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 Kristina Cacaj Capella Universtiy MBA 6022 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 Kristina Cacaj Capella University MBA 6022 Unit 3 Assignment 1 Cause-and-Effect Diagram The main problem that Toyota is facing involves threatened reputation. This can be attributed to various causes. This involves the following; There are poor accelerators of the vehicles- there are accelerators that did not function properly. This caused tragedy to the organization causing it to be hit by a tragedy. one thing problem caused involves risk on the quality brand- Toyota brand has always been known as one of the most high quality brands known to exist when it comes to auto. One fault could render the customers lost of trust when it comes to the company's brand. The threatened image reputation has also caused the company to lose out on the market share. This is because the customers have started to look down on the Toyota brand. The customers have also lost some trust in the company's brand thereby causing the company to lose out. Competition and market fluctuations are the key problems which are faced by Toyota Company. Such issues significantly affect the production of the company Graphic Flowchart detailing all of the steps needed to implement in the new process Customer Relationship Management strategies Motivating the employees Delivering the best services in all the processes Advancing technology especially in marketing Coming up with a team that analysis the possible risks in Toyota To accomplish enhanced and quality administrations to their customers Toyota Company ought to think of value Customer Relationship Management techniques to guarantee that the clients' inclinations are meet no matter what. Furthermore the organization ought to spur their workers so they can convey the best administrations in every one of the procedures of the organization from creation, showcasing and notwithstanding conveying their items to the customers. 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. Before-and-After Flowchart Before Poor customer management Low customer loyalty Poor brand image After the proposed improvements Customer Relationship Management strategies Motivating the employees Delivering the best services in all the processes Advancing technology especially in marketing Coming up with a team that analysis the possible risks in Toyota Scope of the process improvement objective 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. Actualizing the above measures will significantly enhance the organization since most effective organizations have utilized these methodologies and have enormously made strides. Meeting the precise clients' goals through quality Customer Relationship systems is a measure that makes clients pulled in to your business in this way exceeding the contenders. When you can deal with the rivals in the business sector it implies you can control them. Toyota Company will in this manner acknowledge more noteworthy incomes through the expanded business sector. What's more the new methodologies, for example, concocting a danger control and examination group, will give a stage ahead to Toyota Company of guaranteeing a superior hazard free future. This move will give the association trust in meeting their everyday objectives which will be meant their customers. Winning the trust of the customers will make the association develop. 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. The costs 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. Refined version of the Problem Statement Problems that Toyota is facing involve threatened reputation. This can be attributed to various causes. This involves the following; There are poor accelerators of the vehicles- there are accelerators that did not function properly. This caused tragedy to the organization causing it to be hit by a tragedy. one thing problem caused involves risk on the quality brand- Toyota brand has always been known as one of the most high quality brands known to exist when it comes to auto. One fault could render the customers lost of trust when it comes to the company's brand. The threatened image reputation has also caused the company to lose out on the market share. This is because the customers have started to look down on the Toyota brand. The customers have also lost some trust in the company's brand thereby causing the company to lose out. These issues and other key issues if left can result to aggregate conclusion of the business. In the event that for instance the organization reported a day by day decrease of clients the contenders will overwhelm the business sector and totally wipe out Toyota. In the event that satisfactory measures are checked the Toyota Company will win their clients back by expanding their trust. The organization will likewise build their generation to much more levels that will exceed their rivals. Competition and market fluctuations are the key problems which are faced by Toyota Company. Such issues significantly affect the production of the company 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. References Apter, M. J., & Carter, S. (2001). Management and organizations. Bhatt, G. D. (2001). Knowledge management in organizations: examining the interaction between technologies, techniques, and people. Journal of knowledge management, 5(1), 68-75. Hislop, D. (2013). Knowledge management in organizations: A critical introduction. Oxford University Press. Running head: MEASUREMENT STRATEGY ASSESSMENT MEASUREMENT STRATEGY ASSESSMENT Kristina Cacaj MBA 6022 Unit 4 assignment 1 1 MEASUREMENT STRATEGY ASSESSMENT 2 CAUSE EFFECTIVE DIAGRAM AND FLOW CHART After analysing the cause-and- effect and flowcharts I've made; I have recognized Toyota's primary driver to the organization's problem. In the accompanying questions, I will address my findings. 1. After analysing the cause-effect diagram and the flowcharts, it is evident to call attention to the absence of communication that the organization has. The deficiency communication at Toyota is the particular cause to every one of their problems. 