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Case Analysis: Pinto Fires
Introduction
Greed is the root to evil or at least the motivation behind some corporations making a good, ethical decision. The Ford Motor Company fell into a trap of greed that would cost many human lives. Before the disaster of the Pinto Fires, Ford had a reputation as being the safety pioneer in the automobile industry with additions such as the seat belts. However, as the invention of small cars began to take emerge Ford began to loose market shares to the foreign market. Ford had to do something and quick.
Foreign markets were beginning to show promise with the vehicles that were going to put out on the market. The Ford Motor Company began to feel the pressure and felt that it needed to be in the limelight of the competition. Lee Iococca, the CEO of Ford, decided that it was time for a change and thus the Ford Pinto was introduced. However, the Pinto had numerous flaws that cost the Ford Company more than ever anticipated.
Relevant facts
During the 1960's the demand for sub-compact cars was rising on the market. Ford Motor Company, in competition with the foreign market, decided to introduce the Ford Pinto. The Ford Pinto was going to be the new wave for the Ford Company, but it was soon discovered that numerous problems existed. For example, the time that it took to manufacture an automobile was down from three and a half years to just over two years. Before production, however, the engineers at Ford discovered a major flaw in the cars design. In nearly all rear-end crash test collisions the Pinto's fuel system would rupture extremely easily (The Ford Pinto, n.d.). Other problems that were discovered compounded the problem that caused the fires. These included the gas tank being about six inches from the flimsy bumpers, the backend not containing rear sub frame members, and doors tending to jam shut in an accident. The fuel filler tube was prone to separate and create spillage (Alfred, n.d.).
When it was discover that the gas tank was unsafe, no one bothered to tell Lee Iacocca about the flaws. One engineer was quoted as saying, "Hell no, we didn't tell him. That person would have been fired. Safety wasn't a popular subject around Ford in those days.
The investors wanted a new model that was more reliable, but Ford wanted work out the problems on his first car before he created a new one. The car the investors wanted was a luxury that they can sell the rich people and Henry was not building cars the rich, but for the poor. While the investors waited for a new car he experimented for better solutions with the investor money. The investors didn 't like the fact that Henry was experimenting instead building a new car so they stopped writing the check. Henry Ford didn 't like the way his investors controlled him on the way he did things so he decided to not have rich people tell what to do at his shop. He told himself that for now on his shop will be his shop. He did not like the rich people that backed him because thought of the rich as jerks. While he was experimenting in the background during his first company he was working on a race car. The car that built twenty-eight horsepower and he beat the Alexander Winton with an engine with about three times the amount of horsepower he had. The funny thing is that he had no experience racing at all in the first Detroit
Catching Fire: How Coooking Made us Human by Richard Wrangham is a fresh perspective on the evolution of humankind. Wrangham has made a concentrated effort to prove that humans have evolved particular adaptations, like bipedalism, due to the introduction of cooked foods into their diet. In his book, he is legitimately arguing that humans are the way they are because early on in human evolution, early man discovered fire, discovered the joys of cooked foods, and developed all sorts of fascinating traits still being utilized today.
This radical idea of the automobile permeated throughout America with most, if not all credit renowned to Henry Ford. Observed as a technological mastermind, Ford commenced experiments involving machinery from the time he was adolescent to launching his career working at the Edison Illuminating Company. He examined internal combustion engines and gasoline buggy ideas eventually resulting in removing himself from Edison’s company and his introduction in the emerging automobile industry. Following in 1903, he established the Ford Motor Company, which expeditiously became a leader in the automotive industry and would gain extensive wealth within only a few decades. While other manufacturers strove to produce automobiles to be extravagant and luxurious predominantly for the wealthy, he immensely focused on efficient mass production of durable, affordable vehicles for the expanding middle-class market.
