MPU3223_V2

BACHELOR OF ACCOUNTING WITH HONOURS

JAN 2020

MPU3223_V2

ENTREPRENEURSHIP

NO. MATRIKULASI : 890124075328001

NO. KAD PENGNEALAN : 890124-07-5328
NO. TELEFON : 012-4210124
E-MEL : huini24@oum.edu.my

PUSAT PEMBELAJARAN : SEBERANG JAYA LEARNING

CENTRE

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Contents

Title-Cover Page 1

Table of Contents 2

Assignment 1
 1.0 Introduction of Toyota Motor Corporation 3
 2.0 General Marco Environment Elements 3
2.1 Political and Legislation 4
2.2 Economy 4-5
2.3 Socio-cultural 5
2.4 Technology 6
 3.0 Elements of Macro Environment Affect in Toyota Motor Corporation 7
3.1 Political and Legislation 7
3.2 Economy 7
3.3 Socio-cultural 8
3.4 Technology 8
 4.0 Recommendation to Improve Management of The Macro Environment in
Honda 9-10
 5.0 Conclusion 10
 Bibliograph/Reference 11

Assignment 2 12-13

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1.0 Introduction of Toyota Motor Corporation

Toyota Motor Corporation is one of Japan's multinational automotive manufacturers

headquartered in Toyota, Aichi, Japan. It is one of the largest car manufacturers in the world
consisting of factories and dealers worldwide with more than six hundred Toyota specializing
in the production of vehicles and parts. Affordable and quality prices make Toyota popular in
the world market. Toyota has provided economy-sized cars, SUVs, trucks, minivans and
buses to meet consumer demand. Toyota vehicles are distributed in hundreds of states.
Toyota cars have the best combination of goods and are able to maintain their orientation,
position and segmentation. Toyota’s corporate structure comprises 364,445 employees
worldwide and as of December 2019, it is the ninth largest company in the world. The
world's first car producing over 10 million vehicles annually. As of July 2014, Toyota is
Japan's largest listed company with market capitalization (twice as much as Softbank’s 2
figures) and revenue. Toyota has produced over 20 million vehicles in 2017, making it the
world's largest car company. The Japanese company also traced its history to 1933 when it
became a branch of the Loom Works Automatic Toyoda. Led by Kiichiro Toyoda, it became
the Toyota Motor Company in 1937. Over the years the company has successfully reduced
production costs and improved vehicle quality by adopting principles such as Just In Time
(JIT) and Lean production systems. Its annual revenue is over $ 200 billion. Toyota's main
markets are Asia (Thailand, India, and Indonesia), Europe (Germany, France, UK, and Italy),
and the United States.[ CITATION www20 \l 1033 ]

2.0 General Marco Environment Elements

Every business will be affected by various factors. In other words, such an

organization would not exist and operate "in a vacuum". In macro-environmental analysis, it
is important to identify factors that influence key variables by influencing the level of supply
and demand of the organization and its costs. The business environment encompasses all the
factors that influence its operations and includes customers, competitors, suppliers, industry
trends, social and economic factors and technological developments. It is very important to
make a decision to achieve the organizational goals.

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2.1 Political and Legislation

Political factors include laws, agencies or bodies that influence and restrict
organizations and individuals in certain societies. The government's attitude towards foreign
markets, the country's monetary and monetary policy and government bureaucracy will be
considered. Government policy will affect the industry as a whole through regulatory bodies
such as the Department of Environment and the Department of Trade and Industry.
Multinational companies need to understand different political backgrounds around the
world. For international product marketing materials, companies must comply with the laws
of their respective countries. For example, in 1993, a legal issue arose in Russia under the
name of McDonald's. All stores must be changed to Russian names or translated into Cyril's
alphabet at that time in law in Moscow. In addition, the same thing happened in Japan where
his name was changed to MaKudonaldo.[ CITATION Dan \l 1033 ]

In addition, the supply of raw materials has a significant direct macro political impact
on Starbuck's business. Natural disasters such as earthquakes, tsunamis and wars in Costa
Rica, Tanzania and Rwanda have affected Starbuck's supply of coffee and other raw
materials. The uncertainty has affected businesses at Starbuck's branches worldwide.
Therefore, monitoring of new techniques is provided to individual farmers to produce raw
materials with low levels of pollution. This has given importance to fair trade practices.
[ CITATION Gra \l 1033 ]

2.2 Economy
“Markets require purchasing power as well as people. The available purchasing power
in an economy depends on current income, prices, savings, debt, and credit availability.”
[ CITATION Kot91 \l 1033 ]“Factor that affect consumer buying power and spending
patterns.” [ CITATION Phi01 \l 1033 ]. Economic factors have played an important role in
shaping the organization as it relates to the purchasing power of consumers. The difficulties
faced by major economic factors for marketers are as follows[ CITATION Phi04 \l 1033 ]:
Changes in income reflect trends and explain sales decrease in the fast food industry. This
may be due to market depression and others. In addition, consumer spending patterns refer to
ways in which household income is divided into food, housing, transportation and more.

