Final answer:
The question pertains to a conflict within Toyota, where professional managers and the founding family disagree. This mirrors larger historical shifts in the auto industry where Japanese manufacturers gained market share in the 1970s by producing more reliable and fuel-efficient cars, challenging American complacency and sparking innovation.
Step-by-step explanation:
The question refers to an internal conflict at Toyota, where the founding family is pitted against professional managers, with both sides blaming each other for the company's issues. This scenario is indicative of a common organizational challenge that many companies face, particularly family-owned enterprises that have grown into large, complex corporations. Such conflicts can arise from differing management philosophies, accountability standards, and visions for the company's future.
During the 1970s, the American auto industry, dominated by Detroit's Big Three (General Motors, Ford, and Chrysler), suffered from industrial complacency due to a lack of competition, leading to the production of vehicles that were not up to par with consumer expectations in terms of quality and fuel efficiency. This opened the market for competitors like Toyota and Honda, which offered more reliable and fuel-efficient vehicles. The arrival of these competitors from Japan, and later from other parts of Asia and Europe, introduced a significant competitive pressure that spurred innovation and improvements within the American auto industry.
Toyota, along with Honda, was able to capitalize on its advanced manufacturing techniques and strategies to produce vehicles that proved to be more reliable and cost-effective than their American counterparts. However, internal conflicts at Toyota highlight the complexities that arise when a company rooted in family ownership must balance the input and management strategies of non-family professionals.