Toyota's Crisis Management: Unintended Acceleration

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1.0 Introduction When facing a crisis the former and present reputation of a company could result to instability; hence drive the company in a direction that is unfavorable. The strategy by which a corporate company decides to issue responses in relation to a crisis may positively or negatively influence the reputation perceptions of stakeholders and customers. In turn, this may impact how they choose to interact with the company. This research uses theoretical literature regarding the management of corporate crises, as well as consumer perception to establish the best ways through which a crisis can be avoided or dealt with, despite the magnitude of the crises. The reason of utilizing such literature is to help us analyse a situation using knowledge and insights gained from the Toyota case 1.1 Problem Discussion A crisis is a situation that has a 50/50 probability of occurring in a company, hence can cause a company’s instability from an internal or external perspective, resulting to serious implications on its reputation, assets, et cetera (Carroll, 2009). Any potential Crisis is considered as a threat to the company, and could cause harm such as distorting the company’s profitability and growth therefore threatening its survival (Tucker and Melewar, 2005). The depth of a crisis which threatens corporate reputation is rather complex. It is worth noting that crises could occur suddenly and/or caused by problems which could have built up over a period of time (Greyser, 2009). Therefore, any company may encounter serious challenges from the public, media, stakeholders and competitors, since it relies on such elements to build trust and reputation (Tucker and Melewar, 2005). To be able to come to sound decisions, it is necessary to... ... middle of paper ... ...ould Warn Investor Away”, Wall Street Journal (Eastern edition), New York, N.Y.: Feb.3, 2010, pg.D.2 Smudde, P. (2001), “Issue or crisis: A rose by any other name”, Public Relations Quarterly, Winter 2001, Vol.46, No.4, pp.34-36 Tucker, L. and Melewar, T. C. (2005), “Corporate Reputation and Crisis Management: The Threat and Manageability of Anti-corporatism”, Corporate Reputation Review, Vol.7, No.4, pp.377-387. Welch, D. (2010), “Oh, What A (Hideous) Filling”, Business Week, New York: Feb 15 2010, Iss. 4166, pp.21. Yin, R. K. (1994). “Case study research: Design and methods”, Newbury Park, CA: Sage. Zhao, Q. and Fan, DC. (2007), “Will corporation still be surviving tomorrow? Strategic role of corporate crisis management”, ISCRAM CHINA 2007: Proceedings of the Second International Workshop on Information Systems for Crisis Response and Management, pp. 219-225.

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