...automobile began during the late 1700s when European engineers began producing powered vehicles that consisted of combustion, steam, and electrical motors. The 1900s also proved to be a time when the uncertainty of determining which type of motor could actually power the automobile was in question as well. The production of the first U.S. automobile in 1901 by the Ford Motor Company has revolutionized, and changed the course of the auto industry as we know today. In the beginning of its production, automobiles were considered a luxury that only the rich could afford, but today, it is viewed as a necessity that can provide consumers with the freedom to take them anywhere they choose. Henry Ford (Ford Motor Company) helped to shape the auto industry by pricing cars to be affordable, and paying his employees’ wages that would allow them an opportunity to afford to purchase the automobiles they produced. General Motors has been in the auto industry for more than one-hundred years, and has produced about 450 million automobiles worldwide. Although there has been a decline in the production of domestic and foreign automobiles by more than thirty percent in the past fifty years, General Motors way of doing business must reflect positive change in order to ensure its survival. The strategy of Brand Re-structuring will be one of General Motors goals while continuing to focus on their core business as well. Buick, Cadillac, and Chevrolet will remain as the focus of their business. Other...
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...Operations Improvement Plan for Toyota Angie Beckey Capella University Author Note This paper has been prepared for MBA6022 Strategic Operations Management Section 103 Executive Summary Clear and transparent communication efforts are critical in the strength of an organization. These efforts go beyond the internal walls of an organization and extend to their external customers. Effective and efficient communication is crucial to an organization on how consumers perceive the company and brand. There seemed to be a significant break-down across the lines of communication within Toyota, which resulted in a significant negative public perception of the organization and brand. Toyota Motor Corporation is in need of a communications overhaul across the entire organization to prevent future crisis’s and to retain market share, as well as capture additional market share. Implementing a communications improvement plan across the organization will cost approximately 11% of working capital, however, the opportunity cost of restoring and maintaining the reputable brand that has been known for reliability, durability and quality will be priceless. Operations Improvement Plan Implementation “The art of communication is the language of leadership.” – James Humes The purpose of this paper is to illustrate why Toyota is in need of a communications improvement plan overhaul. I have identified the root cause of the accelerator recall crisis as a lack of critical and pertinent information...
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...great brand of products to support the business aspects of an organization. Implementing change is never easy nor resistance free. Change can’t be rushed nor imposed upon. Planning, strategy, risk analysis and hard work are vital elements that an organization should anticipate and be good at. Most of the organizations have difficulties recognizing the effort and planning that is required for an organization change and to withhold the resistance associated with change. Forecasting change before disaster and getting equipped with the change intervention is half the battle the modern era companies face. The company that I will be discussing in this paper is General Motors (GM). GM has a global presence and was growing rapidly in sales and brand value until past decade. Due to recent economy melt down and global economic crisis, GM was left with no options other than to make critical changes to their business model and products for the corporation to survive. Auto industry is deeply rooted in the fabric of American culture, one out of ten Americans depends on the US auto industry for their livelihood. GM can’t go back to the old ways of making profit and survive the new wave of economic restrains; like environment factors and going green initiatives due to the recent oil spill incident. The urgency to go green and need to change GM’s energy dependencies required GM to change. This forced GM to restructure their mission and vision to better suit the demands of the twenty-first century...
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...General Motors Ricardo Villacis 2012 Ricardo Villacis Toshiba 1/1/2012 General Motors Ricardo Villacis 2012 Ricardo Villacis Toshiba 1/1/2012 "GM’s vision is to be the world leader in transportation products and related services. We will earn our customers’ enthusiasm through continuous improvement driven by the integrity, teamwork, and innovation of GM people." "G.M. is a multinational corporation engaged in socially responsible operations, worldwide. It is dedicated to provide products and services of such quality that our customers will receive superior value while our employees and business partners will share in our success and our stock-holders will receive a sustained superior return on their investment." "It is awfully important to know what is and what is not your business." —Gertrude Stein I quote this phrase from Gertrude Stein because reading, talking, analyzing and explaining a big company vision and mission makes you understand what this company create not only for their costumers but what they can share with their employees and families. But why is important for a company have a vision and mission? A vibrant Vision of the company clearly and precisely affords an understanding of what your business is all about. Establishing the elementary principles of how you are going to accomplish your Vision defines the Values of the organization. Without Values in place, the company is unable to induce clear and directional decisions...
