...Ford and Firestone Case Study Safety issues involving Firestone tire tread separations specifically on Ford Explorer SUV’s and resulting vehicle rollovers were brought into the public’s view in early 1998 as a result of several tragic accidents. Tire tread separation photo, Associated Press, 2000 One accident involved a junior high school girl named Jessica LeAnn Taylor from Mexia, Texas. Jessica was a passenger in a Ford Explorer with Firestone tires, during the accident the tire peeled off and forced the vehicle to lose control and proceed to roll. This young girl died from complications caused during this accident. Another accident involved a Ford Explorer driven by Victor Rodriguez from Laredo, Texas. The Firestone tire shredded off while Victor was driving. His car flipped and Mr. Rodriguez’s 10 year old son Mark Anthony died at the crash site. On February 7, 2000, Anne Werner, a reporter at KHOU-TV, in Houston, TX, introduced Cynthia Jackson, who described how her husband of a year and a half had died and how her own legs were amputated above the knee because their Ford Explorer fitted with the original Firestone Radial ATX tires flipped after the front tire came apart1. Firestone later reprimanded Robert W. Dechrd, CEO of A.H. Bello Corporation (owners of KHOU) and Peter Diaz, President and General Manager of KHOU, for airing the story which, according to them, “contained falsehoods and misrepresentations that improperly disparage Firestone and, its...
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...Ford and Firestone Controversy Centuries ago Ford Motor Company and Firestone Company developed the perfect collaboration and built a strong and wealthy business relationship in which Firestone manufactured tires to be used on Ford’s motor vehicles. Unfortunately, this relationship came to a screeching end after a fatal crisis began around 1999 in which Ford Explorers equipped with Firestone’s Wilderness AT, radial ATX, and ATX II tires caused a series of serious fatal accidents. When the treads of these wheels peeled off the casings vehicles going at highway speeds would enter into ghastly rollover crashes. Although the root cause of the crisis that occurred remains an overall mystery, Ford Motor Company and Firestone Tire Company both act as examples of two organizations in violation of business ethics and further illustrate how ones disregard to act in compliance with ethical and lawful actions, especially in the business setting, is simply not acceptable and could lead to catastrophic consequences in the end. Ethics, which deal with personal moral principles and values, and Law, which deal with societies values and standards that are enforceable in the courts, are leading factors that play huge roles in the day-to-day business environment. According to the Ethical/Legal quadrant provided in the Marketing textbook by Kerin, both Ford and Firestone clearly fall within the unethical/illegal section, due to the fact that both displayed in their actions a blatant disregard...
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...Case Analysis Report In August 2000, Ford Motor Company and Firestone Tire Company recalled 6.5 Million ATX and AT tires that had been installed on Ford’s Explorer model SUV. At the time, it appeared as though Ford and Firestone were doing the right thing. They had found out that the tread separated on Ford Explorers in states with intense heat, such as Florida and Texas. However, it later came to light that both Ford and Firestone had known about these problems earlier than 2000 and that Ford had even had a similar recall in 9 countries the previous year. Firestone however had disagreed with the recalls prior to 2000. Many of these countries were in the Middle East where temperatures are frequently in excess of 100° Fahrenheit. The Stakeholders There are numerous stakeholders in this case some, such as Ford and Firestone by not being forthright with the consumer had a lot to gain and others such as the consumers had a lot to lose. Ford Motor Company Ford Motor Company is one of the largest stakeholders in this case. They had the most to gain from selling the Explorers and not publicizing the potential problems with Firestone tires. By issuing a recall, they would lose both money and customers if the public thought their SUVs were unsafe. My problem with Ford is that they knew that there was a problem with the Ford Explorer before it went into production. Ford engineers recognized that by using the larger P235 tire, there was a potential for more rollovers...
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...about automobiles, so I may not understand the consequences of tire tread separation when driving. B. State what you are bracketing: They would do bad things to lower the costs of tire which led to tire tread separation. They would have blamed each other and their customers for their own fault. They would keep all customers’ complaint and lawsuit private from public. They would continue to use low quality tires. II. The Situation : A. List the facts relevant to the issue(s) identified: • The first lawsuit against Firestone was in 1991. • Lori Lazarus was trapped in her car and rescued later because of roll-over • Jessica LeAnn Taylor died because of tire tread separation. • Victor Borriguez’s son was died because the tire tread shredded off. • Randy Robert filed a lawsuit against Firestone for its tire issue • By 1997, State Farm noticed a pattern of problems with ATX and Wilderness tires. • Randy won the lawsuit. • Firestone had to turn over confidential...
