Essays on Toyota's Recall of Its Cars between 2009 and 2010 Case Study

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The paper “ Toyota’ s Recall of Its Cars between 2009 and 2010” is an inspiring example of a case study on marketing. One of the all-time greatest inventions that will go into the annals of history as a reflection intellect capacity of human beings is the invention of the automobile. After General Motors, Toyota is ranked as the second-largest vehicle manufacturer globally (Latimes. com). Toyota is a motor vehicle manufacturing company based in Japan with branches and affiliations all over the world with a unique production system known as the Toyota Production System (Beckford, 2009, p. 130).

Apart from manufacturing automobiles, the company has diversified its portfolio and engages in the production of textile machinery, materials handling equipment, electronics, and logistics solutions (Toyota, 2012c). In recent years, Toyota has experienced numerous interruptions tied to natural catastrophes like earthquakes in Japan which disrupted its supply chain resulting in loses. In addition, in 2009-2010 the company suffered reputation issues and a dent in the corporate image as a result of massive recalls associated with engineering failure of gas pedals and window switches. As new strategic marketing practices, Toyota has introduced new measures so as to redeem their corporate image as envisioned in ‘ Kaizen’ .

The report will cover the industry background of Toyota, company description & business analysis, competition & challenges Toyota faces and remedial actions to be taken so as to reverse the negative trends experienced. 2.0 Industry Background 2.1 Historical Timelines of ToyotaThe growth and development of Toyota are marked with interesting happenings. Toyota Company was founded in 1937. The next milestone was the launching of Toyopet Crown, Toyopet Master and Crown Deluxe in 1955.

As a result of embracing quality control in all their operations, in 1965 Toyota won the Deming Application Prize. In 1974, the company established the Toyota foundation which acts as a corporate social responsibility wing. As part of restructuring and consolidation, in 1982 Toyota Motor Co. Ltd. and Toyota Motor Sales Co. Ltd. are merged into Toyota Motor Corporation. Apart from restructuring and consolidation, the company engaged in segmentation by launching its luxury brand with the name Lexus in 1989 in the USA. As a hallmark to their research and development, in 1997 Toyota launched mass production of hybrid cars named Prius.

Moreover, in 1999, the company groundbreaking record continued when cumulative domestic production reached 100 million vehicles. As a means of enhancing its brand image, Toyota entered the Formula One World Championship. In the same year through Tianjin Toyota starts production in China. Onwards the company has experienced phenomenal growth and expansion launching Robot in 2004 and Prius sales reached 2 million (Toyota, 2012d). 2.2 Broad Operational Issues & Driving Forces for Toyota 2.2.1 Research & DevelopmentOne important driving force in the research and development that Toyota has undertaken.

Current trends in the business environment require business companies such as Toyota to establish knowledge management systems that are business strategy-oriented. Knowledge management systems provide business companies; organizations and firms with a competitive advantage to enable them to perform better than others especially their competitors (Muzzucato, 2006, p. 305). Toyota is known for cutting aged in technological developments. The first is the ability to produce vehicles that are fuel-efficient. The second is the ability to produce competitively priced vehicles for the mass market and luxury brands.

Apart from the two, the company is known for lean management in the form of Just in Time Production and Kaizen, which stands for Total Quality Management (Funaru, 2010, p. 10). The lean manufacturing system, aka Lean philosophy, was derived from the Toyota Production System (TPS) in the early 1990s. The root of the Toyota Management system dates back to the early 1890s when Sakichi Toyoda designed and patented the original idea of improved worker productivity and quality through a manual that he designed (Emiliani, 2006). The company is the first to produce in the mass hybrid car called Prius.

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