Introduction
There are many environmental factors that affect marketing. Management of any company is the one who, faced with marketing decisions when the environmental factors affect marketing. The environmental factors are the factors that created by external factors. Some of the factors are global economics, demographics, cultural difference, social responsibilities, ethics and technology. It is important for the company to understand how these factors affect the company’s marketing plan. To get success in the business world, it is important to understand how to control these environmental factors that affect the business. The company that is getting affected by the environmental factors is Toyota motors.
Toyota motor is one of the Japan’s largest multinational vehicle exporter, and manufacturer. Toyota has expanded its products and services to the largest vehicles manufacturer worldwide. The company believes that quality is an important result in completing the production process. The Japanese automobile has rapidly changing day by day and changing its standards in producing efficient, productive and high quality vehicles in the automotive industry. Because of the rapid changes in the environment and technology, the Toyota has improved their performance and provide their customers high quality product. According to the companies’ values, the customers must always come first, which means the company respect their customers and doing continuous improvement.
Global Economics
In today’s globalization world the company that is affected by the environmental factors would be the Toyota motors. Toyota Motors Corporation is one of the biggest manufacturing motor companies in the world. Their manufacturing company is based in Japan...
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... vehicle parts and materials from specific countries and increasing market share in each country and region in which they do business. Toyota must also consider the targeting of specific groups and classes of people within a country because those groups may be dependent on the success of Toyota. For instance, the U.S. federal government has given out federal automaker loans that are helping minority business in the U.S. remain open and viable.
Technology
Technology plays very important role in the success of any company, whether it is a manufacturing company or just a departmental store. To give a safe and quality product technology plays a major role. Due to the technology company is making hybrid cars which are gas saving cars and save the environment from pollution. Technology is everything in today’s world. It effect positive and negatively to the customers.
Environmental – External environmental factors are forces or trends that can affect a business whether it is an opportunity, threat, or constraint. They can be divided into three interrelated subcategories of remote, industry, and operating environments. The remote environment includes factors beyond a company’s operating situation such as the economic, social, political, technological, and ecological factors. The industry environment includes factors that have more of a direct influence on a company’s business such as entry barriers, competitor rivalry, the availability of substitutes, and the bargaining power of buyers and suppliers.
For this reason, ExxonMobil should monitor the changes in prices and the markets for its products to prevent loss of profits. Moreover, the demand for petrochemicals and energy has increased due to the expanding economies. It is critical for the institution to research and analyze the relevant opportunities which can enhance the improvement of business in different regions. On the other hand, the company is under obligations to meet its social responsibility of promoting climatic conservation mechanisms and manufacture environmentally friendly products. To achieve sustainability, it is critical to adhere to all the regulations set for the purpose of avoiding costly penalties and legal cases. Accordingly, an extensive study of all the external and internal factors influencing its performance is imperative to identify issues, strengths, weaknesses and opportunities. The management should ensure that all the legal uncertainties are eradicated to steer growth and expansion of the business. Besides, litigation and control of all the risks involved should remain an approach to achieve sustainability and increase the market opportunities
Continuous monitoring of these variables is an important marketing function. As a corporation today, Ecover is also sensitive to macro environmental changes. Some of the PEST factors that affect Ecover are discussed below. Political: The 'Po Marketing strategy is deeply affected by political trends.... ...
This paper will discuss the five environmental factors that influence global and domestic marketing decisions that organizations must make. These five environmental factors are technology, demographics, government, culture and economics. Companies are affected differently by these factors depending on the industry they are in and the size of the organization. I will be using the Washington Plaza Hotel to illustrate how these environmental factors affect the hotel industry's marketing decisions. The Washington Plaza Hotel is a hospitality business located in Washington, DC. They offer services such as lodging, restaurant, bar, catering and meeting space rental. The Washington Plaza Hotel's major customer base is government, tourist, non-profit organizations, local businesses and some corporate clientele. Let's now take a look at how these environmental factors affect the marketing of the hotel.
Toyota- focused differentiation, medium pricing, breadth of product line is low. Company is known for quality products, and nice styling.
As one of the leading automobile manufacturers in the world, Toyota ranks within the top three worldwide. Due to their unique business model, they are now have a market share of 14% in the first four months of this year. That is an astonishing 2.3% jump from the previous year. According to Autodata.com, the Toyota City based automaker ranks fourth in United States sales.
(5) Liker, Jeffrey K. The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer. New York: McGraw-Hill, 2004. Print.