Yes Ford was a very intelligent man. He implicated the assembly line a very effective system, not only towards the car industry but as well as ever mass produced product made. The assembly line was a major advantage in World War II (1939-1945). It gave us the ability to mass-produce products needed for war: Guns, Ammo, Tanks, ect. But to say Henry Ford was a hero is not 100% accurate. Henry Ford was very strict on his employees. His employees were to only buy his newspaper; employees’ personal lives and family’s were checked up, with that being said Ford was kind of creating his own socialist culture. The older people Ford would do away with to hire younger to people to set the speed of the line more than likely would probably disagree with davids and not refer to Ford as a “ Hero”.
In 1974 Congress passed school bus safety legislation, three years before the Carrollton school bus was built. Manufactures, like Ford Motor Company, managed to delay the implementation of automotive safety standards, including those relating to school-bus safety. In 1971, President of Ford Motor at the time, Lee Iacocca, was known to have lobbied President Richard Nixon to put off costly new rules for cars. He was quoted as saying, “Safety has really killed all of our business. He could have also been lobbying for the Ford Pinto, which was surrounded by much controversy due to the placement of its gas tank.
Couzens was able to start out the company with $28,000 in cash, and $21,000 in notes. The Ford Motor Company came out with the model A, the model B, and the model K in their beginning years. However, most of these cars were too expensive for the common man. So Ford decided that he would make a car that was affordable to the ordinary worker. For a few years, Ford and his technicians began building their next and most important car in history. In 1908, Ford brought out for the first time the Model T. It was an ugly car, seven feet high w...
Henry Ford was one of the most brilliant entrepreneurs in creating the automobile assembly line, it was his controversial characteristics and unorthodox approach towards administrating the Ford Motor Company which resulted in the conglomeration of one of the most successful corporations in the world. At the turn of the century everything was booming! The growth of the economy and stock market increased the job opportunities as well as morals. As a result of this industrial revolution, out of the woodwork came a humble yet driven man, Henry Ford. Between the five dollar/day plan, his policies on administrating the company, and his relations with his customers, Ford was often presented as a suspicious character. This controversial behavior epitomized the success of the company, it did not lead to his own downfall as many suspect. The Anti-Semitic accusations, and the belief that Ford was taking advantage of his customers, were by far overshadowed by his brillianc!e and strong hand in running his company.
Henry Ford's invention of the automobile led to many opportunities that people had never before dreamed of. This new invention is one of the main factors that has built our nation to where it is today. Through all of the different models of the automobile, we have evolved to where we are today.
In 1903 the Ford Motor Company came to be. Ford, along with other investors including John and Horace Dodge raised $28,000 and in the first 15 months produced 1700 Model A cars. These cars were known for their reliability, yet were still too expensive for the average American. Over the next five years Ford and his engineers produced models with the letters B through S, the most successful of which was the Model N (priced at $500) , and the least successful was the Model K (priced at $2500). It was obvious from the Model N that the key to the companies success lay in inexpensive cars for a mass market. The answer that Ford and the American consumer were looking for was the Model T.
Henry Ford wanted to build a high-quality automobile that would be affordable to everyday people. He believed the way to do this was to manufacture one model in huge quantities. Henry Ford searched the world for the best materials he could find at the cheapest cost. During a car race in Florida , Ford examined the wreckage of a French car and noticed that many of its parts were made of a metal that was lighter but stronger than what was being used in American cars. No one in the U.S. knew how to make this French steel a vanadium alloy. As part of the preproduction process for the Model T, Ford imported an expert who helped him build a steel mill. As a result, the only cars in the world to utilize vanadium steel in the next five years would be French luxury cars and the Model T. Ford realizes he needs another efficient way to produce the cars in lower prices. Ford saw what he was missing was 4 principles that would help with the Model T which was interchangeable parts, continuous flow, division of labor, and reducing wasted
In the case, “Facing a Fire” prepared by Ann Buchholtz, there are several problems and issues to identify in determining if Herman Singer should rebuild the factory due to a fire or retire on his insurance proceeds. I believe that this case is about social reform and self-interest. I think that Singer needs to ask himself, what is in the firm’s best economic interests. There are several things to question within this case, what should Herman Singer do and why, should he rebuild the factory or begin retirement, if he rebuilds, should he relocate the firm to an area where wages are lower and what provisions, if any, should Singer make for his employees as well as for the community?
