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Gwendolyn Beauford - WK3Assgn Beauford G (Global Crisis Management_dwyer comments65625.docx

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Gwendolyn Beauford - WK3Assgn Beauford G (Global Crisis Management_dwyer comments65625.docx

  1. 1. DDBA_8006_Week_3_Assignment_Rubric Faculty Comments: Thank you for Week 3 – Assignment. I have graded your Application to reflect the Rubric assessment: DDBA_8006_Week_3_Assignment_Rubric. Grade: 87.25/100 = 65.625/75 Superior Criteria Excellent Criteria Satisfactory Criteria Marginal Criteria Unsatisfactory Criteria Not Submitted Element 1: Definition of Product-Harm Crisis In Context to Toyota Case Study 8 (8%) Student presents a thorough and detailed evaluation of the definition of product-harm crisis within the context of the Toyota case study. Several sources and examples support thinking. 7.6 (7.6%) Student presents a thorough and detailed evaluation of the definition of product-harm crisis within the context of the Toyota case study. Several sources and examples support thinking. There are one or two minor errors in evaluation. 6.8 (6.8%) Student presents an evaluation with some details of the definition of product- harm crisis within the context of the Toyota case study. Some sources and examples support thinking. 6 (6%) Student presents a cursory or incomplete evaluation with vague or missing details of the definition of product-harm crisis within the context of the Toyota case study. Few sources or examples support thinking. 4 (4%) Does not meet minimal standards. 0 (0%) Did not submit element. Element 2: Problems Toyota Leaders Must Solve 8 (8%) Student presents a thorough and detailed explanation of the problems the Toyota leaders must solve. Several sources and examples support thinking. 7.6 (7.6%) Student presents a thorough and detailed explanation of the problems the Toyota leaders must solve. Several sources and examples support thinking. There are one or two minor errors in explanation. 6.8 (6.8%) Student presents an explanation of some of the problems the Toyota leaders must solve. Some sources and examples support thinking. 6 (6%) Student presents a cursory or incomplete explanation of the problems the Toyota leaders must solve. Few sources or examples support thinking. 4 (4%) Does not meet minimal standards. 0 (0%) Did not submit element. Element 3: Successful and Unsuccessful Organizational Changes 8 (8%) Student presents a thorough and detailed analysis of the organizational changes that were successful and unsuccessful. Several sources and examples support thinking. 7.6 (7.6%) Student presents a thorough and detailed analysis of the organizational changes that were successful and unsuccessful. Several sources and examples support thinking. There are one or two minor errors in analysis. 6.8 (6.8%) Student presents an analysis of some of the organizational changes that were successful and unsuccessful. Some sources and examples support thinking. 6 (6%) Student presents a cursory or incomplete analysis of the organizational changes that were successful and unsuccessful. Few sources or examples support thinking. 4 (4%) Does not meet minimal standards. 0 (0%) Did not submit element. Element 4: Recommendations for Strategies 8 (8%) Student presents a thorough and detailed synthesis of his/her analysis of the literature to develop one or more recommendations for strategies Toyota might use to manage this product-harm crisis and recover brand loyalty in the global market. Several sources and examples support thinking. 7.6 (7.6%) Student presents a thorough and detailed synthesis of his/her analysis of the literature to develop one or more recommendations for strategies Toyota might use to manage this product-harm crisis and recover brand loyalty in the global market. Several sources and examples support thinking. There are one or two minor errors in assessment. 6.8 (6.8%) Student presents an explanation that somewhat synthesizes his/her analysis of the literature to develop one or more recommendations for strategies Toyota might use to manage this product-harm crisis and recover brand loyalty in the global market. Some sources and examples support thinking. 6 (6%) Student presents a cursory or incomplete synthesis of his/her analysis of the literature to develop one or more recommendations for strategies Toyota might use to manage this product-harm crisis and recover brand loyalty in the global market. Few sources or examples support thinking. 4 (4%) Does not meet minimal standards. 0 (0%) Did not submit element. Element 5: Components of Paper 8 (8%) Students submits a comprehensive, well- organized paper that includes for each page at least two to three APA- formatted scholarly citations. There are no errors. 