OBJECTIVES

• Definition
• PESTEL
 TOYOTA
• Toyota motor corporation is a Japanese
multinational automotive manufacturer
headquartered in Toyota, Aichi, Japan
• Founder of Toyota motor corporation is
Kiichiro Toyoda.
• Products : Automobiles, luxury vehicles,
commercial vehicles, engines.
 PESTEL
• POLITICAL
• ECONOMICAL
• SOCIAL
• TECHNOLOGICAL
• ECOLOGICAL
• LEGAL
 POLITICAL
• Political Factors Affecting Toyota’s Business

• Political stability in most major markets (opportunity)

• Free trade agreements (opportunity)
• Governmental support for ecofriendly products (opportunity)

• The political stability of major markets is an opportunity for

Toyota to grow with minimal political tension. Also, free trade
agreements involving Japan and other countries where Toyota
operates present opportunities for improved market
penetration. In addition, governmental support for
ecofriendly products is an opportunity for the company to
improve its products to satisfy or exceed environmental
expectations
 ECONOMICAL
• Economic Factors Important to Toyota
• Gradual growth of U.S. economy (opportunity)

• Rapid growth of developing countries (opportunity)

• Toyota has the opportunity to improve its exports from

Japan based on the weakness of the Japanese Yen. Also,
Toyota has the opportunity to grow its business in the U.S.,
which is the firm’s second biggest market after Japan. In
addition, the rapid growth of developing economies
present the opportunity for the firm to improve revenues
based on these markets
 SOCIAL
• Social/Sociocultural Factors Influencing Toyota’s Business
Environment

• Increasing interest in hybrid cars (opportunity)

• Increasing interest in electric cars (opportunity)
• Widening wealth gap (threat)
• Toyota has the opportunity to provide more products that
satisfy customers’ increasing interest in hybrid and electric
vehicles. However, the company must consider the widening
wealth gap, which is a threat because it corresponds to a
declining middle class. The middle class is the main revenue
source of Toyota
 TECHNOLOGICAL

• Technological Factors in Toyota’s Business

• Rising use of e-commerce (opportunity)
• Mobile technology trend (opportunity)
• Cybercrime (threat)
• Toyota has the opportunity to improve its e-commerce
capabilities or to exploit third-party e-commerce service
providers for sales of some of its products, such as spare
parts. Also, Toyota has the opportunity to enhance its
mobile apps to increase customer engagement and loyalty.
However, the company must address the threat of
cybercrime, including corporate cyber-espionage.
 ECOLOGICAL

• Ecological/Environmental Factors
• Climate change (opportunity)
• Declining global oil reserves (opportunity)
• Increasing emphasis on business sustainability
(opportunity)
• Toyota has opportunities to provide more environmentally
friendly products, such as electric cars or cars with higher
fuel efficiency. The company also has the opportunity to
increase its sustainability performance through
improvements in business process efficiency.
 LEGAL

• Improving intellectual property laws

(opportunity)
• Increasingly complex environmental laws
(opportunity)
• Increasingly complex consumer laws
(opportunity)