In a move to increase the companys competitive position, and tap into new markets, then chairman lee iacocca approved the development of a new car. Because of lee iacoccas hurry and pressure of the creation of the auto was high, and this lead to. The ford pinto is a subcompact car that was manufactured and marketed by ford motor company in north america, sold from the 1971 to the 1980 model years. In prelaunch tests, ford discovered that rear end collisions propelled the gas tank onto the real axle, which had protrusions that ruptured the tank and caused the car to. Heres a case study on maverick corporation that will help you better understand how to analyze your pricing and evaluate special orders.
Pdf the ford pinto case and the development of auto. Between 1971 and 1978, the pinto was responsible for a number of firerelated deaths. Act utilitarianism applied to the ford pinto release. As its lead logistics provider llp, penskes quality team of associates are trained in six sigma practices and work. Pdf the ford pinto case and the development of auto safety. In designing its 1971 pinto, the ford motor company decided to place the gas tank behind the rear axle. While ford was found not guilty in that one specific case where they were charged with criminal homicide, the fact that roughly 50 lawsuits were brought against ford, many of which ford lost, and 21 to 475 lives could have been saved by making minor changes to the. A number of critics have claimed that the ford motor company acted unethically in producing the ford pinto as it did, knowing that it could have been made safer by adding an inexpensive part. Is it ethical for a company, like ford, to perform costbenefit analyses when lives are involved. Equity asset valuation investment series investment series second edition second edition jerald e. The case was put under a microscope and analyzed because the company did not upgrade the integrity of the system until 1978 because of the cost benefits analysis. The damage that the lee iacocca and ford executives allow to happen was not only tragic but they were preventable. Case study 04 ford pinto 1 free download as powerpoint presentation.
This paper is based on the case of ford pinto, offering a summary of the case study. The president is more than determined to regain the market share that ford enjoyed before the entry of other competitors and therefore he thinks of ways of recapturing their market share. Although the pinto passed the nhtsa test, ford officials knew that the. The ford pinto and the dominant view business ethics. The main characters in this case study are the owners of ford led by the president, lee iacocca. Ford pinto fires case study and executive summary case. This poorly made automobile came from a production race between the usa and japan, where the united states promised an affordable, fuel efficient, and reliable car. To summarize, ford s design of the pinto s fuel tank was defective, causing fires if the pinto was involved in even minor rearend collisions. With its dinkster fourcylinder engine, the pinto was battling the volkswagon beetle and the toyota corolla for the hearts and minds of those who wanted sewingmachine engines under their hoods. Mounted in this position, the tank was punctured during tests by projecting bolts when hit from the rear at 20 niph. The model t, in particular, was the one turning point that put ford on the map.
Essay ford pinto fires case study and executive summary. The ford pinto case from a utilitarian and deontological perspective bedrijfsethiek opdracht 2 the ford pinto case from a utilitarian perspective in utilitarianism, the merit or demerit of an action is entirely determined by the effect it has on everyone affected by the action. This book brings together the basic documents needed for reaching an informed judgment on the central ethical question in the pinto case. The computer s390 and operating system os390 have been running continuously for five years in eia without significant problems. Read this free business coursework and other term papers, research papers and book reports. Ford pinto case study the ford pinto lasted from the 1960s to the late 1970s and was highly controversial. Ford pinto case and unethical decision making according to the article, tioga is inclined to make unethical decisions due to the nature of his work. An alternative account of the ford pinto case mark p. Lee department of sodology and cdrainal justie university of delavaare in an influential 1977 article in mother jones magazine, journalist mak dowie accused ford. Ford pinto full details and analysis report with references.
What was the situation when ford introduce his pinto. The ford pinto and the dominant view this car became legendary, though perhaps infamous is a better word for the pinto s reputation. Case study 04 ford pinto 1 national highway traffic. Kris lunborg chi tran emily fullmer francis wessbecher the rights ethic conventionalist disclosure rule this ethic state that decisions should be on the greatest outcome for the greatest number of people the ford pinto a case study where are we today.
Thats why knowledge of the cvp relationships of your products is essential for greater profitability and, at times, survival of the company itself. M3a1 ford pinto case analysis running header ford pinto. Ford pinto case study questions2 ford pinto case study. The pinto case in 1968 in response to strong foreign competition, ford decided to build a subcompact car the pinto on a 2. A study in applied ethics, technology, and society, also published by suny press. During the development of the pinto, ford and other automakers faced increased safety requirements for the federal government and consumer groups. Ford pinto fires case study and executive summary during the late 1960s the ford motor company was one of the leading auto manufactures in the united states. Sisters judy and lynn ulrich ages 18 and 16, respectively and their cousin donna ulrich age 18 were struck from the rear in their 1973 ford pinto by a van. Ford pinto fuelfed fires on june 9, 1978, ford motor company agreed to recall 1.
