A Case Study of the Toyota Automobile's Internal Misplay That Led to the Series of Crisis in 2009 Essay
IntroductionIn the year 2009, Toyota automobile company went through a series of crisis due to the quality of cars produced that resulted in calling off of some of its products as well as the closure of some assembly plants located in the United States (Greto, 2010). As a result of the crisis, the reputation of the company as the best car producer across the globe has been threatened. Since the crisis hit the global vehicle producer and automobile company due to the brakes that did not function properly in some of the models the company has lost a large number of customers as well as customers loyalty. DiscussionWith an aim of winning back the lost loyalty among customers, creativity, innovation, and growth have been primary in every production process that the company engages in. These processes are also aimed at ensuring that the company reaches a larger share of the market. In many firms, negative events normally crop up when they are unprecedented and cause reputational crisis into the organization that may hamper profit making thus slowing down the growth of the firm. According to Feng, (2010) no matter how long the crisis will take, the crisis would interfere with both the internal and external stockholders of the company. Some organizational processes were already happening in Toyota Company before the crisis hit it. The first organization process was the public safety delivery that was aimed at giving information on the challenge of the ill-fitting mat in some of their models. The second process was recalled announcement of the defective products. These processes were important since they created awareness about the situation of the firm and the cause of the stuck gas pedal challenges. The problem gave rise to the largest ever recalls of its cars which were approximately 4.1 million in both Europe and America (Greto, 2010). The company should increase its production by expanding its plants in areas such as North America. By...
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