The expenses of Toyota became more than its sales and problems started. Toyota is one of the organizations that changed the world with its products and services.
The expenses of Toyota became more than its sales and problems started. Toyota is one of the organizations that changed the world with its products and services. But, if the sales are getting down, not matter how effectively you are managing your organization. Same happened with Toyota. The company wanted to beat General Motors, world’s number one car manufacture. In this respect, Toyota made some decisions which did not work out well.
The way Toyota implemented Six Sigma was totally different from other companies like GE. In corporate responsibility program, Toyota failed completely. It never tried to control the situation in earlier phase. A potential problem was there in the newly launched model. The acceleration of this model was out of control because of incorrectly placed floor mats. It caused several accidents in which driver met death. In media, the news astonished its customers and in result, the sales gradually went down.
One of the management planning of Toyota involved upgrading the capabilities of employee if they are underperforming. It never weeded them out. This can be said one of the reason prohibiting organization’s optimally functioning. There are similar other practices too which resulted in same consequences. Toyota always committed long term employment. No job cuts were made during the Asian Financial Crisis 1997 even the organizations were running with loss. Ethically thinking, it is quite good to operate like this but on another hand, it can cut ability to function optimally. In spite of organization’s long record of manufacturing quality products, vehicles with defect were found as one of the reasons which let down the whole organization. Reports have shown that quality level was decreasing from few years but Toyota did not consider them and keep on producing same defected vehicles. It showed that one single decision regarding management could let to big loss in future.
E. Cole, R. (2011). What Really Happened to Toyota?. MIT Sloan Management Review. Retrieved 13 March 2016, from http://sloanreview.mit.edu/article/what-really-happened-to-toyota/
KAUFMAN, W. (2010). Can Toyota Recover Its Reputation For Quality?. NPR.org. Retrieved 13 March 2016, from http://www.npr.org/templates/story/story.php?storyId=123519027
TOYOTA MOTOR CORPORATION GLOBAL WEBSITE. (2016). Retrieved 13 March 2016, from http://www.toyota-global.com/company/
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