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When Sakichi Toyoda created an operated loom, the roots of motor Cooperation can date back to 1890. Toyoda developed and patented a manually-operated loom that slows down and stops the machine instantaneously if a thread is broken in weaving cloth and significantly improves workers' efficiency and avoids malfunctioning cloth production. The US and production and management practices have influenced both Kiichiro Toyoda and Taiichi Ohno significantly. Lean management would require at least a recognition of both principles through management, "Continuous improvement," as well as respect for employees, as a correct practice of Toyota's management system. Toyota Motor Corporation is the world's second-largest automobile producer after General Motors, is considered to be Japan's number one car manufacturer. In more than 170 nations, it has an international presence. The company increased its sales by 131,511 million in 1997, and its sales increase by 29.3% in the monetary base. It uses marketing strategies to recognise and meet consumer requirements. It is a household name for its brand. We have been offering top-notch online assignment help since a decade. The Cooperation is one of the trustworthy names with a quality brand, performance and environmental compatibility. The engine collaboration in the international field is regarded as the highest quality brand and has effectively pierced the world markets. It was capable of competing hard against competitors such as Ford and GM in the Asian and European markets.

Through its innovative designs, marketing techniques, global acceptability and production quality, Toyota Motor Cooperation has penetrated the automobile industry. The company played a leading role in automotive innovation. It was one of the first automobile manufacturers to begin lean production and make good quality cars. By its product innovation, the success of the business can be assessed. The Cooperation has a credibility for developing environmentally friendly, high-quality cars that are more fuel-efficient. It was the first car manufacturer to market gas- and electric fuel-based hybrid cars in advance to its competing companies. This design has been marketed according to government legislation to compensate for global economic alterations by rising fuel prices across the world. The Toyota Motor Company was represented globally by manufacturers and relocated the various parts of the car to several places in the world. The production sites are costly and require expensive investment. Thus, this new motor cooperation technique has succeeded in decreasing mass production costs. Compared to the production and montage of cars in a single setting, this move has triumphed in the cost-effective programs.

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SWOT Analysis of Toyota

As recognised in the analysis of this SWOT, Toyota Motor Corporation deals with internal and external strategic factors. The SWOT Framework identifies vital opportunities, threats and weaknesses of the organisation, which Toyota needs to address through its strengths. Toyota, as a worldwide leader in the automobile sector, addresses these factors efficiently. This SWOT analysis offers insights into possible business influences. The high performance of Toyota is an indicator of its capacity to deal with the problems listed in the SWOT analysis. The SWOT analysis of Toyota reveals that the business remains strong in the global automobile industry, although competition issues, corporate structure, and culture must be resolved. The SWOT Analysis of Toyota is discussed below:

Strengths

Weaknesses

The strengths of Toyota demonstrate that the company remains one of the world's leading automobile manufacturers. The internal strategic factor for the company serves as the capacity of this component in the SWOT analysis model. The main strengths of Toyota include the following:

  • Prevalent image of the brand;
  • Worldwide supply chain; and
  • Fast invention capacities;

The weaknesses of Toyota indicate potential organisational deficiencies. The internal strategic factors that are challenges in the business development are determined by this component of the SWOT analysis model. The principal weaknesses of Toyota are the following:

  • The hierarchical structure of the organisation;
  • Confidentiality in corporate culture; and
  • Product reminder impacts in current times

Opportunities

Threats

The opportunities of Toyota are premised primarily on technological and financial trends. The external strategic factors that the company could use to enhance the business performance are identified in this component of the SWOT analysis model. The significant opportunities offered by Toyota are:

  • Developing nations' growing markets;
  • Increased demand for fuel-efficient cars;
  • Weak Japanese Yen vs. US Dollar; and
  • Increased interest in advanced vehicle electronics;

Toyota's threats are primarily premised on the competitive landscape. In this component of the SWOT model, the external strategic factors determining the company's performance could be reduced. The critical threats in Toyota's case are:

  • The existence of low-cost competitors in the developing market; and
  • Competitors' fast invention;

Toyota's SWOT analysis recognises critical problems premised on the corporation's organisational structure and culture, including competition impacts and weaknesses. Toyota's competitive advantage premised on its innovation capability must be maximised to tackle threats based on competition. We have a team of experienced assignment writer as well.  Furthermore, the company can adapt its culture and structure to optimise adaptability in decision-making and addressing issues.

