Toyota Case Analysis : Toyota Motor Corporation

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Toyota Case Review Since 2009, Toyota Motor Corporation has struggled with defects in its vehicles (Hamilton, Kuwahara, & Sandlin, 2013). These defects have resulted in lawsuits and increased attention from the National Highway Traffic Safety Administration (NHTSA) (Hamilton et al. 2013). In attempting to counter the damage to their reputation, the company made public statements which were poorly-received (Hamilton et al. 2013). The company’s mistakes are well-documented, and can be reviewed to discern more effective courses of action for others facing similar situations (Hamilton et al. 2013). Toyota’s Reputation Toyota Motor Corporation was founded in 1937 with the priorities of safety first, quality second, and volume third (Hamilton et al. 2013). This strictly-adhered-to mantra aided in the creation of the company’s reputation and the public perception of their products as reliable, quality cars (Hamilton et al. 2013). Toyota’s reputation helped it become one of the largest automakers in the world (Hamilton et al. 2013). Toyota’s reliability was such that it comprised only 0.034% of all cars recalled in 2000 (Hamilton et al. 2013). The company’s reputation has not fared as well in recent years, as the company succumbed to a thirst for growth and profitability and began focusing on volume instead of the quality they were known for (Hamilton et al. 2013). Without the focus on safety and quality, faults began being reported with Toyota’s vehicles, including unintended and
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