Case Study: What Really Happened At Toyota

1577 Words 7 Pages
Intro to Toyota Auto manufacturer Toyota Motor Company is a Japanese automotive manufacturer that is headquartered out of Aichi Japan. The multi-national corporation consists of 338,875 employee’s world-wide. In 2016 Toyota is the 13th largest company based on revenue, and was the top dog auto manufacturer back in 2012. According to Woods and OICA in “(2012) Toyota was the first auto manufacturer to produce more than ten-million vehicles per year and also reported to have produced its two-hundredth million vehicle”. Toyota originated as a division of Toyota Automatic loom works. Under the direction of the founder’s son Kiichiro Toyoda, which has been a household name for eighty plus years now. Toyota’s name and reputation is has had high regard. …show more content…
“What Really Happened at Toyota?” An article appearing in MIT Sloan Management Review, one of the main purposes of risk management is to catch problems early and eliminate them before they snowball into significant issues in the way that they have at Toyota. The series of recalls that followed demonstrated that it made little sense for the corporation to believe that it could maintain quality in the competitive world of automobiles, with high executive salaries, and lucrative bonuses for keeping costs down, without a quality control department” …show more content…
That can point to the continuous recalls and manufacturing defects. The issues can be blamed on the lack of company culture. Managers, supervisors and lower level employees were complaining about the lack of lower quality parts, but because of the bad company, culture upper-level management saw no reason to take the complaints serious. The company culture can be dangerous when upper-level management doesn’t listen to lower level supervisors and employees. This says that they don’t care. As a manager how could you not take into consideration the complaints and potential issues that may arrive from management that is closer to manufacturing side of the business? With the lower level managers being concerned with quality of manufacturing and safety instead of worrying about their cost cutting and labor bonuses implies the level of care. It says a lot about the culture for the Upper-level managers to not pay attention and take

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