In the environment where companies operate, the external environment is continually changing and creates uncertainty to managers. As a consequence the internal environment needs to be efficiently adapted responding to those changes.
The external environment consists of two main concepts; General and Task Environment. The General Environment does not directly affect the organization operations but it influences the organization over time. Toyota Motor is easily impacted by international incidences. Since the company is highly global, the slightest changes overseas can create huge and costly impacts on the firm. When Tsunami hit Japan last year, it created a pretty critical impact on Toyota Thailand’s prospective profit generated from the first nine months of the year. Combining with the great flood in Thailand, the profit greatly dropped to almost 50% of the sales. Hence, whether it is a domestic or international affair, Toyota Thailand has to prompt reactions to encounter the matter effectively. Political dimension is truly beyond the control of the firm. Toyota Thailand seemingly exploits on the advantages, and generates optimal resolution upon disadvantages. The benefit pays upon Toyota Motor Thailand when the government declared First-Car tax-rebate policy as it increased a substantial point of sale. At the same time, when oil price went up, the eco cars were greatly promoted. It is inevitable for Toyota that the sales are affected by natural aspects. Natural disasters cause slow-down on its sales and requires some organizational change. The Thailand great flood had created huge effect on the entire country. Despite the damage Toyota Thailand affected, the company generates some implementation to restore and regain creditability. Another tough factor that affects the company is the economics of the country. The bigger the company is, the more impacts it receives from the fluctuating economics. The rise in oil price might not seem