How might Toyota have improved its response to this crisis

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Crises at Toyota and Your Client Company

Response Guidelines

Read the posts of your peers and respond to at least two. When responding to others, seek clarification, share your personal experiences that relate to their experiences, and provide feedback on their posts.

Student 1

· How might Toyota have improved its response to this crisis? Toyota responded to the incident of having mass recalls damaging the companies reputations fairly well through “1. Go back to basic and communicate with customers and dealers, 2. Empower the regions, and 3. Improve the brand”. A company can always improve though so my thoughts for the company are as follows. The company made a big improvement by halting new projects and recommitting to quality standards, but the company could have done more and poured money into these initiatives to come up with new standards that would benefit the consumers such as Subaru’s “EyeSight” initiative that utilizes cameras of the vehicle to sense impending accidents and avoid them through the use of the vehicles safety features. While I don’t think Toyota did a bad job coming back from a public backlash, every company could always do more to win customer loyalty.

· How does the crisis described in this article relate to the difficulties your client company is facing? The recall scandal is in effect very similar to the crisis Subaru is dealing with, as both companies are car manufacturers and it deals with public opinion of the brand. Subaru is dealing more directly with bad management resulting in scandal that involves final vehicle expectations regarding emissions and fuel efficiency, Toyota dealt with faulty manufacturing that could have resulted in consumer danger. Both companies learned the lesson that as Toyota put it “customer first, dealer second, Toyota third” relating to the fact that companies produce products for customers and their satisfaction needs to be the first priority otherwise there would be no reason for producing the goods.

 

· What else have you learned in this unit’s readings and resources that is relevant to your own Operations Improvement Plan project? I have learned that companies tread a fine line between earning profits for shareholders and maintaining quality products for consumers.This challenge must be faced by management of the company, so profits can be earned for shareholders and quality can be assured for the consumers. Operations management is the key to finding a healthy balance that will benefit both consumers and shareholders of the company.

References:

Gerondeau, G. (2015, September 23). How Toyota recovered from a huge crisis. What can be learned from it [Blog post]. Retrieved from https://the thirdroad.com/?p=280

Russell, R. S., & Taylor, B. W. (2017). Operations and supply chain management (9th ed.). Hoboken, NJ: Wiley. ISBN: 9781119320975

Student 2

How might Toyota have improved its response to this crisis?

How does the crisis described in this article relate to the difficulties your client company is facing?

What else have you learned in this unit’s readings and resources that is relevant to your own Operations Improvement Plan project?

All companies around the world strive to be the better company by making customers the number one priority. This philosophy seems to work great and some have been successful in following this. Other companies have also tried to use other ways to relate to their customers by being proactive when problems come up. During the period Toyota’s vehicles were recalled, actions to fix the problem happened almost immediately; however, Toyota did not take the proper actions after recalls. It wasn’t after sales drastically went down and their reputation was tarnished did they come up with a plan. The plan should have occurred when recall took place; this is inevitable. They should have implemented more training with employees, paying attention to quality instead of quantity.

I chose Toyota as the company for my project; this article is related to some of the topic I’m trying to work on. My specific project is focused on Toyota Prius models, but during my research I found that previously, other Prius models were also recalled. This shows Toyota’s lack of precision, solving problems should be long term. There should be a constant need to improve; it seems when the problem is solved, the employees become complacent until the next problem comes along. My research for the recall is in September 2018 and this discussion’s article was written in 2015, which means Toyota has yet to find solutions to their problems, even though the author wrote the steps taken when they went into crisis mode: in 2018, they’ve gone back to square one.

As mentioned above, this article particularly has enlightened what research I need to do. Even looking at the proper steps Toyota took back when this article was written; in 2018, the problem is still not solved. This unit brings into question Toyota’s internal problems. The external environment doesn’t seem to be a problem since they’re still getting customers; however, their continuous recalls every time should be a red flag that there needs to be a change internally. For example, employee training, reliance on reaching a daily quota; overall, Toyota should focus on quality versus quantity.

Reference:

Gerondeau, G. (2015, September 23). How Toyota recovered from a huge crisis. What can be learned from it. Third Road. Retrieved October 16, 2018 from https://thethirdroad.com/?p=280

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