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With the general knowledge, consumers will not buy a car or a new home in an
economic downturn. However, not all industries will be negatively affected by economic
change. They will reduce costs by comparing quality and brand with affordable prices so as
not to affect their quality of life. For example, car manufacturers in the United States have
lowered their prices and offered low interest rates to lower their profit margins. In good
economic conditions, there is a lot of demand in general. The Federal Reserve in the United
States, on the other hand, increased interest rates to avoid an economic slowdown by
avoiding investment and revenues.

2.3 Socio-cultural
The broad implications have been on the physical properties of the population (size,
age, gender, occupation, and density), population growth rate, migration trends, and changes
in demographic structure, personality and social characteristics. A clear picture of
demographic composition in society has been demonstrated in a comprehensive
understanding of these features to determine potential users in their region. For example, the
younger generation has been targeted by the tech-savvy Apple Inc. Phones, Ipod computers
and Macs are spread all over the world including all sectors of the younger and older
population. Most people in the UK and the US will use Inc apple products from ipod to
iphone and ipad which will be a trend for future generations.

Socio-cultural environment also a belief, custom, practice and behaviour that have
existed in society since time immemorial. Nestle Company has produced and marketed infant
formula for human milk substitutes for breastfeeding mothers. For good reason, Nestle has
proven that the formula of baby flour is better than human milk among mothers in the Third
World in the 1800s. But in reality, breast milk is important for babies because it contains
certain nutrients and antibodies that cannot be replaced. This negatively affects people's
lifestyle.[ CITATION Ste14 \l 1033 ]

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2.4 Technology
Technological factors are also one of the variables used as an alternative to
technology with the ability to improve operations and functions. Advances in information
technology will take over every departmental organization within the operating company.
Info is stored in server data and technology to replace the old way of storing data in a book
and failing. In addition, digital marketing strategies are being introduced in wealthy
companies. In fact, the company's research and development division works with more
sophisticated techniques in terms of product and service innovation introduced through
advanced technology. For example, Siemens and Boeing are investing heavily in customizing
3D printing techniques in product design to speed up process planning, reduce production
costs and maximize design effectiveness.[ CITATION AAA18 \l 1033 ]

Technology also brings changes where companies collect, record, retrieve and use
data to generate boring business strategies. Tesco, a British retailer that specializes in
merchandise. The FRID tag had been launched with FRID's retail technology into its suite of
products to automate administrative tasks such as stock counting. Second, PayQwiq's mobile
payment platform application has been implemented to make it easier for customers to make
payments easily across all TESCO branches. Users will also download the application and its
linked Clubcard or NFC technology. Thirdly, "scan as you shop" is a checkout point that
facilitates customers and minimizes employee usage.[ CITATION AAA18 \l 1033 ]

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3.0 Elements of Macro Environment Affect in Toyota Motor Corporation

3.1 Political and Legislation

Political decisions made by any country will have a negative or positive effect on any
business within its jurisdiction. Political conflicts in any region will result in business being
unable to operate independently. The company's overall performance will also be affected by
the loss and profitability of the company's operations. In 1992 Toyota began manufacturing
in the United Kingdom to meet their vehicle demand. The entire European market at that
time, the only policy was to expand Toyota's market to offer, manufacture, and sell its
products. Factories were established in the UK by using locals to reduce high rates. With a
growing European market, a stable political party, Toyota has made the right decision to
expand into the UK market. On the other hand, given the political turmoil, Toyota will not
continue its market like Thailand five years ago. Toyota has budgeted and will invest over 20
billion baths (about $ 69 million USD) by 2014 at that time. However, Thailand's political
situation has been an issue and it has been questioned, Toyota has also lost confidence in the
Thai government's with the amount will be invested. The option to postpone the company's
growth was an appropriate decision for Toyota to avoid Toyota's concerns.[ CITATION
Kie19 \l 1033 ]

3.2 Economy

Inflation rates, currency rates, macroeconomic climate, bad costs and tax rates in a set
of economic factors also affect Toyota's earnings. In particular, the downturn and the rise in
the exchange rate were the major macroeconomic factors that directly impacted Toyota's
earnings. For example, out of the ¥ 900.0 billion stimulated by the decline of the Japanese
yen against both USD and EUR, the company had a significant boost in operating revenue for
fiscal year 2014. Furthermore, Toyota's sales declined 58 percent to 8,206 units that year as a
result of the impact directly from the high inflation rate in India. This is important to
prioritize for businesses operating in the industry as a whole. However, Hyundai Korea and
India's own Tata Motors sales also fell 0.9 percent and 38 percent of inflation in India.
[ CITATION Dud16 \l 1033 ]. On the contrary, the growth of Toyota exporting from Japan to
the US has created economic growth there. It has become the second largest market after
Japan. Various opportunities such as job opportunities have been provided to firms to
increase US national income based on this Toyota market.