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...Firestone Case Study Robert Workman Jessica Jurkowski Michael Wilding Webster University Firestone Case Study BACKGROUND In 1900 Harvey S. Firestone established The Firestone Tire and Rubber Company, the company started with 12 employees. They started out by supplying rubber tires for wagons and buggies. In the 1908 Henry Ford and Harvey Firestone formed a partnership with firestone supplying tires for the new model T this was a natural relationship because they had mutual friends. (Noggle and Palmer, 2005) Today Firestone is known as Bridgestone/Firestone after the two companies merged in 1990 for $2.6 billion. Today the company markets 8,000 different types and sizes of tires along with other products. Firestone has had a substantial history of scandals relating to tire safety In 1978 Firestone recalled 14.5 million tires—the largest tire recall at the time—after excess application of the adhesives binding the rubber and steel resulted in 500 tread separations and blowouts. The company was also fined $500,000 for concealing safety problems. ("e-businessethics.com") However in the late 90’s Firestone would be put into serious jeopardy and be threatened with going bankrupt. The Ford Motor Company was started by Henry Ford in 1903 in Dearborn, Michigan producing only a few cars a day. Ford was the first company to use assembly line production and has grown into one of the largest family run organizations in the world In 1999 Ford had a staff of 360,000 employees...
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...tendency than the Bronco II to lift two wheels off the ground Engineer recommendations: Mounting the wheels 2 inches apart; lowering the engine; replacing the Twin I-Beam suspension; lowering the tire pressure; stiffening the springs o By not optimizing the vehicle’s center of gravity, tire selection would become an important factor. FIRESTONE TIRE & RUBBER COMPANY • Founded by Harvey Firestone • Tire manufacturer since 1900 • In 1990 it was acquired by Bridgestone USA Inc. for $2.6 Billion • Developed ATX tire (and ATX II) for Ford Explorer – also used on the Ranger. o Recommended pressure was 30 to 35 psi. • On March 1993, Firestone’s day-to-day operations were put in the hands of John Lampe. • July 1994, 4,000 United Rubber Workers union members went on strike on 5 Firestone plants including its plant in Decatur, Illinois. o After 7 months, Firestone hired non-union workers (unskilled and untrained) to replace striking workers. II. POINT OF VIEW DESIGN FLAWS FORD FIRESTONE 1. Ford Explorer is more than 600 pounds heavier than the Ranger; but suspension and tires are not suited to carry a bigger load. 1. Firestone agreed to reduce tire weight to...
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...Firestone Walker (Firestone for short) Brewery is a brewery located in Central California. It controls less than 1% of the market share and does not try to compete directly with the Big Three Brewers (Anheuser Busch, Miller and Coors). Instead, they are content to brew beers that niche beer drinkers prefer, mainly Pale Ales, IPAs and other “hoppy” beers. This “craft beer group makes up less than 3% of the beer market but it is a fast growing group with a low cost of entry and a friendly competition amongst the various breweries across the country. Character of Rivalry: The character of rivalry is that there is neutral. There is a lot competition, however, Firestone chooses to coexist in the craft beer industry and as there are plenty of tap handles and not much fighting among the different breweries. Firestone feels that when there is fierce competition the brewery falls apart so they focus on making the best quality beer and relying on the public to make their choice based on that principle. Firestone uses various beer styles to meet consumer preferences. Threat of New Entrants: The threat of new entrants is moderate. Some of Firestone Walker’s most notable competitors are Stone Brewery located in Escondido, Sierra Nevada located in Chino, and Speakeasy Brewery located in San Francisco. These breweries have a lot in common, and are after the same customers. While home brewing and brewing in general has a low cost of entry, brewing at the craft beer level takes a...
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...Firestone vs. Ford: An Epic Public Relations Battle In every business, maintaining good public relations with the consumer is crucial. What is public relation? Public relation is the business of inducing the public to have understanding for the goodwill toward a person, firm, or institution and also the degree of understanding and achieved. According to some entrepreneur, public relation is the opposite of advertising wherein advertising, you will have to bring out a large amount of money from your wallet in order to endorse whatever product you wanted to be known to the public using Television, radio, billboards and the like. In public relation, you may say that it is better because publicity is remembered longer by the consumers more than an advertisement. Another one is because it is more cost-effective than advertising because even though you would have some expenses, it would not be as big as advertising because you would only use phone calls and mailings to the media most of the time. Based In the article of Firestone and Ford, you can easily say that both companies have established a good relationship with each other and gets along very well in their alliance in the past decades. Firestone is supplying the tires of the Ford’s vehicles for almost a century until the unexpected controversy broke out, deciding who it is to blame for those several car accidents. After the investigations resulted that the tread of the tires peeled off, Firestone immediately recalled its...
