Toyota's recall crisis: What have we learned? Crisis management failure | MBA Management Case Study
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Toyota crisis: management ignorance?
Toyota, the world's leading automobile manufacturer and the global benchmark for quality and continuous improvement, was floundering. The company was faced with a recall crisis the likes of which it had never experienced before. This case documents the compromises Toyota made while pursuing a marketing strategy based on quality and customer experience while pursuing an operational strategy of overall cost leadership. Historical information traces the company's evolution from its early focus on lean manufacturing, quality, and the customer to its current focus on aggressive cost control and rapid globalization. It also traces the factors that shaped the context in which the product defects occurred and documents Toyota's failure to respond appropriately and quickly enough. The case covers Toyota's evolution from a small family-run company to a global industry giant; its role in promoting industry-wide lean manufacturing, continuous improvement, and quality, known as the Toyota Way; its responses to a series of highly visible product defects and the resulting erosion of Toyota's reputation.
Toyota, the world's leading automobile manufacturer and the global benchmark for quality and continuous improvement, was floundering. The company was faced with a recall crisis the likes of which it had never experienced before. This case documents the compromises Toyota made while pursuing a marketing strategy based on quality and customer experience while pursuing an operational strategy of overall cost leadership. Historical information traces the company's evolution from its early focus on lean manufacturing, quality, and the customer to its current focus on aggressive cost control and rapid globalization. It also traces the factors that shaped the context in which the product defects occurred and documents Toyota's failure to respond appropriately and quickly enough. The case covers Toyota's evolution from a small family-run company to a global industry giant; its role in promoting industry-wide lean manufacturing, continuous improvement, and quality, known as the Toyota Way; its responses to a series of highly visible product defects and the resulting erosion of Toyota's reputation.
The case answers the following questions
Had the company lost sight of its long-term philosophy, a central principle of the Toyota Way?
Had Toyota sacrificed quality and its traditional customer focus at the expense of extreme cost cutting?
Were they really non-family managers responsible for the "hijacking" of Toyota?
What role did Toyota's supply chain and keiretsu structure play in the recalls? Or was Toyota simply a victim of the latest media witch hunt in the wake of the global economic crisis?
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