Political-Legal Environment of Toyota - Research Paper Example

The Company's business environment is composed of forces and factors that affect a company that operates effectively in the service delivery of its products to its customers. In the macro environment, political/legal, economic, technological, and social/cultural are the primary four units that have been given attention. The microenvironment is composed of the actors in the company's immediate environment that influence its potential to operate successfully in its preferred markets. The principal actors are competitors, customers, distributors, and suppliers. The environments shape the nature of the opportunities and challenges facing a business firm and are mostly uncontrollable.

All counties where Toyota operates face many political challenges because of the difference in rules, policies, and regulations controlling its business or corporate existence in those countries. These governmental policies and regulations are made, implemented, and changed depending on a response from the courts, political parties, legislators, and government agencies. They make the policies of their interests by engaging in dialogue or working closely with policymakers. Toyota has been doing well in democratic states that involve systems, which safeguard corporate and individual rights. Whether the government is aristocratic or democratic, it will challenge its survival to a great extent. Even though the political threat can happen in politics, the government can take over the property with or without compensation. Set restrictions, which obstruct the company from some agitations and actions that dispute goods sold.

The legal structure in Toyota's home country is closely connected to the factors affecting its political structure. For instance, the level of independence of the judiciary from the legislative procedure causes legal survival, existence, and growth of Toyota's progress in the region. The state government affects business majorly in terms of employment practices, standards, and patent probations. Policies that govern cross-border business also exist. They include a dividend payment, customs duties levied on imports, and investment of capital. Strategies controlling the cross-border transfer of dangerous waste are an example of a law that determines how the Toyota Company works in transferring delivery across borders.

The Toyota Company faces many factors in the local and international markets. Low labor cost is a major barrier to Toyota Company. Toyota produces majorly in industrialized nations where workers with higher levels of education and technology for controlling R&D. Cheap transportation are another major setback. When Toyota Company exports its products overseas, it usually uses a CIF system of a transport system that includes freight, insurance, and cost. Since they have to pay for costs incurred from shipment, the products become more expensive because importers charge the extra value. Trade integration is another challenge. Most countries are coming up with trade integration and associations to remove tariffs in the blog, although it imposes tariffs on nations out of the bloc. Japan has less space, which is not enough for some of Toyota's business.

Toyota Company's decisions are affected by the legislation, both locally and at international levels. These laws seek to avoid collusion, check abuse of market supremacy, control acquisitions, and mergers, and restrict state support to business companies. National laws also affect marketing decisions by regulating anti-competitive practices in the market. Business firms, which apply ethics to their decision-making, have problems working within this legal framework. They should also decide the level to which they want to affect political resolutions that may impinge on their operations. The extent to which political choices influence business is not well stipulated.

Legal and political forces can control marketing decisions by making the rules by which trade can be done. Toyota has been doing well in democratic states. The company has been doing well despite all the barriers and limitations. Read More