Bridgestone/Firestone- tire shredding crisis
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Address the Bridgestone/Firestone- tire shredding crisis. Research Bridgestone/Firestone's product crisis and consider alternative solutions
Answer these six questions.
1. What was the basis for the crisis?
2. Were there any policy decisions that led to the crisis?
3. How was the crisis managed?
4. How was the crisis resolved?
5. What were the short-term effects for the firm?
6. Have there been any long-term effects?
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Solution Summary
The basis of the crisis was that treads on several of its models were separating from the tires.
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1) The basis of the crisis was that treads on several of its models were separating from the tires. The case involved more than 14.4 million of the Firestone ATX, ATX II and Wilderness AT tires, most of which had been installed on sport utility vehicles. Most of these models were installed on Ford SUV's.Firestone had to ultimately recall all these faulty products.
(Source: http://iml.jou.ufl.edu/projects/Spring01/Hogue/firestone.html )
2) Firestone management discovered the problem in the early stages but were too late to react about it. Firestone had knowledge of an unusually high numbers of warranty, damage and injury claims six months prior to the recall but did nothing to address it. Firestone was hesitant to issue an earlier recall of a different tire in Saudi Arabia for fear it would have to inform the U.S. National Highway Traffic Safety ...
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- BCom, SGTB Khalsa College, University of Delhi
- MBA, Rochester Institute of Technology
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