This paper is written in the form of a letter to the Customer Safety Advocates in Chicago about the issue of Bridgestone/Firestone tires and the Ford Motor Company.
Abstract This paper discusses the recall of Firestone Tires in the U.S. and the relative complicity of Firestone, the Ford Motor Company and consumers. The paper states that the fatal accidents and critical injuries involving Firestone tires on Ford vehicles resulted primarily from Firestones' lack of action because Firestone was well aware of problems with their tires on Ford Explorers and chose instead to blame alternately Ford and consumers for the tires defects.
From the Paper "The recall of Firestone tires in the United States began on August 9, 2002 when Ford and Firestone announced the recall of 6.5 million tires. The total cost of replacement ranged from $500 million to 4.4 billion. The recall focused on both original and replacement tires, and only included two types of tires, installed on specific light trucks and SUVs."
This paper looks at the crisis of car tires blowing out while drivers are on the road and how the company Bridgestone/Firestone were accused of this crime. This paper shows the company's unwillingness to accept blame for road deaths.
Abstract This paper looks at Bridgestone/Firestone's flat out refusal to accept blame for their part in any road deaths. The writer shows how corporate America feels more affianced to its internal stakeholders than to the consumer public. It follows with an example of a high profile trial where they consistently denied they had any responsibility for any damages. The writer concludes by showing that their policies and crisis management strategies not only cost the company its reputation but also result in permanent loss of consumer loyalty.
From the Paper "Firestone doesn?t know a thing about good crisis management. Its policy of denying its obvious faults has decreased consumer's trust in the company or its products for that matter. It is important nowadays to understand that consumers are not interested in big names only, they also want to be assured that the company indeed cares about all the stakeholders involved. Firestone's employees have suffered tremendously from the recall and from its various errors as jobs were slashed in the United States and stock prices tumbled. The community and society on the whole suffered because one firm refused to own up and thus delayed tire recall."
Abstract This paper discusses how the tire manufacturing industry is one of the most diversified and competitive industries in the U.S. Categorized by an oligopoly business environment, the industry is a hub for mature, key players like Goodyear, Michelin, Firestone, Bridgestone, and Sears etc. It explains how new entrants find it hard to enter the industry because of the unique business environment.
Introduction
The Industry's dominant economic features
Porters Five Forces
The rivalry among competing sellers in the industry
The potential entry of new competitors
Wining customers over their own substitute products
Supplier-seller collaboration and bargaining
Seller-buyer collaboration and bargaining
Drivers of change in the industry
Companies in the Strongest/Weakest Positions
Key Success Factors for Competitive Success
Conclusion
Appendix
References
From the Paper "Given the above analysis, one can say that the tire manufacturing industry is categorized by extreme industry rivalry yet it is also the most diversified with scopes to expand according to the needs of the consumers. Diversity in consumers such as direct consumers, dealers, specialized consumer, company associations, associated industry etc. all greatly influence the market share. Furthermore, players in the industry must focus on research and innovation initiatives to identify the need of the future consumers. They are likely to succeed to harness loyal customers for future profitability."
Abstract Product liability issues have been raised by consumers who have been injured by various products and often there are clusters of such claims when a particular product or type of product is shown to be defective. This paper shows that recently, the Ford Motor Company has become embroiled in such lawsuits because of the use of defective tires on their automobiles, first from Firestone and then from Goodyear, making both companies liable for the damage caused. The paper explains that product liability law is constantly evolving as new issues are raised and new attempts are made to deter lawsuits and reduce the awards possible for liability.
From the Paper "Ford faced the evolving standards of product liability, as noted, and for the past thirty years or more, the theme has been to develop and refine theories aimed at imposing liability on product sellers for those damages caused by their defective products. Most states' courts or legislatures have been involved in this evolution by extending a strict liability theory (usually founded in tort) to product liability cases, on the theory that injured plaintiffs should be allowed to prove that "a defectively manufactured, designed, packaged, or labeled product, rather than the seller's negligence or malice, actually and proximately caused the plaintiffs injuries.""
Abstract This paper takes a look at the Firestone/Ford controversy that was revealed in 2000 by a media report stating that there was an obvious link between the increasing number of roll-over accidents in the United States and Firestone tires. Firestone was asked to voluntarily recall its tires from the market. Three months passed before Firestone responded and since then some 6.5 million tires have been recalled.
Contents:
Overview
Key Issues of the Case
Legal Problems
Ethical Dilemma
Decision-Making Framework
Core Problems
Social, Cultural and Legal
Recommendation/Conclusion
From the Paper "Social responsibility: Every American Corporation needs to be fully aware of its responsibilities and obligations towards its external and internal stakeholders and this is the inability to understand this that annoys the public. The public believes that profit maximization is the only goal that corporations have in mind and they tend to ignore consumer's interests. But with more consumer enlightenment and stricter laws against defective products, many large corporations are coming under fire and this is leading to tarnished reputations and loss of consumer trust. Most consumers today would go for a company with better reputation than bigger name and this is the reason good crisis management has become a key to success in today's corporate sector. If you truly want to survive a huge blunder, own up to your fault and quickly do something about it. "
