| [removed] [removed] [removed] | | | For this discussion, I will take the role of an individual in Toyota’s marketing department. In all my years of lean manufacturing, Toyota has been the gold standard. When I heard about the gas pedal defect, I was in awe. Some have argued that the issue was caused by Toyota’s aggressive growth. They argue that their rapid growth has caused a drastic decline in quality. In 2005, Toyota recalled more vehicles than they produced (Connor, 2010). Perhaps, they got too big too fast. Ultimately, there was a breakdown in the quality system and the supply chain. As part of the Toyota marketing team, my responsibility, in lieu of the recall, would be to instill confidence back in to the consumer. First, and foremost, I would need to ensure that an explanation is given to the public and to inform the public as to all steps necessary to prevent any reoccurrences. Unfortunately, in today’s world, many parts in the automotive industry are subcontracted to the lowest bidder. As a marketer, I would look at possible vertical integration of components or a more robust supply chain and quality system. It took Toyota decades to build their pristine reputation, but only a short time for them to lose it. It was not the gas pedal that was the problem, it was much more systemic. The statistics following statistics are disappointing. One study shows that 57% of business college students and adults felt the way the Toyota leadership team handled the recall was disappointing or very poor. Only 18%, had confidence in Toyota at the time of the recall. However, only 13% felt that Toyota would not regain its prominence (Piotrowski, 2010). With these statistics, I would look at developing protocols on how to handle crisis situations. Mistakes will happen. It is important that the leadership is prepared to handle these mistakes. Doing nothing excepting talking about the problem will cause consumers to lose faith. People want to do business with a responsible company. The main goal is to ensure that corporate social responsibility (CSR) is top priority. According to White (2012), the goal of a company’s CSR policy is to take responsibility for their actions and encourage positive impact. Taking responsibility for Toyota’s past, present, and future actions will reinstate consumer confidence. Connor, M. (2010, January 31). Toyota Recall: Five Critical Lessons. Retrieved October 23, 2012,from Business Ethics website: http://business-ethics.com/2010/01/31/2123-toyota-recall-five-critical-lessons/
Piotrowski, C., & Roger, W. G.,Jr. (2010). Toyota recall crisis: Public attitudes on leadership and ethics. Organization Development Journal, 28(2), 89-97. Retrieved from http://search.proquest.com/docview/338497783?accountid=32521 White, S. (2012). Principles of marketing. (1st ed.). San Diego, CA: Bridgepoint Education, Inc.
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| [removed] [removed] [removed] (an instructor response) | | | Hello Trudie,
Great post!
To win back confidence in its vehicles' safety as worries grow of further bad news, the automaker must embrace a rapidly evolving strategy and reach out boldly to consumers. Toyota had to begin the painful and difficult task of trying to convince consumers that they should buy the beleaguered company's cars -- even as worries mount that more bad news may be ahead. Re-building customer confidence is not an easy task. Managing such a crisis by using the-by-book crisis management tactic, might not be the only remedy to "stop the bleeding". A strategy used to show corporate responsibility by Toyota included television appearances by top executives. In addition, the world's largest automobile maker began to air commercials aimed at restoring confidence in its vehicles. Professor Upshaw
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| [removed] [removed] [removed] | | | Great post Trudie,
I remember all the recalls. The car industry has change a lot through out the years. Other companies have learn from this mistake and have recalls all the time to fix whatever malfunction their cars may have before the problem expands. I remember for years many cars like Hyundai will make cars that where affordable but the product was bad. Now in order to compete with its competitors manufacturer have to come out with a reliable product but also affordable for its customers. Hyundai and Kia have done a good job in coming out with new product that seem to catch the eye of consumers. Years back not many people would consider buying a Kia and Hyundai had a bad reputation. Great post.
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| [removed] [removed] [removed] | | | I like what you said about taking responsibility to make sure that the consumer confidence gets reinstated. This is so very true. Once lost, your reputation is very hard to get back but people take pity on those who admit their faults. This reminds us that we are all human and mistakes happen. It also gives confidence to consumers that you aren't trying to hide anything from them but bringing it to their attention for their best interests. This too will remind the customer that, while mistakes happen, the company has their best interests at heart and wants their relationship and not just their business.
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| [removed] [removed] [removed] | | | The BP and Toyota cases concern companies that acted in ways that would clearly cause harm to the public and/or the planet. To do so, individuals at many levels played a part. If you worked in the marketing department of BP or Toyota, explain your department’s responsibility related to these issues.
I have chosen British Petroleum because I am not too familiar with the situation that happened with Toyota. As part of the Marketing Department, it would be our number one task to tell the public know that we deeply regret and apologize for the situation at hand and are doing everything in our power to fix it. Second, convince our clients to remain in business with the company.
