case study: toyota's crisis and its biggest recall ever!

MAN IS A SOCI

AL ANIM

AL

Communicating being

its LIFEBLOOD.

While Communication simply means:

The

OR EXCHANGING

OF INFORMATION

BY SPEAKING

WRITING OR

USING SOME OTHER

MEDIUM

MEDIUMS

EFFECTIVE COMMUNICATIONLEADS TO BETTER

UNDERSTANDING, AND PREFERABLE RESULTS.

CLASS ACTIVITY

CHINESE WHISPER

AND AS WE SUFFERED FROM THE BARRIERS OF COMMUNICATION, SO DID A WELL-

KNOWN MULTINATIONAL CORPORATION.

Formerly,

Giving cars a

personality, just

like people,

is somethi

ng incredib

ly worthw

hile.-Akio

ToyodaPresident and

CEO

CORPORATE STORY

LOOKING TO THE

FUTURE OF PEOPLE,

CARS AND COMMUNITI

ES

VISION

MISSIONTO ATTRACT AND ATTAIN CUSTOMERS WITH HIGH-

VALUED PRODUCTS AND SERVICES AND

THE MOST SATISFYING OWNERSHIP

EXPERIENCE IN AMERICA.

STRENGTHSWORLD’S

MOST ADMIRED AUTO COMPANY.WELL REPUTED IN SAFETY AND

QUALITY.CONSUMER

LOYALTY.

RECENT PROBLEMS:HIGH-PROFLIE RECALL

INVOLVING 8 PREMIUM MODELS CHAOTIC COMMUNICATION

TORRENT OF MEDIA ATTENTIONDAMAGE TO TOYOTA’S

REPUTATION OF SAFETY AND QUALITY

PRODUCTION AND SALES STOPPED

FLAWS IN AUTOMOBILES: FLOOR MAT INCURSION

STICKY ACCELERATOR PEDAL

HYBRID ANTI-LOCK BRAKE

SOFTWARE

BRAKE SYSTEM FAILURE

SPARE TYRE SEPARATION

MEDIA INTERVEN

TION

HENCE, TARNISHED REPUTATION

INVESTIGATIONS:•NHTSA STARTED

FORMAL INVESTIGATIONS: •AN ESTIMATED 218000 UNITS ARE INVOLVED• PROVIDED AN

INTERIM SOLUTION

MEASURE TO CONSUMERS

•EMPHASIZED ON NEED OF

PERMANENT SOLUTION BY

TOYOTA

oSALES STOPPEDoCONSUMER LOYALTY SHAKENoPROFIT RATIO DECREASEDoHIGH COST OF RECALLS

CONSEQUENTLY,

TOYOTA’S REACTION:WIDENED DEALER

PROFIT MARGINS, TO SALES AND COVER UP

FOR ANY LOSSES. ANNOUNCED RECALL FOR ABOUT 8M CARS

REPRESENTATIVE NOT PROMPTLY AVAILABLE

FOR COMMENTMISLEADING REPORTS

FORWARDED BY EMPLOYESS TO

OWNERS APOLOGETIC SPEECH

BY THE PRESIDENT

CARRIED OUT

BIGGEST RECALL EVER

TOYOTA’S CRISIS IS BIGGER THAN A SIMPLE

REPAIR JOB.

WHAT ARE THE DEFICINCIES IN

TOYOTA’S COMMUNICATION

STRATEGY?

α LACK OF DIRECT COMUNICATION

WITH BUYERS

α IGNORANCE TO AND SLUGGISH

REACTION TO QUERIES BY BUYERS

αMEDIA INTERFERENCE

α LACK OF COMMUNICATION

BETWEEN OWNERS AND EMPLOYEES

DEFICIENCIES:

α INABILITY TO FIGURE OUT PROBLEM

α INABILITY AND MISMANAGEMENT TO

CONTROL LARGE ORGANIZATION,

AFTER TAKING OVER GENERAL

MOTORS

α MISLEADING AND INACCURATE

INFORMATION BY EMPLOYEES

SOLUTIONSGETTING IN

DIRECT CONTACT WITH EACH CUSTOMER

PROMPTLY SOLVING ALL

QUERIES

IMPROVING COMMUNICATION BETWEEN OWNERS AND

EMPLOYEES

CREATE EFFICICENT SYSTEM OF REPAIR

AND MAINTAINENCE

HENCE, GET BACK ON TRACK ON THE TOYOTA

WAY!

Hence, HAPPILY EVER AFTER!

PRESENTED BY:

MALKA LAKHANAYESHA SIKANDERMAHNOOR ADIL

MISHA HANIFSANA SYED