toyota crisis

2.  INTRODUCTION
 COMPANY PROFILE
 KEY ISSUES IDENTIFIED
 CASE ANALYSIS
 FACTUAL DATA
 RECOMMENDATIONS
 CONCLUSION

3.  Crisis Management at Toyota Motors Corporation
 Problems with braking, Floor mats and Acceleration pedals
 Recalls led Toyota to halt sales
 Affected the company's position in the global automotive
industry
 Questions on Toyota's legendary quality

4.  Recognized as "Automaker Market leader“
 TPS is the key contributor in its success
 Was founded by Sakichi Toyoda in Japan in 1937
 Toyota's primary business segment was
automotive - design, manufacture and sales
 Mission statement and Vision statement

5.  Accelerator pedals trapped by floor mats.
 Poor design of accelerator pedals.
 Prius Model brake & heating problems.
 Loose power while driving.

6.  SWOT Analysis
o Strengths
 Strong Focus on R&D.
 Most valuable automobile brand.
o Weakness
 Negative publicity due to large recalls.
 Poor brand portfolio.
o Opportunities
 Demand for autonomous vehicles.
 Timing & frequency of new model releases.
o Threats
 Increasing competition in automobile market.
 Subject to government regulations.

7.  PESTEL Analysis
o Political
 Free trade agreements.
 Government stability in major
markets.
o Economical
 Gradual growth of U.S
economy.
 Rapid growth of developing
countries.
o Social
 Increasing interest in electric
cars.
 Widening of wealth gap.
o Technological
 Rising use of E-commerce.
 Mobile technology trend.
o Ecological
Declining global oil reserves.
 Increasing emphasis on business
sustainability.
o Legal
 Increasing complex of environmental
laws.
 Improving intellectual property laws.

9.  Admit and apologize the errors.
 Develop a durable fix for sticky gas pedals.
 Software upgradation in existing and upcoming
models.
 Develop functional risk management or crisis
management team.
 Develop new Quality Control Procedure.

10. As per the analysis of the case we come to know that, Toyota motors not
only suffered losses but also a fall in the market position due to the recall of
various models, which could have been avoided if they would have adopted or
maintained a crisis management team.
Still the company is undergoing with various safety programmes that will
be installed in the upcoming models under the project of TSS (Toyota Safety
Sense) few of which are as follows :-
◦ Pre-Collision System
◦ Lane Departure Alerts with Steering Assist Function
◦ Automatic High Beams
Once they test and verify this systems it will be soon launched in the
markets pre-installed in their models that will not only help to reduce the
number of accidents but also help the company to climb back up their market
position.