The chosen problem in context to the complex management issue in Toyota is the lack of managerial decision. Managerial decision is very important for every organization as it entails effectively to the organizational business. Identification of the strategies is essential to procure good work to any business. It is basically a planning approach which analyses, monitors and meets the targets and the goals of the organization. Implementing strategic planning can be effective for the organization in various ways. Earlier strategic management was not given that importance but nowadays due to developed technology and innovation, this is given vivid importance. Success of an organization is highly dependent in context to managerial decisions and strategic planning. The canalization of the internal and external problems is catered through managerial decisions.
Identification of the managerial decisions in context to an organization is based on:
- Is the vision of the company clear?
- Does the company strategies stands strong?
- How is the company going to implement the strategies?
To procure managerial decision and strategic management it is very important that the organization understands the need to implement the strategic management planning. This approach helps the company to reduce the internal and external conflicts. The solution to this problem can be rooted by clarifying the vision and the mission of the company. Analyzing the problems and the loopholes in context to the vision and mission of the company will also help to cater the problem. However, formulating a strategy is the main step towards a successful business organization.
This report deals with the management issues persisting in context to the Toyota Automobile Company. The company has several management issues like managerial issues and lack of strategic planning. The decision making policies of this manufacturing company is also entailed in context to their global recall. The company relies on its environments which directly affects the internal and external controls of the company. Toyota’s managerial issues were the reason for the global recall of the company. This was main management issue as it was one of the biggest recalls in context to the automobile history.
The question relies on the identification of the lack of managerial decision making policies.
In this context, the study includes the subjects with are exclusively related to the topic. Identification of the lack of managerial decision is the subject in this regard. Only the perspectives which go with the subject are included in this study, rest is excluded.
The search strategy in this regard relates to the identification of the problem in the chosen company. Designing the action plan and measuring the results in that context
The selection of the study is catered by critical thinking and showcasing a complex management issue that had led a huge impact in context to the chosen organization.
The data of the study was retrieved from the official site of the chosen company and various secondary sources like journals, articles, newspaper and magazines. In context to the global level, the data was collected from official releases by the government, media coverage and other regulatory bodies. Primary data was used in this study because the reflection through primary data was not significant as it was more explanation oriented. This study entailed interviews with the manager to reflect the crisis situation.
The aim of this report is to identify the key issues regarding the global recall and evaluating the issues in context to the theories and the models. Toyota is a leading manufacturing company and their decisions and the actions effects the workers of the company and the individual’s as well. The variables within the organization influence the activities of the employees and their behavior. As commented by Wehrmeyer (2017), the major issue for the company was that their centralized structure did not work in their favor. The vertical integrated chain of supply was a problem. The main problem was that they had to facilitate specialized staff in context to all their outlets to ensure quality service to the consumers.
As commented by Taylor, Doherty & McGraw (2015), the managerial decision in this context led to failure as the functional manager could make only for one side of the matrix. The other side was left to the engineers. The lack of managerial decision was the persistent issue in this regard. At the same time Toyota was facing several other challenges like restoring productivity, attracting the staff, addressing their morale, reducing stress on managers and several other issues. The company went off-track and it was very important for Toyota to sustain their reputation.
The strategy of the company led to failure when the company blamed their floor mats, pedal supplier and throttle pedals in context to their sudden acceleration. As commented by Harrison & Lock (2017), the ideal strategy in that particular context was to identify their problem and then provide solutions on what needs to be done. But the initial step taken by the company was denial of their malfunctions. As commented by Taylor et al. (2015), the company needed to generate a risk management plan and a risk assessment plan to mitigate in such situations.
The implementation and planning of the crisis management was needed to incur the damage by the company. But the management remained silent and did not plan anything strategically. The threats in context to crisis came in the form of harm to the reputation of the company for future dealings. As commented by Jager & van der Vegt (2015), the managerial decision in that context was needed to be adhered so that the reputation of the company could be saved. Brand crisis can rise at any time but it is of innate importance that the decisions taken by the management to ease the course. This crisis led to various risks in context to the company like the brand equity, publicity, credibility, legitimacy, financial viability and community standing.
Crisis of communication strategy
As commented by Delot et al., (2016), communication is very important in the times of crisis. The recognision in context to the persisting issues is very important. Corporate communication is considered very important to sustain the reputation and image of the brand. As stated by Köpke & McCleery (2015), the decision of the management at that time was to incorporate the image restoration policy but the managers did not take any pivotal decision at that time. There are several strategies that the management could have used in that context.
As commented by Francis, Carryer & Wilkinson (2018), Toyota is a world’s leading automaker which is based in Japan, Aichi and Toyota. The company is known for its quality, fuel efficiency and reliability vehicles. The recall for the company was due to the lack of managerial decisions. When the crisis occurred, the organization did not take any initiative to induce the flame rather than that they blamed their door mats, pedals at the first place. They did not respond in context to their negative issues. As commented by Charosky et al., (2018), the result was that the company had several losses and the recovery was barely impossible. The management did not help to procure solutions to the consumers or the organization at the first hand. The company broke silence with an ad in the newspaper stating their mistakes to address the concerns of the consumers.
The situation was defined as a crisis in context to the management of the company. The company suffered losses due to their own mistakes. The management of the company did not take the decisions that were to be taken in order to deal with the situation.
