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Ford Motor Co Case Study - Problem Solving Example

3 pages
705 words
Sewanee University of the South
Type of paper: 
Problem solving
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Identify the relevant facts

Some of the relevant and remarkable facts about Pinto is that, after the crash tests results, it is evident that the car is unsafe for use. Failure of the company to improve the gas tank is the big reason behind all the trends of explosions, in collisions at low speed. Secondly, according to cost-benefit analysis, the costs of safety improvement automobile outweighed the benefits that the company would get. Besides, it is evident that every firm always prioritizes what gives profits rather than what minimizes gains, and therefore followed by the companys decision to stick with original design without the upgrade of Pinto's gas tank. Furthermore, it is a fact that majority of clients prefer those products that are cheaper over others regardless of their quality and safety. Lastly, markets are open to buyers such that products in the market should be for willing buyers, in that, clients are free to buy whatever they feel like buying. Customers are their decision makers on what to buy.

Identify the pertinent ethical issues and points of ethical conflicts.

Ethical issues always surround decision making in all professional jobs and managerial positions in companies and other enterprise firms. In Ford Motor Co, problems are facing the business which involves decision making by the manager. There is pressure within the company executives whether to recall Pinto or not. In this perspective, when deciding on a recall Pinto, it is essential to consider the parties that will be affected by the recall of the product. In this case, if Pinto is recalled without improvements on the gas tanks, the company will benefit much more while clients will be subjected to risks of fatal accidents and losses. Ethically, as a manager, it is crucial also to prioritize clients, therefore bringing a decision making conflict on whether to prioritize the clients or the stakeholders.

Secondly, according to reports and evidence, it is clear that the company is aware of the risk of selling Pinto without upgrades. After the many fatal accidents that were associated with gas tank, the company still ignored side-saddle design and kept secret its awareness and did not make any attempt to correct the issue. As a manager, it is important to make corrections where needed, and it is vital to safeguard the interest of both the company as well as the clients.

Identify the relevant affected parties

According to the case study, the involved parties are the clients and the company stakeholder. Clients are affected by the risk that Pinto put them into. While on the other hand, the company suffers public negative reputations and reviews on its products.

Identify the possible consequences of alternative courses of action.

After the recall of the automobile without an upgrade, there is the likelihood of recording a bad reputation to the public since explosions are inevitable. Secondly, recall of the product into the market will tarnish the entire company's products since clients know that the automobile is from Ford Co.

Identify relevant obligations

As a manager, it is an obligation to ensure that Ford Co gives the best to its clients so as to retain customers and also get new customers. Also, the manager should ensure that the Companys interests are prioritized to maximize the profits.

Identify the relevant community standards that should guide you as a person of integrity.

According to previous lawsuits in court, the company was once charged with callous indifference. All the explosions that happened during accidents are related to the fact that the firm ignores to upgrade the automobile. As a person of integrity, it is essential to discuss with the company stakeholders to see how to make sure that clients are safeguarded from the risks related to the automobile.

Check your gut

Evidently, the explosions and deaths related to accidents that Pinto caused, plus the knowledge on the tests results I will have a detailed discussion with the stakeholders to ensure that the company prioritizes the clients safety.

What will you decide?

The best decision that I can make is to stop recall of Pinto or else; upgrade must be done to the automobile. The decision will safeguard the interest of the clients, stakeholders and the companys reputation as well.


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