Business Research on Toyota

Running Head: BUSINESS RESEARCH ON TOYOTA
Business Research on Toyota
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1BUSINESS RESEARCH ON TOYOTA
1. 1st organizational process of Toyota
In 2009 the company was going through the crisis period caused by the accelerator issue
in the Toyota vehicles. The accelerator pedals of the Toyota cars started getting stuck
mysteriously and consequently many cars crashed tragically. The first organizational process at
the time of accelerator crisis is “creating unmanageable risk by aggressive growth”. It has been
noted that the crisis was not the result of a single day. Since 2005, Toyota started recalling more
cars than it sold. Gradually it went out of the quality control due to the desire to supplant General
Motors as topmost car –maker of the world. The aggressive growth Toyota was running after
was to win over the market rivals like Hyundai, Ford, BMW, Maruti Suzuki and others. The
growth process was considered to rise Toyota to become the leading car companies across the
globe. The parties involved in this process are investor, customers, the employees and
communities. It is assumed that if the board of directors of Toyota had exercised proper diligence
while accepting the aggressive growth plan of the management, growth could be achieved
without such franchise affectations.
2nd organizational process of Toyota
The second organizational process at the time of acceleration crisis in Toyota was having
a weak supply chain. The auto companies usually do not make their own parts. They just
assemble the parts of the car made by others. In this case, the gas pedal was delivered to Toyota
being manufactured by a company called CTS, Elkhardt, Indiana. However, the blame cannot
entirely be put on the suppliers as it has been found that the acceleration issues were there since
the year 1999. The importance of vehicle parts is unquestionable. Without parts Toyota cannot
manufacture cars. The parties involved in the process are mainly the suppliers of the parts as well