SMCU8

Conduct online research on Toyota with particular emphasis on the brake crisis. Examine reports from both company and non-company sources.

1. From a strategic perspective, discuss recent environmental changes that have caused strategic issues with which the company is dealing in real time, today.  Information concerning recent changes in the firm is readily available online.

 In consideration of strategic perspective, multiple environmental changes are contributing to strategic issues in Toyota Company. For instance, many firms have ventured in the automotive activities (Camuffo & Wilhelm, 2016). To illustrate, Toyota is competing with many huge names in the market including Hyundai, Mitsubishi, Volkswagen, and Ford. Based on the above information, Toyota is currently trying to distribute its products at lower prices as well as manufacturing and affordable cars to be able to outweigh its competitors (Ito, 2014). Second, the cost of raw materials has increased at a higher rate, hence, forcing Toyota Company to focus on locally available materials utilized in the automotive industry (Toyota-Global.Com, 2018). Still, the vehicle manufacturing sector is experiencing a threat of exchange rates, which in turn makes the charges of final products to be higher (Parnell, 2017). While catering to the above issue, Toyota has laid more emphasis on marketing and promotion to ensure that it has sold a huge volume of automobiles, hence, managing to make the targeted revenues and profit without subjecting the consumers to higher prices. 

Furthermore, the notion of relying on suppliers is also adversely impacting Toyota. In consideration with the above statement, this company is opting to pay these distributors on the commission to ensure that they put more effort while supplying institutional products to the intended destinations (Parnell, 2017). According to Pardi (2005), the national governments have come up with new rules and policies for conserving the environment and reducing emissions, hence, impacting Toyota’s performance in a negative manner (Ito, 2014). Because of the institution of the above rules, Toyota has started to produce automobiles those does not pollute the environment at a higher rate. 

2. To what extent was Toyota responsible for the crisis? Was it preventable or simply “bad luck?” Explain.

Toyota is responsible for the experienced crisis since its aspect of operating in denial towards the existing problems instead of making reassurance have made things to be worse. To illustrate, the denial plan is hindering Toyota from accepting that there are issues that need to be solved within the organization (Rajasekera, 2013). Irrespective of the way the management in this company reacted to the existing problems, there is clear evidence that Toyota had previously denied and ignored this issue until the point where it was forced to take the necessary action (Tolman, 2016). If Toyota could have responded to this challenge at the right time, the problem could not have worsened (Parnell, 2017).  According to Kehr  & Proctor (2017), Toyota could have managed to control the situation, thereby, maintaining loyalty and respect from the consumers as well as the community at large.

Was Toyota treated fairly by the NHTSA and other U.S. government entities? Justify your response.

There is confidential information denoting that the NHTSA, as well as various U.S. government agencies, have treated Toyota in a fair manner. Beside NHTSA having recognized that there is no defect available in vehicles whose driver’s floor are appropriately safeguarded (Calo, 2014). Based on the above information, it was ethical for NHTSA to accuse Toyota of providing misleading information concerning the recall, hence, an indication that the removal of mats does help in resolving the existing issue (Ito, 2014). To illustrate, Toyota can be considered dishonest since the company was aware of the problem, but it failed to take the necessary measures, hence, ending up blaming other parties responsible for building floor (Parnell, 2017). The evidence has it that if Toyota was truthful, then it could have easily restored the client confidence (Ahsan, 2013). By observing the above scenario, it occurs that the government institutions had also taken the necessary action against Toyota because of its negligence. 

3. Suppose you were CEO of Toyota at the time of the case. What action could you have taken before the crisis to minimize the possibility that such a crisis would occur? How would you have managed the crisis once it unfolded? Provide specifics.

While acting as the Toyota’s CEO, there is various action I could have taken before the crisis to ascertain such unfortunate situation does not occur. In the first place, I would lean on Toyota’s success by focusing on its pioneering philosophy that is client-based, hence, being able to concentrate on building eminence (Johar et al., 2010). Still, I would also put lots of emphasis on practices that will facilitate the process of saving cost. On the same note, I could have avoided instances of relying on-demand supplier to be able to retain the core values achieved through corporate branding process. Nevertheless, I could have tried all the way possible to connect organizational values, culture, vision, and mission with company’s operation to improve the quality of Toyota’ products and services (Parnell, 2017). Essentially, the above factors will contribute to a positive implication on the product attributes, brand architecture, communication strategy, and brand positioning. On the other hand, I would put more focus on the elements linked to the company’s core value. Also, I would ensure that Toyota’s globalization is done diligently to maintain quality production (Kitagawa, 2007). Nevertheless, I could have ensured the Toyota’s management is fully understanding the ethical practices, hence, making it easy to alienate themselves from the actions that can negatively impact the company’s reputation. In connection to the above information, Toyota’s workforce should be enlightened about the importance of practicing integrity, transparency, and accountability (Ito, 2014). All the above practices will be suitable for preventing the occurrence of the crisis in the Toyota Company. 