Ford motor company manages ethics and social responsibility introduction ford motor company, one of the big three automakers, was established in detroit, michigan, on june 16, 1903. Automobile makers put their designs through rigorous testing to ensure the safety of their vehicles. Ford pinto case study ford pinto case and unethical decision making according to the article, tioga is inclined to make unethical decisions due to the nature of his work. We use cookies to offer you a better experience, personalize content, tailor advertising, provide social media features, and better understand the use of our services. The ford pinto case the scandal and the trial on august 10. Ford decided, however, not to change the position of the gas tank primarily in order to reduce production costs. Case examined with the period eye there is a term in art known as the period eye, referring to how an image is viewed during and after the time in which it was created. Ford followed the federal safety standards as they where current written. Case study ford pinto free download as powerpoint presentation. The ford pinto case is today considered a classic example of corporate wrongdoing and is a mainstay of courses in engineering ethics, business ethics, philosophy, and the sociology of white collar crime. This is due to the fact that, people were unaware that pinto could entail great risks for their safety. The ford motor company has faced a good deal of criticism for their choices in that case.
Ford pinto case study essay examples 1800 words cram. Therefore, his decision not to recall the defective pinto for further improvements to its safety standards is unethical. So, milton friedman gives us what has become the dominant view of business social responsibility. According to the myth, however, businesses and people in business are not explicitly concerned with ethics. This cycle stresses continual analysis and improvement. The ford pinto case is mentioned in most business ethics texts as an example of costbenefit analysis, yet in those formats any appreciation of the complexity surrounding the issues of such decisions is overly simplified. On august 10, 1978, a tragic automobile accident occurred on u. To stop this trend, ford motor company, under the direction of lee iacocca, decided to engineer and build a subcompact car at an accelerated rate. The gas tank of the pinto ruprured, the car burst into flames and the three. Utilitarianism and the ford pinto case introduction business is concerned primarily with profit.
An analysis of the ford pinto case, together with recommendations and alternative courses of action. Fielder, professor of philosophy, is an instructor at villanova university. An alternative account of the ford pinto case pdh online. To earn a profit, a business produces goods or provides services and engages in buying and selling. The 1971 and 1972 were the first twodoor subcompact vehicles manufactured in north america by ford and from 19721980 came out with the threedoor station wagon. Ford pinto full details and analysis report with references 1. The case discusses the fatalities that had occurred due to the fault in the fuel tank of ford pinto. This paper will provide possible solutions as well as supporting statements. Founder henry ford converted an old wagon factory to house his new inventions. The ford pinto case solution,managing product safety. Ford motor company manages ethics and social responsibility. The ford pinto case and the development of auto safety.
Ford pinto case study mgt 216 ford pinto case study the purpose of this paper will be to determine whether ford was to blame in the ford pinto case. When automobile makers design a vehicle, they dont always make them perfect. The ford pinto case analysis essay 1553 words 7 pages. With the rising popularity of imported japanese and german. The action that ford had taken was that it did a cost benefit. Nov 21, 2016 1967 shelby gt500 barn find and appraisal that buyer uses to pay widow price revealed duration. Ford pinto case solution the ford pinto was a disaster waiting to happen. Oconnor american military universtiy busn623 the ford pinto case in 1978 a tragic car accident involving three teenager driving a ford pinto, model year 1973, caused their car to burst into flames hoffman, 1982. The ford pinto was ford motor companys entrance into the subcompact car market in the 1970s. The ford pinto case and the development of auto safety regulations, 18931978 matthew t. Pinto automobile, the ford motor company today announced the recall of. Ford is known as a worldwide leader in automotive technology, automotiverelated products and motor vehicle services.
Fords decision was based on the results of a costbenefit analysis contained in the notorious pinto memo, written by ford engineers to guide design decisions. Scribd is the worlds largest social reading and publishing site. This reprehensible decision, according to dowies interpretation, derived from a costbenefit analysis which purportedly demonstrated that settling the few. Case study of the ford pinto fires the existing prestigious ford motor company has been in business centuries. Regis university college for professional studies faculty pre law blog futurefocused legal education menu skip to. The case study focuses on the ford pinto and the national highway transportation safety administration. Ford pinto case analysis in the late 1960s ford motor company was losing ground to foreign manufactures due to their introduction of a subcompact car. The big question with the case is whether or not the ford business acted ethically when designing the pintos fuel system. Sisters judy and lynn ulrich ages 18 and 16, respectively and their cousin donna ulrich age 18 were struck from the rear in their 1973 ford pinto. Ford pinto case study delio medina mgt 305, section xx insert the section you are enrolled in professor bill frank february 16th, 2015 ford pinto case study questions. Jan 11, 20 the ford pinto was ford motor companys entrance into the subcompact car market in the 1970s. Ford waited eight years because its internal costbenefit analysis.
Ford pinto case study handout car ford motor company scribd. This report was not written with the pinto in mind. The ford pinto case study solution, gifts accounting treatment of ford motor company on the dispute product safety 197077, the surrounding pinto subcompact car. Likewise in the pinto case, fords management whatever its exact reasoning, decided to stick with the original design and not upgrade the pintos fuel tank, despite the test results reported by its engineers.
