COURSE OF ACTION IMPROVEMENT PLAN CASE STUDY

Course of Action Improvement Plan Case Study



Course of Action Improvement Plan Case Study

Introduction

Toyota Industries Corporation originated in 1926 in Japan, by Sakichi Toyodo who was a seller of automated car parts. Since its foundation, it has become known as one of the most easily recognizable brands, making up to $50 million in profits every day. It expanded and diversified into many fields after observing the rate of profits, and has extended the scope of its business through the inclusion of textile machinery, material handling equipment, automobiles( vehicles, car air-conditioning, engines and so on), electronics, appliances as well as logistics solutions. Based around the world, noticeably in North America, Europe, and Asia, it has a sales network that varies immeasurably and is focused on providing the best care in Materials Handling Equipment and Textile Machinery. The segmentation in Toyota is vast, and it manages to remain affordable to people from all fields, while maintaining its strict adherence to principles of quality management. This is the reason why the Japanese automobile company is recognized as being the world largest as per its sales. It distributes vehicles globally everyday and its well-earned reputation for quality and safety measures is testament to the fact that it sticks to its core values. Having been around for so long, it has a strong following and can be found the world over, due to its globalization standards as well as its commitment to innovation in design.

The accelerator crisis however, managed to tarnish the brands history of safe and secure vehicles. In 2008, an early model Lexus was involved in a few traffic crisis's landing in a severe backlash on Toyota and a recall of a total of 8 of its best-selling vehicles. This was an unfortunate move that cost the corporate more than $54 million per day in lost sales revenue, not to mention a fall in Toyotas reputation as a provider of only the most reliable and secure vehicles. The brand image itself was slightly tarnished and Toyota had to work hard in order to fix the next batch of vehicles that would drive off the belt. The CEO was left guessing as to what bought on the lack of quality. With global repercussions to inflation in the recent years, every method had been utilized in order to practice cost reduction, which may have translated into cutting a few corners at Toyota's development sector as well. This could have been the reason why the developers at the corporation had strayed from adhering to Toyota's long-term principles. The global economic crisis surely affected a lot of other large corporations around the world, thus it was not just Toyota who could have been blamed, but there could have been a few solutions to cost reduction methods that would not end in casualties through its vehicles.

Problem Statement

 The most important aspect of the organization that needs immediate improvement is the management of Toyota's brand ...