This document discusses the case study questions with their relevant answers. The case study was taken from the book- Organizational Behavior,15th Edition, Robbins & Judge.
This document discusses the case study questions with their relevant answers. The case study was taken from the book- Organizational Behavior,15th Edition, Robbins & Judge.
This document discusses the case study questions with their relevant answers. The case study was taken from the book- Organizational Behavior,15th Edition, Robbins & Judge.
Since the late 2009, the famous vehicle manufacture Toyota has suffered a severe crisis due to unintended quality problems in its cars which had triggered Toyotas largest officially recalls of its cars around the world. This crisis threatens the companys previous reputation of good quality cars, as well as the brand image built up over time.
A public relations nightmare that had been brewing finally became a full- fledged storm of bad publicity when the Toyota Motor Corporation issued a series of recalls for various models of vehicles due to a gas pedal and unintentional acceleration concern.
The most serious defect of those cars were unintended acceleration that occurred without input from the driver which the investigation revealed and claimed the prime reason for death of 37 people since 2000.
The company had attempted to fix the problem both by recalling of affected models and encouraging Toyota owners to remove improperly fitted floor mats, which were thought to be the cause of the issue. Eventually Toyota apologized and recalled more than 9 million cars. But it was too late for them. Meanwhile, American media outlets were reporting about Toyotas so-called corrective actions.
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Question no. 1 & its Answer
If Toyota is not the cause of unintended acceleration, why was it blamed for it?
In auto industry vehicle recall is a common phenomenon. But, the Toyota massive recalls show a very different situation and involves more serious consequences. We have seen that almost 9 million of Toyota vehicles around the world had to be recalled within a few months, which is a rare event. And the recall issue was mainly focused on unintended acceleration problems, which were closely related to the most important thing for drivers safety driving. Its thus hard to believe that there was nothing wrong with Toyotas quality cars. Toyota was blamed for its unintended acceleration mainly because of its failure in public relations. Toyotas public relations response to the recall problem was very slow, and many Americans started to believe that the company was trying to hide something and cover its flaws. According to The Guardian, The CEO of the company, Akio Toyoda, did not make a statement about the crisis until February 5. The American media criticized the company for a lack of transparency and action while the situation was happening. The prime problem was that the company had been practicing Japanese style of public relations. Another problem was the cultural differences between the Americans and Japanese. They vary greatly in the way of communication. When a company face problem in Japan, the management tries to solve the problem silently and after done, they inform the media about the whole situation. But Americans consider the silent- actions as an act of ignorance and unprofessionalism. They prefer answers first and actions second. Americans expect the companys CEO or President to address the people and apologize for the faulty actions of the company. The Guardian reported that the Akio Toyoda, CEO of Toyota bowed down in the news conference on February 5 and apologized for the safety recalls. In the USA however, apologies are not enough. Americans often expect rational explanations for the problem that has occurred. But the CEO failed to provide explanations until February 24, 2010 where he appeared before the US congressional committee, but it was too late. In the meantime, the American consumers, politicians and other affected parties have already started to blame company executives for the issue. The recall headlines were spread everywhere and raised extensive attentions from mass audiences in America. P a g e | 3
Question no. 2 & its Answer
Investigations have shown that after stories of unintended acceleration are publicized, report of incidents increase for all automobiles. Why is this the case?
The problem isnt just with Toyota. It was in November of that year that the CBS show 60 Minutes aired its infamous report on a similar problem in Audi vehicles, featuring footage of the accelerator on an Audi 5000. The unintended acceleration of Audi was caused by pedal misapplication, drivers pressing the gas when they meant to push the brake. But not before the Audi brand was so thoroughly trashed that sales didnt recover for a full decade and a half.
Over the past few decades, cars have become more and more like very sophisticated appliances whose operation is beyond our comprehension. As a result, weve become passive and reactive drivers, insulated by technology from any sense of control or responsibility for our own well-being. As that responsibility has shifted from the driver to the manufacturer, there has been a growing pressure to make cars not only safe and reliable, but completely idiot-proof. Perhaps it is due to driver error and the sophisticated car models of today that such incidents have become so regular for all the automakers.