Conduct online research on a company, other than Toyota, that has experienced a severe crisis in the last 5 years. Examine reports from both company and non-company sources.

4. Discuss the crisis you have selected including details of what happened, what the company did (or is doing) to address the crisis and public response to the crisis.

Similar to Toyota, Uber has also experienced challenges that adversely affected its operations. In 2017, this company had experienced a crisis when it was exposed that its CEO, Travis Kalanick was implementing President Trump’s counsel to operate this firm. Before the revelation of this problem, the hashtag DeleteUber started to spread on the social media; hence, Travis was forced to stop leading Uber (Noto La Diega & Jacovella, 2016). On February 2017, this hashtag still came back since Uber had started to function at JFK International Airport at the time of demonstration against Trump for banning immigration (Zhou, 2017). At the same time, Susan Fowler Righetti also raised claims that he was sexually harassed, hence, indicating that this company was unable to monitor the behaviors of its workers (Boshuijzen-van Burken & Haftor, 2017). Based on the above incident, Travis called for an immediate investigation of the issue, although the previous investors denoted that the internal investigator was impartial and they have arbitrated Uber’s private clause (Perkiss, 2018). Otherwise, this hashtag is confirmed to have gone viral a few days, particularly when there was exposed a clip surfacing Travis quarreling with an Uber driver concerning transport payment. However, the Uber’s CEO has solved this crisis by writing better leader letter promising to be ethical as well as assuring the individuals using this company that they will be secured in their journeys (Parnell, 2017). For instance, this company has launched hotlines where the passengers can raise a grievance, claims and compliant as well as report Uber’s vehicle and drivers violating the transport rules and regulation. 

5. Explain, in detail, what could have been done to avoid this type of crisis.

However, there are several things that Uber could have done to avoid the existence of an operational crisis. First, this company could have concentrated on goodwill marketing, hence, showing that can carry on its operations even during the tricky instances (Martini, 2017). Moreover, this company should allow its riders to control their data instead of utilizing the ‘God View’ application to view the riding history and tracking the clients’ information. In connection with the above information, this company is supposed to assure its users that it has total control over their information and promise them that their information will be kept confidential (Rosenblat & Hwang, 2016). To illustrate, the above action leading to an increase in some individuals using Uber services since they are assured that the company is practicing integrity in all its operations (Boshuijzen-van Burken & Haftor, 2017). Still, while solving the revealed crisis, I would be certain that Uber does not associate itself with political matters, through ascertaining that no single organization is influencing the company performance, hence, managing to deplete problems like those caused by President Trump. Furthermore, I would guarantee that the Uber riders are all verified by the appropriate agencies in their nation to avoid instances of working with people who do use ethical standards while interacting with clients (Zhou, 2017). In this case, I could have ascertained that Uber users have full responsibility to transport the passengers from one destination to the other without harassing them or using unethical and inhuman practices (Parnell, 2017). In clarity, the above directives are helpful in ascertaining that there is effective interaction between the Uber drivers and their customers as well as the broader community.  

6. Was this crisis managed effectively?  Explain.  What can other companies learn from this experience?

Uber management, have effectively managed the existing crisis, hence, enhancing the restoration of reputation. For instance, the community members are aware that Uber has better services presently (Posen, 2015). Besides,  its drivers are trying the best way possible to be disciplined, accountable, and transparent (Zhou, 2017). Moreover, this company is presently alienating itself from being involved in political issues, hence, being able to serve the clients in an unbiased manner (Boshuijzen-van Burken & Haftor, 2017). Also, this company is timely responding to complaints and grievances raised by its clients and taking the necessary legal measures to individuals who violate the operational rules and regulations. 

