Environmental Factors That Affect the Production of Toyoto Prius

2TOYOTA FIRST CAR

ENVIRONMENTAL FACTORS THAT AFFECTED THE PRODUCTION OF

TOYOTA PRIUS

Company Name

Syed Fawad Hussain

MBA (Marketing)

• 1992Toyota Motor Corporation announced the “Earth Charter”

• 1993Partnership for a New Generation of Vehicles (PNGV) announced.

• 1997The Toyota Prius was introduced to Japanese market.

• 2000Toyota released the Toyota Prius, the first hybrid four-door Sedan available in the United States.

HISTORY IN MAKING

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Success of an organization depends upon its adaptability to the environment.

Environment analysis is helpful for survival and prosper the business activities.

Organization environment influence the functioning of the organization system.

ENVIRONMENTAL FACTORS

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Analysis on internal and external factors can produce substantial amount of information.

The environment includes outside the firm which can lead to opportunities for or threats to the firm. (Glueck and Jauch)

ENVIRONMENTAL FACTORS

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External factors Political Legal Forces Economic Forces Technological forces Competitors Customers Internal Factors Beliefs Structure

ENVIRONMENTAL FACTORS

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POLITICAL-LEGAL FORCES

Political influences relate to government or constitutional policies that may affect your business.

Automobiles were subject to many governmental regulations.

Government also encouraged manufacturers to increase the fuel efficiency.

CARB (California Air Resources Board)8

ECONOMIC FORCES

Economic factors affecting the production and sale of hybrid vehicles.

Expensive entry into foreign markets. Increased globalization of the industry

intensified competition.

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Technological changes may create new opportunities for the firm, or threaten the survival of a product, firm, or industry

Technological forces can affect Prius in two ways. It can be:

• A potential opportunity • A potential threat

TECHNOLOGICAL FORCES

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Long term strategic benefit Environmental protection Innovative changes Nickel-Metal hybrid battery

POTENTIAL OPPORTUNITIES

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Reliability of Prius Manufacturing cost Technical problems Development of batteries

POTENTIAL THREATS

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Overheating Cost of battery Warranty & service support issues Regenerative braking system Development of insulated gate

bipolar transistors (IGBTs)

POTENTIAL THREATS

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The biggest fear Competitor’s hybrid strategy Competitor’s demonstration of hybrid

system Changed image of TMC Hybrid vehicle from other companies,

such as the Insight from Honda.

COMPETITORS

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Demand for Prius Consumers price estimation Consumers perception to reduce

pollution

CUSTOMERS

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Aggressive target Mass production Which strategy of launching should be

adopted? Aggressive launch Smoother launch

BELIEFS

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Employees are trained to solve problems.

Inculcation of scientific methods.

CULTURE

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Title

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