Running head: ORGANIZATIONAL CHANGE CONSULTANCY Insert Name Insert Grade Course Insert 5th. Oct. 2011 Toyota Case Study Problem Analysis Toyota Tsusho is part of Toyota Motor Corporation, which is based in Japan. In addition, Toyota Tsusho South Pacific Holdings Pty is a subsidiary of Toyota Tsusho Corporation…
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It is such problems that contribute to the tarnishing of Toyota’s reputation, especially concerning the safety issue (Mark, 2010). These defects also contributed to more than 50 deaths globally, and since customers prefer an assurance of their goods, Toyota Company could pay dearly for such defects. For instance, customers around the world may lose their trust in the Toyota brand and opt for another brand that is more effective and with less or no defects. Another arising issue is the April threat by Toyota’s union members to fight the cuts on their shifts by half, following the disaster in Japan. Nevertheless, the company sees the need for these cuts due to the heavy losses incurred after Japan’s tsunami and earthquake in March (Donovan, 2011). Employment levels would also be reduced by half, O’Brien (2010) reports in an interview on the state of Toyota following the recalling process of over a million vehicles. In her report, Toyota has always based their brands on quality and reliability, to the extent of many clients preferring used Toyota vehicles due to their effectiveness over the years. However, with the recent questions on Toyota’s effectiveness due to various noted defects, it is likely to have a major impact on its market. Some of these results would include stiff competition from Ford and General Motors, which are some of the competitors in the motor industry. According to Willacy (2010), Toyota Company suggested that it would cease production temporarily in Britain and France following sales decrease, as a result of the worldwide safety recalls on their vehicles. The recall of over a million of their vehicles had a negative impact on their sales; hence, a quick action was required. This followed lawsuits from the United States clients who sued the Japan automaker company over the Toyota car defects; for instance, the sticky accelerator pedals. The ongoing car recalls in Toyota could damage its brand name and decrease its sales, as the company’s image is destroyed due to the many challenges of defaults that heave occurred over the past few years. In the United States, Toyota’s market has deteriorated; however, based on this year’s projections, Toyota expects higher returns in Japan, Russia, and Asia (DBRS, 2011). Nevertheless, the Toyota company as a whole faces a lot of challenges in its various branches; for instance, in Australia, over 3000 employees went on strike demanding promotion and the cease of the proposed wage cut on their salary, as the workers have not received wage increase since April 2010, (Bryne & O’Connor, 2011). Toyota Tsusho Corporation controls operations for Toyota distributors and retailers in seven countries, whilst assisting in distribution for Toyota vehicles and parts to variety of distributors. Toyota Tsusho has worked hand in hand with Toyota Motor Company to become the leading automotive company. Therefore, most challenges that face the parent Toyota Company also affect Toyota Tsusho and its subsidiaries as well. Nevertheless, supply has been interrupted due to the Japanese earthquake and tsunami disasters early this year. For Toyota Tsusho to enhance its business in the south pacific, certain changes have to be made. Change Management Plan According to Queensland government, (N.d, p1), change management plan contributes the required flexibility, since it is designed to satisfy the needs of the organization. The change management
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