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...Course Project Proposal The ideal of this project proposal is to compare and contrast General Motors and Ford which have undergone fairly substantial change in the recent past; and how they handled the pressure of change. Lapratt04@yahoo.com HRM-587-12043 Managing Organizational Change Professor Joseph Phillips Due September 7, 2014 Abstract Ford and GM experienced serious issues during the pre and post TARP causing them to restructure and change how they do business. Each of them reacted to these pressure differently. Ford Motor Company as one of the greatest automobile manufacturers of all time started under the leadership of Henry Ford in Detroit, Michigan. His first production was in 1903, the Model A, with an under the floor engine selling for $850. In the first season it sold 1,708 cars (HISTORY of Ford Motor Company, 2014). Whereas General Motors was founded in 1902 by William Durant, who saw that the automobile would one day replace the horse-drawn carriage. The company did not really catch on until 1908, and at first, it was just a Buick holding company. At the end of 1908, however, GM had acquired Oldsmobile, and in 1909, they bought Cadillac, Elmore, and Oakland. The early 1900s were a difficult time for auto manufacturers; the market crash of 1907 adversely affected a lot of small companies, which relied on the banks for credit. Durant saw the economic downturn as an opportunity; he bought smaller car makers, as well as companies that built auto accessories...
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...In February of 2015, General Motors initiated a recall on 800,000 Chevrolet Cobalt and Pontiac G5 and 600,000 Chevrolet HHR, Pontiac Solstice, Saturn Ion and Saturn Sky vehicles. The controversy surrounding the recall at this time was why had GM chosen to recall the defective vehicles so long after the ignition switch problem had been discovered. They had been under investigation for just that. Recently inducted as GM’s CEO, Mary Barra was struggling to keep the GM name in tact through this recall nightmare. She is credited for maintaining her cool as she continued to defend how GM was handling the recall and pledging to conduct an internal review of the company stating that GM would, “hold [themselves] accountable and improve our processes so our customers do not experience this again (CNN)." To support this promise, she appointed legal firms to conduct an internal investigation of the events leading up to the recall. In March of that same year, GM expanded its ignition switch recall after admitting to this being the core cause of the recall. The recall was now to include cars sold between 2008 and 2011 in the US. The death toll reached a total of 13 confirmed cases. It is apparent that GM did not feel the need to acknowledge the ignition switch issue until these deaths came to light. Why else would it take GM 10 years to issue a recall? Barra was stuck in a tough situation. She hired Ken Feinberg, a well-known attorney experienced in determining victim compensation, to address...
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...Toyota Motor Corporation: A brief history The Toyota Motor Corporation was founded in 1937 by Kiichiro Toyoda. It originally started as a subsidiary of his father’s company Toyoda Industries. The first vehicle, the Toyota AA, was produced in 1936 even the company was still associated with Toyoda. The brand was established as an independent company in 1937 and changed their name to Toyota. The change of its name was implemented to signify a separation of work and home, to simplify the pronunciation and because it only took 8 brush strokes (which is considered lucky) to write in Japanese. Toyota opened their first factory in 1938 but it had to be cease production during World War II. In 1950 the Toyota Motor Sales Company was established and the company began production on the BJ Toyota Jeep, the BX truck and the SG small truck. In 1956 the Toyopet chain was established. The first vehicle to be sold under this name was the Toyopet SA. The product line was discontinued in the 1960s due to negative connotations with the words toy and pet. During the 1960s Toyota opened a new research and development facility as well as establishing a prominent presence in Thailand. During this time Toyota also celebrated the production of its 10 millionth model. In 1982 the Toyota Motor Sales and Toyota Motor Company formed a merger to become one company, the Toyota Motor Corporation. Following this the company entered into a joint venture with General Motors called the New United Motor Manufacturing...
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...EC motor vehicle block exemption reform: are you ready for the new regime? By Susanne Zuehlke and Gianni De Stefano Reprinted from European Competition Law Review Issue 3, 2010 Sweet & Maxwell 100 Avenue Road Swiss Cottage London NW3 3PF (Law Publishers) ZUEHLKE AND DE STEFANO: EC MOTOR VEHICLE BLOCK EXEMPTION REFORM: [2010] E.C.L.R. 93 EC motor vehicle block exemption reform: are you ready for the new regime? Susanne Zuehlke and Gianni De Stefano* Block exemptions; Concerted practices; EC law; Motor industry; Vertical agreements The motor vehicle sector, in particular the distribution of passenger cars, commercial vehicles, spare parts and repair services, is subject to a specific block exemption, Regulation 1400/2002 (the motor vehicle block exemption), which is due to expire on May 31, 2010.1 Following a review launched in mid-2007, the European Commission (the Commission) adopted a Communication on July 22, 2009 to set out the basic policy orientations for the future legal framework that should apply to motor vehicle distribution and aftersales services agreements after the expiry of the motor vehicle block exemption. Currently, the motor vehicle sector is subject to a specific competition law regime which deviates from the general rules applicable to supply and distribution agreements. In particular, the motor vehicle block exemption provides for rules that are stricter than those provided in the general vertical block exemption, Regulation 2790/1999...