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PESTLE Analysis of Toyota

Toyota's PESTLE analysis investigates the brand's business practices. The PESTLE Analysis of Toyota investigates several external factors, such as political, economic, social, and technological, that affect its trade activities and legal and environmental factors. The PESTLE Analysis shows the various extrinsic situations affecting the brand's business. Our assignment experts validate arguments with evidence. PESTLE analysis is an indispensable structure for corporations like Toyota to recognise the trends in the market and constantly enhance its trade. The analysis of PESTLE is also regarded as the analysis of PESTEL. However, the PESTLE analysis of Toyota is discussed below:

Factors

Implications

Political factors

In the PESTLE Analysis of Toyota, the political factors can be explained as follows:

Toyota is based in 28 nations and sells its products in almost 170 nations. The Toyota company have great importance for the political stability and policies of these nations. In addition, Japan's relationship with other nations (where this initially applies) is also essential for Japan. Japan has disagreements over many things with China, and for this reason, China recognises somewhat negative in Japanese products. China is one of the largest car markets in the world, with a negative impact on China. In 2014, Toyota was planning to expand its market in Thailand, but political disturbance in Thailand has impacted its ability to move forward. There was a shortage of cash in India, observed the lockdown of many companies and an economic downturn in the market when the Indian government declared the demonetisation. Indeed, the automobiles sector is growing very little in the last 13 quarters.

Economic factors

In the PESTLE Analysis of Toyota, the economic factors can be explained as follows:

The performance of any economic system is severely impaired by GDP, its per capita income, buying power and inflation. US President Donald Trump asked the Japanese government to negotiate with the US to safeguard its car industry. If the agreement is made, Toyota, the world's biggest Japanese car selling corporation in the US, would be blowing down enormously. Toyota's sales were also greatly affected by the trade war between China and the USA. The trade war between the nations led to slow GDP growth, which profoundly influenced automobile demand. Increased petrol and diesel prices can lead to cheap cars or vehicles with high fuel efficiency being bought. Since 2011, Malaysia has exempted over 100 electric cars, giving Toyota a great chance to produce fully electric automobiles, which are hybrid cars.

Social factors

In the PESTLE Analysis of Toyota, the social factors can be explained as follows:

Consumers are more environmentally friendly today, and demanding cars are not only cost-effective but also energy-efficient. The new market trend is becoming environmentally friendly cars. For consumers, security is essential in the car, but Toyota has recently experienced customer response when several Toyota vehicles are not controlled because of faulty pedals and acceleration. Many clients negatively saw the brand, and subsequently, their sales decreased, and the company took a great deal to achieve consumer confidence again.

Technological factors

In the PESTLE Analysis of Toyota, the technological factors can be explained as follows:

Today's world technology is transforming so quickly that businesses must keep updating to remain on the market. Increasing the opportunities for success are better brand technology. Toyota has a constant improvement emphasis, following the Kaizen doctrine. Toyota is the world's first hydrogen-powered company. It constantly works to find an alternate solution, more efficient and environmentally friendly fuel cars.

Legal factors

In the PESTLE Analysis of Toyota, the legal factors can be explained as follows:

When it had to recognise its cars due to faulty acceleration, Toyota confronted a great deal of heat. It is confronted with a class lawsuit and has to pay $1.2 billion to solve the matter. Toyota lost its Prius tag in 2019 in the fight against trademarks.

Environmental factors

In the PESTLE Analysis of Toyota, the environmental factors can be explained as follows:

Sustainability is now an integral part of corporate strategy and planning. In 2015, Toyota made the Toyota Environmental Challenge 2050 to achieve a net positive effect over and above zero environmental impacts. Toyota has set up a system for managing environmental risk and compliance with legislation in Australia.

In conclusion, it can be stated that Toyota's PESTLE Analysis mentioned above highlights the numerous components which affect its business performance. This understanding assists in assessing the criticalness of external commercial factors for any brand.  Get toyota case study help from Our skilled writers Today!

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