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TOU310 Strategic Intelligence

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TOU310 Strategic Intelligence

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Course Code: TOU310
University: International College Of Management, Sydney

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

Question:
Choose your own Organisation & Strategic Issues facing it (discuss with me first to ensure suitability).
 
The organisation could be a business, or it could be a Government department or a not-for-profit (e.g. Charity). It does not have to be Australian, HOWEVER all reference materials (including on-line sources) must be in English.
 
It is advisable to choose a substantial organisation which has at least 100 employees i.e. NOT an SME. But it could be a local branch of a large multi-national corporation.
 
You may find it useful to choose an organisation that you are familiar with.
 
It can also be useful to imagine that you are part of a CEO’s strategic intelligence business unit charged with advising him/her about the chosen issue. Your report should cover at least the following aspects:
 
• identify the main challenges (key strategic issues) faced by the business or organisation
• address how senior management could address the situation
• identify & determine what analytical tool(s) could assist in helping to analyse the issues
• suggest what role an analyst or strategist could play in working on these issues
• make recommendations to address or improve the situation
• attempt to conclude how successful your proposed solution would be For in-text citation and referenci
Answer:

Introduction
Toyota, a Japan-based automobile manufacturer and selling company are well known for it’s in brand name and quality in the automobile industry. At present, the company is facing significant issues because of its speeding issues, and same is putting the lives of drivers at threat (Camuffo and Wilhelm, 2016). Moreover, such recalls stopped the progress of the company and direct Toyota towards the stoppage of sales and on the manufacturing of its eight popular models.  By considering this aspect, the present report aims at critically analysing the specific business issue faced by Toyota, i.e. recall crises while clarifying various aspects of strategic intelligence. The possible resolution of such issue is also quoted at the end of the report.
Strategic intelligence: Case study of Toyota
Overview and fact on the recall crisis
In the present era, Toyota is one of the largest automobile industry in terms of selling high-quality products and creating modern and innovative products in the supply chain and in the production process of the company. Therefore, the approach of Toyota is only winning towards the supply chain management and manufacturing to another company; it includes automotive industry to follow the philosophical and operational approaches towards manufacturing and others in various types of industries (Greto, Schotter and Teagarden, 2010). Nevertheless, from the past few years, the company faces so many issues related to the quality of the product, and in some incidents, it shows as results in a mass product recall. In 2010, the worst incident was at that time when the company ought to recall its 8.5 million vehicles at a worldwide level; some major issues are causing for the company from damaging the brand and PR perspective (Campbell, 2017).
By now, Toyota Company is affected by the recalls, and that is the major reason why business profitability gets influenced. For example, On February 2, the corporation has built a state in which a 16% decline in sales is reported which is 10-year low of 98,796 vehicles. Furthermore, simultaneously, sales of General Motors’ increased by 14% and of Ford’s were up 25% (Wharton, 2018).
The issue of recall in different countries
Toyota nationally started Safety Recall action that is directly associated with the Driver’s dual-stage airbag inflators which were held in RAV4 vehicles of 2004 – 2005 models. This is available only in the Toyota model inside the US and its territories in which it involves driver’s airbag inflators. Around 2.4 million vehicles are recalled globally by the automaker and the reason behind this is a problem wherein, there is a restriction in the entry of fail-safe driving mode as according to their plan, and it may cause the loss of stall and influence of vehicles. Approximately 807,000 out of 2.4 million vehicles are of United States. While the speed of such vehicles is high, then it shows the results in a crash. Mainly 2010-2014 model year Toyota Prius, as well as 2012-214 Prius v vehicles, are affected by the recall crisis (Wral.com, 2018).
The 2018-2019 Sequoia and Tundra vehicles and 2019 Avalon vehicles are entails in the second recall. In the US, approximately 168,000 vehicles are sold that are affected by recall crisis, and this is because of the programming problem inside airbag ECU (electronic control unit), for using detect crashes it might be put in use of one or more than one of sensors, it may be caused the side and curtain sheltered airbags as well as knee and front airbags to do not deploy as it proposed.
There was an earlier recall in 2014 and 2015, and this recall was also affected by the earlier one, however, at that time, this problem was not addressed. The software will be updated by Toyota in the direction of fixing the problem at charging without any cost to the customers. The Toyota Company intended to inform the affected customers at that time when the update is completed.  The Toyota Australia contacts the owners of affected vehicles to give the information about this recall campaign (Castlemaine Toyota, 2018). 