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...CASE: General Motors Situation: General Motors is a well-recognized brand from USA that is struggling trough the past years. The company is currently in debt, also it received $13.4 billion in government loans, and it announced a loss of $30.9 billion. GM needs to create a good plan in order to keep working in the automobile industry and become a great competitor. Strengths: * It has assembly, manufacturing, distribution, office and warehousing operations in 55 other countries * General Motors Brand is well rooted not only in America but also throughout the world. * GM shares still aggressive in China * GM experiences for nearly a century will help them come back in the competition * Variety of different brands help them to reach all target markets Weaknesses: * They are behind on alternative energy movement * They are on debt with the government * Poor organizational structure since there is lack of communication between employees from the top to bottom * Profitability is decreasing * Downsizing thousands people Opportunities: * They can use its competitors ideas to get back into the race * They still have loyal customers * Increasing demand for hybrid/electric vehicles * Opportunities in emerging markets * Changing consumer demand for new model types and styles Threats: * Gas prices are increasing rapidly * Competition is developing new car styles and efficient * Rising raw materials prices *...
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...CASE ANALYSIS CRISIS MANAGEMENT AT TOYOTA CASELET Toyota Motors Corporation, one of the largest automakers in the world. In January 2010, Toyota was forced to recall millions of cars after problems with braking, floor mats and acceleration pedals in its vehicles. The recalls even led Toyota to halt sales and production of eight of its most popular models. Due to growing number of recalls, sales plummeted thereby affecting the company's position in the global automotive industry. Analysts began to question Toyota's legendary quality and felt that the recalls represented a major failure on part of the company. After the recalls, Toyota went into crisis management mode and announced a fix for the accelerator problem. Various crisis management initiatives undertaken by the company to regain the trust of customers and restore its image as a quality automaker. As part of its crisis management process, Toyota placed ads in print and television media, involved executives and used social media platforms to address its customers. However, some analysts felt that the crisis communication team of Toyota was weak which led to a delay in identifying and addressing the situation. Crisis management experts were of the view that the image of Toyota would depend on how quickly it can fix the problems and how well it communicates with its customers. ISSUES: 1. Understand the importance of crisis management and various issues and challenges related to it. 2. Analyze whether Toyota's...
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...Ford Motor Company and Change Management Founded in Detroit, Michigan in 1903 by Henry Ford and a group of investors, the company introduced the tremendously successful Model T in 1908 and by 1923 was producing more than half of all U.S. automotive vehicles. Through the Lincoln Motor Company, Ford produced luxury Lincolns and Continentals. After years of declining sales, the Model T was succeeded by the Model A in 1927 other companies such as General Motors took the opportunity to make an advance into Ford's dominance. The company was reincorporated in 1919, with Ford and his family acquiring full ownership Henry's son Edsel served as president 1919-1943 and Henry's grandson Henry Ford II led the company 1945–1979, reviving its fortunes considerably. Its stock was first publicly traded in 1956. Ford acquired the British automaker Jaguar in 1989 -1990, bought the rental car company Hertz Corp. in 1994, and purchased the automobile division of Volvo in 1999. Later acquisitions included Aston Martin and the Land Rover brand of sport utility vehicles. Ford also owns a significant share of the Mazda Motor Corporation because of financial struggles at the beginning of the 21st century, the company sold off Aston Martin in 2007 and both Jaguar and Land Rover in 2008. Faced with an overwhelmingly complex situation, Alan Mulally was brought in as Ford Motor Company's new president and CEO. As diverse global dynamics confront the company and pressures continue to build, he has...