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3.3 Socio-cultural
Increasing consumer awareness and environmental pollution concerns are important
social issues for car manufacturers to address. Toyota immediately launches a range of hybrid
engine's main products by working with dual-engine petrol and electric motors, while it
works on batteries and battery charges automatically from more engine power. Low fuel
competitive advantage, zero emissions, pioneering products, and unique design have given
the market a warm welcome and the Toyota Prius has made the best-selling hybrid of
758,000 units sold in 1997 in the UK. Toyota also understands the cultural differences
between countries by revolutionizing its product range in society to change the trend in the
world of mobility. While some car models suffer minor defects after market release, Toyota
will also be offering the product for free. The losses were high but the Toyota Company
ethics were welcomed into the community. In addition, Toyota also employs locals to make it
easier for employees to adapt to their work culture.[ CITATION htt \l 1033 ]

3.4 Technology

Competitive technology development, research funding, replacement technology,

maturity of technology, information and communication, Innovation, research are the
technology aspects of Toyota's framework. Toyota's investment in technology is widespread
and pioneers the automobile technology industry. It also causes Toyota to face technical risks
and losses. Toyota also exploits e-commerce service providers to third parties in order to sell
its product parts. In addition, Toyota is also using mobile applications to improve the quality
of its services to its customers. In addition, companies have to face cyber crime threats
including corporate cyber espionage.[ CITATION PES18 \l 1033 ]

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4.0 Recommendation to Improve Management of The Macro Environment in Honda

In the downturn and recession, consumers will balance their car functions with
affordable prices. Toyota withdrew 111,000 Toyota cars for Lexus brand Toyota due to
damage to unsure substrate and shutdown of potential Hybrid system in 2011. Additionally,
there were 181,000 vehicles in Japan also with abnormal noise and oil leakage due to lack of
bolts in sub transmission and rear wheel difference. This incident caused Toyota's company
to be involved in a government investigation. The company should test the car closely as it
will cause safety issues for its vehicle users. Toyota companies need to address reported
problems from consumers in order to maintain the image of quality products they produce
worldwide. With this, Toyota also has the opportunity to market more products that will meet
the increasing consumer demand for hybrid and electric vehicles.[ CITATION The \l 1033 ]

The automotive market is highly competitive worldwide, strong competition will be

faced by automotive manufacturers in its various markets. Toyota should encourage business
structure reforms by reducing the fixed costs of operating his company. The weak Japanese
yen against the US dollar gave Toyota a chance to export its products and components to the
United States. Therefore, Toyota should strive to build production and supply structures to
realize prices with optimum product quality. In addition, the value chain will also be
enhanced by providing a wide range of customer service throughout the region.

Free trade agreements involving Japan and other countries have given Toyota a
chance to penetrate the wider market. Toyota has a market share of 12.2% in North America,
13.4% in Asia (excluding Japan and China. With such a strong market, Toyota should
develop energy-saving products and environmental priorities on international global pollution
issues worldwide In addition; Toyota should also enforce compliance with applicable laws
and regulations in their respective countries, thus contributing to high sales growth in the
domestic and international markets.

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Toyota has lower returns on equity (ROE) and return on assets (ROA) compared to
competitors of other companies such as Honda Motor and Nissan Motor.ROE and this low
ROA shows Toyota does not use shareholder funds well and it also does not generate high
returns for its shareholders. In its partnership with BMW, Toyota has made significant gains.
Both organizations have combined resources to develop energy component frameworks as
well as in sports component development and in architecture. As such, Toyota should
consider comparing with other automotive manufacturers as the firm's joint venture will also
bring the company's partnerships and cash flow to export new products. Therefore, Toyota
also needs to increase workplace power and diversity in the use of labor resources. Not only
can local workers adjust their work environment efficiently, but it can also save Toyota
production costs around the world. [ CITATION The \p 16 \l 1033 ]

5.0 Conclusion

Business strategy is an aspect of the firm's potential environment in the firm's macro
environment. Firms that consider socio-cultural, economic, technological, political, political
and legal variables will be able to overcome the threats and opportunities created by
particular variables. They will assist in strategically demonstrating strategies that can be
easily coordinated and enable the firm to have or maintain good competitive advantage. The
macroeconomic environment of the business plays an important role in all operations now
and in the future. Changes should be made to ensure the sustainability and profitability of
their respective companies. The global automotive manufacturers sector is full of
competition. Therefore, the value of the strengths and weaknesses of the competition should
be evaluated to identify opportunities to further influence the prosperity of its products and
services.

