Toyota Strategy After Recall
MGT 499
On Demand Paper: Toyota Recall
16 October 2011
As of January 28, 2010 9 million Toyota’s were recalled worldwide due to an issue with the pedal entrapment/floor mat problem.There were allegations about what the problem was some people said it was the floor mats that could easily get stuck on the pedal and cause unwanted acceleration. Others claimed that there was a problem with the accelerator itself. On February 8, 2011 the National Highway Traffic Safety Administration (NHTSA) in participation with NASA performed an investigation on the throttle system of the Toyota vehicles. The study lasted for 10 months and afterwards the scientist from NASA and NHTSA announced they found no defect. Sometimes mistakes like this can be crippling to a company’s reputation. In business it is important to have a plan for everything. All business should have a thorough business plan if they want to be successful, and Toyota has a very thorough business plan. As a CEO I would write out a detailed plan on how our company would overcome this obstacle and follow that plan precisely, this plan would consist of all the steps our company will take during the initial stages of rebuilding our brand. It’s important to maintain a good public image for the company. A bad public perception of a company can be fatal. The plan that I have will include the following steps: 1) Stop the production until the problem is fixed. 2) Apologize and explain what happened. 3) Explain the corrective actions we would take and what we’re doing to do to prevent this in the future. 4) Advertise/Rebuild the brand.
The first action I would take as CEO would be to stop the production of all models that were being recalled. I would assure the media that as a company we have been around since 1937 and we’re not going to let something like this ruin a long lasting company such as ourselves. Some of our initial measures will include performing a study and shut production down momentarily until we were sure we
On Demand Paper: Toyota Recall
16 October 2011
As of January 28, 2010 9 million Toyota’s were recalled worldwide due to an issue with the pedal entrapment/floor mat problem.There were allegations about what the problem was some people said it was the floor mats that could easily get stuck on the pedal and cause unwanted acceleration. Others claimed that there was a problem with the accelerator itself. On February 8, 2011 the National Highway Traffic Safety Administration (NHTSA) in participation with NASA performed an investigation on the throttle system of the Toyota vehicles. The study lasted for 10 months and afterwards the scientist from NASA and NHTSA announced they found no defect. Sometimes mistakes like this can be crippling to a company’s reputation. In business it is important to have a plan for everything. All business should have a thorough business plan if they want to be successful, and Toyota has a very thorough business plan. As a CEO I would write out a detailed plan on how our company would overcome this obstacle and follow that plan precisely, this plan would consist of all the steps our company will take during the initial stages of rebuilding our brand. It’s important to maintain a good public image for the company. A bad public perception of a company can be fatal. The plan that I have will include the following steps: 1) Stop the production until the problem is fixed. 2) Apologize and explain what happened. 3) Explain the corrective actions we would take and what we’re doing to do to prevent this in the future. 4) Advertise/Rebuild the brand.
The first action I would take as CEO would be to stop the production of all models that were being recalled. I would assure the media that as a company we have been around since 1937 and we’re not going to let something like this ruin a long lasting company such as ourselves. Some of our initial measures will include performing a study and shut production down momentarily until we were sure we