For over fifty years, Toyota has established over 50 bases in 26 different countries and regions. Their automobiles have found their way into over 170 countries across the entire globe. In addition, Toyota has design and R&D bases in nine locations overseas, with this they prove that they have achieved consistent globalization as well as localization. The most important part in any Toyota base is the quality assurance. They don’t stamp their product with “Made in the USA” or “Made in Japan”, but instead opt for one label for all: “Made by TOYOTA.” This shows that the product is made in the “Toyota Way.” To achieve this, the company minimized support that comes from Japan to let each of their foreign locations become self-reliant. For example, a Toyota plant recently began production in Texas has made maximum use of its sibling’s experience in Kentucky which has been cultivated over the past 20 years. Toyota believes that in order to reach their goals is through educating people. Multiple Global Production Centers have been built within Motomachi Plant in Toyota City, in United States, the United Kingdom, and Thailand to carry our corresponding activities in the Asia-Pacific, European, and North American regions. To promote the “Toyota Way”, the Toyota Institute established an internal human resources development organization in North America, Europe, Asia, Africa and Oceania. As you can see the pros of the globalization of Toyota are endless. This company alone has created millions of jobs across the world. Winners are not only the workers, but also the buyers, without globalization Toyota automobiles would only be available in Japan. Many people, including me, see globalization of this kind as a beneficial and advantageous result. Toyota companies have not only created jobs for thousands if not millions of people, but their
Climate change in automotive industry represent both threat and opportunity in the business. It gives opportunity for the car makers to develop a new technology that is more environmental friendly, which can reduce the amount of green house gas emission. It also gives the carmakers to create a more energy efficient in their operations, which can cut the unnecessary production costs. Other opportunity is the fact that they will use this global concern to further research and investigate the use of creating a new energy source, and helping reducing the pollution caused by the use of fossil fuels.
Toyota’s uses both differentiation and low cost as generic strategies to try and gain a competitive advantage over their competitors in the automotive industry. The market scope that Toyota uses is a broad one that encompasses nearly every type of customer that is in the market to purchase an automobile. Toyota is able to target such a large market because they have something for everyone. Toyota has four wheel drive trucks and SUVs for the outdoor types or those who live in areas that face severe weather conditions, hybrid models like the Prius for the eco-friendly customers that are interested in saving the environment, along with the standard cars for general, everyday use. Additionally, Toyota provides vehicles for all price ranges.
Toyota has adopted an expansion strategy aimed at increasing the company’s market share through sustainable growth. This will be done based on the delivery of high quality, and safe cars, at an affordable price. As the company seeks to expand to new markets, focus will be on maintaining an organizational culture that allows optimum efficiency in the ever dynamic global market.
Toyota Motor Corporation is one of the largest automakers in the world. At its annual conference in Tokyo on May 8, 2008, the company announced that activities through March 2008 generated a sales figure of $252.7 billion, a new record for the company. However, the company is lowering expectations for the coming year due to a stronger yen, a slowing American economy, and the rising cost of raw materials (Rowley, 2008). If Toyota is to continue increasing its revenue, it must examine its business practice and determine on a course of action to maximize its profit.
After General Motors (GM), Toyota Motor Corporation is the second largest automotive maker around the globe; although, Toyota ranks in first place in profit, revenue and net worth. Toyota was established by Kiichiro Toyoda in 1937, as a by-product of Sakichi Toyoda's Toyota Industries Company, to produce Toyota automobiles. Headquartered in Bunkyo Tokyo, Japan (as well as Toyota, Aichi); Toyota offers pecuniary services with their Toyota Financial Services division. Toyota Industries, along with Toyota Motor Corporation, make up the Toyota Group. The Toyota Group consists of Daihatsu Motors, Scion, Lexus, Fuji Industries, Yamaha Motors, Isuzu Motors and of course, Toyota Motors. Toyota Motor Corporation operates globally with the automobile industry, which includes 522 worldwide subsidiaries (Toyota, 2010) (Sagepub, n.d.).
Toyota, which is known as Toyota Motor Corporation is one of the most exciting names in the automobile industry today. Toyota is one of the most competitive companies globally and has enjoyed a record setting success in the last few years. In the most recent years, the global automobile industry has been plagued by high gas prices, and tougher environmental protection laws. Like all automobile manufacturers, Toyota has had its work cut out for them, but to no avail they have been one of the most successful companies to date. Toyota has also been one of the industries leaders in developing new and innovative technologies that take advantage of the industries current hurdles. One of the most impressive things about this company is the scale, and the global footprint that they currently manage. " Toyota Motor Corporation is one of the world's representative automobile manufacturers, producing vehicles in 26 countries and regions and marketing vehicles in more than 170 countries and regions. In fiscal 2006, on a consolidated basis Toyota provided close to eight million vehicles to customers around the world under the Toyota, Lexus, Daihatsu, and Hino brands. Toyota had more than 280,000 employees at the end of fiscal 2006" (Toyota Motor Corporation, 2006). One of the most challenging problems the industry has faced in the recent years has been stable sustainable growth, and Toyota has taken this challenge to heart. Toyota has plans to manufacturer, " cars that reflect the needs of customers and society, Toyota will target sustainable growth and contribute to the development of the automobile industry" Toyota Motor Corporation, 2006). There is no doubt that this company will achieve these goals in the future, and it is expected that they will do it with record success just as they have done in the last decade. (Toyota Motor Corporation, 2006).
The importance of Environmental Analysis lies in its usefulness for evaluating the present strategy, setting strategic objectives, and formulating strategies. The political environment can affect organizations. Political components influence buyer certainty and purchaser and business spending. Stability of the political environment is essential for organizations to enter new markets.