The Toyota crisis: an economic, operational and strategic analysis of the massive recall

Abstract

Purpose

This paper aims to provide an in‐depth analysis of the economic, operational and strategic aspects of the Toyota recall crisis, as well as its implications for the global auto industry and its competitive dynamics in the future.

Design/methodology/approach

The paper provided a literature review (of both academic literature, company reports, and popular press).

Findings

Toyota's recent efforts to become the top selling automaker in the global market place might have led to some unfavorable changes in its supply chain management practices, as well as tarnishing some of the core values of the “Toyota Way”, which were partially responsible for the massive recall. Toyota's handling of the recall also reflected the unique “Japanese way” of managing crisis.

Originality/value

The paper provides a timely analysis of a corporate crisis that is still unfolding. The multi‐disciplinary perspectives used in this analysis provide unique insights to understand a complex corporate phenomenon.

Citation

Andrews, A.P., Simon, J., Tian, F. and Zhao, J. (2011), "The Toyota crisis: an economic, operational and strategic analysis of the massive recall", Management Research Review, Vol. 34 No. 10, pp. 1064-1077. https://doi.org/10.1108/01409171111171474