Assignment:
Toyota's problems:
Toyota rapidly expanded in 2008 and became the world's largest automaker.
The company cut down the supply chain costs and labor costs
The company failed to manage raw materials manufacturers (suppliers)
The company couldn't control the quality of outsourcing auto parts
High automobile's failure rate
Toyota had to recall enormous amount of automobiles and compensate its customers for vehicle recalls.
Toyota exposed to reputational risk and lose consumer trust
Recommendations:
1.Preparing to manage the risk
• Making a plan to deal with a variety of undesirable outcomes if a disaster occurs
2.Recall
• Toyota must have to recall the possible faulty automobiles to prevent its customers from potential safety issues
• Resolving the crisis --Speed is of the essence
3.Production system & Suppliers
• Toyota has to pay more attention to its production system and outsourcing suppliers for its automotive quality management.
• Take more control of their production system
• Focus on outsourcing suppliers
- set up a monitor team
- require more stringent suppliers
4.Attitude
• Toyota should hold an honest and open attitude to their stakeholders and customers, and promise it will not happen any longer.
• Improve safety performance through healthy cost saving and quality securing
5.Compensation Package
• Customers
• Employees