Toyota as an Emerging Top Company in the Automobile Industry - Essay Example

The fundamental lacking on part of the Toyota Company toward this event is on the management side which has not been able to catch up with globalization. In the late 1990s Toyota’s operating profits were as high as 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 “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 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 regain 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. The 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, but 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.

Opposition paragraph

The recall has however had a positive influence on the Toyota brand even if the cause is negative. “More people are talking about Toyota more than any other brand these days” and this publicity and exposure will definitely help in better awareness about the concern and the fact that many people are voicing their support for the move can help them gain more customers (Singh, n.d). The company has opened up several mobile clinics in many parts that would prevent the need to drive the vehicle to the dealership company in order to get it repaired.  With only about half an hour required to complete the repair process, the clinics are getting a steady stream of customers who are appreciative of the mobile repair clinics that have alleviated the need to drive the vehicle to the anchorage. The customer service provided at these clinics has also been widely appreciated along with the positive impression of the company and its vehicles (Neyman, 2010). There has also been an increase in the sales of some Toyota models and this renewed buyer interest only ensures that the company has not suffered much damage (Singh, n.d).

Media coverage about the Toyota recall issue has been doing the rounds since September 2009 and ever since there has been intense media coverage on the recalls. Many journalists have been continuously enquiring customers about the possibility of the Toyota Company restoring its image, quality, and dependability. On behalf of the company, it has also used multimedia to express its apologies to its customers and that it would ensure the correction of all problems and work towards restoring customer confidence. Such media interaction between the company and its customers would help to understand the efforts taken on behalf of the company to manage the such crisis. Even the latest television commercials show the progression of the company in the past 50 years and also analyze the mistakes that it has committed and the steps that are being undertaken to fix the problems which stand to reflect the company tagline “Moving Forward”. Such publicity will not profoundly have a negative impact as the messages sent are only targeted to restore customer confidence and it can be safely said that Toyota “still has the trust of the consumer”. And when these messages are interpreted in the correct manner, companies such as Toyota can renew their customer base and hence their sales.  Thus in a way, the recall has definitely helped the company to redefine its safety strategies and policies (Faulhaber, 2010).