Executive Summary This report is aimed at examining how internal and external factors influence Toyota. In particular, it is necessary to show how people management practices and power relations in this corporation are transformed. Currently, the senior management of Toyota strives to empower managers and employees working in different divisions of this corporation. Moreover, this organisation attempts to foster cooperation between employees representing various business units. In this way, the corporation struggles to promote the identification and promotion of the best practices. These activities are also important for improving quality control. Additionally, this corporation tries to respond to new legislative acts that may be implemented in various countries. Finally, the changes in the company can be partly attributed to new technological trends. In the long term, these changes can produce a positive effect on the corporation. The organisation has to address both internal and external stimuli that highlight the weaknesses in the organisational practices. These activities can be important for increasing the commitment of employees and making the corporation more agile. Overall, the organisation should focus more on reducing the power distance of between workers and managers. More importantly, senior executives should encourage the initiative of employees and foster their cooperation. Introduction The adoption of new human resource practices is often provoked by significant changes in the external and internal environment of a business. This paper is aimed at discussing how power relations and people management of Toyota are affected by various factors such as the new trends in technology, employment legislation, labour force trends as well as the need to remove internal inefficiencies. Currently, Toyota claims the title of the largest car manufacturer in the world. To a great extent, the growth of this corporation can be attributed to its production system, emphasis on efficiency, and innovative HR practices. It should be mentioned that Toyota operates at an international level, and the company has to adapt to a wide range of influences that can originate from different countries. The first section of this report will examine the changes caused by the internal environment. In particular, it is necessary to discuss how the management of the company attempts to respond to various inefficiencies that can impair decision-making and quality control. Overall, these issues are vital for the financial performance of this corporation. The second part will demonstrate how senior executive reacts to new trends originating from the external environment. These changes in people management and power relations will be examined by studying various documents released by Toyota Motor Company within the last six years. Secondly, it is important to examine books and articles that can throw light on the practices of this organisation. This willingness to change people management and power relations is important for increasing the resilience of the company. Discussion and analysis The changes prompted by the internal environment In many cases, businesses have to modify their policies when they encounter a