Conversely, there are many lessons that leaders from other companies can learn from Uber’s effective and efficient operations. For instance, the other firms should have the capability of identifying the existing issues, fix them and explain to the community the actions they have used while solving the problems identified (Zhou, 2017). Moreover, the business leaders are supposed to understand the need of safeguarding client information through coming up with strict limits about the details that customer should access (Boshuijzen-van Burken & Haftor, 2017). Furthermore, other firms should also start appreciating their workers and educate them about being transparent particularly while delivering organizational products and services. Still, other firms should always be ready to apologize when they are found guilty of committing certain unethical practices and promise the community that the same unfortunate scenario will not occur again (Glöss et al., 2016).  Besides, Uber has helped other companies to exercise humility and show a willingness to change (Parnell, 2017) At this point, the organizational managers should always be ready to make the necessary transformations to promote continuous growth and development in their companies.

References

Ahsan, K. (2013). Trend analysis of car recalls: Evidence from the US market. International Journal of Managing Value and Supply Chains, 4(4), 1-16. 

Boshuijzen-van Burken, C., & Haftor, D. M. (2017). An Assessment of the Uber App’s normative practice. Philosophia Reformata, 82(2), 192-215.

Calo, R. (2014). The case for a federal robotics commission| Brookings Institution. Brookings. 15-Sep-2014, 1-18. 

Camuffo, A., & Wilhelm, M. (2016). Complementarities and organizational (Mis) fit: A retrospective analysis of the Toyota recall crisis. Journal of Organization Design, 5(1), 1-13. 

Glöss, M., McGregor, M., & Brown, B. (2016, May). Designing for labor: Uber and the on-demand mobile workforce. In Proceedings of the 2016 CHI conference on human factors in computing systems, 1632-1643.

Ito, H. (2014). Toyota as an environmental model city: Is its eco-policy recognized?. Journal of Sustainable Development, 7(2), 1-8. 

Johar, G. V., Birk, M. M., & Einwiller, S. A. (2010). How to save your brand in the face of crisis. MIT Sloan Management Review, 51(4), 57-65. 

Kehr, T. W., & Proctor, M. D. (2017). People pillars: Re‐structuring the Toyota Production System (TPS) house based on inadequacies revealed during the automotive recall crisis. Quality and Reliability Engineering International, 33(4), 921-930.

Kitagawa, H. (2007). The procurement activities of Japanese companies in Asian countries. ASEAN SMEs and Globalization. ERIA (Economic Research Institute for ASEAN and East Asia), 365-399.

Martini, J. D. (2017). International regulatory entrepreneurship: Uber’s battle with regulators in France. San Diego Int’l LJ, 19, 127-160. 

Noto La Diega, G., & Jacovella, L. (2016). User trust: How Uber represents itself to its customers through its legal and non-legal documents. Journal of Civil and Legal Sciences, 5(4), 199- 205. 

Pardi, T. (2005). Where did it go wrong? Hybridization and crisis of Toyota Motor Manufacturing UK, 1989–2001. International Sociology, 20(1), 93-118.

Parnell, J. A. (2017). Strategic management: Theory and practice. Academic Media Solutions, (5), 263-284. 

Perkiss, S. (2018). Postcapitalist precarious work and those in the ‘drivers’ seat: Exploring the motivations and lived experiences of Uber drivers in Canada. Social and Environmental Accountability Journal, 38(3), 228-229.

Posen, H. A. (2015). Ridesharing in the sharing economy: Should regulators impose Uber regulations on Uber. Iowa L. Rev., 101, 405-435. 

Rajasekera, J. (2013). Challenges to Toyota caused by recall problems, social networks, and digitization. Asian Academy of Management Journal, 18(1), 1-17. 

Rosenblat, A., & Hwang, T. (2016). Regional Diversity in autonomy and work: A case study from Uber and Lyft drivers. Intelligence and Autonomy, 1-15.

Tolman, T. (2016). The Toyota accelerator crisis: A shattered Asian miracle. The Earlham Historical Journal, 31, 1-9. 

Toyota-Global.Com. (2018). What’s new. Retrieved from https://www.toyota-global.com/sustainability/environment/index.html

Zhou, T. (2017). What Uber needs to do to fix its reputation, Retrieved from https://www.fastcompany.com/3042107/why-ubers-success-means-nothing-if-it-cant-fix-its-reputation