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Toyota recalls prove a loss of their vision and their lack of quality control

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Toyota recalls prove a loss of their vision and their lack of quality control

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Akio Toyoda, President and CEO of Toyota Motor Corporation

When Toyota Motor halted sales of eight models in the United States because of potentially fatal sudden acceleration problems, industry pundits were quick to cite Toyota's rapid expansion into the States as the key culprit. Toyota established factories in five U.S. states in the late 1980s, but about five years ago it began ramping up production and making big expansion plans as a way to meet soaring demand and, ultimately, to grab the title of world's largest automaker from General Motors. This strategy - which spread its U.S. manufacturing operations across several states - was a clear break from Toyota's practice of concentrating its suppliers and plants in a narrow geographic area to allow better control. Because of its hasty ambition, Toyota developed a problem coordinating just-in-time arrivals from its suppliers and maintaining deep technical ties with those suppliers.

But that's only part of the story. The roots of Toyota's problems - and there are several - run much deeper. They include:

Bureaucracy

The lines of control of Toyota's U.S. operations were murky. During most of Toyota's expansion into America, the company's California-based sales division and its Kentucky-based manufacturing division reported back to Japan, independent of each other. For a few years, the company's top-ranking U.S. exec, James E. Press, was able to establish Toyota Motor North America in New York as the de facto headquarters in charge of all U.S. operations. He even rose to become the only American on Toyota's board of directors in Japan. But Press quit in 2007 to join Chrysler and he was replaced by a series of Japanese executives with less clout. With Press' departure, Toyota lost its key bridge between management in Japan and various U.S. constituencies - and its ability to respond rapidly when crises hit.

Overconfidence

Another underlying problem is cultural. Toyota is a secretive and non-communicative organization. American insiders joke that working for the company is like working for the Central Intelligence Agency, where information is shared only on a "need to know" basis, confides one American employee. And long a scrappy underdog to General Motors and Ford Motor, Toyota developed a sense of cockiness in the past two or three years as it began to surpass its American rivals in global sales. The company did not need rebates to sell its vehicles. Consumer Reports gave the brand high praise. Toyota did not believe it needed a strong public relations effort. The company thus failed to recognize that the pressures on the No. 1 player in any market are far more intense than the pressures on No. 2 and No. 3.

Weak Management

For years, the company has been led by a series of world-class professional managers. Then last summer, Akio Toyoda, 53, grandson of the company's founder, took charge as chief executive and some insiders did not think he was ready, say some auto industry watchers in Japan. They were right.

When he took the job, Toyoda told the world that he would practice " genchi genbutsu," which translates roughly as "management by walking around" or "going to where the problem is." But when the safety flap came to light, he remained silent and even attended the annual gathering of world leaders in Davos, Switzerland. American crisis response experts were flabbergasted. "What is he doing in Davos anyway?" Paul A. Argenti, a professor of corporate communications at Dartmouth's business school was quoted as saying in The New York Times. "If you've got a crisis of this magnitude, you get on a plane and you go to the scene of the problem." Instead, day-to-day management of the controversy was delegated to James E. Lenz III, head of Toyota Motor Sales.

One of the biggest mysteries is this: Why hasn't Toyota still not gotten to the bottom of what went wrong? The company is famous for inventing the practice of asking " the five whys." This was a rigorous methodology that permeated the company's culture: If a car had a problem, why? Was it a supplier? If so, why did the supplier have a problem? And so on. This practice for decades has allowed Toyota to respond to problems better and faster than General Motors and Ford.

The Fallout

Toyota's problem-solving mechanism clearly broke down. The company revealed as much in the series of explanations it released. Initially, Toyota announced the floor mats were the problem. Then it was the gas pedals, which were made by an Indiana-based supplier and thus limited the problem only to U.S.-made cars. But that story didn't hold up because of a well-publicized case involving a Lexus in California in which four people died - and that vehicle was made in Japan. Then in early February, problems developed with the Prius hybrid and its brakes in both the U.S. and Japan. Toyota described it as a software issue.

Now it seems the underlying problem involves the software and the computerized controls governing acceleration and braking in many Toyota vehicles. No one knows for sure but this series of problems could take months to reformulate. New safeguards may have to be put in place. It will not be a quick fix, as Toyota originally suggested.