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...Nhi Nguyen 1 Toyota Communicating Through Crisis INTRODUCTION Since September 2009, the famous vehicle manufacture Toyota has suffered a severe crisis due to unintended quality problems in its cars. In responding to the crisis, Toyota has recalled more than 10 million vehicles worldwide for accelerator pedal, carpet and floor mat flaws that may cause unintended acceleration. This catastrophe has led to millions of dollars in settlements and U.S. fines, as well as hundreds of product liability lawsuits against the automaker, threatening the company’s previous reputation of good quality cars, as well as the brand image built up over time. This research paper aims to elaborate on the Toyota crisis in order to understand why Toyota faces an escalating crisis and how they deal with the crisis, and evoke lessons from Toyota scandal. ABOUT TOYOTA MOTOR CORP. Toyota is one of the world’s largest automakers, based in Toyota, Aichi, Japan. Since its establishment in 1937 in Japan, Toyota has a long history of building safety, reliable and high quality vehicles. Today, the company manufactures vehicles and parts at 53 production sites in 27 countries and regions around the globe, with a variety of sub-brands categories such as Lexus, Yaris, Corolla, Camry, Toyota trucks, and the world’s first gas/electric hybrid Prius, etc. (toyota.com). Its vehicles have been well known for quality, reliability and fuel efficiency. According to the article, “Accelerating into trouble,” from the Economist...
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...Evaluation of General Motor’s Innovation Strategy STR/581 March 5, 2012 Evaluation of General Motor’s Innovation Strategy Introduction An innovation strategy is an action plan used to advance the technology and service offerings for a product or company. An organization’s innovation strategy is integral to the longevity of the company and integral to creating and maintaining competitive advantage (Goktan & Miles, 2005). General Motors Company is an American based multinational automotive company, headquartered in Detroit, Michigan. General Motors Company is one of the world’s largest automakers and employs over 200,000 people in over 150 countries (General Motors, 2012). The following will describe and examine the innovation strategy of General Motors Company. Design and Technology Chris Borroni-Bird from General Motors is one of the world's leading experts on fuel cells directs GM's Design and Technology Fusion group. “His group's mission and name-Design and Technology Fusion-communicates the importance we attach to thinking about technology through the lens of design. When executed correctly, the two have a symbiotic relationship in that good design promotes technology and vice versa” (Vaz, 2004). GM’s engineers are focused on driving safety, efficiency, and independence through forward thinking of visions that they can share with the world. The company continues to develop an improve technology that allows its vehicles to alert the drivers of potential...
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...Remembering disaster: Since the media do, so must public relations Jeffrey L. Courtright a,∗ , Gerald Z. Slaughter b,1 b a School of Communication, Fell Hall 428, Illinois State University, Normal, IL 61790-4480, United States Department of Communication, 322 Erickson Hall, Indiana State University, Terre Haute, IN 47809, United States Received 9 October 2006; received in revised form 26 January 2007; accepted 26 January 2007 Abstract Only recently has research begun concerning the longer-term aftermath of organizational crisis. This essay presents the genre of disaster rhetoric as a viable strategy to address the problems and opportunities that arise when the media write about crisis anniversaries or news stories that refer to any crisis or disaster, past or present. After a brief review of genre theory, the authors outline the seven functions of the “rhetoric of disaster” and provide multiple examples of their application to public relations activity and its news coverage. The essay concludes with questions that practitioners may use proactively in the development of copy points to address each of the rhetoric of disaster’s functions. © 2007 Elsevier Inc. All rights reserved. Keywords: Rhetoric; Genre; Writing conventions; Disaster; Crisis; Message design 1. Overview The bulk of the crisis communication literature has been devoted to crisis plans and the principles behind them (e.g., Fearn-Banks, 2006; Seeger, Sellnow, & Ulmer, 2003), using issues management to prepare for...
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...KELLER GRADUATE SCHOOL OF MANAGEMENT Group Class Project Toyota Group II Class: GM 591 Instructor: Gerardo H. Chaljub Executive Summary Toyota Motor Corporation is a multinational corporation headquartered in Japan and is the world's largest automaker. As of 2008, Toyota employs approximately 316,000 people around the world. In 1934, while still a department of Toyota Industries, it created its first product Type A engine and in 1936 its first passenger car the Toyota AA. The company was eventually founded by Kiichiro Toyoda in 1937 as a spin-off from his father's company Toyota Industries to create automobiles. Toyota currently owns and operates Lexus and Scion brands and has a majority shareholding stake in Daihatsu Motors, and minority shareholdings in Fuji Heavy Industries Isuzu Motors, and Yamaha Motors. The company includes 522 subsidiaries. In January 2009 it announced the closure of all of its Japanese plants for 11 days to reduce output and stocks of unsold vehicles. Toyota Philosophy: Toyota's management philosophy has evolved from the company's origins and has been reflected in the terms "Lean Manufacturing" and Just in Time Production, which it was instrumental in developing. The Toyota Way has four components: 1) Long-term thinking as a basis for management decisions, 2) a process for problem-solving, 3) adding value to the organization by developing its people, and 4) recognizing that continuously solving root problems drives organizational learning...
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