BUS1003 LO1- Understand the organisational purposes of businesses

Abstract

Toyota’s success both on the Japanese market and international market due to its desire to make products with high quality. The Japanese believe that nothing is so good that it cannot be improved, so they constantly struggle to increase the quality of everything they do. This attitude can be expressed by a single word:”Kaizen”. It means „continuous improvement” and is the key word to guide them towards perfection.

1. Toyota Motor Company

Founded in 1937, Toyota Motor Corporation is a Japanese company that engages in the design, manufacture, assembly, and sale of passenger cars, minivans, commercial vehicles, and related parts and accessories primarily in Japan, North America, Europe, and Asia. Current brands include Toyota, Lexus, Daihatsu and Hino. Toyota Motor Corporation is the leading auto manufacturer and the eighth largest company in the world. As of March 31, 2013, Toyota Motor Corporation’s annual revenue was $213 billion and it employed 333,498 people.

The success both on the Japanese market and international market dues to its desire to make products with a quality. The Japanese believe that nothing is so good that it cannot be improved, so they constantly struggle to increase the quality of everything they do. This attitude can be expressed by a single word „kaizen”. It means continuous improvement” and is the key word which guides them towards perfection.

2. External Environment of Automotive Industry

Industry Overview and Analysis
Toyota Motor Corporation competes in the automotive industry. The past five years were tumultuous for automobile manufacturers. Skyrocketing fuel prices and growing environmental concerns have shifted consumers' preferences away from fuel-guzzling pickup trucks to smaller, more fuel-efficient cars. Some automakers embraced the change by expanding their small-car portfolios and diversifying into the production of hybrid electric motor vehicles. Other automakers were more
reluctant to shift their focus from big to small cars, expecting the price of fuel to contract eventually, bringing consumers back to the big-car fold.

Scenario

You have recently been employed as assistant manager consultant for Toyota UK. Your line manager has asked you to carry out a secondary research on environmental analysis and the fundamental concepts and principles of the marketing process applicable to the given organisation. Based on the findings of your research, provide answers on all of the following tasks:

LO1- Understand the organisational purposes of businesses
1.1 Identify the purposes of different types of organisation.
1.2 Describe the extent to which an organisation meets the objectives of different stakeholders.
1.3 Explain the responsibilities of an organisation and strategies employed to meet them.

LO2 - Understand the nature of the national environment in which businesses operate
2.1 Explain how economic systems attempt to allocate resources effectively.
2.2 Assess the impact of fiscal and monetary policy on business organisations and their activities.
2.3 Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organisation.

LO3- Understand the behaviour of organisations in their market environment
3.1 Explain how market structures determine the pricing and output decisions of businesses.
3.2 Illustrate the way in which market forces shape organisational responses using a range of examples.
3.3 Judge how the business and cultural environments shape the behaviour of a selected organisation.

LO4- Be able to assess the significance of the global factors that shape national business activities
4.1 Discuss the significance of international trade to UK business organisations.
4.2 Analyse the impact of global factors on UK business organisations.
4.3 Evaluate the impact of policies of the European Union on UK business organisations.