CEO Toyoda has only compounded the crisis. When he finally held a press conference in Japan to apologize, he pointedly did not make a deep bow to demonstrate regret. In Japanese cultural terms, Toyoda's bow was perfunctory. Moreover, his proposed solution - to create a global quality committee and seek advice from outside experts to evaluate Toyota's operations fell spectacularly flat. He did not appear to understand what had gone wrong inside his own company, much less have a concrete way to address it.

Toyota used to have a reputation for quickly correcting mistakes. It first introduced a vehicle nicknamed the Toyopet in the U.S. in 1957. It was laughed out of the market because of its ungainly design and small size. But by 1959, Toyota was back and it executed flawlessly in the United States for 50 years, even introducing the luxury Lexus brand, which beat Mercedes, BMW and Cadillac in total sales.

Now it faces class-action lawsuits and intense scrutiny from Congress and officials at the National Highway Traffic Safety Administration. The tone is reminiscent of the Big Tobacco hearings more than a decade ago: What did Toyota know and when did it know it? There's no question that Toyota's reputation has been badly damaged. The only question now is how long it will take to recover.
William J. Holstein has been following Toyota since 1985. He published "The Japanese Power Game" in 1990. His most recent book was, "Why GM Matters: Inside The Race To Transform an American Icon." More on BNET:

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Toyota Recall Highlights Deep Organizational Failures

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Akio Toyoda, President and CEO of Toyota Motor Corporation When Toyota Motor halted sales of eight models in the United States because of potentially fatal sudden acceleration problems, industry pundits were quick to cite Toyota's rapid expansion into the States as the key culprit. Toyota established factories in five U.S.

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Information systems (IS) importance has increased dramatically, and most businesses have been prompted to introduce it to keep their competitive edge. Today, nobody can envisage a business without an effective information system.

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Running a successful business calls for proper management of financial and organizational data and statistics with quality information systems. Almost every company has experienced a drastically slowed workflow because of data problems related to reliability and accuracy. It's true that there is no substitute for right information at the right time in the business world.

This prompted the development of systems that can be used to make the information accurate, readily available, and easily accessible. With the effectiveness of information systems, an organization can have better decision-making, better planning, and ultimately better results.

How do Information Systems Influence Modern Business?

In today's continuously changing and fast moving world, where customers' requirements and preferences are always evolving, the only businesses that can hope to remain competitive and continue to function at the performance levels that can match their customers' expectations are those that are going to embrace innovation. In the recent past, any business success has been pegged on the information technology quality that the business has employed and the capability to correctly use such information.

Information systems (IS) importance has increased dramatically, and most businesses have been prompted to introduce it to keep their competitive edge. Today, nobody can envisage a business without an effective information system. Introduction of an information system to a business can bring numerous benefits and assist in the way the business handles its external and internal processes that a business encounters daily and decision making for the future. Some of the benefits of an information system include:

New Products and Services

Any company looking to improve and secure the future has to establish a broader perspective with the use of a well-designed and coordinated information system. The IS makes it easier to analyze independent processes such as information to produce valuable products or services and organized work activities. Therefore, an IS can give a company the competitive advantage by analyzing how a company creates, produce, and sell their products or services. This means that the focus will be put on the main goal ahead.

Information Storage

Every organization needs records of its activities to find the cause of problems and proper solutions. Information systems come in handy when it comes to storing operational data, communication records, documents, and revision histories. Manual data storage will cost the company lots of time, especially when it comes to searching for specific data. A quality information system stores data in a comprehensive and sophisticated database which makes the process of finding it convenient. With such information, a company can analyze how certain actions affected the business as well as prepare cost estimates and forecasts.

Easier Decision Making

Without an information system, a company can take a lot of time and energy in the decision making process. However, with the use of IS, it's easier to deliver all the necessary information and model the results and this can help you make better decisions. The management team can use the information system to choose the best course of action and carry out the tasks. When there are several appealing alternatives, the information system can be used to run different scenarios by calculating key indicators such as costs, sales, and profits. This way, you can determine the alternative with the most beneficial results.

Behavioral Change

Employers and employees can communicate rapidly and more effectively with an information system. While emails are quick and effective, the use of Information systems is more efficient since documents are stored in folders that can be shared and accessed by employees.

