The Global Business Environment Essay Example | Topics and Well Written Essays - 2500 words

The Global Business Environment - Essay ExampleThe environment in which Toyota operates is nice extremely tough every day. All businesses argon facing problems today due to increasing be, ethnic diversity, globalization and belittle in global demand. The world has seen a great financial crisis in upstart years and economies atomic number 18 still to recover from it fully. In such environment companies are finding it ambitious to produce and sell its product to customers. The impertinent environment is as well affecting organizations in new slipway because media and communication technology has developed so much and any ethical issue can hard hurt the reputation of the company. Competition is as well increasing in business environment as companies are trying to innovate and market their products in better ways. In this report we will conduct an external environmental analysis for Toyota. We will talk about markets, competition and regulations that can progress to an impa ct on the company. The ethical issues, corporate social responsibility and environmental policy and its affect on Toyota will also be discussed. This paper will deal with the external environment and not with the strategy of Toyota. Markets, Competition and rule Markets are evolving at a great pace in todays fast pathetic world and it is important to keep in mind the changing demand of target market. Competition is also increasing as companies are trying to increase efficiency by decreasing costs and up quality of their products. Regulations are also getting stern everyday and automobile companies have to keep in mind the safety standards set by the companies. This means increase in testing of cars which will decease to greater costs. In this section the impact of markets, competition and regulation on Toyota will be discussed. Markets and its feign of Toyota The main target market of Toyota is the middle class income group of the world. These are the people who cannot afford w ell-endowed cars but want vehicles that are cheap but durable vehicles. Toyota provides cars to middle income people of the world and prices are also lower in comparison to BMW and Mercedes. Over the years this target market has been consisted as they cannot substitute to expensive cars and they also dont switch to cheaper manufacturers. This is why this market of Toyota was considered relative safe and loyal to Toyota. But this is changing because now the target market of Toyota is also evolving. The target market is demanding innovation in designs and specifications. The medium income group target market has become more aware of the different brands in the market. They have also become more design oriented and are demanding newer and better designs. Car movies and games have communicate the market about fast cars and sleek designs therefore they want these things in their cars. This problem is staring Toyota in the face because design was never a strong point of the company and its focus was on persuasiveness and prices. Evolving markets are in this way impacting the business strategy of Toyota. The main strategy of Toyota is that of reducing service costs by giving customers quality and durability (Harrup & Janssens, 2008). This is causing problems because the markets of Toyota are evolving and they are demanding better designs from the company. The external environment is therefore impacting the strategy of Toyota. The increasing focus on design and specification of the market can decrease the demand of Toyota cars. Customers will look for new car manufacturers