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Toyota Crisis management analysis

1. "too little, too late response"

(1)lack of understanding of the situation and repercussion

(2)absence of clear policy and procedure

2.lack of openess

(1)withould the evidence

(2)rise the attitute of distrust and damage of public image

1.political fators

protectionism of the demestic industries

2.economic factors

economic downturn ;take "political advantage";

3.world first stragy factor:

billboard code;reduce cost ;can not support the banner

4.not wash your dirty linen in public enterprise culture:

family shame should not be; ,maintain the honor and ignore the problem

Look at risk and practice plans

Introduction

Recall crisis -- how it is happened

August,8,2009.San Deigo, California, high-speed road, a Lexus ES350 sudden acceleration led to four deaths.

November,25

Toyota first announced in 2010 in the United States will be free to recall 4.26 million vehicles replace the accelerator pedal problem

What is Toyota

January,21,2010

Toyota announced a recall of 2.3 million U.S. car of 8 models

Measures

Crisis management

is the process by which an organization deals with a major event that threatens to harm the organization, its stakeholders, or the general public.

Team:CAI qingying

Wang dandan

Sun yushan

Su meng

January,26

Toyota announced the suspension of sales in the United States recalled models of cars, and the temporary closure of some production lines.

January,28

FAW Toyota announced a recall in China of 75,552 RAV4.

is a Japanese automaker headquartered in Toyota, Aichi, Japan.

As of March 2013, it is the thirteenth-largest company in the world by revenue.

Toyota was the largest automobile manufacturer in 2012 and in July of that year, the company reported the production of its 200-millionth vehicle

Q & A

180 billion

Recall from the United States and other market issues related costs of car 180 billion yen.

Measure One: Set up SMART(Swift Market Analysis Response Team)

Measure Two: Akio Toyota put forward concrete measures of produce quality improvement

Measure Three: Participate in social commonweal activities

February,9

Toyota announced a recall of 223,000 vehicles in Japan, and once again apologize to consumers around the world.

In contrast to risk management, which involves assessing potential threats and finding the best ways to avoid those threats, crisis management involves dealing with threats before, during, and after they have occurred.

January,29

Toyota announced a recall in Europe about 1,8 million vehicles have hidden the throttle, and said the spread of the scope of the recall.

Plan

Improve Quality Inspection Process

Enhance Customer Research

Establish an "Automotive Center of Quality Excellence"

Increased Communication

Improve regional autonomy

Losses

Moral impact of Toyota

Brand influence

Financial affects

6,000 jobs

Unemployment

stock prices

Revenue due to production and sales halt

Paid civil fines mandated by government

Paid legal fees to hired defense attorneys

Decline in the stock prices

Returning of goods

Recall expense

warranty payment

Market share fell to 4-year low

Overall evaluation

http://en.wikipedia.org/wiki/Crisis_management

http://www.businessinsider.com/toyota-paying-billions-because-of-marketing-failures-2012-12

http://www.icmrindia.org/casestudies/catalogue/Marketing/MKTG256.htm

http://www.scgpr.com/41-stories/toyota-recalls-a-case-for-crisis-management/

The attitude of The USA

Suggestions

Support

protectionism

of

domestic

industries

1.Develpo formal policy and internal communication procedure

2.Communicate quickly and accurately

3.Do not delay initial communications

4.Give immediate acknowledgment of

the issue and work on the solution

5.Establish direct and candid relationship with the media

6.Adopt the policy of honest and disclosure of the company`s findings

7.Always follow up and make amends

Often

biased reporting

Reference

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