Crisis Management Case Study: Toyota

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Question :

Assessment 1:


1. Scenarios:

a. In 2009/2010, due to faulty accelerators of their brand of vehicle, Toyota had to recall nine million vehicles.

b. In 2015, a sandwich shop owner In Marrickville, offered free sandwiches via a Facebook page for members of a closed group only. The deal was reported by a widely read food blog as one open to all Sydneysiders.

For each of the case studies, answer in detail the following questions:

a. How urgent would this crisis be?  

b. How serious would this crisis be?

c. What would happen if the organisation did not respond?

d. What effects would it have e.g. on people, the organisation and/or the environment?

e. How can we correct this problem?

f. How can we prevent this from re-occurring?

2. As a Public relations consultant either within an organisation or working for a client, how might you engage in a conversation with a group of relevant employees to check that they understand the crisis management plan. Discuss how you would use listening and questioning techniques to clarify information and confirm understanding.

3.  Describe a legal or regulatory responsibility you have when developing crisis management plans and how you comply with it.

4. Find an example of how to select the appropriate form, channel and mode of communication for a specific public relations purpose . Give your reasons for your choices.

5. Give an example of a time when you have achieved one of the following: a. Organised and implemented tasks required to achieve required outcomes, with an awareness of how the outcomes contribute to the organisation’s goals (5 marks) b. Used analytical processes to decide on appropriate approach to crisis management.

6. Explain the Privacy Laws in Australia and how it affects crisis management and in one or two sentences describe one standard that affects crisis management.

7. Explain how managing the media is important to a crisis management plan

8. Review both the scenarios in Assessment 2 Question 1 and and develop a crisis management plan for each scenario that complies with organisational, ethical and legal requirements. Your plan should include:

a. Activation guidelines

b. Action plans (actions, time frames, responsible people)

c.  Pre-approved communications strategy and messages

d.  Contact information of all relevant personal both internal and external

e. Resources required

9. In addition to developing the plan in the question above, describe how you might distribute and also implement the plan

10. Create the following tools to evaluate your crisis management plan:

a.  define evaluative questions

b.  use a scale rating to rate evaluative statements.

11.  Define what would you change for next time?

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Answer :

Assessment 1

a. This scenario has clearly shown that the company needs to increase their budget in as their nine million vehicles has increased in the shop and the Toyota Company needs to prepare for the next big step so that the company can able to match up the market expectation. This market expectation needs to calculate with the initial growth, development and budget planning of the company. The company needs to run in profit and eliminate all the drawbacks. The crisis will be poor customer services, poor marketing evaluation, poor public relations and the poor governance of the entire operation procedures that the company has adopted. 

The crisis for the sandwich shop can generate through the report that they are serving free food to the customers all the people and not only the face book closed group. As the customers will get to know about the information, they will come for it and it can be a serious threat to the company as they have not plan for it and their budget will exceed in this process. 

b. Both the crisis can face a serious state as the customers demand need to fulfill anyhow by the food company and it can create a state for the company where they can face budget issues and the implementation of several things can increase the budget of the company. While Toyota can face various problems related to the management like maintenance of brand standard, advocacy of different programs, swiftness of operation will face stagnation, as they need to market their cars and accessories in a proper manner. 

c. If the organization did not respond to the factors that has generated in their marketing process then the customers orientation for the Toyota Company can face a great deal of problematic phase and other than that the company needs to plan that how they will market things to the customers regarding their vehicles. The unplanned things will connect with reduction of strong customers’ base, workforce reduction, management turnover, increase in accounts, increase in outstanding accounts payable, large contingent liabilities. 

The sandwich Company if not aware of the situation then it can create an embarrassment situation for the company as the customers have got the news and they will come to get that offer and the company will have their own planning to serve foods to the closed face book customers and it will eventually more customers to the company. This situation can create a bad situation for the company as their reputation will hamper and will decline their stoke price, diminish the liquidity, reduce capital investment programs, gathering the old customers will become impossible, industry fundamentals will not be maintained, adverse regulatory environment. 

d. The entire thing for the Toyota Company can create some of the serious problems, as they cannot able to cope with the budget system of the company for lack of planning. For the market orientation other than that, the any of the faulty situation for the vehicles can affect the customers’ background that the company needs to face in future. The customers will get a bad reputation in the market and they will lose that faith from the company because they are investing money in this sector so generating faith for the customers is very essential. 