The tape robot and the automatic system on the s390 provide a completely automated, fast, and reliable file backup and restore system. That reason is given credence in a costbenefit study done on modifying the. Ford pinto the actions of the ford motor company during the manufacturing of its infamous pinto vehicle are an illustration of how a negative organizational culture can impede clear thinking, even amongst highlyaccomplished executives. The aim of this chapter is to provide a cradletograve case study which illustrate the entire multimethodology developed in the text. Safe car at a low price lower 2000 to compete with tough european competition, fast production in order to be faster in the market. The cases involving the explosion of ford pintos due to a defective fuel system. May 12, 2014 ford pinto full details and analysis report with references 1. The smallest american ford vehicle since 1907, the pinto was the first subcompact vehicle produced by ford in north america. The ford pinto case is mentioned in most business ethics texts as an example of cost benefit analysis, yet in those formats any appreciation of the complexity surrounding the issues of such decisions is overly simplified. The action of ford that is being considered is the fact that even though ford knew that pinto had failed the rearend impact, ford continues to sell pinto without protective baffles. Nevertheless, it illustrates the type of reasoning that was probably used in the pinto case. Moreover, three key ethical issues presented in the case have been identified.
An illustrationanimation project about the case of the infamous ford pinto in 1970s. Over the last 20 years the company has been venturing into newer industries such as aerospace, communications, and financial services. The specifications called for a car to not weigh more than 2000 pou. Although the pinto passed the nhtsa test, ford officials knew that the pinto was prone to catch fire when struck from the rear, even in lowspeed collisions, thus it was unsafe to drive the car without any technical improvements implemented.
Ford pinto controversy automobile accidents are a dangerous event. The ford pinto case and the development of auto safety regulations, 18931978 article pdf available january 1998 with 2,514 reads how we measure reads. Ford pinto case study handout free download as pdf file. With the rising popularity of imported japanese and german vehicles, which were often smaller and more fuel efficient, beginning to push into the dominance of american automakers share of the market, ford designed the pinto as a viable alternative. In order to gain a large market share, the ford motor company plans for the project was the 20002000 rule. In the ford pinto case study, it is very clear that the management of ford and the engineers did not aim to produce an unsafe product, and that more than likely the result of their product primarily came from the speedy design and production schedule of the ford pinto. There is one and only one social responsibility of business to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without. The ford pinto was a sports car with a frontengine, subcompact car produced by ford motor company the models were from 19711980. Pinto case study free download as powerpoint presentation. In the late 1960s ford motor company ford was faced with server competition. This paper will examine all external social pressures and determine how external pressures affect individuals points of view. The cars designer was designed and developed pinto could weigh no more than 2000 pounds and it could cost no more than 2000 dollar. Ford engineers began their duties and in 25 months the ford pinto was on showroom floors for sale in 1971. The main controversy surrounding the ford pinto case was the ford motor companys choices made during development to compromise safety for efficiency and profit maximization.
The pinto automobile was marketed by ford from 1971 to 1980 to try to feed the new american appetite for smaller cars. Looking at the ford pinto case using a period eye makes it more difficult to judge whether ford was wrong in manufacturing the pinto knowing that there would be serious issues if. Pdf case study ford pinto case jose calel academia. The ford pinto case analysis, managing product safety. In the ford pinto case, what moral issues does the pinto case. Ford pinto fires case study and executive summary john bonner, scotti greenleaf, rose scarbrough mgt216 university of phoenix october 18, 2010 sarah nelson ford pinto fires case study and executive summary introduction during the late 1960s the ford motor company was one of the leading auto manufactures in the united states. To this day the ford pinto case remains controversial. Pinto fire case study in the 1970s ford motor company was faced with a questionable decision regarding the production and introduction of the ford pinto encyclopedia of. The conventional account of the case goes something like this. Should a riskbenefit analysis be used in situations where a defect in design or. More specifically, it was ford s decision to use the costbenefit analysis detailed in section 11 to make production decisions that translated into lost lives. The ford pinto case is today considered a classic example of corporate wrongdoing and is a mainstay of courses in engineering ethics, business ethics, philosophy, and the sociology of whitecollar crime. Unit ii assignment case analysis the ford pinto case is a wellknown case that is often discussed in the context of business ethics. He said that ford built pinto for national economic benefits and highway 33 was a badly designed highway, blaming the other factors of death rather than fords.
This text has discussed a real estatefocused case study throughout in disparate pieces. Ford was credited with revolutionizing the muscle car era of the 1950s and 1960s. Case study ford motor company six sigma initiatives streamline operations ford motor company, one of the worlds largest automotive manufacturers, has worked with penske on several six sigma initiatives. Utilitarianism and the ford pinto case researchomatic. The ford pinto case solution, provides an accounting of the ford motor company handling a product security controversy 19701977 his surroundings pinto. Updated case study of ford and the pinto production dilemma. Nov 12, 2014 the long trials of ulrichs case ended with no guilt of criminal homicide of ford.
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