Ford Motor Company Case Study
In this case study of Ford Motor Company my decision would have to lean towards a recall for many reasons but, mostly I believe saving lives and my customer service reputation as smart businessmen. But, I would propose an alternative solution that would support safety, keep my good name intact, and satisfy the stakeholders. I would make a new historic decision that would give the customer a choice whether or not they would want the vehicle with the modification and add the cost to the sale of the vehicle or they buy the vehicle without it and assume legal risk of purchase. The vehicles that were already on the road I would offer the same proposal offer the recall cover the cost of the part of $11 if they chose not to get it fixed then they too assumed legal risk. The decision would then fall to the customer. If the reasoning was an $11 part at estimated sales of 11 million units costing Ford $121 million and the estimated expected accidents from the National Highway Traffic Safety Administration costing an estimated 49.53 million dollars (that’s assuming out of court settlements). If I was a stakeholder I would consider the alternative rather than sacrificing my company’s reputation over money when the customer’s safety is worth more than the bottom line.
I believe the stakeholders assume so much risk by approving this decision in 1968; not knowing the consumer’s reaction and how this decision might affect the future of the Ford Motor Company. I am sure that tons of research was compiled and allot of thought was put into the decision but, the influence the stakeholder must have had to be overwhelming. The virtue of cost of the recall verse the ethical dilemma of putting human beings at risk for profit not to mention other people on the road who have the misfortune of rear ending a Ford Pinto and die of injuries sustained in the accident. If I was making this decision in 1968 I do not believe I could in good...