benefit of the business. In a pragmatic business political, economic, social, technological, environmental and legal aspects of a business fluctuate exposing a company to further uncertainties. PESTEL analysis has proved to be an effective tool in macro environment business analysis with its (Reed &Vakola, 2006) versatile solutions.

The overlying mission of The Toyota Motor Corporation is to "develop and provide innovative, safe and outstanding high quality products and services that meet a wide variety of customers ' demands to enrich the lives of people around the world" (TMC, 2006). In order to ensure that each and every segment of TMC excels in this mission, a number of principles and philosophies have been outlined in order to meet the corporation objectives in the most beneficial manner,

The beginning of 2010 made Toyota’s future appear confused. Following a recall of gas pedal, the car company was forced to suspend its sales and then cease the production of the affected models. Both Toyota owners and American politicians became distrustful towards the previously known reputable company. The bad reputation emerged as a result of Toyota’s inaction and not necessarily its actions (Hemus, “Accelerating towards Crisis: APR View of Toyota’s Recall”). It brings into perspective the cultural variation, stereotypic nature, and the global view of how multinationals conduct business.

All companies doing business domestically or internationally are affected by political issues and risks- the likelihood that a society will undergo political changes that negatively affect local activity. In many different ways, politics are a huge factor for the willing of two sides to cooperate and trust one another. (International business book)

Toyota is a key player in global automotive market. Its structure constitutes if various production plants in different locations and a very strong branding which helps it capture a major market share. Like other enterprises, Toyota has several strengths and weakness which makes it what it is now. Toyota heavily invests in Research and development which helps it come up reputable product line which is spread out throughout the world because of its strengthening global distribution network however its recent product recalling, loose grip in key geographic areas and wrong allocation of resources shows that even a strong brand like Toyota has its weaknesses.

In order to assess the effectiveness and challenges associated with a company, it is important to evaluate its existing environment. PESTEL analysis is hence being used to examine the external environment of the firm.