Ford vs. Firestone

Topics: Unemployment, Economics, Energy Pages: 1 (373 words) Published: October 24, 2007
1.I don't think any firm can guarantee complete product safety, especially companies as large as Ford and Bridgestone-Firestone. Both these companies produce such a large quantity of products that something is bound to go wrong. Also, no matter how safe a product might be there still can be potential problems with user error. An example would be how no matter safe Ford makes a car, there is still potential for an accident if the driver is inexperienced or if there is bad weather. So usually it is impossible for a firm to guarantee complete product safety. 2.Bridgestone-Firestone should be given some of the blame for the deaths caused in the case. Especially since their tires were witnessed to have been made from foreign and faulty ingredients such as dried out rubber and cigarette butts. But, most of the blame should be placed on Ford's shoulders. Ford was so concerned with the bottom line that it used lower grade C tires instead of the more heat resistant type B tires. Ford engineers should have been aware of the danger in not using a more heat resistant tire, especially after the first few reported cases of blowouts and flipped SUV's. A company that considered itself to be an industry leader in safety overlooked something as basic as the tires. 3."What forces operate to lead a company away from concern for customer welfare?" A main force that can lead a company away from concern for company welfare is climate. Economic factors such as an economic slump can force companies to reduce expenses, which often leads to decreased safety standards. Political climate can also affect customer welfare, for example of the government suddenly increases certain taxes or tariffs a company would look to cut safety costs in order to maintain the current bottom line. Competitors are also a main force affecting customer welfare. If a major competitor is using decreased safety standards it might come as a temptation to also lower standards. Also, if a competitor is able to...
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