Managing Organizations: Mitsubishi Scandal Report and Recommendations

This report examines the Mitsubishi Materials Corporation data falsification scandal of 2016, which significantly damaged the company's brand image. The report details the subsidiary units' data manipulation, impacting stakeholders, customers, and the organization itself. It highlights issues such as falsified data for products shipped to over 200 customers and the manipulation of data for rubber sealing products and metal products. The report recommends several actions, including building PR activities through effective communication to apologize and retain brand image, implementing quality checks to ensure adherence to customer specifications, and conducting internal audits to prevent malpractices and ensure operational efficiency across subsidiaries. The report provides a comprehensive analysis of the scandal, its impact, and potential solutions for the company to regain trust and improve its operations.

MITSUBISHI SCANDAL
Recommended actions

INTRODUCTION TO THE CASE
 The data falsification scandal of Mitsubishi in the
year 2016 affected the brand image of the
business (Nussey & Obayashi, 2017)
 The concerned organization admitted that the
subsidiary units resorted to data falsification,
which affected the interests of the stakeholders,
the concerned organization and e customers at
large
 The data was falsified for products shipped to over
200 customers, which affected the interests of the
customers (Nussey & Obayashi, 2017)

ISSUES IN THE PROCESS
 The concerned organization, stopped shipping the
affected materials from both of the inflicted units in
October. It has assisted the venture in maintaining the
efficiency of the conflict resolution and immediate
response for retaining the brand image of the same
 Mitsubishi Aluminium Co Ltd shipped products that
did not meet customers’ specifications which affected
the brand image of the venture while operating in
diverse global markets (Nussey & Obayashi, 2017).
The impact of the falsifications degraded the brand
name and trust among the target group of loyal
customers

ISSUES IN THE PROCESS
 It has been found that the concerned
organization’s subsidiaries falsified 20 % of
its rubber sealing products that are used in
aircraft and cars from April 2015 (Nussey &
Obayashi, 2017)
 Mitsubishi Shindoh Co Ltd, a subsidiary of
the concerned venture was reported to
manipulate data for metal products that are
used in cars and electronics until the year
2016 (Nussey & Obayashi, 2017)

RECOMMENDATIONS
 Building PR activities through
Communication
Communication with the customers will assist
the venture in apologizing for the different
issues that are faced by the end level
consumers for the data manipulation and
falsification of the venture. The apology will
assist the concerned venture in retaining the
brand image of the same in the respective
markets.

RECOMMENDATIONS
 Quality checking
Quality checks will assist the venture in
maintaining the efficiency of the
operations in adherence to the
specifications of the customers. The
quality assurance will assist the venture in
enhancing the quality of the propositions
with the view of maximizing the efficiency
of the operations in the different markets.

RECOMMENDATIONS
 Internal audits
The internal audits will assist the venture
in developing a cohesive monitoring
and controlling activity for restricting
the malpractices in the different
subsidiaries. Internal audits will assist
the venture in developing the
operations of the same while operating
in diverse global markets.

REFERENCE
 Nussey, S. & Obayashi, Y.
(2017). Mitsubishi Materials says over
200 customers could be affected by....
[online] U.S. Available at:
https://www.reuters.com/article/us-
mitsubishi-ma-scandal/mitsubishi-
materials-says-over-200-customers-
could-be-affected-by-data-falsification-
idUSKBN1DN09D [Accessed 14 May
2019].