The outcome is wrought by studying the entire case in context to the available sources. It was understood that the management of Toyota was responsible for misleading the organization. The management needed to act responsibly in such crisis situation. As commented by Eriksson, Larsson & Pesämaa (2017), the managers did not come up with any strategy to deviate the situation. As a result the reputation and the image of the company were at stake. The management could have examined the pressure situation and made strategic decisions. The importance of strategic decisions and managerial decisions are innate and the company needed to adhere that.
As commented by Michie, Sparrow, Cooper & Hird (2016), the problem was identified by the company but still the management remained silent. They did not take immediate actions in this context. This led to their brand image failure. The management took action only at the later stages. At the beginning of the stage they just denied the problem. The major finding in this context relates that the management was insufficient to take actions at the first place, secondly the company denied to actions when it was needed and most importantly, the strategic implementation of their policies were not withheld.
The company responded much later when they saw that actions were needed to be taken to save their brand image. In the above discussion it is evident that managerial decisions were a great failure in context to the crisis. The strategic management planning was not catered and was insufficient. It was very important for the company to develop communication strategy and come up with solutions to their consumers. The key issues in context to the problem was identified and discussed. The results and the main findings of the study were incorporated in this study. This report dealt with the complex management issues. It studied the management issues in context to the Toyota Company. The lack of managerial decisions and strategic implementation led the company to failure. The management did not incorporate strategic decisions to overcome their crisis rather they blamed several other things. This study incorporated the identification of the issue, its critical appraisal, background, and data extraction process and inclusion criteria. This study further recommended action plan to cope up such situation.
Limitations of the study
This study incorporated several limitations. Firstly, the primary data collection method was not used in this regard. The primary data analysis could have shed light on how the consumers reacted to this issue. The interviews and surveys were taken in general but they were not considered in this study because it is more explanatory. The interviews were only limited to the mangers of the organization. Media coverage and the information from the official website of the company were mainly used in this regard. Secondary data collection was given more importance than the primary data collection method in this study.
This generally states the consequences and the results need to be put in the actual life scenario. The practical implications can either be negative or positive. As commented by Knies, Leisink & Kraus-Hoogeveen (2018), they are basically the implied results. In this regard, the company did not initiate practical implications to save the company from disaster. The management did not take any strategic decisions to overcome the situation. The managerial decision adhered by the company was not sufficient to entail the situation.
In this case the study raised practical implications in context to the crisis management in terms of auto motor industries. As commented by Moeller, Maley, Harvey & Dabic (2016), quality is the foremost important thing that is looked in by the consumers. The reputational losses are only the outcomes of not having good quality services. Being prepared before the crisis is another thing that is needed to entail any successful organization. As stated by Knies et al. (2018), the crisis situations pour in unexpectedly and effective management system needs to be adhered. For a global company like Toyota it was very essential to be prepared of any of the loopholes. Taking proper steps and implementing strategic planning was necessary.
As commented by Zhang, Waldman, Han & Li (2015), the company was needed to develop strategic planning to overcome such situations. It is very important for any organization to take in strategic planning for any crisis situations. As commented by Bolden (2016), there were several matters that were of innate importance that was just neglected by the company. The management of the company was insufficient to procure the measures which are to be taken in crisis situations. As stated by Vorraber, Müller, Voessner & Slany (2018), the managers of the company need to incorporate strategies like the denial strategy, mortification strategy and corrective strategy. As commented by Au & Ahmed (2014), denial strategy is generally recommended in context to remove the connections between organization and crisis by simply dealing with the situation. In context to the mortification strategy, the responsibility of the company is to take charge for the mishaps and ask forgiveness. The corrective strategy induces the organization to take steps that can help in solving the situation and prevent such crisis in the coming future.
As commented by Au & Ahmed (2014), the evasion of responsibility and reducing the crisis offensiveness is also a major step that is needed to be taken by the organizations. The organization is required to minimize the damage in context to the crisis situation and reinforce policies to deal with the situation. It is recommended that a company prepares itself before anything occurs so that they can act accordingly in context of the situation. Implementation of strategic planning is very important to cope up in a situational crisis. Strategic planning is recommended to set up the vision and the mission of an organization. As commented by Collings, Wood & Szamosi (2018), strategic objectives are generally based in terms of information and realistic assessments so it is recommended that the organizations make assessments in dealing with situations.
It is recommended that the organization evaluate their goals and developments. For example, the situation that rose in Toyota could easily be controlled by the management authorities. The process in context to strategic planning is important in an organization it helps in solving the internal and external conflicts.
As stated by Bratton & Gold (2017), it is very essential that a company prepares beforehand by making assumptions so that when the situation occurs, they can take corrective measure. In this regard, the management of the company just denied their mistakes and blamed other series of events for their mishap. As commented by Adams, Tenney & Pew (2017), decision making is very important so that there are always alternate solutions to any situational crisis.
As opined by Tyrer (2018), it is recommended that management needs to plan the decisions accordingly to prevent the company losses. This can incorporate by the utilization of the resources, evaluating the managerial performance, selecting the best alternative, pervasive function and employee motivation. As commented by Adams et al. (2017), it is of vivid importance that an organization has effective and efficient management system to cater with the managerial decisions properly. Planning of the decisions and implementing it to the crisis situation forms an integral part of management and managerial decision.
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