M ICRO ENVIRONM ENT

The M icro env iro nment co nsists o f those com po nents o f the m acro env iro nmentwhich are directly relev ant to an indiv idual’s o rganizatio n. An o rganizatio n’s microenv iro nment includes 1 .Customers 2 .Suppliers 3 .Internal P ublic 4 .Com petito rs 5 .Interm ediaries The bo undary between an organizatio n’s Macro and Micro environment sho uld not be v iewed as static. Changes in the former will inev itably redefine the latter.The v ario us com po nents of m icro env iro nment fo r Toyo ta hav e direct influence o nits perfo rmance. M oreover com po nents o f Toyo ta’s m icro env ironment are alsorelated to its m acro env iro nment. 1 .CUSTOM ERS Toyota aims at developing loy al customers relatio nship. For this reappo int tries its best to understand who its buyers are and what are their needs. It tries to listen to itscustom ers, realizing that they may be their best collabo rato rs. Customers feedback drive their pro duct develo pment.To be the market leader and satisfy the requirements of its custom ers, thecom pany has set certain objectiv es. These area)Im prove Quality b)Enhance Efficiencyc)Minim ize Co std)Increase P ro ductivity Over the prev io us y ears the com pany has put in its best effo rts to m anufacture quality cars designed fo r its customers. In P akistan, mo re and more peo ple want to experience the unique pleasure of moto ring. Exhaustive, in -depth research andco nsumer survey s co nducted ov er the past years revealed trends o f customers and theenviro nmental factors relating to use. Toyota’s Marketing Policy Toyota’s slo gan “ Relia bility n Mo tio n” represents its em phasis so n stro ng trustworthy and life -long autom obiles. It has m any brand loyal customers and is co nsidered asm arket leader. In Pakistan, it has aimed at vario us segm ents with their v ariety o f mo dels in Toyo ta Corolla, so customers in every segments can be satisfied.D ifferent classes of To yota Co ro lla intro duced in P akistan are; Mo del Descriptio n Segments

Go vernment High Officials. o f m ultinatio nals. Islam abad. serv ices and spa res.Toyo ta Indus aim s fo r goo d relatio ns with both the local and fo reignsuppliers. “ To achieve m axim um level of custom er’s satisfactio n” is Toyota’smissio n. better shipping arrangements early warm ing of majo r price ch anges and .SE Saloo n 160 0 ccIndustrialists. is the majo r supplier o f CBU o r com pletely built up v ehicles.Toyo ta has got an effective Natio nwide dealer netwo rk comprising o f 25 dealers atKarachi. To p Lev el M gt. Armed Fo rces. Government D epartments &Organizatio ns. CKD kits m ainly com prise o f the engine o f v ehicles. Peshawar. Laho re. M irpur. That is sales. serv ices. Sialkot.0D / 2 . Suppliers are given im po rtance andrespect by Toyo ta. Toyo ta has to respo nd no t o nly to the customers they su pply . but also to the so urces from which they receive supplies. P ro fessio nals.2 . spare parts. D I Khan.P rofessio nals. They are o ffering the follo wingservices to cater to the needs o f their customers:a)One y ear free serv icing from any Toyo ta serv ice center all ov er P akistan.Japan. Faisalabad. M ultan. 2 .X li 1300ccM iddle -level Executives.Pro fessio nals.SUPPL IERS Suppliers co nstitute a seco nd com po nent in a typical organization’s m icroenviro nment. It co ntinuo usly aim s at develo ping a stro ng relatio nship with itssuppliers. This is done to ensure that Toyo ta suppliers provide quality m at erials whichis the most im po rtant facto r fo r Toyota vehicles. This spread of netwo rk shows no t ho w Toyota is sincerely busyin develo ping a com pany’s customer relatio nship and winning the hearts of brandloyal as well as attracting potential customers. This can be pro ved by the fact that dealership is autho rized to theseselective peo ple who o ffer 3 S’s. Business Executives who are fuel costco nscio us.e)The customer retentio n department at the dealerships is also improvedand co nso lidated perio dically.c)Spare parts easily av ailable all over Pakistan.d)The dealership netwo rk com prises o f sev enteen dealerships allo ffering sales. Well established Businessman. The v ehicles which areassem bled in P akistan com prise o f 6 5% lo cally m anufactured parts.0 D Salo onPro fessio nals.Quetta and Larkana. b)Free checkup cam ps are set annually.The com pany believes o n the fact that favorable supplier relatio ns lead to im provequality. Also CKD kits o r com pletely Kno cked down Kits are supplied from Japan. This isdo ne to ensure co nv enience for its customers.GL i 13 00ccBusinessm an.

Mo reo ver. Ino rder to achiev e its go als and o bjectiv es Toyo ta m akes sure that highly com petent andskilled peo ple are em ploy ed.Technicians at the dealers’ serv ice departments underwent extensive by IM Cserv ice departments to im prove their skills . Still. perio dic training of managers is also co nducted.Training is an integral part in Toyota’s v ario us departm ents. professio nal relatio ns with suppliers in which both will profit.e)Threat of new substitutes. 3 . the aim isto develo p friendly . Ho nda standsseco nd fo llowed by Suzuki and Nissan. Emphases is laid to ensure that the perso n being hiredmeet the criterion fo r the respectiv e departments. training pro grams co nductedabro ad and lectures o f fo reign expo rts.P resently Toyota is pro ud to hav e the mo st market share. The five forces thatshape the degree o f m arket com petitio n operating within an organizatio n’s m icroenviro nment area)Rivalry amo ng existing o rganizatio n. Training wasintensified and v ario us co urses were co nducted thro ugh the prev io us year.d)Threat o f new entrants. sho rt co urseconducted in vario us well -known univ ersities.c)Relativ e power o f suppliers.Toyo ta is proud . So. of employees by which a com pany’s o bjectiv es are accom plished. Since its start it was o nly in 95 -96 that Ho nda m anaged to sale 200 mo re uni ts o f vehicles than Toyo ta.COMP ETITORS M arket com petitio n is the co rnersto ne o f managerial capitalism .advance info rm atio n abo ut techno lo gical o r m arketplace develo pments.Internal P ublic It is the actio n. This include training cam ps. 4 . b)Relative power o f customers.

Interm ediaries Banks .maintains healthy relatio ns with its suppliers and m akes effo rts to im provetechno lo gy. However to the spirit o f com petitio n is stro ng and this has lead Toyo ta to co ntinuo usly try to im pro veitself.to be in a stro ng po sitio n. in easy installments and m aking the cars affordable fo r thecustom ers to the higher extent . at all levels. by o fferingthe cars to the co nsum ers. Continuo us em phasis is laid o n to attract mo re custom ers. Careful strategic planning at al lev els has enabled Toyo ta to achieve the highest m arket share and hav e an edge over other automo bilecom panies. 5 . Leasing com panies and car agents are some o f the intermediaries fo r Toyo ta. These interm ediaries basically giv ing the boo st to the sales o f Toyo ta.

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