Essays on Toyota Motors Corporation Crisis in 2009 Case Study

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The paper "Toyota Motors Corporation Crisis in 2009" is a good example of a finance and accounting case study. This paper will consist of the analysis crisis that occurred to the Toyota company in 2009. The company had experienced a defect in the manufacture of automobiles that had some of them having a wrong positioning of the acceleration pedal with the front driver’ s side floor mat. The first recall was done on November 2nd, 2009 with the help of various traffic enforcement agencies. The incursion caused vehicles to experience unintended acceleration; this was due to the defect in the mechanical sticking of the acceleration pedal.

The enforcement was done using organizations like the United States national highway traffic safety administration. This paper will be able to cover the recall and the accidents related to the recall. The strategies used to regain reputation, legitimacy and restoration based on the information provided by documents released by the company, press conferences held and the speeches from the management (Muralidharan, et al. , 2015). The crisis that leads to the recall was due to the accidents that were reported due to the mechanical errors on the automobiles.

The crisis is then defined as an unstable situation of difficulty and is characterized by the following: There is the presence of both danger and opportunity in a crisis depending on how they are handled by the company. The danger exists where the crisis that occurred overwhelms the organization like Toyota Motor Corp. Opportunity can also be tapped when a crisis occurs due to the fact that the organization will gain self-realization and growth The threat to high priority goals and values: when a crisis occurs there will be a direct threat to the plans of the company due to the publicity outcome of a crisis. Anxiety always accompanies a crisis: this is experienced when the company makes a recall on certain issues and its customers will have unrest is not knowing what next for them. Restricted time of response: when a crisis occurs and a recall is made the company will have a short time to respond to it since it is mostly emotionally charged. According to Choi, & Chung (2012), An occurrence of a crisis in an organization like Toyota Motors resulted in the turning point.

It resulted in better tests done to the automobiles before being dispatched to the sellers to distribute them to customers. Crises can be grouped in three ways depending on the function of the impact on the victim and deniability: accidents, product safety, and sandals. An accident is an event that occurs without the control of the person at the event but might be with the control of the other parties as in this case when accidents occurred in 2009 and the cause traced back to the design fault by Toyota.

Toyota responded to this crisis that was raised by the United States national highway traffic safety administration. The research done by the administration proved that there were some causes of accidents related to the manufacturer. They recommended the closure of operations in the company so as to pave the way for the investigation of the intensity of the error on pedal and mat positioning (Fan, et al. , 2013).


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