Executive summary:

There are mainly three types of organizations namely public, private and voluntary
sector. The main difference in these three sectors lies in profit. Both the public and
voluntary sector does not run for profit generation while the private sector is run mainly
for generating profit. Toyota has established its organizational function policy in a way
so that it can ensure quality and make Toyota a quality leader that fulfills customer
expectations and solves the quality related problems with priority. This is relevant with
their mission to produce vehicles that customers will choose and create customer
satisfaction. The external factors addressed in the PESTLE analysis of Toyotas macroenvironment mostly indicate opportunities for the company. For example, the firm can
improve business operations and market presence to exploit opportunities based on
economic external factors. However, Toyota must consider the threats like the widening
wealth gap and the rising occurrence of cybercrime. Toyotas SWOT analysis addresses
the key strength, weakness, opportunity and threats such as the increasing trend of
ecofriendly products and the companys weaknesses based on its organizational
structure and culture. To address the threats based on competition, Toyota needs to
maximize its competitive advantage by increasing its innovation capabilities. In addition,
the company can change its organizational structure to maximize its flexibility in
decision-making and problem solving.

Contents
Executive summary:..........................................................................................................2
Task 1& 2: Produce a report..............................................................................................4
1.1 Explain different types and purposes of organizations; public, private and voluntary
sectors and legal structures...............................................................................................4
An overview of different types of organization...............................................................4
Public sector:...............................................................................................................4
Private sector:.............................................................................................................5
Voluntary sector:.........................................................................................................5
1.2 Explain the size and scope of a range of different types of organizations...............6
A public sector organization: British council...................................................................6
Mission:.......................................................................................................................7
Business objectives:....................................................................................................7
A private sector organization: Toyota.............................................................................7
Mission and vision:......................................................................................................7
Business objective:.....................................................................................................8
A voluntary sector organization: Oxfam international.....................................................9
Mission and vision:......................................................................................................9
Business objectives of Oxfam:....................................................................................9
1.3 Relationship between different organizational functions and organizational
objective:...................................................................................................................10
Task 2: Essay...................................................................................................................12
2.1 Identify the positive and negative impacts the macro environment has upon
business operation supported by specific examples from the case study...................12
Political factors:.........................................................................................................12
Economic Factors:....................................................................................................12
Social factors:............................................................................................................13
Technological Factors:..............................................................................................13
Ecological/Environmental Factors:...........................................................................14
Legal Factors:...........................................................................................................14

2.2 Conduct internal and external analysis of Toyota UK in order to identify strengths
and weaknesses...........................................................................................................15
Toyotas Strengths (Internal Factors)........................................................................15
Toyotas Weaknesses (Internal Strategic Factors)...................................................15
Opportunities for Toyota (External Strategic Factors)...............................................16
Threats (related to external factors)..........................................................................17
2.3 Interrelations of strengths and weaknesses with external factors:........................17
Conclusions:....................................................................................................................17
References.......................................................................................................................18

Introduction:
There are mainly three types of organization in UK namely public, private and voluntary
sector. Toyota Motor Corporation is a private organization. Starting its operation in 1937,
Toyota Industries Corporation is now a Japanese manufacturer that manufactures and
sells passenger cars, trucks, commercial vehicles and related accessories in japan,
Europe, North America and Asia. Though Toyota is a leading player in the global
automotive industry, the company should still take advantage of its opportunities and
identify threats in macro-environments. The firms executives must develop strategies
and programs by considering the external factors as well as internal factors to support
business growth and stability and sustain its leading position

Task 1& 2: Produce a report

1.1 Explain different types and purposes of organizations; public, private and
voluntary sectors and legal structures.
An overview of different types of organization
There are mainly three types of organizations namely public, private and voluntary
sector. The main difference in these three sectors lies in profit. Both the public and
voluntary sector does not run for profit generation while the private sector is run mainly
for generating profit (Hammack, 1989).
Public sector:
Public sector includes the organizations that are owned and run by the government of a
country and established to provide services to the people of that country. Public sector
organizations are mainly funded through tax revenues collected by government. In most
countries the public sector includes such services as the military, police, infrastructure,
electrical grids, public transit, public education, public roads, bridges, water supply
along with health care.
Private sector:
Private sector organizations are those owned and operated by individuals and groups
for the purpose of profit generation. Examples of organizations in the private sector