Impact of the recall crisis
As the recalls were kept growing, sales fall and which results in negatively affected company’s reputation in the worldwide automotive industry. Market analyst started to put the question on Toyota’s renowned quality and a further sense that due to recalls a major failure has been faced by the company. As Toyota keep on struggling with the production and marketing issues that are associated with the recall, and on in spite this also dealing with legal and political issues (Fan, Geddes and Flory, 2013). Besides lawsuits filed by persons who claim the damages that has been occurred through Toyota merchandise, the corporation also faces some class-action suits connected to the unexpected increase of rate.  Moreover, public relation expertise of Toyota’s does not match its strengths as a producer. Even though there were various slippages in its quality performance, besides that Toyota carries on to win additional top quality positions than some other automaker, as well as its past performance on recalls is as well strong.  The company will suffer more damage to its reputation if the corporation discloses additional problems connected with acceleration.  To deal with the recent crisis, the major problem from a PR perspective is an extreme obsession through quality.  By providing products, Toyota increased its brand in the market and such products are of best quality as compare to the competitor products (MacKenzie and Evans, 2010). On the other hand the obsession with quality in the organization which increases towards culture at where the poor quality connects with shame inside the organizational culture. By the argument on such events, that shows the requirement of recall that affects the product of organizational culture, that are not included the junior members towards flag problems that are beginning in the process. This argument increases towards a Toyota’s PR problem, so the company is currently seen inside a reactive position relatively then proactive (Choi and Lee, 2018). 
Initiatives were taken by Toyota to overcome the recall crisis issue
Just after the recalls phase, Toyota has directed towards the crisis management mode and decided to solve the accelerator problem. Different steps towards the crisis management have been taken by the company to get back to the trust of clientele and re-establish its image as an excellence automaker and provider.  In the process of crises management, Toyota positioned ads in print and television media, concerned executives and utilised social media platforms to deal with their consumers (Bowen and Zheng, 2015). At the time of transforming its company culture in the process, Toyota came up with the creative internal communications ways out. In the current years, almost 30,000 or more workers of Toyota Company have mutually made efforts to Reconstruct shaky morale, promote camaraderie and done what is essential for assured profitability. Toyota is well-known for its supportive relations with dealers that not  just only take into consideration cost, on the other hand, is  as well encourage both sides to work mutually to  make a innovate better motor vehicle (Bowen and Zheng, 2015). The dealer of the gas pedals to facilitate the focus of the recall, CTS Corp. of Elkhart, Indiana, is adamant their parts, which were produced in Canada, have contributed for Toyota’s design specifications.
In current years, the growth of the company is exceeding, and moreover, it had begun a program with the objective to make a reduction in cost by associating with the suppliers, which is known as Construction of Cost Competitiveness in the 21st Century, or CCC21. They further made people understand that Toyota and all important producers were gradually moving in the direction of utilising more practical or digital prototype, instead of physical ones, to match with the developing phase. The mixture of an abbreviated product expansion cycle, downsizing cost initiatives have determined on component design and digital because it was divergent to physical testing which could have been an issue in the acceleration difficulty (Liker and Ogden, 2011). 
Reasons for recalling manufactured cars
The company had two major reasons for recalling manufactured cars. Initial, is producers of the car are using the identical mechanism and raised area across various diverse models with the intention of gaining scale and cost benefits (Andrews, Simon, Tian and Zhao, 2011). They declared, if one part is bad, then the number of motor vehicle pretentious will be much bigger than in the earlier period. The top cause of recalls in Japan was Fujimoto added the parts commonality. As per the analysis of the government “Carryover parts are quality-proven as individual components,” they announced, but in case if they are utilised in a wide range of the dissimilar motor vehicle, they might turn out to be the reason of quality problems. And it can be proved as a double-edged sword (Hsu and Lawrence, 2016).