History: April 20, 2010, a gas release and succeeding explosion occurred on the “Deepwater Horizon” oil rig well for British Petroleum in the Gulf of Mexico. Eleven people died and others were injured.
We deeply regret this loss of life and recognize the horrendous loss suffered by the families, friends and co-workers of those who have died.
The accident implicated a well integrity failure, followed by a loss of hydro-static control of the well. We also failed to control the flow from the well with the "Blowout Preventer" (BOP) equipment, which allowed the release and proceeding ignition of hydrocarbons. The BOP emergency functions failed to seal the well after the very first explosions.
On behalf of BP, we regret the impacts on the environment and livelihoods of those in the communities affected. We have, and continue to, put in place measures to help ensure it does not happen again.
As part of the marketing department for BP, we took sole responsibility for the clean up, we responded swiftly to compensate people affected by the impact of the accident. We would announce that we looked after the health, safety and welfare of the many residents and people who helped respond to the spill, and to support the economic recovery of the Gulf Coast’s tourism and seafood industries impacted by the spill. We have conducted further research and put further precaution steps to prevent this from occurring again.
Written by: Richard Pallardy . “Deepwater Horizon oil spill of 2010, Oil spill, Gulf of Mexico”. ©2015 Encyclopedia Britannica, Inc. http://www.britannica.com/event/Deepwater-Horizon-oil-spill-of-2010
Sarah White. "Principles of Marketing". Copyright © 2012, Bridgepoint Education, Inc.All rights reserved. https://content.ashford.edu/books/AUBUS330.12.3/sections/copyright
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| [removed] [removed] [removed] | | | Ericka, I found your post very informative and also very correct in your assessment because BP did a poor job at handling this and had they done what you suggested then it would have allowed me to have some respect for them. Great post!
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| [removed] [removed] [removed] (an instructor response) | | | Hello Ericka,
Good post! Your post made me think about the following:
The variety of life on Earth, its biological diversity, is commonly referred to as biodiversity. The number of species of plants, animals, and microorganisms, the enormous diversity of genes in these species, the different ecosystems on the planet, such as deserts, rainforests and coral reefs are all part of a biologically diverse Earth. Appropriate conservation and sustainable development strategies attempt to recognize this as being integral to any approach. In some way or form, almost all cultures have recognized the importance of nature and its biological diversity for their societies and have therefore understood the need to maintain it. Yet, power, greed and politics have affected the precarious balance. Resource: Globalisues.org Kotler, P., & Armstrong, G. (2012). Principles of Marketing (14th ed.). Upper Saddle River, New Jersey: Prentice Hall. Professor Upshaw
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| [removed] [removed] [removed] | | | When companies fail to “walk the talk” it results in a lapse of support from customers as well as from the general public (White, 2012). For BP, there were a series of events that led up to its failure, while the “unintended acceleration recall hit….Toyota hard in the image department” very rapidly (Brauer, 2014). When it comes time for a marketing department to own up to the part they took in the misleading of the public, there is a strategic way to go about things. For instance, if I worked in bp’s marketing department there are actions that I would have wanted to take before the events led to a downfall in our company. If branding is so important to customer relationships, maybe the company should have went with another brand. I can’t say I the marketing department at the time knew of the fallacy of lies they were weaving into the public’s eyes, but management did. I would speak up to say that if I knew that “only 1 percent of BP’s post-merger activities came from sustainable sources,” I wouldn’t feel comfortable in branding our company as ethical and green. In the aftermath of the Deepwater Horizon disaster, I would acknowledge and apologize for my part in the process but would enact a plan to try to fix it. Like Admiral Hyman Rickover believed: “short-term thinking [is] inexcusable and there [is] no excuse for failure” (Brill, 2010). As marketers, it is our job to be loyal and perform ethically to our customers and we failed to do so. Instead of using our marketing department for deceit, we could now use it to promote what we’re doing right in response to the event. Similar to BP, the 10 million car recall had “a lot of dedicated Toyota customers at least considering other options” (Brauer, 2014). From now on, companies will (*should) be better prepared to handle the ethical side of marketing/branding when it comes along. Brauer, K. (2014, July 1). Why A Massive Safety Recall Hurt Toyota More Than GM. Retrieved December 8, 2015, from Forbes: http://www.forbes.com/sites/kbrauer/2014/07/01/why-massive-safety-recall-hurt-toyota-more-than-gm/ Brill, K. (2010, June 16). Why BP, Toyota, and Lehman Failed. Retrieved December 6, 2015, from Forbes: http://www.forbes.com/2010/06/15/bp-toyota-lehman-technology-cio-network-management.html White, S. (2012). Principles of Marketing. Bridgepoint Education, Inc.
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