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...On August 9, 2000, Bridgestone/Firestone Inc. announced it would recall more than 6.5 million tires, most of which had been mounted as original equipment on Ford Motor Co. Explorers and other Ford light trucks. Bridgestone/Firestone had become the subject of an intense federal investigation of 46 deaths and more than 300 incidents where Firestone tires allegedly shredded on the highway. The Firestone tires affected were 15-inch Radial ATX and Radial ATX II tires produced in North America and certain Wilderness AT tires manufactured at the firm's Decatur, Illinois, plant. This tire recall was the second biggest in history, behind only Firestone's recall of 14.5 million radial tires in 1978. The 1978 tire recall financially crippled the company for years to come and the August 2000 recall threatened to do the same. Consumers, the federal government, and the press wanted to know: Why didn't Ford and Firestone recognize this problem sooner? Let us look at the series of events surrounding the tire recall and the role of information management. 1988---Financially weakened from its 1978 tire recall, Firestone agreed to be acquired by Bridgestone Tires, a Japanese firm. To increase its sales, Firestone became a supplier of tires for Ford Motors' new sport-utility vehicle (SUV), the Explorer. March 11, 1999---In response to a Ford concern about tire separations on the Explorer, Bridgestone/Firestone (Firestone) sent a confidential memo to Ford claiming that less than 0.1 percent of...
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...Two major tire manufacturers have had controversies involving the use of their tires. Firestone had their controversy with the Ford Motor Company, while Michelin had their controversy in the racing world. Each manufacturer had legal battles, but only Michelin realized the fault in the company tires and deemed them unsafe for use. Automobiles have long since been a major part of our society and for the vast majority of the world. The automobile might be one of the greatest inventions ever, but what is the most important feature of the automobile that is actually in contact with the ground? The answer is simple, the tires. The tires that we think of today are pneumatic tires, meaning that air is enclosed in the void area between the inside of the tire and the wheel, thus reducing vibration and increasing traction. The first pneumatic tires were used on bicycles, not on cars, but that same technology would come to be a major part of the automotive industry. Since their early uses, there have been safety concerns for tires. This prompted many tests ensure the safety of the product. There are countless numbers of tire manufacturers. For example, alphabetically there is Avon, Bridgestone, Dunlop, Firestone, Goodyear, and Michelin, just to name a few. Two of those manufacturers, Firestone and Michelin, have both had major controversies surrounding the use of their tires. Firestones controversy was with the Ford Motor Company in the everyday world, while Michelins was...
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...& contrast two news stories which centre on a crisis for different businesses giving detailed analysis of each communications strategy. This Essay will begin by reviewing crisis definitions and message strategies. Next it will explore translation strategies used by organisations involved in a crisis to communicate with stakeholders. The essay will then consider Ford–Firestone’s tire failure crisis of 2000 as an example of poor crisis management, and contrast toy maker Mattel’s recall crisis of 2007 as an example of successful crisis management. It will first lie out the rhetorical context of each case before embarking on a detailed analysis equating the effectiveness of both firms’ external communications, and in the case of Ford-Firestone, how these might have been alternatively approached in order to avoid detrimental reputational damage. * Fink (1986, from King, 2000) defines an organisational crisis as ‘a situation that can potentially escalate in intensity, fall under close government or media scrutiny, jeopardize the current public image of the organisation or interfere with normal business operations.’ Pearson and Mitroff support this in their ‘five dimensions of a crisis’, explaining that the situation will be ‘highly visible, require immediate attention, have a surprise element, and a need for action’ (Pearson and Mitroff, 1993 from King, 2000). They also outline the five stages of a crisis; signal detection, preparation and prevention, containment and damage...