There was strong competition for Ford in the American small-car market from Volkswagen and several Japanese companies in the 1960’s. To fight the competition, Ford rushed its newest car the Pinto into production in much less time than is usually required to develop a car. The regular time to produce an automobile is 43 months but Ford took 25 months only (Satchi, L., 2005). Although Ford had access to a new design which would decrease the possibility of the Ford Pinto from exploding, the company chose not to implement the design, which would have cost $11 per car, even though it had done an analysis showing that the new design would result in 180 less deaths. The company defended itself on the grounds that it used the accepted risk-benefit analysis to determine if the monetary costs of making the change were greater than the societal benefit. Based on the numbers Ford used, the cost would have been $137 million versus the $49.5 million price tag put on the deaths, injuries, and car damages, and thus Ford felt justified not implementing the design change (Legget, C., 1999). This was a ground breaking decision because it failed to use the common standard of whether a harm was a result of an action on trespass or harm as a result of an action on the case (Ferguson, A., 2005).
Greed Greed is a selfish desire for more than one needs or deserves. Greed can make honest men murderers. It has made countries with rich valuable resources into the poorest countries in the world. We are taught it is bad and not to practice it. But consider a world without greed, where everyone is as sharing as Mother Theresa was. The progress of humankind would be at a standstill. Greed has given our society faster travel, better service, more convenience, and most importantly, progress. Greed has created thousands of billionaires and millions of millionaires. But why is greed associated with evil? In their day, most capitalists like Cornelius Vanderbilt and John D. Rockefeller were depicted as pure evil. Vanderbilt stole from the poor. Rockefeller was a snake. But the name-calling did not come from the consumers; it was the competing businesses that complained. The newspapers expanded on these comments, calling them "robber barons." These are inaccurate terms for these businessmen. They were not barons because they all started penniless and they were not robbers because they did not take it from anyone else. Vanderbilt got rich by making travel and shipping faster, cheaper, and more luxurious. He built bigger, faster, and more efficient ships. He served food on his ships, which the customers liked and he lowered his costs. He lowered the New York to Hartford fare from $8 to $1. Rockefeller made his fortunes selling oil. He also lowered his costs, making fuel affordable for the working-class people. The working-class people, who use to go to bed after sunset, could now afford fuel for their lanterns. The people, who worked an average 10-12 hours a day, could now have a private and social life. The consumers were happy, the workers were happy, and they were happy. Bill Gates, CEO of Microsoft Corporation is another example of a greedy person. He is the richest man in the world with about $40 billion and he continues to pursue more wealth. Just because he has $40 billion does not mean the rest of the world lost $40 billion, he created more wealth for the rest of the world. His software created new ways of saving time and money and created thousands of new jobs. Bill Gates got rich by persuading people to buy his product. His motive may have been greed, but to achieve that, he had to give us what we wanted.
Some would argue that its mistakes prove that with the right strategy, any company can overcome the blunders it may have made. The Ford Pinto and Ringwood, New Jersey incidents coupled with the Firestone Tire recall in the recent decade may have impacted Ford Motor Company’s daily operation. However, despite the shortcomings of some of its products and short sightedness of the owner, Ford Motor Company still manufactures high quality products. Ford Mustang, Ford F-150, and the Ford Explorer are some examples of the quality of vehicles that Ford Motor Company can assemble. Ford Motor Company has utilized the value-chain to perfection, exploited an effective corporate strategy, used strategy implementation and control to varying degrees of success, applied an efficient evaluation and control system, and improved its social responsibility with different innovative
...he death of Edsel, his oldest son Henry Ford II became the president of the company. It took Ford II and the team of executives he had gathered two years to turn the company around. Ford II, being concerned about his position within the company began pitting the executives against each other, no doubt a learned behavior from his grandfather. His behaviors, professional values and ethics hindered the company from becoming the number one car company, again. Because of his own desire for job security, he would manipulate a way to rid the company of strong leaders in an attempt to retain his position at the expense of the company.