Friday, October 4, 2019

Toyota Recall Essay Example | Topics and Well Written Essays - 500 words

Toyota Recall - Essay Example In the late 1990’s Toyota’s operating profits were as high a 2 trillion yen in China. However, Toyota turned its back on the deficit owing to the financial crisis. The reason for the recall is mainly attributed to the management which was not able to keep up with the increase in sales that in turn affected the quality; while at the same time the scale of the company continued to grow. Before the recall happened a warning was issued to the executives that stated â€Å"If we keep this up, Toyota would be faced with a recall.† The company extended beyond its capacity which worried the executives. And as some factories were built overseas, a large number of the workforce were shifted to the foreign countries. Hence the company had to make several adjustments which led to the decline of quality control (Wook 2010). A possible way by which the company can re-gain the trust of motor vehicle consumers is by investing in commercials that project a good image of the company. It could also consider incorporating other aspects such as quality in the campaign. Cost-effectiveness of Toyota products will be a good step to start with in addition to insistence on durability. The recall is only a beginning and a positive step but however, it does not provide a complete solution to the problem as the technical problem of the pedal is not the main issue. The Toyota Company should be prepared to go the extra mile in order to reassure consumers that it has resumed its core value which is based on quality. It is likely that the problem lies in the lack of coordination between the branches which in turn compromises all its efforts in effective decision making. If it is able to correct these problems the company can hope that the public will forget the unfortunate incidences soon and help it grow. The recall has however had a positive influence on the Toyota brand

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