This report consists of a strategic analysis of the current corporate and business strategies of Toyota. The aim is to asses the trends likely to affect Toyota as a company in the near future and from this make suggestions for changes and identify new business opportunities.

More specifically this part of the report will be an analysis of the external environment and how current trends and external threats will impact the business.

The environment in which a business operates is an external influence and it is therefore not possible for Toyota to control. This makes the environment a source of threats and it is therefore essential that managers analyse their environments to attempt to predict and influence environmental change.

Firstly I will look at the key trends that are likely to affect Toyota over the next decade. For this I will look at the macro environment and use PESTEL analysis to identify how the different components might affect the organisation. Looking at the car industry there are a number of current trends emerging from this market that will affect Toyota.

From a political point of view the regulations and acceptable standards on the creation of emissions are tightening. Specifically in Europe which is one of Toyota’s largest markets the EU commission intends to define even more stringent emission standards. If this is adopted it will become mandatory around 2014 – 2015. This is one of the most important and topical trends in the car industry at the moment and will therefore have large implications for future production and business strategies at Toyota.

The current economic climate is also an important trend affecting the car industry. The recent economic slowdown has hit Japan, US and Europe which are the areas that generate the largest revenue for Toyota. As a result of this weak economic growth the car industry is expected to decline. This is a direct result of customers having less money to spend and increased fuel prices meaning...

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