This implies that information flows from the management to lower-level employees and vice versa. Also, the lower-level employees get enlightened and involved in important decision making, and this eliminates the need for middle managers. Employees who are directly involved in the decision-making process are motivated and dedicated to their tasks.

Importance of Earning a Master's Degree in Information Systems

Nearly all businesses have an IT department, outsourced IT service of a full-time professional. This is essentially due to the importance that businesses try to improve productivity and reduce costs. The information systems section is answerable for sustaining the software, hardware, data storage, and networks that encompass the business's IT arrangement.

As more and more businesses are looking for ways to grow and remain competitive in the market, there is an increase in need of technical skills and employers are looking for individuals who can operate and manage the information-based tools. It is crucial for those looking to advance in a career in managing information systems to advance their education in order boost their earning potential.

Are you interested in the power of information systems? If you would like to earn a Master of Science in Information Systems, ECPI University offers this course at an accelerated rate. For more information about this exciting program, connect with a friendly admissions advisor today.

It could be the Best Decision You Ever Make!
DISCLAIMER - ECPI University makes no claim, warranty, or guarantee as to actual employability or earning potential to current, past or future students or graduates of any educational program we offer. The ECPI University website is published for informational purposes only. Every effort is made to ensure the accuracy of information contained on the ECPI.edu domain; however, no warranty of accuracy is made. No contractual rights, either expressed or implied, are created by its content. Gainful Employment Information - Information Systems - Master's
For more information about ECPI University or any of our programs click here: http://www.ecpi.edu/ or http://ow.ly/Ca1ya.

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Reasons Why Information Systems Are Important for Business Today

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Running a successful business calls for proper management of financial and organizational data and statistics with quality information systems. Almost every company has experienced a drastically slowed workflow because of data problems related to reliability and accuracy. It's true that there is no substitute for right information at the right time in the business world.

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In the book, it was claimed that trait studies are considered inconsistent and that there is no way to use them to differentiate leaders from non-leaders. Personally, while I understand that the book says this, I believe that this is not true simply due to one article about Rodney Adkins in Chapter 1, because it talked about his traits and they were consistent with the top ones listed in the book. Thus, while traits may not be the best indicator of a good leader, I think it's a simple guideline one can follow to ensure being a good leader.

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Chapters 17/18

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Chapters 13/14

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Before this class, I was always sceptical of how well tactics taught in college actually worked to improve a company's success. In fact, I was convinced that how well a company did, no matter what they did, was all just because they were lucky. However, after reading through Chapter 16 and learning about how Tony Hsieh did exactly what I was sceptical of, I am ready to use these tactics to make my own company better. It's exciting to see these tactics used successfully to prove that somebody can go to a desk job happily and want to go back the next day.

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Before this class, I was not aware of hiring agencies, surprising it may be. Since I had also never really owned a shop before, I was not aware of external recruitment. What's exciting about that is that I, now, have the knowledge of how to get ahold of people to do things I am incapable of doing myself once my shirt company is more established. Due to chapter 10, I was even able to make myself aware of the law that I will have to abide once my company gets big! It's important to be aware of any risks.

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Five Main Steps of the Organizing Process

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Five Main Steps of the Organizing Process

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Truthfully, one of my favorite assignments this semester was the SWOT analysis, one of the strategic development tools to help organize and assess strengths, weaknesses, opportunities, and threats. This is probably because, as a kid, I never really got to travel, so the idea of using that as research towards the assignment was neat. Despite the fact that many people, such as myself, would like to try In-N-Out Burger, moving it to the East Coast would mean losing the glam behind being on the other side of America. One day, I'd like to go to the West Coast and try In-N-Out.

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Chapter 10/12/15

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Chapters 8/9/16

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Although this is not Module 8, it is important to note the connection because the reason that Toyota ended up tanking briefly was due to the fact that they changed their decision process. Instead of allowing Japan HQ to make decisions for each sector about the faulty parts, the decision scope was widened for each individual franchise. However, as one could tell from Toyota's reaction to the recall that changing the process was a mistake.

