RUNNING HEAD: TOYOTA COMPANY CRISIS 1 TOYOTA COMPANY CRISIS Kristina Cacaj Capella University RUNNING HEAD: TOYOTA COMPANY CRISIS 2 From the last quarter of 2009, the popular vehicle corporation Toyota has been through a serious and continuous crisis due quality problems which were intended and uncalled for and relating to its cars globally. Due to this crisis, the Toyota company reputation has been threatened such as that of the best manufacturer of quality cars and developed brand image. Toyota is a large, globally vehicle manufacturing company and leader in automotive industry that has faced certain issues concerning accelerators which did not function properly and it was this time that it was hit by a tragedy. This has made Toyota to lose its share in the market and customer loyalty. However, growth and innovation are essential for its process and attempt to win its customers again and acquire market share. Toyota has faced a risk on its quality brand as a result of its problems with sedan's safety, which recently came up. According to Greyser, 2009 events which are negatively normally crop up without expectations and brings with them high chances of reputational crises into the organization thus hampering its chances of profit making in the future including its ability to survive and grow. The negative effects being either short term or long term, mainly months or years, the crises would still interfere with both stakeholders who are internal and external to the company (Weiner, 2006). Whether the negative impacts are immediate or sustained over months and years, crises would probably affect both internal and external stakeholders of the company (Weiner, 2006). The first organizational process that Toyota had during the accelerator crisis is the public safety advisory on the 29th day of September to give information to Toyota owners about the problem of ill-fitting mat floor. This was followed by the recall announcement, which was the initial large scale in November 2009. The process was important since it created a public awareness about the current company situation and the cause of the problem of stuck gas pedals. RUNNING HEAD: TOYOTA COMPANY CRISIS 3 This problem gave rise to announcement of Toyota's second large and third recalls of 2.3 million and 1.8 million respectively of America market and European markets. Toyota should focus on improving its production through expansion majorly in large economies such as its plants in North America instead of halting or suspending it as it did. The major customers and stakeholders to deal with should be the America Market. However, if the process is not improved, the company's reputation will be put at risk leading to its criticism. The second organizational process that Toyota had during the accelerator crisis is its selfmisplay, which was internal, which disrupted its operations. As a leading automobile industry, Toyota has been well known globally for its success, which it has used as a benchmark being guided by its customer- driven philosophy, which expanded it globally through quality building, and this is the importance of this process. Toyota as a company should focus more on this traditional philosophy to enhance its expansion globally as it is steady and cost saving. It should not only focus on producing cheap parts according to demand (Welch, 2010) but also focus on the process of corporate branding by linking its core values to its mission, culture and vision. This is important as it affects the product features, positioning of the brand and strategy for communication (Urde 2003). This process should focus majorly on its customers as the branding and product improvement attracts customers globally. Without this, the process will affect both the internal and external suppliers as it interferes with the supplier demand. This issue should be handled within the shortest timeframe and enforced continuously to retain and attract more customers and suppliers. In conclusion, Toyota as a company has failed to handle these issues and crises with its continuous announcement of the recalls but this should not be the case especially for a big company as Toyota. Whatever an organization does or fails to do impacts its reputation directly RUNNING HEAD: TOYOTA COMPANY CRISIS 4 (Dolphin 2004). The internal deviation by Toyota management raised a series of concerns. The company should openly admit and recognize through acknowledging it publicly that there exists a problem to maintain the public trust by providing an assurance of a remedy to the situation. However, Toyota made no attempt of admitting publicly concerning the shortcomings of their products but instead insisted that their cars were perfect. It did not show up in the ongoing crisis and showed little reaction to the media releases. Toyota did not respond to the current situation of the crisis in the company as the Chief Executive Officer, Akio Toyoda initially hesitated to make a public appearance to the congress interfering with the willingness of the company to respond to public questions concerning its cars. Toyota, even though a leading and well reputed private company, should have made an attempt to publicize their aid effort on the families, which were affected by the crisis. Improving the above-mentioned processes not only helps the company tackle its crisis but also maintains its good reputation globally. RUNNING HEAD: TOYOTA COMPANY CRISIS 5 REFERENCES Case Study Of Toyotas Vehicle Recall Management Essay. (2015, March). Retrieved from https://www.ukessays.com/.../case-study-of-toyotas-vehicle-recall-management-essay.... Feng, Y. (2010). Toyota Crisis: Management Ignorance? - DiVA. Retrieved from www.divaportal.org/smash/get/diva2:349746/fulltext02 Greto, M. (2010). Toyota: The Accelerator Crisis - BrainMass. Retrieved from https://brainmass.com/file/1447111/Toyota-+the+Accelerator+Crisis.pdf RUNNING HEADER: TOYOTA COMPANY (UNIVERSITY) (SCHOOL) (DEPARTMENT) TITLE: TOYOTA COMPANY (COURSE NAME) (COURSE CODE) (PROFESSOR) (DONE BY) (DATE) 1|Page RUNNING HEADER: TOYOTA COMPANY Introduction Toyota Motor Corporation is a Japanese automotive manufacturer located in Toyota, Aichi, Japan. It has diverse employees and executive staff of approximately 338,875 employees worldwide as of February 2014. The company has been rated as the world's first automobile manufacturer to produce more than 10 million vehicles in one year. This has made the company grow both externally and internally thus making it ranked as is the 13th-largest company worldwide by revenue in February 2016. However, despite all these efforts to ensure that they are efficient and successful in meeting their clients' needs and other operations there are other challenges which makes them stagger economically, socially and marketwise. Problem statement These problems and others have made the Toyota company face series of serious and continuous crisis due quality which has affected the company in general. As a result, the company's reputation has been threatened such as that of the best manufacturer of quality cars and developed brand image. This has even lowered the market and trust the company had on its customers and key clients. Competition and market fluctuations are the key problems which are faced by Toyota Company. Such issues significantly affect the production of the company. 