The second major issue that contributes towards the large recalls in the future as an increasing level of complexity in cars.  Automobiles used to be mainly automatic devices, but at present, they are too ruled by several complicated electronics overlay on top of traditional technicalities. It was further observed that it is not always a happy relation among electronics as well as mechanical systems. Moreover, it is said that security and dependability might eventually be enhanced with the expansion of an electric car, as the level of incorporation among electronic systems and mechanical will be compact (Austen-Smith, Diermeier, Zemel, Diermeier and Merkley, 2017).
Majority of issues are arrived because of the fault of third-party dealers, for instance, because of the fault of Takata airbag, the cars of Toyota have been recalled for the subsequent time. This has been sent with a letter to the customers that previous corrections were not done in proper manner. For context, there are mainly two brands that are affected by the global Takata recall issue, and such brands are Toyota and Lexus (Choi and Chung, 2013). From those numbers, Toyota approximately replaced 416,000 airbags (i.e. approximately 71% of their affected cars). However, from 48,000 out of these 416,000 customers get the notice of second recall (i.e. approximately 11%).  The second recall is associated with the chances that wrongly formfitting passenger front airbags and risk has been imposed to drivers if it deployed, because of the chances that the airbags are not completely blow up. Through original Takata airbag recall, influences across more than 4 million Australian cars across a number of brands, then it is edifying to plan that  what the real experience of recalling so many times (Evans and MacKenzie, 2010).                 
Conclusion
In summary, it can be concluded that Toyota’s PR movement has, on the whole, is one of later achievements, although, primarily they have experienced a slow response and breakdown to act in reply straight away to the matter. Afterwards, management of the campaign might seem as successful, the campaign on the whole move violently work towards getting over the company’s initially slow response. Important experience from the Toyota company crisis management will definitely be the value of a set reply, previous to a crisis happens. In the process, the importance of quick initial response and the improved coordination of response on a worldwide scale can be the deciding element. Besides that, one might believe that for Toyota Company, one of the important knowledge is the value of the meeting of outside agencies as it is different to trying to handle all PR performance “in-house”.
Recommendations
During the recall, the Toyota must design a system or a way in which dealers and associates can answer customer questions with expedite information that would further help in sharing details in a public way and gaining their support and trust (Christopher, 2016). The new step can be creating channel  have with  two to three stories through irritable headlines and with that, there must be three to four important points for trader and associates to converse with friends, family, and Toyota customers regarding the issues that are connected to Toyota .
The other actual option is that Toyota will obtain this chance to show its well-known skill to concentrate intensively on exposed trouble, to find to its root cause, and to resolve it enduringly.  Thus, this step will strengthen its image because a corporation that is competent of nonstop learning so as to meet consumer desires.
The recall disaster can be determined by making sure that  consumers’ safety was at risk, therefore, Toyota and team  must well know that they have to  converse quickly with a speedy approval procedure.  Moreover, Recall will not direct the company towards change of its well-known lean manufacture system, for the reason that it “runs so deep in the culture of Toyota and will be to be very victorious and also efficient.” even though Toyota is in the middle of a “public relations catastrophe,” therefore, it is probable to get well more rapidly than any other automakers in the similar circumstances might seem to foresee. However, it could be predictable that Toyota has to obtain throughout this with a damaged status. But as the company have provided great cars for an immense price for 50 years, therefore they have proved themselves a much better platform for re-establish the lustre of their status because the platform is very strong to commence with.
Apart from the manufacturing and mechanical issues, Toyota is also dealing with the major marketing challenges. For balancing the position in the market, Toyota needs to make a grand gesture.  It is recommended that the company must contact proprietor personally for getting them within dealerships for maintenance, and after that recompense the damaged once, in some way. It can be possible by offering a refund for one more free service or any facility (Mena, Humphries and Choi, 2013).  Providing direct cash for a new purchase can be seen as too self-serving, and instantly cash return would move towards across as “cold,” he remarks. They should do a little warmer, and something that shows helpful which will be recovered as they believe, other than that window is closing.  Therefore it is important for them to do something large and quick.”
Toyota must concentrate on the fewer brands rather than producing all models till the problem of recall process gets resolved. In the next upcoming year, Company can launch the limited version by slim down the manufacturing (Ross, 2016). Till the company acquire the same positions, it can cut back the production line and concentrate more on its selling brands. Rather than trading some brands in this kind of circumstances it can slim down the offshore process and concentrate more on the good going marketplace.
