Sample Essay

PEST analysis is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. Political factors have a relatively smaller effect on Toyota Motor Company’s operations. Toyota is a well entrenched brand that has market diversification as well as a broad level of operations. The core markets of the company are in stable geographic areas and not prone to political trouble.

The one trouble that Toyota may face in the near future may be because of its size. As competitions commissions and fair trade offices are gaining momentum in various governments around the world with an eye for promoting free competition, the size of Toyota and its potential ability to restrict more competition from new entrants could put it under scrutiny by the commissions investigating cartels or mergers which could hamper the operations of the company. One advantage however is in terms of tax advantages being offered to the company for the production and sale of environment friendly Hybrid cars and..

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