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Bibliography
(15 February , 2020). Retrieved 15 February, 2020, from www.wikipedia.org:
https://en.wikipedia.org/wiki/Toyota
Daniels, J. a. (1998). International Business:Environments and Operations,8th edn,Reading,
MA:Addison-Wesley. Pearson Education Limited.
Dudovskiy, J. (25 January, 2016). Toyota PESTEL Analysis. Retrieved 21 February, 2020,
from https://research-methodology.net: https://research-methodology.net/toyota-pestel-
analysis/
Frue, K. (5 February, 2019). PEST Analysis of Toyota: Malfunctions Ruining a Brand Image.
Retrieved 20 February, 2020, from https://pestleanalysis.com: https://pestleanalysis.com/pest-
analysis-of-toyota/
JitHuat Tan, W. L. (n.d.). PESTLE Analysis on Toyota Hybrid Vehicles. Retrieved 21
February, 2020, from www.academia.edu:
https://www.academia.edu/5197187/PESTLE_Analysis_on_Toyota_Hybrid_Vehicles
Kotler, P. (2000). Marketing Management (The Millennium Edition).New Jersey. Prentice
Hall International.
Kotler, P. (2001). Principle of Marketing. Prentice Hall International, Inc.
Nkomo, T. (n.d.). Analysis of Toyota Motor Corporation. 8/16.
PESTEL Analysis of Toyota. (1 April, 2018). Retrieved 24 February , 2020, from
www.ukessays.com: https://www.ukessays.com/essays/management/external-environmental-
analysis-of-toyota-management-essay.php
Philip Kotler, L. B. (2004). Marketing (6th Edition). Pearson Prentice Hall.
Shaw, A. (. (12 February, 2018). Technological Factors Affect Business Environment.
Retrieved 20 February, 2020, from www.marketingtutor.net:
https://www.marketingtutor.net/technological-factors-affect-business/
Swan, G. C. (January , 2017). International Journal of Marketing and Management Research .
THE EXTERNAL ENVIRONMENT AND ITS EFFECT ON STRATEGIC MARKETING
PLANNING: A CASE OF STARBUCKS MALAYSIA . UniversitiTun Abdul Razak, Malaysia:
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https://managementtheoriesnestle.wordpress.com/2014/09/04/external-environment/

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Assignment 2

In applying these learning skills to an entrepreneurial course work, I have gained lots
of knowledge on how to become a successful entrepreneur. Becoming an entrepreneur is an
aspiration and is truly inspired in today's society. Being an entrepreneur is one of the
interesting things that are not easy to start and maintain our own business. Entrepreneurial
skills are not necessarily genetic and can be achieved by any individual. In order to be an
innovative entrepreneur, the ability to convince others of possible ventures, compete for
limited resources to finance their efforts, and to face possible opposition to progress.
Business will not succeed with a boss focused solely on his own profit. When entrepreneurs
acknowledge the value of an employee, sharing their own blessings with their staff, they will
also earn more than they can imagine.

Before starting this assignment, I read and searched for references to discuss with
other friends for ideas on writing this assignment. I can also learn and understand more about
entrepreneurial education. There are many ways to learn to benefit from a business started by
an entrepreneur. I also appreciate the importance of entrepreneurship as I have the additional
knowledge and information to overcome the threats faced by a company. In addition, I am
grateful that this entrepreneurial learning knowledge has made our community life more
comfortable and prosperous. Various products will be created to meet the needs of today's
society and the firm will also make a significant profit in the international market. In my
inspiration, I was able to share ideas and information in e-forums with friends from different
states to easily complete work courses. In addition, various entrepreneurial journals and
articles from digital library sources have made it easy for me to obtain references to this
assignment. In addition, I was also able to learn from the experiences or risks faced by my
business friends when I conducted interviews with them to prove the facts in this
entrepreneurial theory. The experience of interacting with professors and colleagues in
performing these tasks has improved my communication.

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Finally, I suggest that this course be conducted through direct study with the lecturers.
We will be able to address more of these issues with the economic discussions facing our
community. There are various examples in our lives that will enable students to learn about
current issues what is happening around us. In addition, quizzes and exams should be
conducted to ensure that students understand and apply the theory in this course to become a
successful businessman. In addition, I also hope that school can invite entrepreneurs in our
country to share the knowledge and experience learned in running a business.

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