CASE ANALYSIS ON TOYOTA
Presented bySheikh Asif ImtiazMasum Mushfiq TaskinTabia
ZamanNishat Tasnim AminShahanara Alam
CASE ANALYSIS ON TOYOTA
1
Aim of PresentationTo know about Toyota Motors CorporationWhat
actually happened with ToyotaTo show the analysis of the case
TOYOTA MOTORS CORPORATIONCompany name- Toyota Motors
CorporationStarted- August 28,1937Main Business Activities- Motor
vehicle production & salesFiscal Year: From April 1 to March 31
of the following yearMission: Lead the way to the future of
mobility
TOYOTA MOTORS CORPORATION
Capital- $397.05 billion (as of May 2014)Number of Employees:
338,875 (as of March 31, 2014President- Akio ToyodaProduct line-
Passenger cars, minivans, commercial, luxury, and sports
vehiclesSubsidiaries- Daihatsu, Hino
TOYOTA MOTORS CORPORATION
Hybrid- Prius CVans- AlphardPassenger Car- CorollaCommercial-
Coaster
SWOT ANALYSIS OF TOYOTA MOTORS
StrengthInternational Position in 170 countries worldwide.
Second largest manufacturer automobile company in the world.
It is best known for durability, reliability and value for money
and convenient.
Its brand image in market is based on Quality and environmental
friendly
Presently maintains 16% of US market share
Weakness In May 2009 they reported a record yearly net loss of $
4.2 billion.
It was badly hit by 2008 financial crisis and declared its first
annual loss in 70 years history.
In 2005 faced criticism because of large scale recall and
quality issues.
Production capacity that is it produces most of its cars in US
and JAPAN where as with that competitors might take advantage of
global efficiency gains.
Spending much money on Advertisements
OpportunitiesFuel efficient, higher quality and smaller
automobileShould produce hybrid gas electric vehiclesNew models of
vehiclesDecreased interest rate on automotive loans in India Global
ExpansionChina, India, Russia
Threats Increased competition
Increasing Maintenance cost of vehicles
Increasing fuel price
Changing customer preference are challenging threats.
Foreign Currency Fluctuation
Economic slow down
Problems Toyota FacedThe Camry crash in 2005Huge complaints of
similar problemsSudden Unintended acceleration problemMassive
RecallsIn 2000-8,3792010- 48,72,583Over $30 billion loss
Brand Image under threat
RECALLS
Source: US NEWS
Impacts of Recalls
Loyalty takes a hit, then rebounds
Toyota lost first time buyers
Owners of Recalled owners were more loyal
Other automakers gained Toyota customers
CASE ANALYSIS
Case AnalysisQ1.Cultural Differences between Japanese Executives
and North American Executives
TAKING MORE TIMEJapanese: Modesty and HumblenessAmericans:
Indifference and Indecisiveness
ResponsivenessJapanese: SlowAmericans: Fast
Case AnalysisHeterogeneous vs. Homogeneous CultureJapanese: Same
backgroundAmericans: Different backgrounds
Remote vs. Face-to-Face CommunicationJapanese:
Face-to-faceAmericans: Email, Phone etc.
Case Analysis
Taking RisksJapanese: dont say YESAmericans: say YES
Case AnalysisQ2. Toyotas initial handling of consumer
complaintsSituation:Facing huge recallsDid not address the
complaints with responsibilityTried to misleadMission of quality at
back-seatAvoided faultTried to put blame on driversBrand image at
stake
Case AnalysisSolutionPriority toward qualityResponse feedbackRun
self-investigation before govt. and change designProvide adequate
power to US executives for quick responseAccept fault and address
people smartlyImmediate correction after the feedbacks
Case AnalysisQ3.Communication structure between Japanese
Headquarters and North American officesSituationInternal
ProblemAkio Toyodas traditional priorities- safety firstWashington
Office prioritized own interests and business growthShift in
priorityCommunication procedure is obsoleteDecisions were made in
Japan office, problem was in North America
Case AnalysisUnwillingness of the Japanese Executives to work
with the Americans
No participation of North American Executives in decision
making
Communication gap
Case AnalysisSolutionOne message/document for all
branchesParticipative Decision-makingMore power to North American
ExecutivesRoutine central meeting with all branch
headsVideo-conferenceInternational board including
representativesDevelop plan reachable to all management
levelsContinuous communication for longer timing strategies
Case AnalysisQ4. Improving communication between Toyota and
Government regulationsSituationLack of communication with US Govt.
and NHTSAUndergoing 8 investigationsWas not honestTried to hide the
faultSafety-deafCredibility at stake
Case AnalysisSolutionMore direct communicationSelect/Assign
Executives wholl have direct link with NHTSACo-operation with govt.
regulators during investigationsHonesty with NHTSA and US
Govt.Avoid manipulation, misleadingFollow govt. regulations in
designing carsWork with NHTSAPromote products with presence and
confirmation of NHTSA
Case AnalysisQ5. Ideal communication plan for Toyota regarding
customer relationshipBe reachable to customersActive online
serviceOfficial workshops Provide safety bulletinAlso instruct
dealersCreate Public media campaignsOutline changes
Case AnalysisArrange safety workshopsShow concernUse Digital
Media
Thank YouQUESTIONS??