7.6 (7.6%) Students submits a comprehensive, well- organized paper that includes for each page at least two to three APA-formatted scholarly citations. There are one or two minor errors in formatting. 6.8 (6.8%) Students submits a paper that includes for each page at least two APA-formatted scholarly citations. There are issues with selection of citations and/or consistent errors in formatting. 6 (6%) Students submits a paper that includes some citations, but does not submit at least two APA- formatted citations per page. 4 (4%) Does not meet minimal standards. 0 (0%) Did not submit element. Element 6: Written Delivery Style & GrammarElement 6: Critical Thinking 30 (30%) Writing exhibits excellent evidence of thoughtful critical analysis and thinking; careful examination is made of assumptions and possible biases, with detailed supporting rationale. Writing 28.5 (28.5%) Writing exhibits excellent evidence of thoughtful critical analysis and thinking; careful examination is made of assumptions and possible biases, with detailed supporting rationale. Writing synthesizes the classroom experiences and content; analyze patterns or connections between theory and practice; 25.5 (25.5%) Writing exhibits some evidence of thoughtful critical analysis and thinking. A good examination is made of assumptions and possible biases, with some supporting rationale. Writing synthesizes 22.5 (22.5%) Writing exhibits little evidence of thoughtful critical analysis and thinking. Examination is not made of assumptions and possible biases. Writing does not synthesize the classroom experiences and content; nor 15 (15%) Does not meet minimal standards. 0 (0%) Did not submit element.
  2. 2. Superior Criteria Excellent Criteria Satisfactory Criteria Marginal Criteria Unsatisfactory Criteria Not Submitted synthesizes the classroom experiences and content; analyze patterns or connections between theory and practice; and draws logical conclusions based on well-reasoned, superb arguments. and draws logical conclusions based on well- reasoned, superb arguments. There are one or two minor errors in explanation. the classroom experiences and content; analyzes patterns or connections between theory and practice; and draws logical conclusions based on well- reasoned arguments adequately, but not superbly. analyzes patterns or connections between theory and practice. Logical conclusions based on well- reasoned arguments are not exhibited. Element 7: Written Delivery Style & Grammar 15 (15%) Student consistently follows APA writing style and basic rules of formal English grammar and written essay style. Student communicates in a cohesive, logical style. There are no spelling or grammar errors. 14.25 (14.25%) Student consistently follows APA writing style and basic rules of formal English grammar and written essay style. Student communicates in a cohesive, logical style. There are one or two minor errors in spelling or grammar. 12.75 (12.75%) Student mostly follows APA writing style and basic rules of formal English grammar and written essay style. Student mostly communicates in a cohesive, logical style. There are some errors in spelling or grammar. 11.25 (11.25%) Student does not follow APA writing style and basic rules of formal English grammar and written essay style and does not communicate in a cohesive, logical style. 7.5 (7.5%) Does not meet minimal standards. 0 (0%) Did not submit element. Element 8: Formal and Appropriate Documentation of Evidence, Attribution of Ideas (APA Citations) 15 (15%) Student demonstrates full adherence to scholarly reference requirements and adheres to APA style with respect to source attribution, references, heading and subheading logic, table of contents and lists of charts, etc. There are no APA errors. 14.25 (14.25%) Student demonstrates full adherence to scholarly reference requirements and adheres to APA style with respect to source attribution, references, heading and subheading logic, table of contents and lists of charts, etc. There are one or two minor errors in APA style or format. 12.75 (12.75%) Student mostly adheres to scholarly reference requirements and/or mostly adheres to APA style with respect to source attribution, references, heading and subheading logic, table of contents and lists of charts, etc. Some errors in APA format and style are evident. 11.25 (11.25%) Student demonstrates weak or inconsistent adherence scholarly reference requirements and/or weak or inconsistent adherence to APA style with respect to source attribution, references, heading and subheading logic, table of contents and lists of charts, etc. Several errors in APA format and style are evident. 7.5 (7.5%) Does not meet minimal standards. 0 (0%) Does not meet minimal standards.
