Toyota's operational objectives are influenced by both internal and external factors. Do you think internal or external factors are more important in influencing Toyota's goals? Operational objectives are specific, targeted objectives of the operations management function within an organization. Operations management is the process of using an organization's resources to provide the right goods or services for the customer. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay First, internal factors such as a company's business objectives and overall goals or philosophy can influence or even completely determine operational objectives as companies need to ensure that they are consistent. Otherwise, a company's overall goals are very likely not to be achieved and therefore the chances of success are much lower. For Toyota, which generally aims to provide customers with high quality, at the lowest cost, in a timely manner and with short delivery times while having a philosophy of minimizing environmental impact, its operational objectives will be based on efficiency and 'environment. Since their overall goals are based on the environment and efficiency, they chose their operational goals consistent with these, for example Toyota decided to reduce carbon dioxide emissions by 50% and achieve cost savings of £1 billion. If their business goals were different (such as being the most profitable), they would accordingly set operational goals differently (such as reducing costs as much as possible while maintaining prices). Therefore, overall, I would say that business objectives and external factors are the most important factor as they can practically determine and decide the operational objectives, if one wants to ensure success. External factors are also important in influencing operational objectives for companies such as environmental legislation/pressures from government and consumers. Companies that have a better environmental impact will obtain certain certificates and awards that other companies cannot obtain and therefore gain a higher reputation and perhaps a USP by being environmentally friendly, but they can also reduce costs in the long term. For Toyota and the automotive market this has become an increasingly desired or even necessary product feature, consumer and government pressure with the emissions tax has almost forced companies to react by making their processes greener. This has happened as Toyota has set many new environmentally-based operational goals, such as reducing carbon dioxide emissions by 50%, which will help reduce the amount it pays for its emissions. Overall, the cost of disposing of waste and damaging the environment, as well as the demand and reputational benefits of going greener, could incentivize companies like Toyota to go greener and set their operational goals with this in mind. Despite this, going green is usually quite expensive, so for small businesses or companies looking to make large profits, environmentally friendly operational goals may not be consistent with business objectives. For Toyota, however, the investment was clearly worth it as it won numerous awards (e.g. Big Tick) and earned a great reputation, which undoubtedly increased demand. Another way that internal factors can influence operational objectives is through the nature of the product and the resources that a firm can.