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Strategic issues of quality

Based on strategic, structural, and cultural challenges, discuss the drivers of Toyota's accelerator crisis. Why was Toyota facing a recall crisis?

How well are Toyota's management, employees, and external stakeholders able to support their corporate brand?

Has Toyota effectively managed ethics and public relations in the United States? Who should be accountable for this activity? How could Toyota's crisis management be improved?

What should Mr. Akio Toyota, Toyota's president, do now to restore Toyota's reputation and position Toyota for sustainable competitive advantage?

Has the company lost sight of its long-term philosophy, a key principle behind the Toyota Way?

How many dimensions of quality defined in Chapter 2 of the textbook are not properly addressed in Toyota?


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1. The strategic challenges that Toyota was facing was reducing costs so that it could keep the prices low. This was essential to ensure the growth of Toyota globally. Reducing cost was the strategic driver to Toyota's accelerator crisis. Structurally, as the manufacturing was dispersed round the world and Toyota had a centralized management; it was difficult to maintain quality standards. The drive for expanding the market led to weak quality and Toyota accelerator crisis. The cultural challenges that Toyota faced was that it had nurtured the culture of safety and quality before volume, however, because of short term profit targets and need for quick growth, a culture that stressed volume and growth first developed. This was the cultural driver of Toyota's accelerator crisis.

2. Toyota's management is highly centralized and as such has relatively low control over operations located in foreign countries. This leads to low support to Toyota's brand. The employees of Toyota are able to support Toyota's brand to a limited extent. They can work on quality parameters within their control. However, the overall policy is determined by the managers. Overseas expansion led to the dilution of the Toyota Way. Each plant had its own president and employees had limited influence in supporting their corporate brand. The external stakeholders, the customers suffered because of the ...

Solution Summary

The answer to this problem explains quality related issues. The references related to the answer are also included.