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Thispaper will criticize the Article HowToyota Lost Its Way by TaylorIII, Alex. The article critique aims at discussing the evidence ofproblems in the system as posited in the article, Toyota’s responseto the problems and why they were not effective. Taking intoconsideration discussion above, a recommendation on the changes thatcould be made in the System as per the NSPE principles will beoffered.


BothToyota and NUMMI companies reported their strengths of theorganizational performance, took note of the challenges facing thecorporate performance as well justified the measures theorganizations took to salvage the situation. In my view, the reasonscited by the author are true and hold water. Nonetheless, there was aneed for the organizations to take more hands-on approaches toaddressing the issues that arose. There are several obvious problemsin the system from the article. Oneof the major conspicuous evidence of a problem in the system was theresponse of Toyota when the customers started raising questions aboutthe quality of their vehicles. As posited in the article, thecustomers complained of either the vehicles looking cheap or had poorperformance. Instead of taking swift action, Toyota chose to brushoff the complaints rather than investigating and providing solutions.The second evidence of problems in the system was when the Shusasundertook the exercise of the price-cutting program without doingmarket research. Bartsch,Riefler &amp Diamantopoulos, (2016)posit that for every decision that affects the consumer, marketresearch is paramount. Nonetheless, the Shusas bowed to pressure fromthe company president to reduce the cost. The cost cuttingcompromised the quality of the vehicles produced with the subsidizedfunds.

Also,the company experienced situations that forced them to issue a lot ofrecalls of the vehicles they built in a period of 12 months. Most ofthe vehicles experienced mechanical problems. For instance, thecompany had to recall Lexus vehicles for faulty accelerator pedalsit also had to recall cars for rusty spare-tire carriers in additionto faulty mats that caused accidents where people lost their lives.The sharp decline in the revenues was another indication that therewas a big problem with the system. Taylor(2010)argues if the company got $204.1 billion in revenue then the revenueto fell sharply. He argues that would not have been brought about bythe market conditions rather that would be an interior problem whichmeant the system was to blame for the falling revenue levels.

Accordingto Yeung,(2011)over ninety percent of the corporations that operate in severalcountries have been globalized. That is the branches of the companythat exist in different countries are allowed to make decisions ofthe company in that particular market. The branches in the variouscountries are more familiar with the market structures and specificchallenges. That is because the branch that is on the groundexperiences the market first hand compared to the head quarter ofthat particular organization. Therefore, the contemporaryorganizations globalize the companies by letting the branch companiesmake vital decisions without necessarily consulting the headquarters.Globalization, as a result, assists the company to address the issuesof specific markets. It also helps the organizations to makecustomized products that address the problems of individual regions.Nonetheless, Toyota stuck to the traditional method where theheadquarters of the company have to make nearly all decisions thataffect the company in the various regions that the company exists.

Toyotaresponded to the faulty accelerator pedals by recalling all thevehicles. Any mechanical error was met with a recalling solution orthe company paying for mechanical visits of the vehicles for a givennumber of years. The recalling of vehicles could have not adequatelysolved the problem since it was just a means of salvaging thecorporate image. The damage of the faulty vehicles had already had anegative impact on the company. Otherwise, more research into how theproblem would have been evaded in future would have been a betterresponse.

Basedon the information in the article presented, the Shusas bowed to thepressure of the company president to reduce the cost of productionwhich compromised the quality of the vehicles produced. According toNSPE, if the engineers` judgment is overruled and the circumstancewould lead to the loss of life or endanger of property, the engineersshould notify the client and the authorities (Brauer 2013).Nonetheless, the Shusas kept silent and continued to manufacturevehicles that were a danger to the lives of the consumers withoutraising the alarm. For this reason, I would fire the engineers so asto give way to more ethical engineers. Considering that the vehiclesgo through various departments before they can be ascertained to befit for consumption by the consumers, manufacturing of vehicles withmechanical errors having passed the various departments would meanthat there was a problem with the system. I would have thereforeadvocated for a change of the system and how it operates in a bid toensure that the vehicles produced are of the best quality.


Asseen in the article,bothcompanies reported their strengths of the organizational performance,took note of the challenges facing the corporate performance as welljustified the measures the organizations took to salvage thesituation. In my view, the reasons cited by the author are right andhold water. The company faced challenges of production of faultyvehicles to which it responded by recalling the vehicles and addingthe position of a quality checker in the organization. Nonetheless,in my view, the problem should have been dealt with internally as theproblem was not with the specific cars but the departments throughwhich the vehicles went through in the manufacturing process a clearindication the problem was in the system.


Bartsch,F., Riefler, P., &amp Diamantopoulos, A. (2016). A Taxonomy andReview of Positive Consumer Dispositions Toward Foreign Countries andGlobalization. Journal Of International Marketing, 24(1),82-110. doi:10.1509/jim.15.0021

Brauer,C. (2013). Just Sustainability? Sustainability and Social Justice inProfessional Codes of Ethics for Engineers Science &ampEngineering Ethics, 19(3), 875-891.doi:10.1007/s11948-012-9421-4

TaylorIII, Alex 2010 &quotHowToyota Lost Its Way&quot,Fortune Magazine NSPE Code of Ethics

Yeung,A. K. (2011). The Globalization of Chinese Companies : Strategiesfor Conquering International Markets. Singapore: Wiley.