National Differences in Political Economy Overview Toyota Company Toyota Motor is a Japanese automaker headquartered in Toyota, Aichi, Japan.

In 2013 the multinational corporation consisted of 333,498 employees worldwide and, as of March 2013, is the thirteenth-largest company in the world by revenue. Toyota was the largest automobile manufacturer in 2012 (by production), and in July of that year, the company reported the production of its 200-millionth vehicle. As of November 2013, it is also the largest listed company in Japan by market capitalization The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota Industries to create automobiles. Three years earlier, in 1934, while still a department of Toyota Industries, it created its first product, the Type A engine, and, in 1936, its first passenger car, the Toyota AA. Toyota Motor Corporation group companies are Toyota (including the Scion brand), Lexus, Daihatsu, and Hino Motors, along with several "nonautomotive" companies. TMC is part of the Toyota Group, one of the largest conglomerates in the world.

Political-Legal Environment Political Considerations Perhaps the most important considerations for global business firms are the political and legal forces operative in the countries in which they plan to conduct business. Some foreign governments are unstable, that is, there maybe frequent, dramatic and unpredictable regime changes and/or political unrest. When this occurs industries may be nationalized; private property may be seized or destroyed; normal business operations may be suspended, the workforce may go on strike .This is an important part of any business decision is assessing the political environment in which a firm operates. Laws and regulations passed by any level of government can affect the viability of a firms operations in the host country. Minimumwage laws affect the price a firm must pay for labour; zoning regulations affect the way it can use its property; and environmental protection laws affect the production technology it can use as well as the costs of disposing of waste materials. Adverse changes in tax laws can slowly destroy a firms profitability. Civil wars, assassinations, or kidnappings of foreign businesspeople and expropriation of a firms property are equally dangerous to the viability of a firms foreign operations. Political Risk Most firms are comfortable assessing the political climates in their home countries. However, assessing the political climates in other countries is far more problematic. Experienced international businesses engage in political risk assessment, a systematic analysis of the political risks they face in foreign countries. Political risks are any changes in the political environment that may adversely affect the value of a firms business activities. Most political risks can be divided into three categories: Ownership risk, in which the property of a firm is threatened through confiscation or expropriation

Operating risk, in which the on-going operations of a firm and/or the safety of its employees are threatened through changes in laws, environmental standards, tax codes, terrorism, armed insurrection, and so forth Transfer risk, in which the government interferes with a firms ability to shift funds into and out of the country

Political risks may affect all firms equally or focus on only a handful. A macropolitical risk affects all firms in a country; TYPE Expropriation Confiscation Campaigns against foreign goods Mandatory labor benefits legislation Inflation Repatriation Increased taxation Currency devaluations IMPACT OF FIRM Loss of future profits Loss of assets Loss of sales Increased operating costs Higher operating costs Inability to transfer funds freely Lower after-tax profits Reduced value of repatriated earnings

Business Techniques Toyota Company in Malaysia takes into consideration the external and internal environment in order to remain active and competitive. Therefore, they employ various business models including PEST or PESTLE analysis and SWOT analysis.

SWOT Analysis.
Strengths

The company employs marketing techniques in order to meet the expectations of their consumers in the market. They create mutual rapport with their customers through online and these have helped the company to achieve many customers. They have diversified their products using electronic means, and they are committed to lean design of products and quality.

Weaknesses

Use of e-business has affected the business because of a lot of resources required in making e-marketing successful. The movement in exchange rates narrows the margin in the marketing of auto components and parts. The products targeted in the US market shifts attention to the Chinese market products.

Opportunities

The company use technology effectively in manufacturing environmentally friendly vehicles, thus maintaining its reputation. The use of e-business has helped the company products to thrive in the market because it is an effective means of advertising products. They have new explorer SUV Hybrids, an improved technology that rocks in the market.

Threats

It faces high competition from rivalry automobile companies including Ford Motor, which manufactures high innovative vehicles. Competition increases daily due to new entrants entering the e-market from various parts across the globe including China, South Korea and Eastern Europe. Increased oil prices and the cost of maintaining cars impact them, thus affecting the marketing of cars.

PESTLE Analysis
Analysis The company faces the problem of accelerated investment need for the purpose of deploying new technology for political, economic, social, technological, legal and environmental reasons Political Issues

The ways of dealing with political institutions have been the problem to the company. Many companies are keen in developing auto spares in such political pressure environmental, but this has been a problem to UMW Toyota Company.

Economical Issues

The company is a pillar in the automotive industry, a banner of economic advancement. The company employs unique methods to achieve the economic advantage. However, due to poor incorporation of e-business techniques, it lost its meaning in the capital markets.

Social Issues

The e-business has impacted them because of third parties who use social networks as blockers, hence benefiting more than the company. The company affects the society in the development process. This is because it recruits many employees directly and indirectly. The company products have transformed the society, and this has led to transformation in the way society lives.

Technological Issues

The company manufactures innovative products that are of a high quality. This is because the company employs manufacturing technologies that cut across the age of science. The industry employ technology in manufacturing process, but the lack of coordination, development skills and intellectual capabilities across the company by electronic technologies remain unexploited. The company use e-business in marketing their products but this has affected them because they have created change in organization redesign.

Legal Issues

The company is subjected to various regulations and technical directives that are legal in nature. The laws take into considerations the competition law, patent rights on the company web designing and products, taxation laws, emission laws and intellectual property regulations. Some of these laws have impacted better performance of the company including competition and taxation laws.

Environmental Issues

The company is aware of the environmental laws; thus, they manufacture environmentally friendly auto products. They produce vehicles, which emit less gas into the environment in order to meet the safety regulations of the country.

The technology advancement has been altered; thus contributing to organizational change. The high degree of uncertainty remains a concerning issue on the way use of to adapted to political economic in Malaysia, has impacted the TMC Company in Malaysia.The international business has affected the internal operations of the companies in different ways.

First, it has made a shift from the power of selling to buying through switching the cost of suppliers The buyers can detriment the power of selling; thus need accurate information about the cost of products. The company uses the Internet to advertise the variety of services they offer in affordable prices. However, customers need accurate and advice on the trusted products but the sellers are not in a position to provide impartial advice. This opens an opportunity for the third party; thus impacting the business.

The second impact is that the Internet reduces the cost of the transaction and this stimulates economic activities. Linking the sellers with the buyers through Internet can pose some challenges to both buyers and sellers.

Lastly, the low cost of product distribution, information accessibility and range of product distribution within a short time can create new business possibilities. However, the third parties can impact the business because their aim is to act like business blockers. They can create virtuous information with the intention of attracting many customers. They can gather information about the companys marketing techniques and business tact; thus use it for gaining a dominant market share. They can use the information of suppliers for attracting many customers. This makes the intermediaries to enjoy high profits rather than the company.