Toyota Case Analysis Harvard Case Solution & Analysis

PROBLEM ANALYSIS:

The company is currently facing various problems regarding the quality and overall performance of the company. In addition to this, the top management of the company is unable to deal with the complexities of the business efficiently and effectively.Moreover, increased diversification and global expansion of the company have further created many managerial complexities, which is beyond the control of the management.

In addition to this, the competitors of the company are continuously increasing their overall performance, which is further weakening the company’s position in the entire market as well as it is also creating a threat for the company that the company might lose its reputation and market share in the entire industry.

In addition to this, the overall reputation of the company in the eyes of the customers is also declining robustly, as the customers are getting un-satisfied with the products of the company. Thus, the top management of the company is also considered about making various strategies in order to regain the lost confidence and satisfaction of the customers of the company.

The top management of the company is also unable to identify the extent to which the top management of the company should diversify its products in order to attract the customers towards the company. Lack of proper diversification in the product line of the company has also limited the revenue of the company to some extent which has subsequently effected negatively on the profitability and interest of the company.

There were several issues in the products of the company ranging from sticky brake pedals to floor mats to the durability and security issues of the product of the company. In addition to this, the company is also facing serious issues, as the media has exaggerated the problems faced by the customers on using company’s products, which has further deteriorated the overall reputation of the company to a large extent.

Furthermore, a comprehensive survey of the company’s performance showed that there are approximately 101 problems per 100 vehicles in 2009, which further increased to 117 problems per 100 vehicles in year 2010. In addition to this, the results of survey also showed that the company’s ranking fell to “below average” in year 2010, as compared to the ranking in year 2009 in which the company was ranked “above average”. This decline was considered to be the most notable decline in the entire market.

Overall, the quality of the products of the company is continuously declining with the period of time, and the top management of the company is unable to resolve the issues efficiently and effectively.Due to this reason the overall growth of the company significantly decline over the period of time.

REASONS OF PROBLEMS FACED BY THE COMPANY:

Following are the main problems faced by the top management of the company.

Managerial Complexities:

The top management of the company is unable to manage the day to day operations of the company efficiently and effectively.This has decreased the overall effectiveness of the operations of the company, which has further limited the ability of the company to perform effectively in the entire market.

Organisational Structure Problems:

The top management of the company is based on centralized decision making, which decreases the motivational level of the lower level employees that further decreases the overall efficiency of the operations of the company.

Moreover, there are various communication barriers in the company, due to which the lower management of the company is unable to communicate its queries, and get its feed backs on its work from the top management of the company. This further decreases the overall motivational level of the employees,which negatively affects the operations as well as the interest of the company.Toyota Case Analysis Case Solution

Competence of Staff:

The top management of the company does not bear necessary skills and expertise required to run the operations of the company efficiently and effectively. In addition to this, the top management of the company seems to be sluggish as it has not responded to the problems at its initial. Moreover, the technical staff of the company also does not bear necessary skills and expertise, which is required to produce optimal quality products.

This has decreased the overall quality of the products of the company as well as this has decreased the overall efficiency of the operations of the company. This has subsequently decreased the overall profitability and competence of the company. .........................

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