Toyota Para Crisis Analysis

PARA CRISIS AND OVERCOME IN THE TOYOTA MOTOTR CORP

SUMMARY

This theory summarizes the causes of “Para crisis” and how they recover from crisis. It explains the issues which Toyota Company is facing during the manufacturing defects of automobiles and customer concerns regarding their safety. The critical analysis of the manufacturing defects in automobiles is explained. The recommendations on strategies which will help company to continue company product image as one of the best brand in the world for quality and safety. It also determines the solution to recover the losses during the crisis.

INTRODUCTION

Para crisis is the one kind of crisis. It is very dangerous for organization. It can be identify and prevent the company from crisis. If

The target is set to increase overall market share from 7.3% to 10% and it is achieved. This new strategy is quite different from Toyota’s traditional strategy. It focuses on providing quality product to customers than to increase its sales and customer count. The concern of more suppliers is required to provide automobile parts. These new suppliers are not from Japan and did not belong to company’s usual supplier network. The company is falling of engineers who can supervise the new supplier’s products to Toyota standards are still maintained. Toyota build strong supplier network and these suppliers are involved in product development to ensure that they are aware of quality standards. To develop new designs contract engineers are tied in and 30% of total development work is done by suppliers. Design cycles are accelerated and time between exterior design approval and start of sales are compacted. The new suppliers did not follow Toyota

During the crisis Toyota Motor Corp suffered large on its status due to unorganized crisis management. Social Media are informing the public about the happening of Toyota Company. During crisis consumers and other stake holders look for data that company is assigned to resolve the issues, consumers interests and way of growth. This raises hope and assurance of stakeholders in the company.

CRISIS COMMUNICATION

The company head spoke to the consumer’s directly through media and explained about problem and gave assurances that issue will be resolved soon. Crisis communication requires to be spread out the data on all media (social media, company websites and blogs) and networks (Face book, twitter, etc). From this communication, the consumers can be easily communicated by the organization about the level of crisis control and safety measures taken for consumers.

GROWTH