Looking for root cause: a comparative analysis

Purpose – The purpose of this paper is to demonstrate that management decision making and corporate strategy must start by questioning all prior assumptions and arguments, while focusing on simple fundamental truths.Design/methodology/approach – The paper examines fundamental principles practiced by foreign‐owned transplants (e.g., Honda, Toyota, and Nissan) that have entered the automotive marketplace in the latter half of the twentieth century. They use lean production methods, while traditional industry players utilize mass production methods. The authors refer to these two production methods as “The Toyota Way” and “The Traditional Way.” Comparative analysis is conducted to identify and contrast key differences, which are examined using root cause analysis.Findings – The paper finds that problems facing US industry could have been prevented, if companies had taken the time, and made the effort to fully understand the root causes.Practical implications – Managers learn that it is beneficial to take tim...