Global Crisis Management: Product Recalls at Toyota
Product recalls are a public relations nightmare for companies of all sizes and types. In the minds of the public, product recalls mean that companies failed to perform their due diligence in research and development, engineering, production or distribution – or a combination of all of these factors – but the actual causes of product recalls are far less important than the adverse effects these incident have on brand image. Once these opinions are forged in the minds of consumers, they are exceedingly difficult to reverse so it is clear that when product recalls are required that they are managed in the most effective fashion possible. One major company, Toyota, provides a valuable lesson in what to do and what no to do when confronted with unavoidable product recalls. The purpose of this essay is to provide an examination of Toyota’s real-life case and develop recommendations that would help Toyota’s global leaders recover their brand loyalty. To this end, an evaluation of the definition of product-harm crisis within the context of the Toyota case study is followed by the identification of the problems the Toyota leaders must solve. In addition, an analysis of the organizational changes that were successful and unsuccessful and a Synthesis of the analysis of the literature to develop one or more recommendations for strategies Toyota might use to manage this product-harm crisis and recover brand loyalty in the global market are followed by a summary of the research and major findings concerning the management of product recalls in the conclusion.
Evaluation of the definition of product-harm crisis within the context of the Toyota case study
In his case study of Toyota’s response to the recall of tens of millions of its most popular vehicles, Rajasekera (2013) provides a systematic examination concerning Toyota’s response to the product recall problems experienced by this company in recent years. Although Rajasekera (2013) does not provide a specific definition of product-harm crisis, he repeatedly alludes to the profoundly negative effects such events can have...
References
Piotrowski, C. & Guyette, R. W. (2010, Summer). Toyota recall crisis: Public attitudes on leadership and ethics. Organization Development Journal, 28(2), 89-93.
Product-harm crisis. (2018). Financial Times Lexicon. Retrieved from http://lexicon.ft.com/ Term?term=product_harm-crisis.
Rajasekera, J. (2013). Challenges to Toyota caused by recall problems, social networks and digitization. Asian Academy of Management Journal, 18(1), 1 –17.
Song, S. & Yoon, S. (2016, January 1). Effects of product failure severity and locus of causality on consumers' brand evaluation. Social Behavior and Personality: an international journal, 44(7), 1209-1221.
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