2. The cause and effect diagram does not conflict with the flowchart; they are really in conjunction with each other. 3. The cause-effect diagram that I made reveals exceedingly critical and relevant information required for Toyota's change process. All valuable information was data. 4. No further research is needed for any of the cause since every one of the causes is related to each other and the particular cause has as of now been identified which is communication. 5. There is no key stakeholder with additional data because of Toyota's auxiliary structure, yet the new process will be intended for all parties concerned to be properly informed. 6. The information above won't affect my problem statement; it will help me make the change procedure more cause effective. Before and After Flowcharts Toyota's Ineffective Process (Before) MEASUREMENT STRATEGY ASSESSMENT Fig 1.1 Toyota's Ineffective Process (Before) with Revision Fig 1.2 Toyota's Effective Process Recommendation (After) Fig 1.3 Toyota's Effective Process Recommendation (After) with Revision 3 MEASUREMENT STRATEGY ASSESSMENT Fig 1.4 4 MEASUREMENT STRATEGY ASSESSMENT 5 OVERVIEW The above prior and then afterward flowcharts recognize the updates made to the past flowcharts. I have delineated the diagrams together for you to portray effortlessly the progressions made. My issue explanation won't be affected by the modifications made; interestingly the overhauled flowcharts will diagram the cause barely which will make it clear for on to get it. The before flowchart involves the unsatisfactory methodology in which Toyota took care of the review emergency; as opposed to the new suggested after a process which calls attention to the suitable approach to handling the situation[Hag14]. MEASUREMENT STRATEGIES Measurements ought to be whole and incorporate numerous aspects of communication and engagement. The significance of estimation is to figure out how to oversee and enhance execution successfully in the association. In Hagerty, any evaluation system distinguishes your objectives, characterizes an arrangement of measurements to accomplish them, and outlines an implementation plan to make it a player in your continuous business process[Hag14]. The measurement strategy that I will use for my OIP will be the key execution estimation. SPM research has demonstrated that this sort of performance can help in the accompanying areas: Organization Strategy, Implementation, and Communication, Strengthening corporate brand and reputation and Motivation[Hag14]. SPM can be a functional process for Toyota since the organization's absence of communication has brought their organization to lose their image notoriety since the review emergency. This methodology will permit them to get back on the right way. The SPM methodology can likewise add to the creation of capabilities and the foundation of an authoritative society. The association ought to ponder the pretended and reclassify the MEASUREMENT STRATEGY ASSESSMENT 6 objectives and pointers, as well as evaluate the harmony amongst arrangement and empowerment. Quantitative data underscores on seeing as opposed to necessary estimation. As indicated by Keltonglobal quantitative exploration is a very subjective examination discipline intended to look past the rates to pick up a comprehension of the client's emotions, impressions and viewpoint[Hag14]. The quantitative estimation strategy that would apply to my OIP will be the Key Success Indicators (KSI), because and additionally the quantitative methodology, KSI helps an association characterize and measure progress toward hierarchical objectives. In Reh KSI are quantifiable estimations, consented to already, that mirror the essential achievement components of an organization[kel13] Toyota will utilize the KSI since this methodology depends on upon excellent comprehension of what is vital to enhance in the association. It is basic for Toyota to survey intermittently the KSI's because they can screen the objectives of the organization and guarantee their accomplishments are not hampered. Tragically that because of the review, GM recapture their driving position in the automaker business, yet with the suggested measurement strategy the fundamental objective is to inspire Toyota to recover their spot[kel13] MEASUREMENT STRATEGY My measurement strategy will comprise of three principle stages which are: assemble, refine, and adjust. The social affair stage will help partners to improve comprehension of Toyota's objectives and the necessities to arrive. The refining step will be to assess precisely, convey, and illuminate destinations that may come in the middle of the change of the procedure. Finally, the adjust step, in which the new measurement will be executed. This methodology is made to help Toyota to characterize their KPIs well to guarantee everybody is MEASUREMENT STRATEGY ASSESSMENT 7 performing and taking appropriate activities. The following is an exhibit of the proposed procedure for Toyota[FJo16] Fig 1.1 The procedure above will be costly to Toyota. However, the purpose behind this methodology is to seize open doors and keep away from dangers. It is likewise fundamental for Toyota to re-calibrate their estimation system occasionally when their business targets have changed; neglecting to do such stride will be their downturn. The procedure will just have a negative effect when the KPI is not upgraded legitimately when required. The estimation procedure will be a positive result for Toyota on the off chance that they take after the strides. Following the organization's metrics, step by step will permit them to go on the row to success[FJo16]. MEASUREMENT STRATEGY ASSESSMENT 8 References Hagerty, J. (2014). Defining a measurement strategy. Retrieved from information: http://www.information-management.com/bissues/20060301/2600111-1.html keltonglobal. ( 2013, May 16). Quantitative versus qualitative research. Retrieved from keltonglobal: http://keltonglobal.com/blog-post/quantitative-versus-qualitativeresearch/ Reh, F. J. ( 2016., July 14). The Basics of Key Performance Indicators (KPI). Retrieved from management: http://management.about.com/cs/generalmanagement/a/keyperfindic.htm