• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  6. 6
  7. 7
  8. 8
  9. 9
  10. 10
  11. 11
  12. 12

Japanese Car Industry in a Business Context.

Extracts from this document...


Japanese Car Industry in a Business Context Executive Summary External business environment has been particularly important for the industry. This study aims to apply PESTE model to examine the different impact of external influences on Japanese car industry. The first section aims to model PESTE analysis of Japanese car industry on the external environment including political factor, economic factor, social-cultural factor, technological factor and ecological factor. There are three key factors economic factor that is determinant to the development of Japanese car industry: economic, technological and ecological factor. In combination, these factors form the basis of the opportunities and threat that Japanese car industry has to face in the competitive environment. The second section develops three scenarios planning for Japanese car industry on the basis of three key factors: optimistic scenario, pessimistic scenario, and a middle of the road one. TABLE OF CONTENTS 1.0 Introduction 2.0 PESTE Analysis 2.1 Political factor 2.2 Economic factor 2.3 Socio-cultural 2.4 Technological factor 2.5 Ecological factor 3.0 Three key factors 4.0 Scenario planning 4.1 An optimistic future 4.2 An pessimistic future 4.3 An middle of the road future 5.0 Conclusions 6.0 Reference 7.0 Bibliography 1.0 Introduction Japanese car industry has been in top position for more than 30 years with the characteristics of high productivity and large innovation achievements. Accompanying the globalization of the automotive industry, more and more manufacturers make efforts to dominate the global car market and revive the Japanese car industry. ...read more.


When they broke into the market in the 1990's they provided products that consumers had not seen before. In Japanese latest auto leading edge technology, one might expect hardware or software to maintain or control the distance between autos. Clearly, there is going to be a lot of electronic components in future cars. (Source from http://uktoyotaestimasite.tripod.com/Japanese_Market.htm#Environment) What's more, so called hi-tech business will spawn sophisticated new market and significantly boost the current car industry. On the other hand, with the development of information technology, especially the emergence of Internet has caused dramatically changes in Japan car industry. The Internet, faster communication, lower trade barriers, and rising incomes in many parts of the world have changed the face of the international automotive market. In recent years, e-business has been attracting more attention for its potential to cut costs and create new marketing format. Some Japanese manufacturers including Honda, Toyota have already set up online dealer locators on their websites which allows the user to research vehicles, check new and used inventory, build a vehicle to the specs, request a quote and apply for credit. (Source from http://www.jef.or.jp/en/jti/200003_011.html) Such customized online experience model is becoming unprecedented convenient than before and tends to the mainstream of marketing model in the future. . 2.5 Ecological factor The term ecology refers to the relationships among human beings and other living things and the air, soil, and water that support them. ...read more.


And considerable importance has to attach to technological factor so as to overcome the potential problems and benefit the industry in all aspects. Ecological factors draw more and more attention or even are dictated by national laws and regulations to maintain the balance in the long run. And three scenarios planning in the future still based on these three key factors. These three future scenarios describe the key trends and interactions that may characterize the development of a particular future environment. 6.0 Reference * Pearce, J. A. and Robinson, R. B., 2000.Strategic management: formulation, implementation, and control. 7th ed. Boston: McGraw-Hill * David, N., 2000. Business in context: an introduction to business and its environment. 3rd ed. London : International Thomson Business Press * Brooks, I. and Weatherston, J., 2000. The business environment: challenges and changes. Harlow : Financial Times * Gerry, J. and Kevan, S., 1997. Exploring corporate strategy. 4th ed. London: Prentice-Hall * James, W., 1890. Japanese car industry strategic[online] Available from:http://uktoyotaestimasite.tripod.com/Japanese_Market.htm#Environment [Accessed 28th October 2003] * Ezaki, T., 2000. Policy Goals and Measures for the Revival of Japanese Industry. Journal of Japanese Trade. [online] Available from: http://www.jef.or.jp/en/jti/200003_011.html [Accessed 28th October 2003] * Yoshikawa, H., 2002. The Japanese Economy in the Next Decade. Journal of Japanese Trade. [online] * Available from:http://www.jef.or.jp/en/jti/200203_022.html [Accessed 28th October 2003] * Thompson, H., 2000. Automotive Industry. [online] * Available from: http://www.geocities.com/hithompson/AutomotiveIndustry.html [Accessed 28th October 2003] * Environmental Review, 1995. Environmental Review. Japan: Energy Information Administration [online] * Available from: http://www.eia.doe.gov/emeu/env/japan.html [Accessed 28th October 2003] 7. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. PEST and competitive analysis facing by confectionery organisations

    Always in the forefront of production developments, Cadbury has introduced the most advanced processing technology and management information control techniques to its business. Cadbury's brand has a wide consumer base with all ages and types of people buying it. This means that Cadbury's Dairy Milk was never really targeted at a specific market.

  2. The Japanese Occupation - Concept of Great East Asia Co-Prosperity Sphere

    Commerce and industry were placed under military control by granting licences to Japanese companies which were to operate Western enterprises under the supervision of the army It was governmental policy to allow only a few firms, sometimes only one, in each of the main trade lines in each country and to apportion the Co-Prosperity Sphere among several companies.

  1. how the changes of the working environment affect employee relations

    Second reading in the House of Commons and at this stage the bill will be debated on and most of the MP's will hand their decision on if this bill is suitable at the end of this reading their will be a vote to see if a majority of MP's

  2. Evaluate the impact of Nike's outsourcing strategy and factory location on the host nation

    Nike also fails to improve the issue of corporal punishment and verbal abuse that workers often suffer from supervisory staff in Nike's factories. Consequently it could be argued that the code is just a public relations exercise and doesn't protect and improve the rights of workers, It is simply used

  1. Case Study: The Home Depot

    The Home Depot Management is layered so there are both vertical and horizontal linkages among the firm's management. The bottom of the structure consists of store department managers governed by one store manager responsible for delegating duties and upper management's directives.

  2. Selecting international modes of entry and expansion

    The Japanese and Americans both seem to prefer to use WOS rather than joint ventures, since they both use WOS when host governments have open trade and investment policies. Government incentives for JVs and restrictions on WOS are important factors in modal choices.

  1. The structure of the airline industry.

    This strategy may put undue pressure on small family-owned travel agencies. About AirTran AirTran has deep commitments to safety and efficiency. In June of 2001, AirTran's Maintenance Division received its 6th consecutive FAA Aircraft Maintenance Technician Diamond (the highest of the five award levels)

  2. Critically evaluate the perceived competitive starategies of the five clothing retail outlets, namely Edgars, ...

    * Technological Factors Pearce et al. (2000) points out that, to avoid obsolescence and provide innovation, firms must be aware of technology changes that may influence their industry. Two of the major grocery retail groups, Pick 'n Pay and Wooltru, launched high-profile e-retail initiatives in 2000. The first six months of trading on the Wooltru site, Inthebag,

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work