  3. 3. 3 Global Crisis Management—A Case Study of Toyota Gwendolyn Beauford Program Name or Degree Name DDBA-806: Contemporary Challenges in Business Rocky Dwyer October 16, 2022
  4. 4. 4 Global Crisis Management: A Case Study of Toyota (850 words) Product recalls have increasingly become a commonplace within the contemporary business world. Product recalls mainly refers to the request to replace, exchange, or return a given product(s) following the discovery of defects by either a consumer watch group or the manufacturer that the products can hamper performance, produce legal concerns for producers or harm consumers (American Society for Quality[ASQ], 2022). Product recalls are considered by organizations as a strategy when experiencing a product-harm crisis that might potentially cause tremendous financial or human costs (Rajasekera, 2013). In this context, this paper explores the case of Toyota to present the meaning of a product-harm crisis, including the challenges faced by organizational leaders to address the crisis, and recommended strategic actions that an organization, in this case Toyota, should have utilized to manage the crisis. Definition of Product-harm Crisis A product harm-crisis generally refers to a scenario where the products manufactured by an organization are identified with defects forcing the manufacturer to recall them form clients, which results in the destruction of the manufacturer’s brand image and reputation, financial downfall, as well as possible human costs. This definition aligns with Toyota’s case study in relation to the three aspects of a product harm crisis. The first aspect includes financial costs associated with a product-harm crisis. In the case of Toyota, the company experienced a major financial loss following the product-harm crisis that resulted in the recalls of its products. After the spread of the news through the media concerning Toyota’s recall of 2.9 vehicles on 21st January 2010, along with the 3.9 million automobiles recalled within a few previous months, the company’s stoke performance suddenly fell to its to its worst recorded level (below -15%) in its history. During the same year the CNBC reported that Toyota was being sued by clients seeing
  5. 5. 5 compensation for value lost for their trucks and cars in proposed lawsuits of approximately $3billion in probable damages (Anderson|Ap, 2010). Among the shareholders that sued the company included, Toyota investors who ultimately caused a further drop of Toyota’s stoke price fell nearly 16% in early march, 2010 (Anderson|Ap, 2010). The second aspect of a product harm-crisis includes the human costs such as injuries and in worst case scenarios, deaths (Liu et al., 2016). According to Rajasekera (2013), aside from the financial losses, Toyota experienced human costs involving deaths of 52 people as a result of emotionally charged accidents due to sudden acceleration problems. The other aspect includes the development and establishment of a negative brand image and reputation amongst the clients. In the case of Toyota, Rajasekera (2013) reported that the internet, as well as the social media including Twitter and Facebook reported negative news that spread rapidly through China, Europe, Japan and across the globe resulting the destruction of its long-cultivated image worldwide. Therefore, a product-harm crisis is a situation that frequently results in product recalls that have significant negative consequences on the organization’s reputation, financial value and the stakeholders, particularly the human costs and associated unprecedented legal ramifications. Challenges that Toyota Leaders should Solve based on the case Scenario A product-harm crisis presents significant challenges for organizational leaders to resolve. Based on Toyota’s case scenario, the most significant challenge was establishing trust within the public. Toyota’s reputation was destroyed through the forced recalls by the US administration due to increased influx of complaints (Rajasekera, 2013). As such Toyota’s client base lost its trust to the company’s products especially following the destruction of the company’s image by the news media that sudden acceleration concerns were associated with the
  6. 6. 6 deaths of 52 persons. Trust is very crucial in establishing brand loyalty in any manufacturing organization (Martínez & Del Bosque, 2013). The other challenge for Toyota’s leadership included its sluggish response to justify the concerns associated with the production system through a public relations approach. Specifically, the “Toyota Way” along with quality circles and the total quality control mantras reflect the failures associated with on-job training due to the increased turnover experienced at the time. While Toyota was rapidly expanding, the number of factories increased and it became difficult for leaders to monitor quality concerns of the such as offering workers authority to stop production defects once noted. Such practices result in bureaucracy that impedes proper decision-making process within organization (Hirst et al., 2011). Analysis of Successful and Unsuccessful Organizational Changes in the Case of Toyota The successful organizational changes included the restructuring of the organization to include a social media strategy team and an online newsroom for coordinating media releases from distinct departs like customer service and dealers, and public relations (Rajasekera, 2013). This strategy is important in determining ethical concerns and false claims from different organizations and refuting those claims to de-escalate the crisis (Song et al., 2019). One of the unsuccessful strategies that Toyota emphasized based on the case scenario included the SNS strategy. According to, Rajasekera (2013), Toyota introduced the “Toyota Fan Club” on Facebook that did not reflect both sides of the client’s opinions concerning its products and the recalls since most people who joined the club only had a positive opinion concerning the company or brand. Moreover, the SNS strategy did only focused on the then recall problem and failed to clearly indicate reasons for the recall.
