Operations Management Issue 2022

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OPERATIONS
MANAGEMENT
[Type the document subtitle]
4/16/2020
student name

OPERATIONS MANAGEMENT 1
Contents
Toyota 2010 crisis......................................................................................................................2
Impact on public opinion and customers...................................................................................2
Company strategic change.........................................................................................................3
References..................................................................................................................................5

OPERATIONS MANAGEMENT 2
Toyota 2010 crisis
Toyota manufacturer has been working in 27 nations across the globe. However in 2009 the
company has sold in 170 nations with 7.5 million vehicles what that included Toyota,
Daihastu, Hino and Lexus brand. Since 30 years the company has considered to be the
symbol of leadership in manufacturing excellence across the globe. However automobile
manufacturers are not immune considering the crisis within the industry. This reflects
production disruptions, product recalls, labour disputes, supply chain efficiency and various
other competitive pressures. One such crisis for Toyota included maintaining product quality
and Superiority of the product which has reflected customer loyalty for the brand.
Since 2007 the company was experiencing car model recall that reflected major crisis at point
of time when top-selling models of the company comes with various potential defects in
quality related to acceleration problem, brake system defects, software glitches, steering
malfunctioning. 2010 recall crisis majorly impacted Toyota business and around 8 million
cars for record it to get major defects in manufacturing. Considering the problem of 2007 it
was considered as major warning signs for the brand which was not taken as serious crisis
until January 2010 where the recall has caught the attention of public and media along with
the regulatory agencies of United States (researchgate).
Impact on public opinion and customers
The recall crisis has majorly impacted the public opinion and customer perception towards
quality and reliability of the brand. There is no doubt that the quality image of the company
has been compromised as per the consumers perception as they suffered from the recalls. The
impact on consumer reflected through the survey data along with the media that has amplified
the case. Negative quality perceptions have reflected the rebound of the trouble repeatedly.