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Toyota, situation recommendations and Impacts - Research Paper Example

The quality management problems in the cars produced in USA for local market, 2009, pulled the firm into a tight situation (Cole, E. Robert, 2011). The placement of inappropriate mats under the driver’s seat lead to uncontrolled acceleration and in an unfortunate incident the driver died because of it (Cole, E. Robert, 2011). Multiple other incidents of unintended acceleration from sticky gas pedals were reported (Cole, E. Robert, 2011). The company immediately pulled of its 3.8 million vehicles from US market (Cole, E. Robert, 2011). This adversely impacted Toyota’s reputation in every possible way, and the financial losses incurred were there too. According to critics this manufacturing problem is not the cause but the outcome of some other root cause problem. The real problem is the lean style of management practiced by Toyota (Is lean to blame for Toyota’s current problems, 2011). ...
istake and reimbursing for the problems occurring in the vehicles sold, the reasons which lead to serious concerns being raised over the management issues in Toyota like; firstly, Poor internal communication; secondly, cultural problem of individualism; thirdly, unaccountability of employees and management (Toyota’s management problems have been on display for years, 2011). Toyota needs to come of this state of panic and start thinking of a way to get back into business and sustain the image it had build over past 75 years which is a lot. What Toyota can do is, firstly, to come up with a better management

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style which supports its ideology of Total Quality Management. This can only be done when/if appropriate amount of accountability held for any and every action taken by the employees or management. This will not only create in them a sense of responsibility towards the company and their assigned tasks, but also will inculcate in them a feeling that they are being supervised at the end of the day, and a reward process on basis of individual performance shall help to improve the efficiency of work. Secondly, Toyota seriously needs to invest in its Research and Development sector to come up with more fuel efficient and good quality vehicles, this will not only help them retain current customers and retrieved the old ones, this will also help in earning customer trust that the company is keep to produce a consumer friendly product. Not to forget huge margins are inevitable in the longer run. Though, the investment cost in R&D shall be high, when the company currently bears a cost of $2 billion annually (The Toyota Recall; Understanding the Real Problem, 2010). Thirdly, tasks in groups should be assigned to employees to build in them a tolerance towards others and the
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Toyota, Situation Recommendations and Impacts Name University Toyota, Situation Recommendations and Impacts Year 1937 saw the birth of one of the largest Japanese MNC’s of the current Automobile Universe. Company faced its first financial crisis in 1950, and after a series of rise and falls, successes and failures, joint ventures, out sourcing, expansions and breakthrough products (cars) Toyota topped the charts several times, giving beefy competition to General Motors, Suzuki Motors, Ford, Chevrolet and Honda Motors etc (History of Toyota, (n.d)…
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