2|Page RUNNING HEADER: TOYOTA COMPANY Background The above problems have gained their basis in the company due to various aspects in the organization. Competition is an external factor that is faced by all the organizations due to the quality of services and products. Thus every organization should come with competitive strategies to ensure that they remain competitive at all times. In Toyota, competition from other rival automakers reduced the sales in 2012 gave a hint to the company that competitors are coming up. In America, [Tre12] Toyota has a Prius that deals with distribution of their vehicles. It accounts for about 12% of Toyota's American sales. However, its competition power decline in 2012 as Ford introduced new and improved hybrids and electrics called Ford's hybrid C-Max, which was launched in 2012 and made a great debut with sales of 400 units Prius in October. For example, the major problem that made Toyota completely lose market is the fact that in late 2009, [UKE15], Toyota Corporation saw 9 million of their vehicles recalled due to reports that most of their vehicles were realized to experienced unintended acceleration which could easily cause accidents. This problem led to other problems and killed the big reputation of the company. After the market share decreased, Toyota company net sales, in 2011 decline [Tre12] . Some of the issues that were highlighted to have caused include the market size reduction and even the production constraints that made their products appear to be of relatively less value compared to those from other close competitors in this case the Ford. 3|Page RUNNING HEADER: TOYOTA COMPANY Implications These problems and other key problems if left can result to total closure of the business. If for example the company reported a daily decline of customers the competitors will dominate the market and completely eliminate Toyota. If adequate measures are taken into account the Toyota Company will win their customers back by increasing their trust. The company will also increase their production to even more levels that will outdo their competitors. In order to achieve improved and quality services to their clients Toyota Company should come up with quality Customer Relationship Management strategies to ensure that the customers' preferences are meet at all costs. Secondly the company should motivate their employees so that they can deliver the best services in all the processes of the company from production, marketing and even delivering their products to the clients. The company should also employ an advanced technology especially in marketing which will greatly market their products to clients thus increasing their sales. Finally, it is also important to come up with a team that analysis the possible risks in Toyota Company that will help the organization research on the possible risks which can impact Toyota Company, identify them, propose possible solutions, analyze these solutions, build prototypes and finally implement them. This will greatly improve the face of the company and make them grow to greater heights than ever. 4|Page RUNNING HEADER: TOYOTA COMPANY Desired outcome Implementing the above measures will greatly improve the company since most powerful companies have used this approaches and have greatly improved. Meeting the exact customers' desires through quality Customer Relationship strategies is a measure that makes customers attracted to your business thus outdoing the competitors. When you can manage the competitors in the market it means you can control them. Toyota Company will thus realize greater revenues through the increased market. In addition the new approaches such as coming up with a risk control and analysis team, will give a step ahead to Toyota Company of ensuring a better risk free future. This move will give the organization confidence in meeting their daily goals which is going to be translated to their clients. Winning the trust of the clients will make the organization grow. The benefits that the measures will require may be relatively low compared to the benefits they will bring to the organization. For instance coming up with an elaborate technology such as integrating social media fully in marketing the company will increase the market span of Toyota Company which increases the sales. 5|Page RUNNING HEADER: TOYOTA COMPANY Conclusion Finally, Toyota Company has grown and has been rated as one of the most powerful companies in Japan and even worldwide. Other than making revenues they have also contributed to the economic growth of Japan and most Asian countries through taxes. Also the company has also empowered societies, individuals and especially employment to people. Therefore, it is a company that has positive impacts and its failure will be felt not only by the company but also by other stakeholders. References 6|Page RUNNING HEADER: TOYOTA COMPANY Team, T. (2012, Decemebr 13th). Three Challenges Facing Toyota As It Enters 2013. Retrieved from http://www.nasdaq.com: http://www.nasdaq.com/article/three-challengesfacing-toyota-as-it-enters-2013-cm198666 UKEssays. (2015, March 23rd). Crisis And Issues Faced By Toyota Business Essay. Retrieved from https://www.ukessays.com: https://www.ukessays.com/essays/commerce/crisis-and-issues-faced-by-toyota-businessessay.php 7|Page RUNNING HEADER: TOYOTA COMPANY (UNIVERSITY) (SCHOOL) (DEPARTMENT) TITLE: TOYOTA COMPANY (COURSE NAME) (COURSE CODE) (PROFESSOR) (DONE BY) (DATE) 1|Page RUNNING HEADER: TOYOTA COMPANY Introduction Toyota Motor Corporation is a Japanese automotive manufacturer located in Toyota, Aichi, Japan. It has