Name: Roland P.H.

NIM: 13702042

TRY TO MOVE ON AFTER A CRISIS

EXECUTIVE SUMMARY

Problem Statement:
Reports of fatal accidents due to faulty tires on Ford Explorer sport utilities and Ranger
pickup trucks began appearing and eventually more than 100 deaths were attributed to the
tires peeling off under pressure. When Ford first notified Firestone of a potential
problem, Firestone failed to act.

Fact Finding:
The Stages of Decision making that Jac Nasser has been conduct:

1. Identifying and diagnosing the problem:

a. fatal accidents due to faulty Firestone tires on Ford Explorer sport utilities
and Ranger pickup trucks

2. Generating Alternative Solutions and Implementing the Decision :

a. Create war room
b. Daily Task Force Meeting
c. Coordinate its actions with Bridgestone/Firestone
d. Communicate with customers, dealers the media, government about what
it was doing.
e. Ford recall 6.5 Million Firestone tires which 70,000 new tires as
replacement for consumer

3. Evaluating the Decision: The crisis resolved remain many loses to Ford company
a. Chairman W.C. ford fired Jac Nasser and made himself as CEO
b. Ford reported its first annual loss in 10 years, announced 3 series of
assembly plants, lay-offs, and production slow down
c. Bridgestone broke off its relation with Ford

Barriers to effective decision making that Jac face during the crisis:
d. Very different cultural norms (Firestone was from Japan)
e. Car manufactures warrant all component except tires
f. Bridgestone policy not to make the data publicly available

CM (Crisis Management) that has been conducted by Jac Nasser:

1. Strategic Actions:
a. create a war room, the concern was to get a handle on the problem
as quickly as possible
2. Technical & structural Actions:
a. Daily Task Force Meeting included all function
b. Involved 500 people and thousand more indirectly

Management Industry Course-Task#2

Try to move on after a crisis
 3. Evaluation and Diagnostic actions:
a. Coordinates its actions with Bridgestone/Firestone
b. Gathering as much valid data as it could, made the data publicly
available

4. Communication Actions:
a. Public affairs to review development each morning in a global
conference
b. Communicate with Communicate with customers, dealers the
media, government about what it was doing.

The missing agenda that has no applied by Jac Nasser was:

1. He left W.C Ford out of the decision making loop, a political blunder
2. Couldn’t devote time to other company needs
3. Lack of negotiation skills due to recalling Firestone tires for consumer

Management Industry Course-Task#2

Try to move on after a crisis