Cultural Crisis of Toyota Samples for Students †MyAssignmenthelp.com

Question: Discuss about the Cultural Crisis of Toyota. Answer: Introduction The following report is based on the cultural issues that need to be addressed by each and every organization while expanding their business internationally. There are numerous examples in the past where large scale organizations have suffered badly just because they failed to meet the cultural expectations of the countries where they ran their operations. Cultural difference is one of the major considerations that determine whether the business is successful or not. The failure of the product or services to add value and meet the desires of the local community will only lead to loss. It is important for the organization to have a transparent idea about the persons residing in the community and their culture. The case of Toyota Motors crisis in 2010 is one of the best examples of such a cultural failure. Issues and Problems in the operation of International business The globalization of the modern market has forced the organization to operate in a number of different countries having different cultural values. The crossing of geographical boundaries has led to the establishment of a new range of multicultural organizations where people from all the countries with different languages, different race, and religion are working together (Bowen and Zheng 2015) . The organizations are having a gala time operating in such a strange environment but operating and managing the company following the cultural values is tough for the companies. An effective knowledge and use of cross cultural diversity can provide themanagement of the organization with a source of experience and innovative thinking to enhance the competitive edge of the organization. The main cross cultural issues that the company faces are as follows; Inadequate trust among the employees- Trust among the employees of the organization is one of the main reasons for the success of the business. However working in a cross cultural environment can often lead to inadequate trust among the different employees of the organization. For example an American employee of an organization will have much less trust with an employee of Asian origin as the cultures of both the countries are in striking contrast to each other (Stahl and Tung 2015). The absence of trust among the employees will weaken the operational efficiency of the organization. Biased Nature- The biased nature that exists in the company structure also does not help the cause of the company as because generalized perceptions of the employees of a certain group leads to failure. Wrong Communication- The case study of Toyota Motors has clearly shown that wrong communication strategies have led to a media outburst in America where communication comes first and action later. The Asian Company was wrong in their Public Relations approach which led to the loss of their famed reputation both in America and also in the world (Austen-Smith et al. 2017). Perception- The people from developed countries of the world have a feeling of superiority than the people coming from the less developed or developing countries. Such wrong perceptions can lead to racism in the workplace and will lead to failure. The wrong perception of the American customers by themanagement of Toyota Company is a perfect example of the following. Theories on Cultural Miscalculations Contemporary business organizations follow a number of different theories to avoid cultural shocks similar to that of Toyota crisis in 2010. Two of the main theories are; Stages model- Stages Model is divided into different stages namely; Pre-contemplation- In this particular stage people does not try to take action in the coming future. Contemplation- In this stage the employees of the organization tries to start the healthy behavior in the coming future. Determination- In this particular stage people tries to get ready to complete any activity within a particular deadline. People act differently with the others in the workplace and try to get an idea about each other. Action- n this stage people change their behavior recently and within a short period. Maintenance- The change in the culture of the people are tried to retain to have a bright future. Termination- The termination stage is the last stage where the cultural change is no longer maintained. Management of Business Organizations across different cultures Themanagement of organizational culture across different countries is important for the success of the business in the particular country. The organization style differs from being organic, informal or people oriented to match some of the most common sociological dimensions. Cross Cultural management refers to the examination of human behavior within all the organizations from an international perspective (Cavusgil et al. 2014).Cultural management helps to compare the organizational behavior across different nations and cultures and tries to improve the interaction of the co-workers, managers, executives, clients and many others as such. The cross cultural management focuses on reduction of the cross-cultural differences and barriers and the creation of awareness in order to have a better communication and cooperation at the workplace (Tixier Jr 2017). It is very much tough for the managers of the organization to keep the different employees of the organization under control and main tain the operational efficiency. If the managers are successful in keeping the employees of the organization together by keeping aside all the differences, it will be helpful to retain them much more easily. Therefore it is utmost important for the business to recognize the business culture, values and ethics all around the world where it operates (Oxford 2014). Some of the main strategies that need to be followed by the management of the organization are; Thorough knowledge of the foreign culture-The first and foremost strategy in the management of the organization internationally lies in the proper knowledge of the new cultures like the language, food habits, special courtesy, perceptions and many other similar cultural knowledge (Picciotto and Mayne 2016). Respect for the particular foreign culture- It will be hard to gain success in a foreign market by only having the knowledge of the culture. Rather the respect for the particular culture can make the company more acceptable to the native residents (Ferraro and Briody 2017). It will be unfair to judge a culture by terming it as superior and inferior. Every culture is different from the other thus irrespective of their characteristics they need to be respected. Ignoring the cultural differences- This strategy is employed by the supervisors and the managers of the organization after a certain period of time. This particular difference helps the managers to remove the barriers to communication amongst each other and establish proper understanding amongst them. Management of the differences- The management of the differences is generally adopted by synergic organizations (Forsgren and Johanson 2014). These types of companies identify the effect of cultural differences that is a source of both advantage as well as disadvantage. They treats the employees in the same way irrespective of their posts. Business Ethics to be followed according to Biblical Christian Cultures Each and every of the business organization that expands internationally must formulate their business policies according to the religious background of the particular country. It will be easy for an organization to attain a competitive advantage in a country if they respect the religious background of the majority. This following part of the project deals with some of the business ethics that needs to be followed according to Biblical Christian Cultures (Aldrovandi 2014). The critical problem of growth vs. no growth must be addressed with the theology of creation. Some of the main ethics as mentioned in Bible that must be followed by the business organizations are; Understand that God called us to work Work so that you can share with those who need it Work in such a way that glorifies god Be faithful in your work so that you can earn respect from others Therefore the aim of the business organizations should be to stick to these biblical references and organize the business and formulate the policies in lines to attain success in a Christian dominated country. References Aldrovandi, C., 2014. Cultural Apocalypse. InApocalyptic Movements in Contemporary Politics(pp. 195-220). Palgrave Macmillan, London. Austen-Smith, D., Diermeier, D., Zemel, E., Diermeier, D. and Merkley, G., 2017. Unintended acceleration: Toyotas recall crisis.Kellogg School of Management Cases, pp.1-16. Bowen, S.A. and Zheng, Y., 2015. Auto recall crisis, framing, and ethical response: Toyota's missteps.Public Relations Review,41(1), pp.40-49. Stahl, G.K. and Tung, R.L., 2015. Towards a more balanced treatment of culture in international business studies: The need for positive cross-cultural scholarship.Journal of International Business Studies,46(4), pp.391-414. Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G. and Rose, E.L., 2014.International business. Pearson Australia. Ferraro, G.P. and Briody, E.K., 2017.The cultural dimension of global business. Taylor Francis. Forsgren, M. and Johanson, J., 2014.Managing networks in international business. Routledge. Kolk, A., 2016. The social responsibility of international business: From ethics and the environment to CSR and sustainable development.Journal of World Business,51(1), pp.23-34. Oxford, R.L. ed., 2014.Understanding peace cultures. IAP. Picciotto, S. and Mayne, R. eds., 2016.Regulating international business: beyond liberalization. Springer. Reiche, B.S., Stahl, G.K., Mendenhall, M.E. and Oddou, G.R. eds., 2016.Readings and cases in international human resource management. Taylor Francis. Stahl, G.K. and Tung, R.L., 2015. Towards a more balanced treatment of culture in international business studies: The need for positive cross-cultural scholarship.Journal of International Business Studies,46(4), pp.391-414. Tixier Jr, J.S., 2017. Observations on Things Measured in the Bible.