diverse employees and executive staff of approximately 338,875 employees worldwide as of February 2014. The company has been rated as the world's first automobile manufacturer to produce more than 10 million vehicles in one year. This has made the company grow both externally and internally thus making it ranked as is the 13th-largest company worldwide by revenue in February 2016. However, despite all these efforts to ensure that they are efficient and successful in meeting their clients' needs and other operations there are other challenges which makes them stagger economically, socially and marketwise. Problem statement These problems and others have made the Toyota company face series of serious and continuous crisis due quality which has affected the company in general. As a result, the company's reputation has been threatened such as that of the best manufacturer of quality cars and developed brand image. This has even lowered the market and trust the company had on its customers and key clients. Competition and market fluctuations are the key problems which are faced by Toyota Company. Such issues significantly affect the production of the company. 2|Page RUNNING HEADER: TOYOTA COMPANY Background The above problems have gained their basis in the company due to various aspects in the organization. Competition is an external factor that is faced by all the organizations due to the quality of services and products. Thus every organization should come with competitive strategies to ensure that they remain competitive at all times. In Toyota, competition from other rival automakers reduced the sales in 2012 gave a hint to the company that competitors are coming up. In America, [Tre12] Toyota has a Prius that deals with distribution of their vehicles. It accounts for about 12% of Toyota's American sales. However, its competition power decline in 2012 as Ford introduced new and improved hybrids and electrics called Ford's hybrid C-Max, which was launched in 2012 and made a great debut with sales of 400 units Prius in October. For example, the major problem that made Toyota completely lose market is the fact that in late 2009, [UKE15], Toyota Corporation saw 9 million of their vehicles recalled due to reports that most of their vehicles were realized to experienced unintended acceleration which could easily cause accidents. This problem led to other problems and killed the big reputation of the company. After the market share decreased, Toyota company net sales, in 2011 decline [Tre12] . Some of the issues that were highlighted to have caused include the market size reduction and even the production constraints that made their products appear to be of relatively less value compared to those from other close competitors in this case the Ford. 3|Page RUNNING HEADER: TOYOTA COMPANY Implications These problems and other key problems if left can result to total closure of the business. If for example the company reported a daily decline of customers the competitors will dominate the market and completely eliminate Toyota. If adequate measures are taken into account the Toyota Company will win their customers back by increasing their trust. The company will also increase their production to even more levels that will outdo their competitors. In order to achieve improved and quality services to their clients Toyota Company should come up with quality Customer Relationship Management strategies to ensure that the customers' preferences are meet at all costs. Secondly the company should motivate their employees so that they can deliver the best services in all the processes of the company from production, marketing and even delivering their products to the clients. The company should also employ an advanced technology especially in marketing which will greatly market their products to clients thus increasing their sales. Finally, it is also important to come up with a team that analysis the possible risks in Toyota Company that will help the organization research on the possible risks which can impact Toyota Company, identify them, propose possible solutions, analyze these solutions, build prototypes and finally implement them. This will greatly improve the face of the company and make them grow to greater heights than ever. 4|Page RUNNING HEADER: TOYOTA COMPANY Desired outcome Implementing the above measures will greatly improve the company since most powerful companies have used this approaches and have greatly improved. Meeting the exact customers' desires through quality Customer Relationship strategies is a measure that makes customers attracted to your business thus outdoing the competitors. When you can manage the competitors in the market it means you can control them. Toyota Company will thus realize greater revenues through the increased market. In addition the new approaches such as coming up with a risk control and analysis team, will give a step ahead to Toyota Company of ensuring a better risk free future. This move will give the organization confidence in meeting their daily goals which is going to be translated to their clients. Winning the trust of the clients will make the organization grow. The benefits that the measures will require may be relatively low compared to the benefits they will bring to the organization. For instance coming up with an elaborate technology such as integrating social media fully in marketing the company will increase the market span of Toyota Company which increases the sales. 5|Page RUNNING HEADER: TOYOTA COMPANY Conclusion Finally, Toyota Company has grown and has been rated as one of the most powerful companies in Japan and even worldwide. Other than making revenues they have also contributed to the economic growth of Japan and most Asian countries through taxes. Also the company has also empowered societies, individuals and especially employment to people. Therefore, it is a company that has positive impacts and its failure will be felt not only by the company but also by other stakeholders. References 6|Page RUNNING HEADER: TOYOTA COMPANY Team, T. (2012, Decemebr 13th). Three Challenges Facing Toyota As It Enters 2013. Retrieved from http://www.nasdaq.com: http://www.nasdaq.com/article/three-challengesfacing-toyota-as-it-enters-2013-cm198666 UKEssays. (2015, March 23rd). Crisis And Issues Faced By Toyota Business Essay. Retrieved from https://www.ukessays.com: https://www.ukessays.com/essays/commerce/crisis-and-issues-faced-by-toyota-businessessay.php 7|Page