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TAKATA (Culture (Takata has always had a culture of high level engineering…
TAKATA
Culture
Takata has always had a culture of high level engineering and manufacturing. Once they started to use ammonium nitrate they believed they would be able to use their expertise to avoid the issue of ammonium nitrate. This forced them to continue to pursue the compound even after signs that it might not have been very safe
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The Japanese culture has a tradition of excellence and success, specifically in the car industry. Takata did not want to have to admit that they were straying from this excellence
Globalization
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When Takata's airbag scandal happened, it affected many different companies and people in many countries. If they had not been so globalized, their mistakes would have had a much smaller impact
Even though Takata is a Japanese based company, they were being fined and investigated by the US department of transportation because Takata has such a large impact in the US as well as in the other countries it operates in
Change
When the company finally admitted to having faked test data and producing faulty airbags, they were forced to recall millions of airbags which were produced using the new compound. This caused massive financial losses for them and also for the car vendors they were supplying
Once Takata had recalled all of their airbags and lost so much money, they had no choice but to declare bankruptcy. Their reputation as a company was destroyed, and they had too much debt to recover from
Takata tried to change their compounds to improve their product. Even though this was unsuccessful, the change could have worked if the company had been more careful.
Strategy
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Takata believed they had enough engineering and manufacturing expertise to use ammonium nitrate and so they attempted to use it because it was cheaper and better for the environment
Innovation
Takata was the first car company to try to produce airbags using ammonium nitrate as opposed to sodium azide. This could have been a good innovation because it was cheaper and more environmental, but it backfired when the airbags were faulty and started rupturing with too much force and killing passengers.
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Ethics
Seemingly, Takata switched their airbags due to environmental concerns, but the compound they switched to was also much cheaper, which make it questionable if Takata had underlying motives of generating more profit.
When Takata began to suspect about the issue in their airbags, instead of being transparent about the possibilities of problems with the airbags, they fabricated test data and assured the public that there were no problems with the airbags, even after several people had been killed.
Takata switched the compounds in their airbags which lead to them violently exploding and injuring over 100 people and killing 13. Takata is now responsible for those peoples deaths and injuries, and can do nothing to help the families who lost due to the faulty airbags.
Stakeholders
The car vendors that Takata was selling to were very affected by their mistakes as companies such as Honda and Toyota also had to issue massive recalls because of the airbags. They also lost a lot of money because of the losses