CRISIS

MANAGEMENT

Prepared by:
Khumoyun Akbarov

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 About crisis management

• The process through which an

organization deals with a big
unpredictable occurrence that
threatens to affect the company, its
stakeholders, or the wider public is
referred to as crisis management.

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Types of crisis
• Natural disasters
• Malevolence
• Technical breakdowns
• Human breakdowns
• Challenges
• Mega-damage
• Organizational misdeeds
• Workplace violence
• Rumors

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TOYOTA’S CRISIS MANAGEMENT

Failure Fundamental Laws Violated

• Toyota's public relations approach • For top management, crises must
• Far too little, far too late become their number one focus right
away.
• Aside from the quality issue
• Integrity of firm threatened - immediate
• Toyota handled the problem poorly. hands-on control of CEO/team
• Sticking accelerators in 2018 - not
considered a problem as a severe issue

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Toyota's Crisis Response

The accusations concerning the automobiles self-accelerating began in November 2019.

Toyota tackled the matter by attempting to propose remedies before properly
investigating the problem. They initially blamed the self-accelerating on operator mistake,
implying that it was the driver's responsibility.
Toyota then claimed that floor mats were to blame for the gas pedal sticking and
accelerating on its own. Toyota did not recall automobiles or accept responsibility for the
problems that were occurring at the time. It was attempting to divert blame in order to
avoid negative publicity. Unfortunately, Toyota's approach to the issue left consumers and
potential buyers in the dark.

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Toyota's End Result

In Toyota's case, the company's management did not move quickly enough to solve the
problem. Their initial response to the problem made it appear as though they didn't
care about client safety and weren't looking for a solution. Toyota eventually issued a
recall and offered a remedy. However, the corporation faced class-action lawsuits and
litigation as a result of corporate officials' failure to address the issue sooner and instead
sought to hide the situation. The business ended up paying roughly $1.2 billion to avoid
punishment for continuing to manufacture cars with dangerous parts, attempting to
conceal its participation from the start, and bearing some responsibility for the deaths
lost as a result of the failure.

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Recommendations
• Toyota Japan's top management should be involved in
leadership rather than management, since whereas
management is concerned with the minutiae of budgeting
and planning, leadership is concerned with the organization's
vision and direction.
• Toyota's leadership should recognize that the firm is no
longer a Japanese one, and should work to ensure that
communication between Toyota Japan and its manufacturing
units across the world is as simple as possible.

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 Thank you for your
CM
Crisis Management
attention

This study source was downloaded by 100000777677646 from CourseHero.com on 11-22-2022 17:34:00 GMT -06:00
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