Analysis Of "The Recall"Case Of Toyota
I.Review of the case
On the August of 2009,the state of California a Toyota lexus car led to 4 people’s death because of sudden acceleration accidents.The American media doubted that cars had vehicle quality problems and reported constantly which has aroused customers’attention.After all,the Highway traffic safety administration in the United States announced to public that they had received over 100 pieces of letter about the complaint of car accident which led to 5 people’s death.
under the strong pressure of American media and authorities and consumers,Feng Tian company announced that more than 380 vehicles including 7 types such as the camry, the prius and which are sold in America caused accidents because driver’s floor mats jamed the accelerator pedals and couldn't reset and required customers to take off the mats.In the end of 2009,Toyota Company started to recall cars which have quality defect,and managed to recall 8.537 million cars
II .The Influence Of Toyota’s Recall Scandal
Toyota's recall scandal involves a wide range and large quantities，is hard to estimate the direct and indirect losses will be caused. Global institutions estimate of losses from the hundreds of millions to billions of dollars. In less than a year, accumulated more than 800 cars of several recall scandals make Toyota felt the unprecedented pressure. The recall greatly affect the profit targets of Toyota, there is no doubt that hurts the sinews of Toyota.
Recall not only shaken the Toyota's status as a global "boss", but also hurt its image of "safe, reliable, serious impact on consumer confidence in the Toyota.
III.Toyota's problems
(1)the rapid expansion of strategic error
Mr. Okuda 1995 as director, President, Toyota Toyota business strategy began to change, at the beginning of power, Mr. Okuda appears once is: first to occupy 10% of the global auto market, Toyota to achieve by 2010 gm's market share was 15%. Ten years Toyota's production plants abroad has more than doubled. In this crazy, under the strategic goals of speed is placed in the first, and started with Toyota on lean production, lean management is ignored. Under high speed expansion strategy, Toyota too pursuit of research and development speed and cost control, so as to ignore the technical reserves and quality control. Organizational culture is common to the members of the organization is able to influence the behavior of the values, principles, traditions and way of story. These Shared values and practices will evolve over time, and to a great extent, determines the "what is being done here." High-speed development strategy makes employees are influenced by the culture, began to don't pay attention to quality, only care about the number, and finally produced the incident 。
(2).The problems of Supply system
In order to keep pace with the expansion, Toyota continues to shorten the developing time of product. Toyota from domestic production, to Asia production, global production, its production chain is too scattered, so the total quality of management becomes difficult to manage, easy to cause negligence. This poses a challenge for Toyota's management. National culture from a specific country national Shared values and attitudes of individuals, and these values and attitudes determine their behavior and their perceptions of what is important. Toyota cannot understand and control the action criterion of employees from all over the world, many of them may not care about the quality of the car, the defect after the seeds.
(3)overemphasis on cost reduction, l ead to hard to ensure quality.
Toyota continuous compression parts purchasing cost, simplifying the components design and development and empirical testing, hard to ensure parts quality. Toyoda in June 09, launched in 2013, new car, spare parts price to reduce 30%. Such a cost reduction, supplier is likely to sacrifice quality.
V.Toyota recalls Lessons for Us
Enterprises in crisis whirlpool, is the focus of the public and the media.With every move you will receive challenges, so do not be left to chance, under false pretenses. They should take the initiative to contact the media to communicate with the public as soon as possible.Telling the truth,brings the two sides to understand each other and avoids of doubt and anxiety.
Toyota should correctly apply these sincere[5] principles of communication, because this is one of the most basic principles dealing with the crisis.
(1)Frankness
After the first time when the Toyota "recall" incident broke out , the company's management level should explain the situation to the event to the public at a press conference and express deep apology , which reflect the corporate courage to take responsibility and the enterprise culture and win the sympathy and understanding of the consumers.
(2)Sincerity
All depend on the interests of consumers and do not evade the issue and error,communicate with the media and the public in time ,inform consumers the progress of the event take appropriate measures to restore and regain consumer trust and respect. Attitudes and measures should be fair, consistent, and shall not discriminate against certain consumers.
(3)Honest
Consumers will forgive an enterprise’s unintentional error, but will not forgive the lying behavior of an enterprise. That is to say , Toyota should admit the truth bravely without a trace of concealing consumer behavior. After all, the consumer's’ right to know is the most important.
References:
[1]Baidu Encyclopedia
[2]Baidu Encyclopedia
[3]Chapter2,2.3.1”What is organizing culture?”
[4]See G.Hofstede, Culture`s Consequences: international Differences in Work-Related values, 2d ed.(Thousand Oaks, CA：Sage Publications, 2011), pp.9-15
[5]Baidu Library