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Toyota: How Recalls Have Impacted Customer Satisfaction

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Report on Current Quality Management Issue :(Graduate Level)

Develop a report analyzing a current issue in Quality Management.
You may select a topic among the areas listed in the tentative course schedule. You must do a literature review on your chosen topic and select at least five articles to develop your report.
You may use journals, magazines, and newspapers like: The Quality Management Journal,
IIE Transactions, Quality Progress, Fortune, Business Week, or The Wall Street Journal. You may also use companies' websites (as appropriate) in addition to the articles.
The report must reflect an understanding of the Quality Management issue analyzed and integration of the information found in your research; it cannot be a summary of the articles selected.

Format:
The report should include at least the following sections:
- Abstract or Executive Summary (best written last).
- Body of the Paper (5 pages minimum). Include references/citations to the articles following an academic writing style as appropriate within the body of the report.
- Conclusions
- Bibliography: list all sources of information used to develop your report following an academic writing style.
Topic...
Toyota: How Recalls Have Impacted Customer Satisfaction

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Abstract
Toyota Motor Company has been the leading manufacturer of automobile technology and customer loyalty for the past 3 decades. However, this position of world class dominance was very close to being shattered in late 2009 with a crisis that shocked both the automotive world and Toyota's executives.

For the first time in its history, Toyota was facing a full public assault on its reputation, its quality, and its dedication for customer safety. The elements of Toyotas business that had long been its cornerstones were now all being questioned based on defective parts and consumer and media attacks. In order to survive the fallout, Toyota's leadership would be tested like never before and their response would be paramount in saving the company from sure collapse as their competitors looked to attack the weakened company in its time of trials.

This research captures some of the key concerns that Toyota was faced with and the response the company took to save their future. It focuses on the culture of Toyota and their character, both of which lead to an eventual containment of the problems and an opportunity for Toyota and its leadership to take the crisis and turn it into an opportunity which could make the company even better than it had been before.

Toward the end of 2009 and upon entering 2010, Toyota Motor Sales U.S.A. (Toyota) was faced with a crisis. This crisis was driven by reports of poor quality based on the repeated customer complaints that identified issues related to unexpected acceleration and gas pedals not functioning properly (Wilson, 2011). This fear of having defective automobiles that could potentially cause great harm to consumers or possibly death lead to the company issuing a recall of more than 5 million vehicles across the United States.

Body
For Toyota's critics and many in public relations and media, Toyota's immediate response to this public crisis and their quality issues was heavily scrutinized. There was great speculation among many of Toyota's critics about the totality of the quality crisis and how severe the damage would be to the company's sales and more importantly, its pristine reputation it had established with its customers (Philips, 2010).

Having been a long time leader in the automotive industry in the categories of customer satisfaction and repeat business from consumers, the concern for ...

Solution Summary

This research captures some of the key concerns that Toyota was faced with and the response the company took to save their future. It focuses on the culture of Toyota and their character, both of which lead to an eventual containment of the problems and an opportunity for Toyota and its leadership to take the crisis and turn it into an opportunity which could make the company even better than it had been before.

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