To manage the recall process for problematic models, Corporation must produce adequate quantity of brake pedal element and Floor mat accessories (Wisner, Tan and Leong, 2014). They have to deal out in manner that business could retrieve the replaced part and they might mend and use them again to decrease the cost, extra attention must be made by the company on quality control, letter should be sent to the cardholders and provide them appointment to check their cars at the service centre of Toyota. It should employ trained workers in some sectors they can make the procedure quick.
References 
Andrews, A.P., Simon, J., Tian, F. & Zhao, J., (2011). The Toyota crisis: an economic, operational and strategic analysis of the massive recall. Management Research Review, 34(10), pp.1064-1077.
Austen-Smith, D., Diermeier, D., Zemel, E., Diermeier, D. & Merkley, G., (2017). Unintended acceleration: Toyota’s recall crisis. Kellogg School of Management Cases, pp.1-16.
Bowen, S.A. & Zheng, Y., (2015). Auto recall crisis, framing, and ethical response: Toyota’s missteps. Public Relations Review, 41(1), pp.40-49.
Campbell, K., (2017). Takata airbag recall: A list of cars. Accessed May, 19, p.2017.
Camuffo, A. & Wilhelm, M., (2017). Complementarities and organizational (Mis) fit: a retrospective analysis of the Toyota recall crisis. Journal of Organization Design, 5(1), p.4.
Castlemaine Toyota, (2018). Toyota Australia to recall vehicles due to airbag sensor malfunction. Retrieved from< https://www.castlemainetoyota.com.au/news/toyota-australia-to-recall-vehicles-due-to-airbag-sensor-malfunction/ Choi, J. & Chung, W., (2013). Analysis of the interactive relationship between apology and product involvement in crisis communication: An experimental study on the Toyota recall crisis. Journal of Business and Technical Communication, 27(1), pp.3-31. Choi, J. & Lee, S., (2018). Lessons from a crisis: An analysis of Toyota's handling of the recall crisis. Journal of Public Affairs, 18(2), p.e1688. Christopher, M., (2016). Logistics & supply chain management. Pearson UK. Evans, S. & MacKenzie, A., (2010). THE TOYOTA RECALL CRISIS. Retrieved from https://www.motortrend.com/news/toyota-recall-crisis/ Fan, D., Geddes, D. & Flory, F., (2013). The Toyota recall crisis: Media impact on Toyota's corporate brand reputation. Corporate Reputation Review, 16(2), pp.99-117. Greto, M., Schotter, A. & Teagarden, M.B., (2010). Toyota: the accelerator crisis. Thunderbird School of Global Management. Ho, W., Zheng, T., Yildiz, H. and Talluri, S., (2015). Supply chain risk management: a literature review. International Journal of Production Research, 53(16), pp.5031-5069. Hsu, L. & Lawrence, B., (2016). The role of social media and brand equity during a product recall crisis: A shareholder value perspective. International journal of research in Marketing, 33(1), pp.59-77. Liker, J.K. & Ogden, T., (2011). Toyota under fire. McGraw-Hill Professional. MacKenzie, A. & Evans, S., (2010). The Toyota recall crisis. Motor Trend. Retrieved from https://www.bridgetoyota.com.au/news/toyota-australia-to-recall-vehicles-due-to-airbag-sensor-malfunction/ Mena, C., Humphries, A. and Choi, T.Y., (2013). Toward a theory of multi?tier supply chain management. Journal of Supply Chain Management, 49(2), pp.58-77. Ross, D.F., (2016). Introduction to e-supply chain management: engaging technology to build market-winning business partnerships. CRC Press. Wharton, (2018). Quality on the Line: The Fallout from Toyota's Recall. Retrieved from https://knowledge.wharton.upenn.edu/article/quality-on-the-line-the-fallout-from-toyotas-recall/ Wisner, J.D., Tan, K.C. and Leong, G.K., (2014). Principles of supply chain management: A balanced approach. Cengage Learning. Wral.com, (2018). Toyota Recalls Almost 1 Million Vehicles In The U.S. For Stall Risk and Airbag Issue. Retrieved from https://www.wral.com/toyota-recalls-almost-1-million-vehicles-in-the-u-s-for-stall-risk-and-airbag-issue/17906450/ Free Membership to World's Largest Sample Bank To View this & another 50000+ free samples. Please put your valid email id. E-mail Yes, alert me for offers and important updates Submit  Download Sample Now Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days. UploadUnique Document DocumentUnder Evaluation Get Moneyinto Your Wallet Total 13 pages PAY 8 USD TO DOWNLOAD *The content must not be available online or in our existing Database to qualify as unique. Cite This Work To export a reference to this article please select a referencing stye below: APA MLA Harvard OSCOLA Vancouver My Assignment Help. (2021). Strategic Intelligence. Retrieved from https://myassignmenthelp.com/free-samples/tou310-strategic-intelligence/the-business-issue-faced-by-toyota.html. "Strategic Intelligence." My Assignment Help, 2021, https://myassignmenthelp.com/free-samples/tou310-strategic-intelligence/the-business-issue-faced-by-toyota.html. My Assignment Help (2021) Strategic Intelligence [Online]. Available from: https://myassignmenthelp.com/free-samples/tou310-strategic-intelligence/the-business-issue-faced-by-toyota.html[Accessed 18 December 2021]. My Assignment Help. 'Strategic Intelligence' (My Assignment Help, 2021) accessed 18 December 2021.

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