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Toyota Environmental Factors Essay Sample

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Toyota Environmental Factors Essay Sample


In today’s competitive environment, every business has required to expand their business not just at the domestic level but have to explore business at the international level. All those business that are worked at both local and international level have to encounter the different factors that affect their operation of business on the daily basis. Majority of these factors has based on internal and external. Those factors that are under control of business operation have come under the internal factors and the factors that beyond the business control are considered to be external factors (Van & Bosch,1980). Most of the time, external factors have come due to the results of the external business and referred to the external factors.

The successful multinational organizations have made their marketing decision and it’s strategies for making encounter against the numerous environmental factors of the business. This paper has to aim for exploring the numerous environmental factors and the marketing decision for the world leading automobile manufacturing company “Toyota Corporation”.

The car manufacturing company that headquarter has based on Japan is the largest motor manufacture in the world. The company has run it’s operation in the domestic and international level to the aim of expand their market share and offers a variety of cars for their customers. Toyota Corporation has more than 3000 sales centers in their domestic market, and more than 1000 sales center all on the world (Basu & Miroshnik, 2000).


There are a number of factors that have a great impact on the decision of marketing for the Toyota Corporation. Factors have been including are global, social-cultural, economical, Legal, political and technological. These environmental factors have become very challenging for the business and encounter against them, even most of the time these environmental factors have become the major threat for the business. To tackle these threats firm have to the required number of strategic and marketing decision to overcome these factors.

Global Economic Interdependence

Toyota Corporation has required selling their product accordance to the prevailing internal market due to the global economic interdependence. When there is the less demand from the internal market Toyota has require to adjust their marketing strategies and manufacturing car according to the global need, while when international demand has rises they have uses extensive strategies of distribution and marketing decision to meet customer satisfaction and need.

The practices of trade agreement have also affected the decision of marketing for Toyota Corporation; the company has a major influence to make a contract with the sole agent for the specific market (Cortez & Penacerrada, 2010), that would help fort the Toyota that do not sell the product directly towards customers even their distributors become bankrupt.

Demographic, Physical infrastructure & Cultural differences Social factors has relates to the demographic features and values. Characteristic of demographic has included the differences among genders among the consumers, perception of customers and attitudes, cultural difference between the certain communities, cultural diversities. Toyota Corporation has known that very well about various perceptions among their target customers towards the choice of motor vehicles (Basu & Miroshnik, 2000).

The company has determined the perception and consumer taste especially in the continent Africa. Uganda consumer has mostly preferred the cars of single cabins while the buyer on the United States has preferred four wheeler cars with double cabins. Physical infrastructure on the other hand has relatively important for Toyota Corporation, for example in Dark Continent Toyota have to face difficulties to sell their cars due to insufficient physical infrastructure, while demand of Toyota cars are relative quite high in Europe and US.

Social Responsibility

Toyota Corporation has the good name in the market because they are social responsible and able to back up domestics and foreign communities. Toyota Corporation helps to build the school and colleges in the village and donate good amount for the relief of food supply for those families who have been affected due to earth-quakes or other natural disasters. The company has the aim to protect the environment thus they are very well focus towards the green and receive good appreciation from the global community.

Political system and International Relations

Political and the legal factors are related with the country political status, this is basically the rules and regulations that have imposed on Toyota business by those countries where Toyota perform their business activities. These restrictions are not easy and tend to control for conducting the transaction of business. Instability of the political system in majority countries has also appeared the negative effect from the marketing efforts for Toyota Motor Corporation (Cortez & Penacerrada, 2010).

Foreign Act

Foreign Act has set rules that the company has to comply the legal requirement of the countries in which they are operated that is help to reduce the conflict with the state agencies (Arthur, 1978). Toyota Corporation has to pay the license fee and taxes which are due. Foreign Corrupt Practices Act of 1977 is very useful in the international business for Toyota Corporation to avoid the wrong dealing and cost for money lost. This act will also helpful for Toyota Corporation that they can ethically and morally have the right for all the transactions that help to strength their business.

Technology Effect

The factors of technology have relates to the innovations and invention that are either based on the engineering or science. The aim of Toyota Corporation has to produce that car that is capable of dynamic wants of their respective customers. Company has a strong department of research and development which have been able to manufacture the cars to satisfy various customer of domestic and international market.

There are very nominal cases that defective cars have returned towards a company that shows dynamic progress of the company (Cortez & Penacerrada, 2010). The another important usage of technology by Toyota Motor Corporation is producing economical fuel consumption car that ensure that Toyota uses it process of manufacturing according to current advancement of technology.


The successful business has always engaged for seeking the opportunities, not just in the domestics market, but they have chosen brave idea by make their entrance towards the international market (Steven & David, 2008). The companies who have overcome the environmental challenges for their business area are always having a competitive advantage over their competitors. There is a requirement to develop the appropriate strategies to go for counterattack towards any negative challenge that badly affect operations of the business.

The unmet needs of the consumer are the optimum choice of Toyota Motor Corporation. Company research department constantly research to meet the expectations of customer. There is the need of detailed analysis for both domestic the internal market in which company would like to enter. There are the great opportunities for Toyota Corporation to capture the foreign share of the market, but in the same manner they also face some serious business challenges due to various environmental factors but company have potential to handle them very well to continue their progress.


Van, A. D., Bosch, E. (1980). Environmental factors. Grand Rapids, Mich: CSI Publications. Basu, D. R., Miroshnik, V. (2000). Japanese multinational companies: Management and investment strategies. Amsterdam: Pergamon. Steven H. S., David. A. G, (2008) “The resource matching foundations of competitive advantage: An alternative perspective on the globalization of service firms”, International Marketing Review, Vol. 25 Iss: 3, pp.262 – 275, DOI (Permanent URL): 10.1108/02651330810877207 Cortez, M. A., Penacerrada, N. T (2010). Is It Beneficial To Incur Environmental Cost? A Case Study Of Toyota Motors Corporation, Japan., Journal of International
Business Research, Vol. 9, p113-140 Arthur. A., United States. (1978). An analysis of the Foreign corrupt practices act of 1977. Chicago: The Company.

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