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Chapters 5/6/7

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Marriott Hotel Brands | Marriott International

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Marriott offers 30 hotel brands across 5,700+ locations in more than 110 countries. Take off on your next adventure with our list of Marriott brands and hotels.

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One interesting relationship that I noticed between Chapter 4 and Chapter 2 is the disclosure of difficulty women face when it comes to either dealing with traditional roots and that these problems can snowball into bigger issues. More specifically, in order for the company to get big and for one to be influential, it seems that the gender matters, depending on the place. Unfortunately, while there are places that admire women, there are far more places that women can't grow their companies because the country sees them as inferior.

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One handicap to becoming the chief executive, she said, was her own choice not to work overseas. "I thought so many of the countries we were going into were so against women," she said. "I thought, I don’t need that."

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Why Women Aren’t C.E.O.s, According to Women Who Almost Were (Published 2017)

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It’s not a pipeline problem. It’s about loneliness, competition and deeply rooted barriers.

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Chapter 4

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Today, at least three generations currently coexist in the workplace. Each brings to the table their own strengths, weaknesses and viewpoints that are seemingly very different from the next.

Or are they? A recent study by the IBM Institute for Business Value has found that the needs of younger generations (Millennials) aren't all that different from their older counterparts (Baby Boomers, Gen X). While it's true that each generation (and individual for that matter) brings a different form of value to the workplace in one way or another, their basic needs and desires at work are what binds them - whether they realize it or not.

A recent article I came across in Fortune highlights several unforeseen findings from the study that have proven many generational myths to be untrue. For example, the study found that Millennials desire financial security, seniority, inspirational leadership, clearly articulated business strategies and performance-based recognition just as much as Baby Boomers and Gen X employees. And when asked about workplace recognition, a higher percentage of Gen X employees felt that everyone on a successful team should be rewarded, compared to the number of Millennials who reported the same.

It's no secret that younger generations tend to get a bad rap, especially at work. But the facts are telling us a different story - one that's rooted in reality and not opinion. So why do we continue to buy into these age-based stereotypes and allow our teams to live in a state of resistance when we could, instead, help employees channel that energy in a positive way and work together for the greater good of the organization?

And when you consider that Millennials will make up roughly half of the workforce by 2020, it's pretty clear that now is the time to help our teams embrace their differences and bridge the generational once and for all. Here's how this can be accomplished:
1. Encourage Baby Boomers To Share Their Experience And Knowledge
Older employees have experience, credibility and wisdom in their favor. They've been in the game for a long time and have absolutely earned it. Encourage them to document what they've learned and be open to sharing their trade secrets with others so that they may benefit. Help them understand that judging younger generations or shaming them for not having as much experience is a waste of energy that isn't helpful to your organization. Younger professionals will definitely have their growing pains and rough patches just as we all have, that much is certain. Emphasize the importance of teaching, not judging. Have Boomers think back to when they were starting out. Did they have a mentor or colleague who provided guidance to them along the way? Chances are they did, and now this is their opportunity to give back and inspire someone else who is just starting out. Who knows, it may open their eyes to new possibilities and inspire them in return.
2. Gen X Is The Middleman. Look To Them To Help Bridge The Gap

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The Perks (And Importance) Of Embracing A Multigenerational Workplace

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Today, at least three generations currently coexist in the workplace. Each brings to the table their own strengths, weaknesses and viewpoints that are seemingly very different from the next. Or are they? A recent study by the IBM Institute for Business Value has found that the needs of younger generations (Millennials) aren't all that different [...]

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The Sarbanes-Oxley Act of 2002 ( Pub.L. 107-204, 116 Stat. 745, enacted July 30, 2002), also known as the "Public Company Accounting Reform and Investor Protection Act" (in the Senate) and "Corporate and Auditing Accountability, Responsibility, and Transparency Act" (in the House) and more commonly called Sarbanes-Oxley, Sarbox or SOX, is a United States federal law that set new or expanded requirements for all U.S.

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Why Starbucks' Billionaire CEO Pushes Social Responsibility | Forbes

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Career Stages Life Stages and Performance

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Chapters 2/3

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Chapter 1

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Despite this simply being the beginning, I can't help but admire the book's ability to relate all of the information back to these four processes of management. Because of this, I don't think I'll ever be able to forget them and their functions.