What Really Happened to Toyota? Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Consumers were surprised in October 2009 by the first of a string of highly publicized recalls of Toyota vehicles in the USA. Citing a potential issue in which poorly placed or incorrect floor mats under the driver's seat could lead to uncontrolled acceleration in a variety of models, Toyota announced that it was recalling 3.8 million U.S. vehicles. For making executives who've strived for decades to emulate Toyota, the mere idea that it'd quality problems was a serious matter. All over the world, executives paused to wonder if they had been chasing after the making version that was incorrect. Despite Toyota's long record of creating dependable, low-deficiency vehicles, reports in the media as well as their total time often substantially influence public perceptions about quality, the author contends. The author discusses two root causes for Toyota's quality problems. The first is an outgrowth of the ambitions of management for rapid growth.

What Really Happened to Toyota Case Study Solution

Management's goal was to increase Toyota's international market share from 7.3% in 1995 to 10% over the next decade, then to 15% by 2010. The next is caused by the increasing sophistication of the products of the company. However, the author notices that any extensive evaluation would also need to recognize the function of the company's centralized management structure. The result: Top management in Japan was less sensitive to the expectations of regulators, culture, and politics in overseas markets, and hence they were slower to respond to local difficulties.

PUBLICATION DATE: July 01, 2011 PRODUCT #: SMR395-PDF-ENG

This is just an excerpt. This case is about GLOBAL BUSINESS