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Abstract

This is the first of a two-case series (503-130-1 and 503-131-1). This case describes events leading up to the decision by Bridgestone/Firestone Inc in August 2000 to recall 6.5 million automobile tyres that were suspected of contributing to fatal accidents of the Ford Explorer SUV. The main theme is that of managing crisis communications but corporate ethics and social responsibility can also be discussed. Key issues are how and when to identify an emerging problem as a crisis, how to set up a response team and a communications plan, and how to enact a recall. The scenario is rich with possibilities for students to adopt conflicting views. Natural tensions exist between the government, the manufacturers and the consumers; the automaker and the tyre maker; the tyre maker''s Japanese parent and its directly-affected US subsidiary; and the tyre maker''s legal counsel and its marketing team. The situation is complicated by the fact that the technical cause of the accidents is unclear. The case clearly illustrates the difficulty, as well as the necessity, of formulating decisive plans in an emotionally charged and rapidly evolving situation. The teaching note was written by LJ Price.
Location:
Industry:
Size:
Over 500 employees
Other setting(s):
2000

About

Abstract

This is the first of a two-case series (503-130-1 and 503-131-1). This case describes events leading up to the decision by Bridgestone/Firestone Inc in August 2000 to recall 6.5 million automobile tyres that were suspected of contributing to fatal accidents of the Ford Explorer SUV. The main theme is that of managing crisis communications but corporate ethics and social responsibility can also be discussed. Key issues are how and when to identify an emerging problem as a crisis, how to set up a response team and a communications plan, and how to enact a recall. The scenario is rich with possibilities for students to adopt conflicting views. Natural tensions exist between the government, the manufacturers and the consumers; the automaker and the tyre maker; the tyre maker''s Japanese parent and its directly-affected US subsidiary; and the tyre maker''s legal counsel and its marketing team. The situation is complicated by the fact that the technical cause of the accidents is unclear. The case clearly illustrates the difficulty, as well as the necessity, of formulating decisive plans in an emotionally charged and rapidly evolving situation. The teaching note was written by LJ Price.

Settings

Location:
Industry:
Size:
Over 500 employees
Other setting(s):
2000

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