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Question No. 3 and its answer
Is it possible to have a strong even arrogant culture and still produce safe and high-quality vehicles?
Seeing this case, we realize that a company is most likely to suffer from its arrogant culture. A company with an arrogant culture may create negative publicity for itself and people may start to lose their trust for the company. As with the Toyota case, the management team might have reacted in a swagger way. At first the management never took the blame for the unintended acceleration although there were several incidents concerning this unintended acceleration. As the Toyota management team was stand still with their method and never spoken to public about this unintended acceleration. The people thought Toyota was trying to cover its faulty actions and there was a negative publicity all over which caused a tumultuous situation for the company. Strong culture sometimes delays the overall process and the same thing happened to Toyota. Despite their strong culture Toyota finally realize the problem and they tried to apologize but there was already a huge negative publicity. So without good public communication it is almost impossible for an arrogant firm to produce safe and high-quality vehicles.
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Question no. 4 & its Answer
If you were the CEO of Toyota when the story was first publicized, how would you have reacted?
As we can see in this case the CEO of Toyota was totally inactive when the story was first published. There was no statement from CEO, Akio Toyoda regarding this incident. As a result there was a huge negative publicity in the media. The general public and media started to believe that Toyota was guilty for the overall situations regarding the unintended acceleration. The situation was starting to go out of hand. So Akio Toyoda tried to calm the situation but it was already too late. And Toyota had to pay a huge price for this. According to the researchers the late reaction of Akio Toyoda was due to cultural differences. As in America when a problem occurs, individuals or firms relating to the problem first try to describe the overall situation and causes of the problem to the public and then they try to solve the problem. But in Japan it is exactly the opposite, firms and individuals first try to solve the problem and then they try to describe the overall situation to the public. So this nature of Toyota was totally unacceptable to the Americans. So, if I were the CEO of Toyota I would first try to establish a good public relation and communication system in accordance to the region. The moment the story was published, I would take this news seriously and ask my management team to provide me more details of this incident. Then I would try to understand the overall situation and call a press conference to clarify the situation to the mass media and the stakeholders of my company. Then after addressing the problem I would try to take necessary technical and mechanical measures to solve the problem. I might suggest my management team to create an advertisement that shows how Toyota Corporation takes the safety issues of the vehicles seriously, to minimize the misunderstanding and create a positive value about Toyota in the heart of the people. P a g e | 6
Conclusion
An advertising campaign reasserting Toyotas commitment to quality and safety took to the airwaves in 2010. Also, during the fall of that year, a series of advertisements discussing Toyotas technological breakthroughs and how they can improve peoples lives began to be aired. An example of these positive messages is the story of a soccer mother who, as she watches her son play football, discusses Toyotas technological advancements that are used for safety testing. The message to consumers is clear that to the Toyota Motor Corporation, safety is a priority.
In order to prevent future discord, the Toyota Company has developed a new Communication Across Cultures program for its public relations executives, which will allow them to travel to different Toyota headquarters throughout the world to meet with local practitioners. The program will be implemented every year, and different representatives from each Toyota headquarters will be selected to participate in the program during each cycle. Though cultural understanding is essential to the success of every business, hands-on experience working with practitioners in different cultures will facilitate future communication between public relation practitioners from different locations and the publics they work to inform.
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Bibliography
How Toyota Lost its Way Alex Taylor, Senior Editor Fortune, July 12, 2010
Anatomy of Toyotas Problem Pedal: Mechanics Diary Mike Allen Popular Mechanics, March 3, 2010
Behind The Troubles At Toyota Bill Saporito, Joseph R. Szczesny/Detroit and with Michael Schuman/Toyota City Time Magazine, February 11, 2010
LaHood Voices Concerns Over Toyota Culture Bernand Simon Financial Times, February 24, 2010
Toyota Will Fix or Replace 4 Millions Gas Pedals Bill Vlasic & Nick Bunkley New York Times, November 25, 2009
Has Toyotas Imaged Recovered From The Brands Recall Crisis Anne Marie Kelly, Contributor Forbes Magazine, May 3, 2012