include, Sole Proprietors, Partnerships, Small and Medium-sized Businesses,

Companies
Voluntary sector:
The Voluntary Sector consists of organizations whose purpose is to help and benefit
society, often without motivation of profit. They are often called the third sector or not for
profit sector. Examples of organizations in the voluntary sector are Charities,
Foundations, and Faith-Based Organizations: Mosques, churches, Temples.
1.2 Explain the size and scope of a range of different types of organizations
A public sector organization: British council
The British Council formerly named the British Committee for Relations with Other
Countries was established in 1934. They opened its first overseas offices in 1938.
In the early 1930s global instability was increasing and it caused an increasing threat to
British security, prosperity. The Great Depression followed by the Wall Street crash of
1929 resulted in a huge drop in international trade, degradation of living standards, and
high and long term unemployment. The Bolsheviks gained power in the October
Revolution of 1917 had brought to power in Russia, while in 1922 Mussolini was
charged with the power of Italy. Due to these, Britains influence in trade and diplomacy
was under significant challenge across Europe and around the world. The British
government reacted to the growing threat to British interests through creating the British
Council along with some other ways (BRITISH COUNCIL, 1961).British council provides
a wide range of services ranging from educational support to raising social awareness
to eradicate women inequalities in workplace. They also assist in designing and
evaluating justice and security initiatives to ensure and protect human rights.

Mission:
The mission of British council is to develop closer cultural relations between the UK and
other countries and promote a wider knowledge of the English language abroad and
make a lasting difference to the UKs international prosperity, standing and security.
Business objectives:
The main objective of the British Councils work is to build cultural and educational
opportunities for the people of the UK and other countries and build lasting relationships
between them worldwide.
A private sector organization: Toyota
Toyota Motor Corporation started its operation in 1933 as a division of the Toyoda
Automatic Loom Works, Ltd. In April 1935 Toyoda produced the first archetype of an
engine named the type A, and the first automobile, the A1. Its mass production began in
April, 1936. This success in A1 leads to the establishment of Toyota Motor Corporation
Ltd., on August 28, 1937.Toyota Industries Corporation is now a Japanese manufacturer
that manufactures and sells passenger cars, trucks, commercial vehicles and related
accessories in japan, Europe, North America and Asia. It is a public limited company
which has an operation in almost all continents (Chambers, 2008).
Mission and vision:
Toyota has different mission statement in different countries. But the mission statements
reflect its strategic action in technology. Today the companys mission is to produce
vehicles that customers will choose and will feel good by choosing them. Toyotas vision
is to lead the way to future of mobility, to move forward based on quality, innovation and
environmental conservation. They are committed to achieve their challenging goals
utilizing the talent and passion of people who always believe there is a better way.

Business objective:
Toyotas business objectives have evolved over time. Earlier they focused only on
vehicle production. Now they are committed to provide a wide range of services.The
current business objectives are:

Manufacturing, selling, leasing and repairing motor vehicles, commercial

vehicles, aircrafts, other transportation machinery and appliances, space

machinery and appliances.

Manufacturing, selling, leasing and repairing industrial, electrical, measuring
machinery, appliances, construction materials, ceramic products and other

general machinery and appliances and parts.

Any businesses incidental to or related to any of the preceding items.

A voluntary sector organization: Oxfam international

Oxfam International was established by a group of independent non-governmental
organizations in 1995 with the aim to work together for creating a greater impact on the
international platform to reduce poverty and injustice. The name Oxfam originated
from the Oxford Committee for Famine Relief which was formed in UK in 1942Oxfam
International performs long-term development programs in vulnerable communities as
well as becoming a world leader in delivering emergency relief. They also participate in
global movement to abolish unfair trade rules, demand better health and education
services for all, and to fight against climate change. At present, Oxfam International
confederation has eighteen members. They are based in: Great Britain, Hong Kong
Australia, Belgium, New Zealand, Quebec, Spain and the United States Canada,
Denmark, France, Germany, Ireland, India, Italy, Japan, Mexico (Bejakovi, 2011).
Mission and vision:
The mission and vision of Oxfam international is to create a world without poverty.
Oxfam believes that peoples rights are respected they can earn independent
livelihoods and fight against poverty. Oxfams vision is to help people all over the world
to fight for their rights.

