Changes in brand image of Toyota

Changes in brand image of ToyotaToyota is unitary of the top political machine brands from Japan. They realise been one of the biggest railroad automobilemakers in the world. They have been producing c adequate railway car for the past 60 years. They have put their brand in the blot and they have achieved the consumers trust on their products and brand. Toyota has been profitable from their first creation. Their brand has been wellhead go throughn and used by consumers worldwide. Their fibre of product has never discomfited their customers. Their brand image has been built on the safety and reliability of their cars.2.0 anticipate Malfunction and Sticky Pedal AcceleratorsIn the previous years, Toyota has encountered military issues that be similar to year 2009 but in year 2009 they have to announce to their s manoeuvreholders that they be biding a major call back on their unfermented hybrid cars Toyota Prius. It is a fully hybrid electric medium digit car that ha s reasoned qualities as it is environmental friendly but it has a big problem. The problems be that the car brakes failed to work the accelerator pedals got stuck. Toyotas pickings a huge hit at the moment in toll of their brand image, Mr. Champion said.In January, the problems of sticky accelerator pedals reached almost to 4.5 one million million million vehicles and in November, as many as 5.5 million vehicles with accelerator pedals that could construct trapped by the floor mat were called back. Toyota Prius have started been sold in the year 2004 through knocked out(p) year 2009. These model years are touched by these problems of brake malfunction and the sticky accelerator issue.Toyota has also make a mistake to their stakeholders by non responding to the issue soon luxuriant before the news spreads out to the public. Their Board of Directors should have take activeness before more complaints are filed.2.1 EmployeesThe employees that are unnatural by this issue are the one responsible for assembling and installing the brakes to the vehicle. Their quality check department employees are to be blamed in this question overdue to their careless checking. The resorting works begin as soon as the shipments of the parts reached the dealerships. Employees ordain take at least 25 proceeding to completing each repair work. One of the service managers Dave Davis says that Its going to be chaotic, but were doing the outflank we can. If I have customers until 9 oclock at night, thats how tardily Ill stay open. This statement proves that employees have to work long hours to nuance up the repair works.For the employees that are working in the assembly line, they are under pressured by having to coif up with a more dear fix as soon as possible because the longer they take to find a dependable fix, the longer the assembly line provide be at large(p), the higher the cost of Toyota allow be. When the assembly line is idle mover that other processes are put on hold, there will be no new car sales probably until Toyota fixes the change they have caused to their own guild.2.2 CustomersThe customers are the plurality that affected the most due to this mishap. They are at risk of losing their lives when the breaks of their vehicle fail to function as they should. Toyota was aware of the complaints in Japan about the braking problems on their Prius. In the unify States, the complaints on the Prius brakes are building up as well. An chance event was reported in Japan, suspected to be linked to the brakes non functioning. According to the Japanese Transport Ministry, the accident injured two people as the Prius they were driving crashed into another car head on. (CBSNews Business)2.4 ShareholdersTheir shareholders are affected by this issue because they have invested in Toyota for the project of the Prius. When this problem arises their stock list prices will fall. Their dividends are automatically affected by this issue. Toyota sto cks falls drastically in the Tokyo Stock Exchange, falling 5 percent to 3,230 hankering ($35) after dropping 5.7 percent the previous day. When the U.S. call backs were announced in the media, 22 percent of their stocks are lost.3.0 Importance of Dilemmas after(prenominal) this issue is out in the public, Toyota has admitted to the press that their hybrid car has problems. They have made a major call back of the vehicle globally. As many as 4.5 million units were called back. Toyota is making a finis what any other auto manufacturer would do in this kind of situation. They send out earn to the affected car owners that need to send their vehicle for the call backs. The Toyotas technicians are working hard and working long hours to deal with the high mint repair jobs that are occurring.If the Toyota does not realize how important this issue will affect their company, they will have to suspend the sales of the new car of the affected models that are exempt at their dealers lots an d the new car production will also be temporarily stopped. They must know that this issue is big.3.1 EmployeesThe production plant in Alabama is shutting take for three months in order to cut the inventory levels but no full epoch workers were let go. Instead, the part time workers were let go and their overtime were cut. During the three months shut down, Toyota came up with a training, cost great and improvement plan for their employees.Jim Bolte the President of a plant in Alabama, coupled States says that When we made our initial announcement about our non-production time and told our team members that they would not lose their jobs, we could see that many of them maybe didnt believe us. He also added Now they know that when we say things we really mean them. (Reuters)3.2 CustomersAfter the occurrence issue, Toyota provides free transportation for their customers in the United States to the dealers for repairs that involved in the call backs. They provide this free transpor tation to those who refuse to drive their call back vehicle to the dealership and also reimbursement for the Toyota owners. At the dealer, they provide a rental car or a pickup and return car at the dealership. They provide a fast service on the repair works and they also give reimbursement to their dealers for the cost of compliance. (Bloomberg Business Week)3.3 ShareholdersThe Toyota Motor association President Akio Toyoda bowed and apologized to Toyotas shareholders for causing the biggest global call backs of their vehicles.It was the first time the president of Toyota faces the shareholders since the companys reputation was damaged due to the call backs issue. He says that the company is doing their best to improve their quality control and he is thankful to the shareholders for their support. He adds We believe our most important task is to regain customers trust.(Autos on msnbc.com)3.4 conjectureToyota should know look into the utilitarianism theory. This theory has been us ed since the eighteenth and nineteenth light speed philosophy but the idea of this theory is still applicable in the twenty-first century. This theory explains that we should make a decision by considering the consequences of our actions. It means that we should act in ways that produce better out come than the alternative we are considering. In principle it is also known as maximizing the overall good or the great good for the greatest number (Hartman P. L. and DesJardins J. 2008). A decision that fulfils all these terms is the right decision to be made ethically. Therefore, Toyota has to figure out what is the best thing to do for the sake of their stakeholders. Thus, by making the right decision they are able to regain their stakeholders trust towards their company. Toyota can use this theory not unspoilt to make decision for their current issues but also they can doctor it if there is any issue occurred in the future because it balanced the good over bad for those who are af fected (Shaw H. W. and Barry V. 1998).4.0 Our PrincipeToyota believe that theres no best only better. They will keep on getting better for the future. That is why they put their brand message Moving Forward. This message proves how passionate they are for innovation and discovering new ideas and technology. They know that no matter how successful they may get, there will always be new challenges that awaits them in the future. They are focused on the future of the company and their brand. They will not stop pursuing for excellence as they are dedicated to Kaizen which means dogging improvement. By implementing this in their hearts, they are able to give what their customer value the most out of them which are their quality, durability and reliability of the vehicle that they have produced.Even though, currently Toyota is facing some issues on their quality and reliability, they still hold strong on what they believe in which is Kaizen. They are try their best to regain what they h ave almost lost from their stakeholders. (Toyota Corporate info)5.0 testimonial