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sdas [7]
3 years ago
15

3. What do you think Firestone did wrong in their approach in South America and the United States? Why do you think the company

waited so long to tell customers about the problem?
Business
1 answer:
Whitepunk [10]3 years ago
6 0

Answer:

I believe that this question is about the recall of defective Firestone tires on some Ford trucks and SUVs.

Recalls are not only embarrassing, they are also extremely expensive. On August, 2000, Firestone had to launch a massive recall in order to replace 23 million tires manufactured between 1991 and 1996. The recall itself costed almost $10 billion to Ford and Firestone (including closing factories and lost sales) and many more millions in lawsuits since more than 62 people died and more than 100 severe accidents happened.

First of all, both Firestone and Ford did everything wrong, Ford started the recall in Saudi Arabia while people in the US and South America were dying due to accidents resulting from exploding tires. They tried to keep the problem secret but it was simply too big.

They did everything to keep the issue because they knew about the magnitude of their failure, only the Takata airbag recall costed more money.  Most car manufacturers and auto parts suppliers are very big companies that move a lot of money, and any recall costs tons of money due to the number of cars produced and sold.

Ford reacted before Firestone, since most of the bad rep fell over them because consumers don't care who provides the parts, they care about the whole car. Until the US government intervened, Firestone kept trying to hide the problem. Japanese headquarters said it was an American problem and American management said they didn't know what was happening.

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As workers demand higher wages to produce automobiles, how will this influence the automobile market?
Natali [406]
<span>Market supply would decrease because costs of production would be higher</span>
8 0
3 years ago
In which level of linkage does a company’s strategic business planning function exist without any input from the HRM department?
Naddik [55]

Answer:

The correct answer is d) Administrative linkage

Explanation:

Business planning is one of the basic pillars on which the Business Plan is to be sustained: Commercial planning is a part of the strategic planning of the company, which aims to develop action programs to achieve the objectives of Company marketing .

For the objectives to be met, the company must organize all available means and establish the corresponding strategies.

7 0
3 years ago
The beta of Stock A is –0.4 (indicating that its returns rise when returns on most other stocks fall). If the risk-free rate is
Marianna [84]

Answer:

=2.98%

Explanation:

Use CAPM to find the required return of the stock;

CAPM: r = risk free + beta(market return - risk free)

risk free = 4.5% or 0.045 as a decimal

beta = -0.4

market return = 8.3% or 0.083 as a decimal

Next, plug in the numbers into the CAPM formula;

r = 0.045 -0.4(0.083 - 0.045)

r = 0.045 -0.0152

r = 0.0298 or 2.98%

Therefore the required return is 2.98%

4 0
3 years ago
The classic quote from the movie Field of Dreams, "If you build (produce] it
-BARSIC- [3]

The correct answer is A. Say's Law

Explanation:

Say's Law proposed by the economist Jean-Baptiste Say establishes the supply (availability of a product) or the production itself is the factor that creates demand (customers willing to buy the product). For example, the production of a new model of cellphone or computer makes people want to buy the new model. This idea is expressed by the quote "If you build (produce] it  they will come [purchase]" because in the quote it is explained the production of something make people go to buy that product.

6 0
3 years ago
The productivity gains achieved by specialization are due to A. comparative advantage. B. lower opportunity costs from switching
Ronch [10]

Answer:

Comparative advantage.

Explanation:

Comparative advantage is the ability to produce good and services at a lower opportunity cost compared to others , leading to lower selling price and competitive advantage over others .

Specialization is about concentrating on producing a few products in order to

build brands , expertise and gain maximum productivity leading to a reduction in selling price and  a comparative advantage.

4 0
4 years ago
Read 2 more answers
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