Business objectives of Oxfam:

Oxfam's work is always followed by a vision of a world where there is equity in treating
and valuing women and men and both have equal influence in the decision making that
affect their lives. Oxfam has the following objectives1.
2.
3.
4.

To help people stand up for their right to have a better life

To ensure equal rights for women
To increase government fund for meeting basic needs like health and education
To save lives by providing clean water, food, sanitation and other fundamental
needs.

1.3 Relationship between different organizational functions and organizational

objective:
British council: The organizational structure of British council is a divisional structure.
Each division based on geography includes functions of arts, corporate affairs, strategy
and engagement, educations and society, English and exams. Together they satisfy the
objective of building cultural and educational opportunities for the people of the UK and
other countries and creating lasting relationships between them worldwide.
Toyota Motor Corporation: Toyota has established its organizational function policy in
a way so that it can ensure quality and make Toyota a quality leader that fulfills
customer expectations and solves the quality related problems with priority. This is
relevant with their mission to produce vehicles that customers will choose and create
customer satisfaction. Toyota follows a divisional organizational structure. After the
reorganization, Toyotas organizational structure now has global hierarchy, geographic
divisions, and product based divisions. This new structure adds a greater degree of
flexibility to Toyota compared to the previous one. This structure enables Toyota to be
more responsive to customer problems and provide better service. However, this has
shifted decision-making power to regional heads and thus has reduced headquarters
control over the overall global organization.
Oxfam international: Oxfam has the Council made up of 10 and 12 unpaid Trustees
and who are the ultimate accountable individuals for the overall management of Oxfam.
Then there is a Chief Executive who is accountable to the Trustees for the management

of Oxfam. Six Deputy Directors are in charge of six Divisions. The divisions are trading,
financing, corporate human resource, marketing, campaigns and policy, international
program.

Task 2: Essay
2.1 Identify the positive and negative impacts the macro environment has upon
business operation supported by specific examples from the case study.
Toyota is a leading player in the global automotive industry. However, the company
should still take advantage of its opportunities and identify threats in macroenvironments. This is shown in the following PESTLE analysis. The firms executives
must develop strategies and programs by considering the factors addressed in pestle
analysis to support business growth and stability. In this way Toyota can sustain its
leading position (Panmore Institute. 2016).

PESTLE analysis:

Factor name
Political

Change

Governmental

Opportunity/threat
Opportunity

support for
ecofriendly products

Opportunity
Free trade
agreements

Political stability in

Opportunity

most major markets

Economic

Rapid growth of

Opportunity

developing countries

Gradual growth of
U.S and U.K

Opportunity

economy

Social

Increasing interest in

Opportunity

hybrid and electric

cars

Threat
Increase of wealth
gap

Technological

Increase in ecommerce

Trend of increasing

Opportunity
Opportunity

Threat
mobile technology

Increase in
cybercrime

Legal

Improvement of

Opportunity

intellectual property
laws

Shifts toward

Opportunity

complex consumer
laws and
environmental laws

Environmental

Climate change

Increase in
emphasis on

Opportunity

Opportunity

business
sustainability

Impacts of macro environment upon Toyotas activities:

Government support for eco-friendly products is an opportunity for Toyota to improve its
products as Toyota now focuses on developing ecofriendly vehicles.

The political

stability of major markets is another opportunity for Toyota expands its business without
political stress. Free trade agreement between Japan and countries where Toyota runs

business facilitates improved market penetration (Chubin, 1981).The rapid growth of

U.S, U.K and developing economies provides the opportunity for the firm to increase
revenues from these markets (Worthington and Britton, 2006). The increasing interest in
hybrid and electric cars provide revenue growth opportunity for Toyota. The company
must also take into consideration that the widening wealth gap is a threat as it will lead
to a decline in middle class. The middle class is the main revenue source of Toyota. The
increase in ecommerce is an opportunity for Toyota as it can improve its e-commerce
capabilities for selling some of its products, such as spare parts and materials. Also,
Toyota can improve its mobile apps to increase customer involvement and loyalty.
However, the company is under the threat of cybercrime (Yang ,and Yang, 2011). Toyota
can produce more eco-friendly vehicles and grab the opportunity of climate change. The
company can also increase its sustainability performance through increasing efficiency
in business process. Improvement of intellectual property law will reduce the possibility
of piracy which is an opportunity. Toyota also has the opportunity to provide products
that satisfy requirements based on environmental laws. In addition, the company can
grab the opportunity of providing safer to fulfill consumer laws.

