Pinto Case Bottom Line vs. Customer Needs and Safety The Facts In early 1968, a decision was made at Ford Motor Company to enter the small car market to compete against foreign competitors. Lee Iacocca, a future company President, wanted the new vehicle, called a Pinto, to be in showrooms by the 1971 model introductions. This would mean that it would be the shortest production planning period in automotive history at that time. Due to the extremely tight timeline, many processes for building the
Words: 721 - Pages: 3
had not reduced its overall purchases of air time on NBC but had shifted all its advertising to entertainment and sports. General Motors pulled its commercials from NBC News programs as of Monday, the day that Mr. Pearce held a news conference to criticize the "Dateline" report, which was broadcast in November. Taking the advertising away from the news programs could affect the budget for the news department. The auto maker spent about $90 million in advertising on all NBC programs through the first
Words: 1215 - Pages: 5
not make the same mistake as Ford Motor Company; The Ford Pinto Case. Ford Pinto is a car that was associated with fuel-fed crash fires. In the early 1970’s this compact vehicle showed a likelihood of catching fire when hit from behind at low speeds. (20mph). Ford needed to make a decision. Its car was in compliance with industry standards, so no laws were broken. But Ford’s own research had proved the car was deadly. Being aware of design problems with the pinto that made it more susceptible
Words: 291 - Pages: 2
Remember the Ford Pinto‚ the egg-shaped economy ride that sometimes exploded when struck from behind? Mark Robinson Does. He also remembers the look on the faces of the jurors who awarded $127 million to his client 13-year-old burn victim Richard Grimshaw‚ in 1978‚ based on a design flaw that led to the deaths of 27 people from fuel-tank fires in Pintos. The jurors were outraged to learn that the Ford Motor Co. became aware of the risks of passenger deaths in 1971 yet waited until 1976 to move
Words: 2345 - Pages: 10
Kotler, 2011, p. 4). Organizational Success Marketing focuses organizational attention on meeting consumer demand. To accomplish this goal a company must first anticipate consumer needs and then direct a flow of acceptable goods and services from producers to consumers (Perreault,
Words: 999 - Pages: 4
Questionable cost-benefit analysis by Ford In 1968, Lee Iacocca, president of Ford Motor Co., faced fear of losing market share in subcompact auto market by German Auto, Volkswagen. Although the automobile preproduction process usually takes three and a half years, Ford made it within two years from designing phase to releasing to the market. Market seemed to be impressed by Ford, but it did not go last that long. Pinto had a critical problem that its fuel tank cannot withstand any rear-impact
Words: 997 - Pages: 4
Introduction The unfortunate tragedies involving the explosion of Ford Pinto's due to a design defect led to a main debate regarding the use of a cost-benefit analysis and the ethics revolving around the company’s decision to go further with the initial, defective prototype. Ethical Dilemma Ford was completely aware of the safety issues the prototype was facing, but solving the issue would cause great disadvantage for the company: production schedule had to be modified, resulting in delays
Words: 1860 - Pages: 8
In this presentation, a very important case that transpired from 1971 to 1978 with the Ford Motor Company, under the leadership of Mr. Lee Iacocca, CEO will be explored. During that time the CEO of Ford wanted to manufacture a vehicle to keep up with the competition that was going on with other manufactures. The Ford Company experienced many tragic issues with this vehicle having to pay millions of dollars in lawsuits. This was due to their negligence in not following the proper inspection procedures
Words: 295 - Pages: 2
FORD PINTO CASE The Ford management has chosen to be unethical and morally unworthy to be trusted with the lives of its customers. Can you just imagine the number of individuals riding every day in the cars that they produced, who are unaware that they could be in an injury any moment? Ford management has chosen not to follow the safety guidelines and standards in producing such products because at that time, the government is still not that strict in implementing such rules. And because of their
Words: 360 - Pages: 2
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
Words: 3655 - Pages: 15
