MODERN ORGANISATIONAL CONTEXT

Moreover, I feel that the increase in the credit facilities coupled with decreasing interest broadened the market for the firm, as more people could not easily afford a car. As per Barney and Hesterly (2005), in addition to that, the working population has increased as more women have entered the working sector and many are working and studying simultaneously. This has increased the purchasing power of the customers and sales have increased because of it. However, I feel with the increasing working population, the demand has increased along with the competition (Gourlay, 2001, pp. 27-46). As per Ahrens (2010) this means that consumers have more choice and have become much more demanding. Moreover, in countries like India for instance the middle class expands every year by 30-40 million people, which in turn means more people now demand cars in these countries. Today, moreover, the consumers are being offered car loans on easy instalments, which make a positive impact on the sales of Toyota. Additionally, explain Berzon and Khan (2010), the prices of raw materials and petrol have increased which affects the price and thus the sales of Toyota products. These economic conditions play an important role in the increase of sales on Toyota. These conditions have of course affected the strategies of Toyota. With the economic crunch especially in the USA, the firm was proactive and aimed to increase its sales in developing China and India where the crunch was less prominent. The global strategy adopted by the firm worked positively. Additionally. When the economic conditions in the USA lowered the purchasing power of the consumers, the firm changed its strategy and started production of smaller and cheaper cars. Lastly, Jensen (2010) explains that with the increasing prices of the raw material, the firm resorted to the hybrid variety of cars, which reduced the prices increasing the sales. Thus I feel that Toyota altered its strategies very smartly as per the changing economic conditions with the result that even with a global economic crunch, the firm had little effect on its sales (Kane, 2010). Berzon and Khan (2010) explain that the social aspects include the changing trends, the smarter consumer in terms of being more knowledgeable regarding product information. Kane (2010) adds that the customer can now use the internet to know about the number of Toyota recalls in any part of the world, the latest technology available, the new models, price comparisons, product features and much more. The consumer has become more knowledgeable and thus firms cannot fool them with smart and deceptive advertising. Also, Gourlay (2001, pp. 27-46) add that the consumers are becoming more demanding with globalisation, as there are many more products available in the global market. The consumer has now become more fashionable and seeks comfort. Thus Toyota needs to cater to both these social aspects. Ahrens (2010) adds that tradition, culture and the customers in the respective markets have to be studied before the firm can design a car. Jensen (2010) explains that for instance, in India, the drivers are right hand drivers, thus the cars have to be designed differently for the market. In the US there are more left-hand drivers. Kane (2010) adds that colour preference, design and accessory preference varies from market to market and thus the firms have to cater differently to them. This means that Toyota has to change its traditional lean

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