Toyota Motor Company: Losing its Quality Edge?


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Case Details:

Case Code : OPER095
Case Length : 29 Pages
Period : 2006-2010
Organization : Toyota Motor Corporation
Pub Date : 2010
Teaching Note :Not Available
Countries : Japan; Global
Industry : Automotive

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

What Went Wrong?

According to analysts, as the company was aggressively expanding globally, it lost its focus on quality and failed to maintain quality standards at its overseas plants. After becoming the president of Toyota in June 2009, Akio accepted that the company in a bid to become the world's largest car maker, had drifted away from its core value of focusing on the customer...

Has Toyota Lost its Quality Egde?

Some analysts expected Toyota's quality problems and the subsequent recalls to affect the brand image of the company in the long run and lead to a short-term effect on earnings. Toyota dealers would suffer losses and brand loyalty would get eroded, they said...

Outlook

Experts felt that in order to prevent its image from slipping further, Toyota had to focus on its quality aspect. The company needed to closely monitor quality and overhaul its design, engineering, and manufacturing operations...

Exhibits

Exhibit I: Principles of Toyota
Exhibit II: Toyota Milestones
Exhibit III: Vehicle Production, Sales and Exports of Toyota (2008)
Exhibit IV: Income Statement of Toyota Motors
Exhibit V: Principles of the Toyota Way
Exhibit VI: Toyota Quality Assurance System
Exhibit VII: World's Top 10 Auto Groups by 2009 H1 Sales
Exhibit VIII: 2009 J.D Power Initial Quality Study (IQS) Rankings


 

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