This report is an overview of Toyota Motor Corporation which it face a number of crisis such as Defective Accelerator pedals, Tsunami in Japan and Thailand worst floods. In this report, we will look at these problems that had caused Toyota Motor Corporation’s production to halted temporary and look at how it will impact the employees of the company. There are issues pertaining to the crisis that the company can do to resolve the issues and how the management team can help to solve the changes of environment.

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Looking at the macro environment, alternatives available, various analysis, and organization cultural, ways to reduce crisis job related stress on the employees and the relevant motivation theory that the managers used. It took us some time to figure out how does Toyota Motor management face those crises and find solutions to help resolve and reduce the impact to the lowest. As Toyota is Japanese company which experience number of crisis in these recent years therefore it is most suitable for us to write this report. As Toyota is a strong branding locally and most of the Singaporean will be familiar with it.

Their total revenue for the year 2011 is US$235. 89 billion. Toyota faced a $2billion recall on defective accelerator pedals yet another crisis to cope with a slowdown in production due to massive factory damage cause by March’s earthquake and tsunami in Japan. Recently, Thailand worst flood has affected Toyota manufacturing plants’ production cutback. Mission: Toyota seeks in create a more prosperous society through automotive manufacturing. Vision: Toyota aims to achieve long-term stable growth in harmony with the environment, the global economy, the local communities it serves and its shareholders.

There are many factors in the macro-environment that will affect the decisions of the managers of any organisation. Tax changes, new laws, trade barriers, demographic change and government policy changes are all examples of macro change. To help analyse these factors managers can categorise them using the PESTEL model. This classification distinguishes between: 1. Political Factors Government at all levels is an important component of the general environment no organization or industry is immune from the various decisions made by the government.

According to Country watch reports on political risk index, Japan is ranked number 12th, one of the lowest political risk countries. It is the lowest in political risk in Asia which attracts many trades from overseas. Despite the low political risk, Toyota may still be affected by changes in government policies like all other companies in the world. Government may affect Toyota Corporation through trade restriction and minimum wages policies. These policies may have direct impacts to Toyota Sales and costs. 2. Economic Factors

These include interest rates, taxation changes, economic growth, inflation and exchange rates. As you will see throughout the “Foundations of Economics” book economic change can have a major impact on a firm’s behaviour. For example: – Higher interest rates may deter investment because it costs more to borrow – A strong currency may make exporting more difficult because it may raise the price in terms of foreign currency – Inflation may provoke higher wage demands from employees and raise costs – Higher national income growth may boost demand for a firm’s products 3. Social Factors

Changes in social trends can impact on the demand for a firm’s products and the availability and willingness of individuals to work. In the Japan, for example, the population has been ageing. This has increased the costs for firms who are committed to pension payments for their employees because their staffs are living longer. It also means some firms such as Asda have started to recruit older employees to tap into this growing labour pool. The ageing population also has impact on demand: for example, demand for sheltered accommodation and medicines have increased whereas demand for toys is falling.

Technological Factors Technology is of particular importance because it has been and continues to be the main source of increases in productivity. Despite changes in the means used to motivate people and the variety of incentives that have been offered to stimulated production, the resulting increase has been negligible when compared to that of created by technology. New technologies create new products and new processors, hybrid engine vehicles, MP3 players, computer games, online gambling and high definition TVs are all new markets created by technological advances.

Online shopping, bar coding and computer aided design are all improvements to the way we do business as a result of better technology. Technology can reduce costs, improve quality and lead to innovation. These developments can benefit consumers as well as the organisations providing the products. 3. 0 Decision Making Process Decision making is typically described as choosing among alternatives, but because decision making is a process rather than the simple act of choosing, therefore it can alleviate the problem and concludes with evaluating of the decisions effectiveness.

In this process it can be used to describe both individual and group decision. Decision making process always begins with the identification of a problem or rather a discrepancy between an existing and a desired state of affairs. In recent years, Toyota has faced numbers of crisis eg. , Defective Accelerator pedals which force them initial $2billion recall, 9. 0 magnitudes offshore quake which caused a series of Tsunami in Japan resulted in a fall in production level in Japan base manufacture, Thailand worst floods has also affected Toyota expanded global production cutbacks.

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