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...Running head: Total Recall the firestone company recall of tires Total Recall The Firestone Company’s Recall of Tires Seth Jackson Current Trends in Electronic Management ABSTRACT This paper discusses the recall of Firestone Tires in the United States .and the relative complicity of Firestone, Ford Motor Company and its consumers. Because of Firestone’s knowledge of the tire defects and lack of action, fatal and critical accidents resulted from tires used on the Ford Explorer. Firestone chose, instead, to blame Ford and its consumers for the tires defects. INTRODUCTION In 1906, Henry Ford purchased 8,000 tires from Harvey Firestone, who began producing tires at a small factory in Akron, Ohio in 1900. The sale initiated a long, growing relationship between two eventual leaders in their respective industries. In a matter of just a few short months in 2000, a very robust business-to-business relationship, 100 years in the making, had been destroyed by a lack of communication, poor quality management, and the disregard of consumer concern were the rules surrounding ethics used in the ethical decision made from Ford or Firestone? How did the recall affect how everyone viewed and interpreted the entire tire manufactures? These are just a few of the questions we will discuss throughout this paper. Webster Online defines ethics as the discipline dealing with what is good and bad and with moral duty and what really stands out is the idea how one company...
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...Kidlen Kidka Speech 110 Demonstration Speech I. After the 14years of civil war in my country Liberia West Africa; we lost of family, friends and love ones. I was blessed to be counted among the living once and privilege enough to live a normal life after the civil crisis. My parents got jobs with the largest natural company in the world “Firestone Rubber Plantation”. In 1926, the Then Firestone Tire and Company leased 1,600 square mile of jungle on Liberia West Africa with the goal of producing its own natural. Liberia was selected because of the location, soil and our good climatic condition. The company was name after the founder Harvey Firestone. II. The rubber product we see today came away from the grown. Washington Waka the general manager of the factory said; that growing and producing rubber is a lot harder than having and raising Children. From planting the rubber, tapping and collecting and finally processing and shipping it out. First step in planting a rubber tree is getting a rich fertile soil in a rubber or polished clayed container. Proper planting is the most important procedure is important because it minimize transplant shock. * Plant the seed in the center of the soil that is in the container and water. * Water the seed one a week until it is ready for transplant. * Transplanting occur after approximately several months. * The trees should be planted about a foot apart and in a straight line. * Rubber trees grow...
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...affect?” Let’s focus on my former employer Ford Motor Credit. Their thoughts back in 2003 was total quality is a way of life. This was the main strategy in order to bounce back financially, and to gain their credibility back. A. The strategic change initiative allows us to focus on four areas. a. Initiate Effort or gathering support b. Launching or agreeing on an approach c. Executing or doing what it takes d. Gaining Momentum or communicating results APPLICATION ANALYSIS: The Company of Focus in this analysis is Ford Motor Credit. There was a point and time when Ford had lost its credibility with the many Americans. There were many lawsuits against the company. There was an ongoing issue with the firestone tires that were put on each Ford SUV. The claims were that the tires blew out and caused many deadly accidents. Ford had to adhere to the lawsuits but yet still run the multibillion dollar company. How do you do that with thousands of employees? Downsize is the first thing and then reorganization. Ford cut many jobs and relocated hundreds of employees and offered early retirement for some. Our call center which housed collection personnel, payment processors, title management personnel, lost prevention, skip tracers,...
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...http://whynationsfail.com/blog/2012/6/7/why-wasnt-charles-taylor-tried-for-the-crimes-he-committed-i.html ------------------------------------------------- Why wasn't Charles Taylor tried for the crimes he committed in Liberia? Daron Acemoglu and James Robinson The Special Court for Sierra Leone found the former Liberian President Charles Taylor guilty of “aiding and abetting” war crimes during Sierra Leone’s long civil war. Last week Charles Taylor was finally sentenced to 50 years in prison, which he will serve in the UK. There were atrocious crimes during the civil war in Sierra Leone (see our blog post here), and Charles Taylor did quite a bit more than “aiding and abetting” the Revolutionary United Front rebels under the leadership of Foday Sankoh; he armed Sankoh and organized the rebellion with the aim of taking control of, or at least destabilizing, Sierra Leone. There should be no doubt that he is guilty of war crimes in Sierra Leone. But here is the thing: Charles Taylor also committed war crimes in Liberia. He was a ruthless warlord. He not only used child soldiers extensively, but he encouraged them to commit atrocities, even against their own parents. He won an election in Liberia in 1997, but this was at best an election under the shadow of violence. Charles Taylor campaigned with the slogan: “he killed my ma, he killed my pa, but I will vote for him,” making a banner out of his atrocities, and carrying the implicit threat of further violence if he did not...
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