Toyota Airbag Defect Analysis Essay Example | Topics and Well Written Essays - 750 words

Toyota Airbag Defect Analysis - Essay Example This latter phase comes on the backdrop of failures in denials. As a result, the firm takes to apology, compensation and repentance to retain client loyalty (Cornelissen and Erving, 2006). In this analysis, the various communication strategies used by the firm, in relation to the case under review, are looked into. Like other firms, it is often quite difficult to accept various claims that could negatively impact on the sustainability of the business operations of the firm under specific scenarios. In fact, some claims can easily be used by competitor firms to derail business operations of the rival firm. In this case, the denial strategy employed by the Toyota firm in refuting claims of defects in its systems clearly comes out (Toyota, 2014). This denial comes on the back of an analysis by the Safety Research Strategies Inc. (2014), which has successfully linked the systemic defects to 4 fatalities and 139 injuries. The various reasons behind such denials are further analyzed. Following denials and persistent occurrences of the same problem with the systems, firms often come back to give clarifications to their clients in a bid to maintain their loyalty and confidence in the firm’s services (Toyota, 2013). This low level of responsibility is seen in attempts by Toyota to clarify the nature of the defect, and the various models affected in their press release; dated April 11th, 2013. At this stage, the firm offers to recall and rectify the problem. At a higher level of responsibility, the firm, notably in its June 11th 2014 press release, further looks into freely replacing all affected airbags, and ensuring that such defects are not seen again. This final move is seen as a rectification strategy (Toyota, 2014). Through critical analysis, several economic and corporate theories are found to be applicable to the Toyota case. Notably, the positive accounting theory is applicable in