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Essay / The Damage to Toyota's Brand Image - 1603
In 2010, the automaker Toyota faced one of the biggest threats to its brand, the safety of its vehicles. Toyota has failed miserably in its response to safety issues due to some major management problems.1. Group reflection2. Lack of leadership3. An organizational structure that could not offer a rapid response4. A flawed evaluation and monitoring process. These problems led Toyota to lose much of its brand value as a leader in safety. According to an article in Time Magazine from February 2010, the automaker not only had safety issues in 2009 that led to these recalls, but there have been smaller recalls for similar issues almost every year since. 2002. Historically, Toyota has been an organization that can solve problems, eliminate the cause, and turn the solutions into advantages over its competitors. In this case, the complete lack of crisis management on Toyota's part led to a major loss for the company, both in terms of sales in 2009 and 2010, but also in something more valuable and long term, the value of the brand. Toyota seemed to suffer from a major problem in its decision-making. Decision making for an organization of Toyota's size and influence must be a priority for its management structure, from the CEO all the way down to the supervisors of their manufacturing facilities. Toyota is a pioneer of the LEAN manufacturing principle. Lean, as a process, is a way to add value to customers while minimizing waste (LEI, 2011). This can also be thought of in terms of flow, and that's how Toyota likes to think of it. It is simply a decision-making process in which problems tend to be thought of in terms of flow, reducing starts and stops or unnecessary movements increasing flow, thereby reducing waste. I think the recall crisis shook the organization so much that they were affected. ..... middle of paper ...... transformation structure and be much quicker to anticipate and respond to problems before they erode brand equity. Works Cited Ahlstrom, D. and Bruton, GD (2010). International management: strategy and culture in the emerging world. Mason, OH: South-Western Cengage Learning. Clark, A, (2010) Guardian UK. February 23, 2010 Toyota boss Akio Toyoda apologizes before the American grilling. Accessed October 19, 2011 from http://www.guardian.co.uk/business/2010/feb/23/ toyota-president-toyoda-apologises-congressLean Enterprise Institute, 2011. Accessed October 18, 2011 from: http:/ /www.lean.org/WhatsLean/Saporito, B., Schuman, M., Szczesny, JR, Altman, A., (2010). Time, 02/22/2010, Vol. 175 Number 7, p26-30, 5p. Toyota tangled. Retrieved October 18, 2011 from http://search.ebscohost.com/login.aspx? direct=true&db=ulh&AN=48134905&site=ehost-live