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Did Toyotas Culture

Cause Its Problems?


Company Profile
Toyota is a Japaneseautomotivemanufacturer
headquartered inToyota, Aichi, Japan
Toyota Motor Corporation was founded in 1937
Multinational corporation with passion , integrity and
Toyota is the world's first automobile manufacturer to
produce more than 10 million vehicles per year.

In 2010 Toyota issued a

serious of recalls for the
defect called unintended
More than 9 million cars
were recalled

Nutshell About the Case

37 deaths since 2000
A 2011 report released by the U.S
National Highway Traffic Safety
Administration (NHTSA) concluded that
unintended acceleration was not caused
by problems in the electronic circuitry.

The Wall Street Journal wrote

that Primary of SUA is Cause
drivers error.

What is Organizational Culture?

Organizational culture: the set of shared values and
norms that controls organizational members interactions
with each other and with people outside the organization

Can be a source of competitive advantage

Can be used to increase organizational effectiveness

If Toyota is not the cause of unintended

acceleration, why was it blamed for it?
Massive recall of 9 Million within few month was a rare event
Recall issue was mainly focused on unintended acceleration
problems, which are closely related to the most important thing
safety driving
Slow Public relation response of Toyota- make customers believe
that they are hiding their flaws
CEO Akio Toyoda did not make any statement till feb 5, leads the
media to criticize the company about transperancy.
Followed Japanese style of public relation- silently solving the
Whereas Americans prefer answers first and actions second.

Is it possible to have a strongeven arrogant culture and still produce safe and high-quality vehicles?

Possible to produce safe and quality vehicles but

impossible to convince the same to stakeholders
Arrogant culture may create negative publicity and
people will loose their trust for the company.
Management was following their own culture without
making any communication with public
By the time media criticized them and stakeholders
believe they are hiding something

If you were the CEO of Toyota when the story

was first publicized, how would you have reacted?
First and foremost will collect the details of the incident
and address the public with regard to the problem.
Convince the public that they are not cheated
Announce the remedial measures taken
Once the fault is identified, that too on the company is
responsible then will accept it and will do the needfull.
Will take stringent actions to avoid any such incidents
in future