The sandwich company if failed to serve all the customers in a perfect way so it will create a bad reputation for the company in the market and the customers will never get back to the company, as they will face a bad situation in the market. If the food company loses its customer in the market then it will create a bad situation for the company to bring growth in future and this state hamper the profit generation along with the reputation of the company. 

e. The problem can be corrected by dealing with it with a proper management technique that can initiate for the further solution for the company. The budget issues for the faulty cars need to plan in such a way so that it can manage later and the company cannot need to face any budget problem. By doing the management plan and implement, those things in a specific way can help for the further development of the company and will not hamper the customers of the company. 

The sandwich company need to take that account where they can plan out clearly that how to initiate things for the management of the other customers those who are not invited in the program and provide them with food but before doing all these things. The company needs to keep in mind that approximately how many customers are coming for the program so that it can help them to arrange things in a better way. 

f. The proper planning of things and the appropriate management technique can able to solve each problems and the company needs to know from very first that how they wants to initiate things in the market and how it can help them increasing a strategic pathway for the future assessment of things (Arora et al. 2014). Along with that, it will create that understanding for the company that how they can solve any problem regarding their operation and marketing technique. 

For the food company, it is necessary that the collect all market information by the help of strategic marketing process other than that it will suggest for the customers desirability and need and the company will prepare them for any future process so that the customers get that satisfaction. The company needs to know their challenges, limitations and their scope in the market and it will eventually help them to implement things in the market for any of the development factors. 

2. The crisis management technique is one of the most essential things within the organization and the internal people, the employees need to know each process that how they can engage in the technique so that the organization can solve any of the problems in the organization (Odu, 2014). The employees are working in each department and they can provide the information as where the organization is lacking their process, where its need more engagement and implementation of the necessary things can initiate for solving any problem in a systematic way. Conversation with the clients and the employees can share the knowledge that the organization is going wrong in which criteria and how to solve this process within an amount of time. 

3. The crisis management plan need to strategize in such a way so that it can become helpful for the company and some of the regulatory processes help to create that acknowledgement for the company’s progress. The company needs to react to the crisis in a coordinated and systematic way so that it stays within the legal criteria and help for the further implementation of things for the minimization of the damage (Alexander, 2014). The crisis management team needs to work to take out appropriate on time solutions for the organization. There needs to be a communication team, manager for the operation technique and the public relations help each other for the solution process for the management of crisis. 

4. The mode of communication needs to be social media as people are very much active to this stage so it is easy to communicate with them and share all the information in a perfect way so that the company can initiate for the better help for the customers (Bundy et al. 2016). Through the help of social media, the processes need to generate and the customers will get all the information and the company will take the initiate to make them understood all the process. 

5. a. Implemented outcomes get process when the strategic planning process generate on time and fulfill all organizational criteria.

b. Fragility and resilience process is the perfect technique for the analytical tool application in the crisis management statement. 

6. Australian Privacy Principles helps for the crisis management state and by the help of the government; the organizations take support for their any of the problem solving process in crisis management (Jin et al. 2014). The privacy technique will help for the development of several things that eventually support for the organization’s progress. 

7. Media being the fastest information generator and the effective communication process can facilitate for the entire thing in crisis management. 

Written or Oral Questions

8. a. Activation guidelines-  Planning, managing and implementation of every process. 

b. Action plans (actions, time frames, responsible people)- Proper action taken for the management system including the higher management people and other employees as well within minimum time frame. 

c. Pre-approved communications strategy and messages-  Effective communication to each of the employees and the customers for the assessment of things in a proper way. 

d. Contact information- Internal and external people need to know about the entire thing in a perfect way so that they can progress for the ultimate thing 

e. Resources required- Information processing, materials arrangements, the employees and customers 

9. Along with that the branding need to do from very first so that it can help the company because any of the sudden planning can hamper the organization due to planning, implementation of things and budgeting.

10. a. How the crisis management plans need to handle within time?

b. The graphic rate scale will assess the entire thing.  

11. The planning process including the forecasting part need to be in strategic manner so that the organization get time to chalk out things properly moreover the budget planning foremost thing so take care and then initiate for other things.