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Firestone Case Study

In: Business and Management

Submitted By jazzfan63
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Firestone Case Study
Robert Workman
Jessica Jurkowski
Michael Wilding
Webster University

Firestone Case Study
BACKGROUND
In 1900 Harvey S. Firestone established The Firestone Tire and Rubber Company, the company started with 12 employees. They started out by supplying rubber tires for wagons and buggies. In the 1908 Henry Ford and Harvey Firestone formed a partnership with firestone supplying tires for the new model T this was a natural relationship because they had mutual friends. (Noggle and Palmer, 2005) Today Firestone is known as Bridgestone/Firestone after the two companies merged in 1990 for $2.6 billion. Today the company markets 8,000 different types and sizes of tires along with other products.
Firestone has had a substantial history of scandals relating to tire safety In 1978 Firestone recalled 14.5 million tires—the largest tire recall at the time—after excess application of the adhesives binding the rubber and steel resulted in 500 tread separations and blowouts. The company was also fined $500,000 for concealing safety problems. ("e-businessethics.com") However in the late 90’s Firestone would be put into serious jeopardy and be threatened with going bankrupt.
The Ford Motor Company was started by Henry Ford in 1903 in Dearborn, Michigan producing only a few cars a day. Ford was the first company to use assembly line production and has grown into one of the largest family run organizations in the world In 1999 Ford had a staff of 360,000 employees and revenues of more than $160 billion. (Rourke, 2001)
Ford has also been no stranger to controversy from 1971 to 1980 Ford manufactured the “Pinto” during the production run of the Pinto a major flaw in design was made aware to the public. When a Pinto was struck from behind the design allowed for the gas tank to get damaged very easily causing fires and explosions from only minor car…...

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