Question.2436 - Questions: 1. How would you assess the way CEO Barra handled the “Switchgate” crisis? 2. Do you agree with her decision to allow GM’s outside lawyers to lead the internal investigation? 3. What was the public relations benefit of hiring Kenneth Feinberg to supervise the claims process? 4. What recommendations would
Answer Below:
Answer 1 She dealt with the situation with professionalism. She expressed concern for the victims. She was the one who first exposed the firm's mistakes to the media spotlight, allowing companies to go ahead. Barra took swift action in recalling the defective products, assuring car owners, and correcting the fuel pump issue. GM withdrew and promised to remedy 1.6 million cars during first weeks after the issue was discovered, all older brands and two of that which, Pontiac and Saturn, weren't any longer in business (Geier, 2014). On the external front, she expressed her heartfelt condolences to the deaths of the faulty switching, describing the occurrence as a "sad, awful situation," and telling a house full of media, which was unusual. Answer 2 Yes, I feel that would be the most effective solution to the problem. It gave the audience the impression that the corporation was immune to corruption. Individuals fear how GM could pay with families of the victims or maimed by the defective accelerator pedals in the instance of GM (Geier, 2014). This was a difficult situation. For one reason, the fault responsibility legally went to the prior business "Old GM," which went into bankruptcy, instead of the "New GM" that Ms. Barra now led. In theory, attorneys may have stated that the new firm owed no money to the plaintiffs because the responsibility before the new corporation. Answer 3 He served as a neutral arbiter in disputes among GM and plaintiffs. He was fair, ensuring that all affected parties had full equality and negotiating solutions. Understanding Public Relations 49 However, Barra elected to seek an unbiased adjudicator from out of the corporation to determine what penalties to compensate plaintiffs. Kenneth Feinberg, the barrister who oversaw the claimed compensation from both the 9/11 Wtc catastrophe as well SWITCH GATE CASE STUDY 3 as the BP Gulf of Mexico oil spill, was called in by her (Geier, 2014). The employment of Feinberg comforted consumers and the general public that the GM claims would be handled properly. Apparently, he claimed that GM will "tear up" all previous agreements and offer compensation to anybody wounded in an incident varying from $20,000 to many million dollars (Geier, 2014). Answer 4 ? Keep CEO Barra in the position until the crisis is passed. ? When it comes to GM goods, reassuring the public that they are secure matters first.More Articles From Marketing
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