major, Toyota Motor Corporati? On august 26, 2010, Toyota Motor Sales USA, the US-arm of Japan-based automobile major, Toyota Motor Corporation (Toyota), announced that it would recall around 1.13 million Corolla and Corolla Matrix vehicles manufactured between 2005 and 2008. The reason cited for the recall was faulty electronic control modules (ECMs) which coild stall the engines. Toyota planned to replaced the ECMs free of cost. Commenting on the recall, James Bell, Market Analyst at Kelly Blue Book, said " As if to rub gasoline in Toyota's already painful wounds, this round of recalls is in response to consumer complaints of unexpected and therefore dangerous engine stalling, rather than the equally unexpected acceleration problems earlier this year.
By late August 2010, Toyota had recalled more than 11 million vehicles over a period of ten months. The vehicles were recalled for different problems ranging from pedals getting lodged under the floor mats causing unintended acceleration, to sticking accelerator pedals. Due to these problems, Toyota was forced to suspend sales and the production of several of its vehicle models in the US. This was followed by significant recalls in Europe, and later by the recall of the Prius Hybrid and the Pontiac Vibe. The problems refused to die down, and the recall was extended to the Lexus, Camry, Highlander Sequoia, Venza and Avalon.
Analyst attributed the quality lapses to Toyota's shifting focus from quality to growth and the drastic cost-cutting measures that the company undertook. They also blamed the company's organizational structure for the problems, saying that it hampered smooth communication between Toyota's headquarters and its offices in other countries. According to Takahiro Fujimoto, Professor of Economics, University of Tokyo, "Toyota faced excessive or overwhelming complexity that even its strong capability could not handle adequately. At the same time, simultaneous pressures came from volume over-extension, possible quality arrogance caused by its long track record of quality excellence, collapse of demand in the U.S. (particularly luxury sales due to the financial crisis), plus other mistakes and some bad luck -- creating something like a chemical reaction.
Toyota was established as a commercial vehicle manufacturer in n1973 with a capital of ¥ 12 million. Toyota had grown over the years through constant pursuit to cut down on costs and waste. At the same time, the company also maintained traditional structures and hierarchy. The engineers reported to functional managers in their technical area.
When Toyota embarked on a maasive cost-cutting journey in 2005, pressure was stepped up on its chief engineers to reduce costs. The cost reduction showed on the quality of the vehicles across the world. The product quality related problems with Toyota came to the fore in August 2009, when a Lexus accelerated out of control, leading to the death of all the four occupants. Industry experts opined that Toyota's response to the crisis had been slow. Akio admitted that the delays in response reflected the hubris and arrogance that Toyota had developed over the years. Toyota was fined US$ 16.4 mllion by the National Highway Traffic Safety Administration for its slow response to the crisis. The company also had to spend millions on advertising and reportedly was on the verge of paying billions in class action lawsuits.
1. Identify the major problems of Toyota and formulate your objective.
2. What are the strengths, weaknesses, opportunities and threats of Toyota Nokia?
3. Formulate your plan, organize what has been planned, who will lead, and prepare a sound control system.
By late August 2010, Toyota had recalled more than 11 million vehicles over a period of ten months. The vehicles were recalled for different problems ranging from pedals getting lodged under the floor mats causing unintended acceleration, to sticking accelerator pedals. Due to these problems, Toyota was forced to suspend sales and the production of several of its vehicle models in the US. This was followed by significant recalls in Europe, and later by the recall of the Prius Hybrid and the Pontiac Vibe. The problems refused to die down, and the recall was extended to the Lexus, Camry, Highlander Sequoia, Venza and Avalon.
Analyst attributed the quality lapses to Toyota's shifting focus from quality to growth and the drastic cost-cutting measures that the company undertook. They also blamed the company's organizational structure for the problems, saying that it hampered smooth communication between Toyota's headquarters and its offices in other countries. According to Takahiro Fujimoto, Professor of Economics, University of Tokyo, "Toyota faced excessive or overwhelming complexity that even its strong capability could not handle adequately. At the same time, simultaneous pressures came from volume over-extension, possible quality arrogance caused by its long track record of quality excellence, collapse of demand in the U.S. (particularly luxury sales due to the financial crisis), plus other mistakes and some bad luck -- creating something like a chemical reaction.
Toyota was established as a commercial vehicle manufacturer in n1973 with a capital of ¥ 12 million. Toyota had grown over the years through constant pursuit to cut down on costs and waste. At the same time, the company also maintained traditional structures and hierarchy. The engineers reported to functional managers in their technical area.
When Toyota embarked on a maasive cost-cutting journey in 2005, pressure was stepped up on its chief engineers to reduce costs. The cost reduction showed on the quality of the vehicles across the world. The product quality related problems with Toyota came to the fore in August 2009, when a Lexus accelerated out of control, leading to the death of all the four occupants. Industry experts opined that Toyota's response to the crisis had been slow. Akio admitted that the delays in response reflected the hubris and arrogance that Toyota had developed over the years. Toyota was fined US$ 16.4 mllion by the National Highway Traffic Safety Administration for its slow response to the crisis. The company also had to spend millions on advertising and reportedly was on the verge of paying billions in class action lawsuits.
1. Identify the major problems of Toyota and formulate your objective.
2. What are the strengths, weaknesses, opportunities and threats of Toyota Nokia?
3. Formulate your plan, organize what has been planned, who will lead, and prepare a sound control system.