The Student Motor Company - Case Study Example

?Case Analysis Q1. The Motor Company has been recognized to be facing a tough competition from General Motors (GM) and Ford Motors. In accordance with the scenario depicted in the case, it has been determined that the company’s sale had dropped due its strong competitors. In order to mitigate the competitive challenges The Student Motor Company invented a subcompact car i.e. Zinger. The normal preproduction testing along with the development of automobiles usually takes around forty-three months. However, the management team of the concerned company had consented for the production of the new car i.e. Zinger within two years. While test driving, the management had analyzed two vital faults within the car being manufactured. In this regard, it has been determined that the company used gasoline tank and the tank had been fixed in a way that a crash would create a puncture in the tank. Moreover, the design also entailed the risk of gasoline entering the driver’s chamber and any further ignite can lead to massive flames (Fall 1-4). Another fault as determined within the production of Zinger is the emission standard. It has been noted that it is the responsibility of the company to meet the emission standards before sale because after the sale it is the responsibility of the owner to abide by the emission standards. Zinger was launched in the market without considering the manufacturing defects. It has been further noted that the director of the company claimed that if the manufacturing department has involved standards to minimize the explosion risk then it would have raised the price of the product. Considering these aspects, it can be viewed that the company did not meet the ethical standard. Undergoing a detailed investigations and crash tests of the product and also knowing the risk that the product holds for the customers’ the company launched the car in the market. This can be considered as the ethical dilemma of the firm. The stakeholders of the firm were Mr. I. M. Good, the vice-president of Car Engineering, Student Motor’s Product Planning Committee and Mrs. Lovely, the Student’s Group Vice-President belonging to Car Engineering. Correspondingly, it can be stated that it is the responsibility of the company to stop the sales of the product in the market after knowing its cons and risk factors. Due to the company’s unethical decisions, the customers faced life risk situation (Fall 1-4). Q2. The ethical standards that might have been considered in resolving this dilemma is to stop the launch of the vehicle. In this regard, it can be ascertained that the company’s management or its stakeholders might have undertaken measures to mitigate the manufacturing defects. The research and development department might have put more effort in the establishment of a product that would be beneficial for the society. In this aspect, it can be ensured that this particular ethical standard has not been met by the company. This has resulted in the vital loss of the customers who purchased the car. This is the major consequence pertaining to the ethical standard that can affect the society at large (Fall 1-4). The following ethical initiative that can be mitigated by implementing certain alternative measures is meeting the Environmental Protection Agency (EPA) emission standard. In further discussion, it can be revealed that the company might have followed the emission standards incorporated within EPA. According to the EPA emission standard it is the responsibility of the company to meet the standard before the sale of the products. The Student Motor Company had not ensured emission standards before the sale of Zinger. This will lay greater consequences on the customers. This is because the emission standard of EPA reveals that after the sale of the car, it is the responsibility of the customers to mitigate the emission standard. It is difficult for the customers to gain immediate information on emission standards. In keeping with the economic alternatives, the company might have assured a better product at a considerable higher amount rather than keeping the cost same and degrading the social safety. There are certain governmental regulations pertaining to gasoline design. While manufacturing Zinger, the company’s management might have considered these regulations. The adverse consequence that it laid was on economy. The company produced a car at a greater amount without largely considering societal safety and security (Fall 1-4). Another vital economic issue was cost determination. If the company would have adapted the best and safe measures in manufacturing the Zinger, it might have resulted in profits. After omitting the safety standards, the cost of the company remained higher than the benefits received. This created a pressure on the economy as well. Q3. With regard to the aforesaid scenario, two management concepts i.e. Total Quality Management and health & safety standard can be applied. In case of the ethical standards, it can be evaluated that company’s one of the corporate social responsibility (CSR) holds health & safety standards as a vital part. Under the health and safety management concept, three elements are proper planning pertaining to safety standards, investigations of the accident and incident along with health and safety auditing. This management concept might have assisted the company to take necessary measures in avoiding health and safety hazards (Health and Safety Executive 1-2). Total Quality Management incorporates overall aspects pertaining to quality assurance, inspection, quality management, ISO standards and quality control among others. The Student Motor Company had omitted the quality assurance and management standards while manufacturing the Zinger. This had resulted in causing life risks to customers. Therefore, the management might have adopted the management concept of TQM to ensure quality standards (Idris 32-35). Q4. Feedback represents a process in which the information is collected from the past along with the present influences in order to plan effective measures for future development. In case of the Student Motor, feedback from the customers can be taken into consideration for producing better Zinger cars that ensure the quality and safety measures. Moreover, the company can derive the management’s feedback for developing the product’s standards along with mitigating economic and ethical standards. Furthermore, feedback control measures can facilitate the manufacturing process. The standard needed for producing Zinger car did not suffice the requirement. The consequences included life risk to the consumers and greater amount of losses for the company. Feedback control measure can enable to avoid such consequences by focusing on duly reducing problems areas in the vehicle. Works Cited Fall. “The Student Motor Company.” Final Case Analysis (2013): 1-4. Print. Health and Safety Executive. “Managing Health and Safety.” Successful Health and Safety Management (2008): 1-2.Print. Idris Fazli. “Total Quality Management (Tqm) And Sustainable Company Performances: Examining The Relationship In Malaysian Firms.” International Journal of Business and Society 12.1 (2011): 32-35. Print. Read More