Brief Overview of the Problem:
In 2009, an extremely hazardous car crash in Southern California ignited a major recall for several Toyota models. It is estimated that Toyota recalled 5 million cars in the United States. Because of Toyota’s such major problem, the company had to halt their car production and direct their attention to the paying a major fine to the United States Government and also the law suits that piled upon one after another. As the reports suggest from the internal documents submitted to the United States Government by Toyota, the corporation had been receiving numerous complaints from their consumers regarding the safety issues and the car-acceleration problem. Toyota acted slowly. The corporation could have avoided the problem before extreme dangers to its customers. Many injuries occurred and the car values fell. This suggests that there was mismanagement on the behalf of Toyota. Toyota’s CEO, Akio Toyoda acted against one of the five company’s core value, which was Genchi Genbutsu, which means “go and see” or simply means “go where the problem is.” In time of crisis, Akio Toyoda was found attending the leadership conference in Switzerland. Many in the industry felt that he had no point of being in the leadership conference when he should be at the site of the problem. Many also felt that Akio Toyoda was not a strong leader. James E. Lenz III, head of Toyota Motor Sales, handled day-to-day management of the controversy. My particular interest lies in explorer how important are the management skills or leadership for a leader of the company that is well established. I would like to research the significance of leadership skills to understand its vital role for a person and a company even when the company holds such a high standing in the auto industry. A little deviation from the leadership and the core values of the company can tarnish its