Group 5's memo

Group 5

MEMO

To: The Toyota CEO

From: The Crisis Management Team

Re: Recall - Accelerator Pedals

Date: February 10, 2010

We have been informed about the recall problem and are advising you to further investigate the sticky accelerator issue in your defective Toyota automobiles. This shouldn't be taken lightly. Time is of the essence. Our crisis management team has put together a list of necessary steps to handle the issue and minimize legal damages as well as to prevent the tarnish of Toyota’s brand name by the media:

1. Find out which cars are affected and put a halt to production. Stopping production will genuinely reassure the public that safety is still a primary concern of the company. Toyota must ensure that not a single Toyota vehicle is manufactured that has the faulty break system.

2. Immediately run tests to figure out EXACTLY what the problem is and how Toyota is going to fix it. Assemble a team of experts on the Toyota automobile’s break system and direct them to examine the various affected Toyota vehicles through a series of thorough testing. When a solution is found, formulate an exact diagnosis so that the company may inform dealerships about how Toyota is solving the problem, and depending on what the solution is, inform the dealerships about what Toyota is doing. Or, perhaps if the problem is easily fixable by the dealerships themselves, ship them the "fix" and send a representative from our team of experts to each of the dealerships so that they may properly assist the dealerships in fixing the faulty breaks.

3. Create a 24-hour "help hotline," and then hold a press conference to respond to the issue. The press conference is an excellent way of getting our company’s voice out before the media can bombard the public with false information and stir the anxiety of our customers. At the press conference, Toyota should accept full responsibility for the problem and assure the public that our company will not hesitate to take every possible step to promptly diagnose and fix the problem. To end the press conference, inform affected vehicle owners about how they can access the 24-hour help hotline, which will provide them with real-time communication with our best Toyota personnel who are informed about the issue and are trained well in customer service.

4. Launch website delineating the findings from the diagnosis and testing of the problem and the steps Toyota car owners must to take to find out if their vehicle is affected and what to do to fix it. Create a unique website that clarifies what the problem is using colloquial explanations that can be understood by the average person. Also indicate which Toyota cars are affected and how the accelerator problem is going to be fixed. In addition to the launching of this website, Toyota should partner up with Twitter.com to create a Twitter account so that it may provide continuous updates to the public about new information pertaining to the problem and what Toyota is doing to solve it. Advertise the website through banners featured on Facebook.com that allow people to type in their VIN to see if their car is affected by the recall. Using online services such as Twitter and Facebook to alleviate damages to our brand name will help Toyota affectively communicate with users of social networking sites before the media does.

5. Send out apology letters to affected car owners. The sorry letters will help the customers feel more appreciated and feel as if their experience with Toyota is a lot more personal. Mailing apology letters will also allow our company to reach those consumers who seldom use the Internet as a source of information and news. In each letter, we will include with the formal apology, a voucher for an oil change as well as a pamphlet that explains where they can go to get additional information (a physical location, such as a dealership, or online—through our company website or through Facebook and Twitter) and how to contact the help hotline that is available to them 24 hours.

6. Create 3-D simulation on the website that shows how the problem is being fixed, and then, hold a second press conference as a follow-up. By having another press conference, Toyota can reinforce its core values and its concern for customer satisfaction and safety of its vehicles. The press conference can also be used to further inform the public about the solution to the problem and how a 3-D simulation is accessible to them on the company website. By allowing car owners to see a 3-D simulation of the problem and how it is being fixed, we can reassure them that the solution is viable and effective.