  7. 7. 7 Another failed strategy included the creation of a defect-reporting database for monitoring of timely automobile-related complaints from clients. However, according to the case scenario, Toyota failed to monitor progress of the complaints within the database (Rajasekera, 2013). Moreover, the employees were not empowered to realize the mission and vision of the company concerning the newly created communication channels. Therefore, there was no much effort put in regards to closely following the complaints launched by clients within the already set-up database. Recommendations The findings inn the analysis section indicate that Toyota’s leadership had significant challenges in addressing the crisis effectively. Specifically, even though Toyota’s President offered a public apology for the recalls, he failed to emphasize a leadership strategy tailored to establishing loyalty among the clients. In this context, The President ought to have been a proactive in quicky responding to any issues raised by clients. Instead, he was passive in solving the problem and waited until being summoned by the US authorities, when he decided to make a public apology. The president should have proactively inspired his social media strategy and an online newsroom team to actively engage the affected clients and provide them with real-time information concerning the sudden acceleration problem to avoid the deaths that the crisis. Ding, L. and Jiang (2021) noted that proactive communication strategies often improve product loyalty because they lead the clients into believing that companies bear product responsibility, and that the products are of good quality. The other recommendation involves the organizational structure of Toyota. In this context, the findings from the analysis of the case scenario suggest that Toyota failed to put in place effective strategies for preventing a product-harm crisis within its quality control
  8. 8. 8 department. Indeed, Toyota only focused on the firm’s growth and revenue generation and failed to emphasize quality of products. To address this concern, Toyota and other companies alike should empower lower-level workers to report problems at the production stage to the executives directly in a timely fashion. By doing so, the bureaucracy processes that prevent decision making during crisis would be prevented and consequently preventing the product-harm crisis altogether (Kim & Fernandez, 2017).
  9. 9. 9 References American Society for Quality (ASQ). (2022). What is a product recall? Excellence Through Quality | ASQ. Retrieved October 16, 2022, from https://asq.org/quality-resources/recalls Anderson|Ap, C. (2010, March 21). Toyota shareholders sue over fallen stock price. Stock Markets, Business News, Financials, Earnings - CNBC. Retrieved October 16, 2022, from https://www.cnbc.com/id/35971026 Ding, L., & Jiang, C. (2021). Restaurant proactive philanthropic activities and customer loyalty: a scenario-based study during the COVID-19 pandemic period. International Hospitality Review. Hirst, G., Van Knippenberg, D., Chen, C. H., & Sacramento, C. A. (2011). How does bureaucracy impact individual creativity? A cross-level investigation of team contextual influences on goal orientation–creativity relationships. Academy of management journal, 54(3), 624-641. Kim, S. Y., & Fernandez, S. (2017). Employee empowerment and turnover intention in the US federal bureaucracy. The American review of public administration, 47(1), 4-22. Martínez, P., & Del Bosque, I. R. (2013). CSR and customer loyalty: The roles of trust, customer identification with the company and satisfaction. International Journal of Hospitality Management, 35, 89-99. Rajasekera, J. (2013). Challenges to Toyota caused by recall problems, social networks and digitisation. Asian Academy of Management Journal, 18(1), 1.

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