Meycauayan College

Calvario, City of Meycauayan

Accounting Research Method

THE GIANT THAT GOT SLAMMED BY

THE RECESSION, RECALLS, AND THE
TSUNAMI, ET AL
Case Analysis

Gawa ni cindy sana makatulong.jpeg

CASE ANALYSIS

I. View Point

The head of the company all this time had been a young president who was

effectively born unto the job and has little expertise in crisis management. Akio Toyoda,

the grandson of the company's founder.

II. Time Context

 In 2011, the first tally for 2011 was made, Toyota Motor, formerly the worlds largest

into automaker, slipped to the third place in production behind General Motors of

the U.S., and Volkswagen of Germany.

 U.S. market share tumbled from 18.3% at the end of 2009, to 12.9% for 2011.

III. Problem Statement

 The company's crisis communications team has been criticized by a leading

Japanese PR executive over its ‘easygoing attitude'.

 The lack of backup plan or substitutes for their suppliers and raw materials

 The strong yen that causes everything Toyota manufactures in Japan to be

more expensive and undermined its profitability

(LALAINE ano po ba to kung problem sa case study or ako

yung gagawa ng tanong I cannot gawa nalang ako parehas

hehehe)

 What are the causes that Toyota Company lost its good reputation?
  What are the possible solutions in coping with the strong yen, which

causes everything Toyota manufactures in Japan to be more expensive and

undermined its profitability?

 How this easy going attitude of the new president of Toyota Company will

turn to a great impact to their production?

IV. Statement of Objectives

 To regain its most important competitive advantage; its reputation for

exceptional quality.

 To rebuild the broken trust of its customer to their products

 To innovate and be flexible for the customers wants and needs

 To make "always better cars" for their customers

 To build a plan for the fortuitous events that might happen in the future

V. Areas of Consideration

 Strengths

- Toyota cars were regaining reputation for quality and value

- Beginning of the end for old-style Japanese PR

- The smooth functioning of his Tuesday groups makes it possible for Akio to
spend more time with product development.
-

 Weakness

- Toyota lost its most important competitive advantage; its reputation for

exceptional quality

- The lack of substitute and backup plan, in case of calamities

  Opportunities

- Toyota may shift more production to the U.S.

 Threats

- Toyota needs an exchange rate of 80 yen to the dollar to remain profitable. It is

working with its supplier to reduce cost, but the currency imbalance threatens

the future shape of the company.

- The threats of natural calamities

VI. Assumptions

The head of the company all this time had been a young president who was

effectively born unto the job and has little expertise in crisis management. Akio Toyoda,

the grandson of the company's founder. In my own humble opinion, it is the main

problem that the Toyota Company suffers and lost its good reputation. With his Pit work

management, with no agendas, now written reports and decision are made on the spot.

They can move quickly. However, this kind of action is not applicable especially to the

company like Toyota.

VII. Alternatives Courses of Action

ACA.1 Make their facilities a calamity proof facility/building

ACA.2 Tighten the Total Quality Management

VIII. Analysis

ACA.1 Make their facilities a calamity proof facility/building

ADVANTAGES

- The company facility will not be easily affected by a fortuitous event

- It is a good investment
 DISADVANTAGES

- It needs a big funds and it will take a couple of years to build

ACA.2 Tighten the Total Quality Management (TQM)

ADVANTAGES

- Tighten TQM will help the company to easily detect, reduce or eliminate errors in

Manufacturing

- Streamlining supply chain management

- Improving the customer experience

- Ensuring that employees are up to speed with training

DISADVANTAGES

- It needs a lot of time and money to establish a stable and tight TQM for the Toyota

company

IX. Conclusion

In conclusion, the Toyota cars needs to fixed the broken reputation that has been

made through the years it suffers from the calamities, and the lost of the trust of the

customer in buying Toyota cars. The management should come up with a plan that

will protect the name of the company at all cost. In Addition, the management should

build a good communication to its employees so that instruction will be disseminate

correctly. Tighten their Total Quality Control (TQM) is also a best option to bring

back the quality product they have been producing from the previous years.