2.2 Conduct internal and external analysis of Toyota UK in order to identify

strengths and weaknesses.
In order to understand the Business Environment in details, SWOT analysis will be
performed on Toyota Motor Corporation that will provide us the details on the Strengths,
Weakness, Opportunities and Threats in Toyota's Business Environment (Camuffo and
Wilhelm, 2013).

Strengths
Strong brand image

Weaknesses
Hierarchical organizational structure

Providing better quality products at

Effects of product recalls in recent

best prices

years

Distinctive

competency

in

its

production system known as Toyota

production system

Global supply chain

Opportunities
Governmental
support

Threats
for

ecofriendly products (opportunity)

Free

trade

Gradual growth of U.S and U.K

Increasing market presence of lowcost competitors

agreements

(opportunity)

Rapid innovation of competitors like

GM motors

economy (opportunity)

Increasing interest in hybrid and

electric cars (opportunity)

Improvement of intellectual property

laws (opportunity)

2.3 Interrelations of strengths and weaknesses with external factors

Internal and external analysis:

The strongest brand image of Toyota is its main strength in the global automotive
industry. Toyota is able to provide greater quality products at better prices. The lean

manufacturing concept known as Toyota production system is another significant

strength. The companys global supply chain enabling resilience and market-based risk
minimization also increase company strengths. Toyotas hierarchical divisional structure
prevents flexibility of regional operations. In addition, Toyota initiated massive product
recalls from 2009. These recalls are a weakness because it consumes business
capacity that could be used for product distribution instead. Government support for
eco-friendly products is an opportunity for Toyota to improve its products as Toyota now
focuses on developing ecofriendly vehicles. Free trade agreement between Japan and
countries where Toyota runs business facilitates improved market penetration. The rapid
growth of U.S, U.K and developing economies provides the opportunity for the firm to
increase revenues from these markets. The increasing interest in hybrid and electric
cars provide revenue growth opportunity for Toyota. Improvement of intellectual property
law will reduce the possibility of piracy which is an opportunity. The main threat faced by
Toyota is competition from low-cost automobiles from Korean, Chinese and Indian
manufacturers, which are continuously increasing their presence in foreign markets.
Toyota also faces the threat of rapid innovation of competitors like GM, Honda, and
Ford.
Interrelationships between internal (strength & weakness) and external factors:
One of the strengths of Toyota is strong brand image which can be utilized to grab the
opportunity of expanding U.S, U.K and developing countries market. This can also be
used to grab the increasing market of hybrid and electric cars. Improvement of
intellectual property helps to protect Toyotas distinctive competency in Toyota
production system by preventing piracy or imitation of this process. Furthermore, one of
the weaknesses hierarchical divisional structure increase the external threats of
increase in low cost competitor and rapid innovation of competitor as this structure lacks
flexibility, obstructs in taking rapid innovation initiatives and thus increase cost.

Conclusions:
The external factors addressed in the PESTLE analysis of Toyotas macro-environment
mostly indicate opportunities for the company. For example, the firm can improve
business operations and market presence to exploit opportunities based on economic
external factors. However, Toyota must consider the threats like the widening wealth
gap and the rising occurrence of cybercrime.Toyotas SWOT analysis addresses the key
strength, weakness, opportunity and threats such as the increasing trend of ecofriendly
products and the companys weaknesses based on its organizational structure and
culture. To address the threats based on competition, Toyota needs to maximize its
competitive advantage by increasing its innovation capabilities. In addition, the company
can change its organizational structure to maximize its flexibility in decision-making and
problem solving.

References

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configurational perspective on the Toyota crisis. Academy of Management
Proceedings, 2013(1), pp.16246-16246.
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International Institute for Strategic Studies by Allanheld, Osmun.
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(2016).

SWOT

Analysis

of

Toyota.

[online]

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http://www.gotabout.info/swot-analysis-of-toyota [Accessed 30 Oct. 2016].

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Institute.

Recommendations

(2016).
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Toyota

Panmore

PESTEL/PESTLE

Institute.

[online]

Analysis
Available

http://panmore.com/toyota-pestel-pestle-analysis-recommendations

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at:

[Accessed

30 Oct. 2016].
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