Case Analysis : The Takada Family Company

1108 WordsOct 5, 20165 Pages
The Takada family founded Takata Corporation in 1933. Originally the firm manufactured parachute static lines as well as other textiles. In the 60s Takata began to shift towards the automobile safety industry by selling seat belts to car manufacturers. The corporation supplied the first Japanese car manufacturer to have seat belts as part of the vehicle’s standard design. Takata found success in the new industry, which led the firm to expand into airbags as well as child safety restraint systems. With its strategic decision to enter the automobile safety industry Takata was reaping the benefits. The firm commanded a major portion of the airbag market, eventually becoming one of the top three airbag manufacturers in the automotive industry. However, despite the company’s early contributions to automobile safety, recent events have tarnished the firm’s reputation. Takata has continually failed to address and correct a potentially fatal malfunction within in its airbag design. Decisions, driven by a desire to reduce production costs, have forced the company to abandon its corporate social responsibility, harming various stakeholders in the process. It is unfortunate that the once respected firm has irreparably damaged its image. In an industry where defects and mistakes by manufacturers can potentially kill consumers, public trust in the firm is immensely important. Consumers need to know that a firm is committed to creating not only economic value, but societal and

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