Bridgestone Firestone Inc Essay Research Paper free essay sample

Bridgestone / Firestone, Inc. Essay, Research Paper Company Overview Bridgestone/Firestone, Inc. , a subordinate of Bridgestone Corporation, was formed in 1990 when Bridgestone U.S.A. merged with The Firestone Tire A ; Rubber Company. In add-on to fabrication tyres, Bridgestone/Firestone produces a assortment of merchandises including air springs, edifice stuffs, man-made and natural gum elastic, and industrial fibres and fabrics. The Nashville, Tennessee-based company has over 38 QS9000/ISO9000 Certified production installations throughout the Americas, along with legion international installations throughout the universe. Firestone # 8217 ; s company doctrine is derived from a blend of Nipponese and Americans methods, with a focal point on supplying quality merchandises. In the words of the former leaders of Bridgestone and Firestone, Bridgestone/Firestone strives to # 8220 ; Serve Society with Products of Superior Quality # 8221 ; and to be the # 8220 ; Best Today? Still Better Tomorrow. # 8221 ; Bridgestone/Firestone is best known for it # 8217 ; s production of tyres ( more than 8,000 different types and sizes ) , which account for more than 75 per centum of its one-year grosss. We will write a custom essay sample on Bridgestone Firestone Inc Essay Research Paper or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page As a leader in universe tyre engineering, Firestone utilizes research and development centres in three states and proving centres around the universe to assist develop, industry and market tyres for about every sort of vehicle. ( Bridgestone/Firestone Profile ) Strengths Bridgestone/Firestone finds much of its strength in holding # 8220 ; one of the richest tyre shapers in the universe as its parent # 8221 ; ( Chappell, 09/11/00 ) . Bridgestone Corporation has been around since 1931 and has established itself as a well-known international maker of tyres, gum elastic merchandises, automotive merchandises, chemical merchandises, featuring goods, and other merchandises ( Bridgestone Annual Report, 1999 ) . The resources and prestigiousness of holding Bridgestone as a parent gives Firestone an excess border in the market. One of Firestone # 8217 ; s biggest strengths is the fact that Firestone # 8217 ; s rider vehicle trade is non the critical portion of Bridgestone Corp # 8217 ; s universe net income image. Approximately 60 % of Bridgestone # 8217 ; s North American net incomes came from the sale of heavy-duty truck tyres. Firestone has a 16 % portion of that market, and the Bridgestone trade name holds another 6.5 per centum portion. Another strength for Firestone is its well-established trade name name. Harmonizing to an Automotive News newsman, the Firestone trade name is # 8220 ; positioned in such a manner that even a major diminution in its original-equipment automotive concern would non needfully drop it # 8221 ; ( Chappell, 09/11/00 ) . This fact is indispensable to the endurance of the company should the Firestone tyre concern disappear as a consequence of the current callback debacle. Bridgestone/Firestone has besides signed a new trade with Honda of America Manufacturing Inc. Firestone has antecedently supplied about 75 per centum of the tyres to be put on the Honda Civics manufactured in Ohio and Alliston, Ontario. Dunlop Tire Corporation supplied the other 25 per centum. The new trade will fit all new Civicss from those workss with Firestone tyres. Not merely does this add to Bridgestone/Firestone # 8217 ; s grosss, but it besides shows that Honda has assurance in Firestone # 8217 ; s ability to bring forth quality tyres ( Chappell, 09/15/00 ) . Bridgestone/Firestone besides has a trade with Saturn Corporation to fit every Saturn with Firestone tyres. Some Saturn traders say that clients have asked about the callback but that clients have non stopped purchasing them because of the callback. A spokeswoman for Saturn says that they are non even sing taking a different provider. This, along with the Honda trade and a strong committedness to Toyota helps Bridgestone/Firestone # 8217 ; s image in that it shows that Firestone # 8217 ; s non-Ford clients have faith in the Firestone trade name ( Chappell, 09/11/00 ) . Another of import strength for Bridgestone/Firestone is the fact that they have survived another large callback in the yesteryear. In 1978, the National Highway Traffic Safety Admininstration forced the company, so cognize as Firestone Tire and Rubber Co. , to remember about 13 million tyres. That callback involved the Firestone 500-series radial rider auto tyres. The 1978 callback # 8220 ; remains the individual largest product-safety action in automotive history # 8221 ; ( Hess, 09/16/00 ) . There are many similarities between the current callback and the 1978 callback. Both involved long strips of tread dividing from the tyres, seemingly a consequence of a dislocation of the adhesion among the beds of the tyres. Until the recent jobs began at Bridgestone/Firestone, Firestone tyres were among the top merchandising tyres. Problems/Weaknesses Problems at Bridgestone/Firestone have late become some of the top intelligence headlines. The three most pertinent countries of contention include labour dealingss and works safety, production jobs, and the current tyre callback. Menaces of a brotherhood work stoppage back in September brought to light issues affecting hapless labour dealingss at Bridgestone/Firestone. Harmonizing to perceivers, there has been a # 8220 ; long history of labour problem at the company # 8211 ; and in the tyre industry in general # 8221 ; ( Wilson, 09/04/00 ) . The United Steelworkers of America had threatened to strike at nine of the Bridgestone/Firestone workss if an understanding could non be reach by September 1, 2000. Allegations have been made that defective tyres were made at a works that was utilizing replacement workers. On September 21, nevertheless, Bridgestone/Firestone announced that three contracts covering those nine workss had been ratified by the brotherhood ( Bridgestone/Firestone Corporate News ) . Despite the contract declaration, Firestone is still in demand of bettering dealingss with its workers. Working conditions and works safety is another country that needs betterment. A series of tragic accidents at Firestone workss has besides caused jobs for Bridgestone/Firestone. One worker in an Oklahoma City works died when the tire-assembly machine he was working on all of a sudden turned on and crushed his caput. Two welders besides died in oil armored combat vehicle detonations at a mill in North Carolina in 1994. Two workss in Tennessee were given commendations by province OSHA functionaries that same twelvemonth for # 8220 ; neglecting to guarantee that machinery was disconnected from its energy beginning before fixs # 8221 ; ( Newsweek, 09/18/00 ) . The recent callback of certain Firestone tyres is decidedly the company # 8217 ; s biggest job. The callback began on August 9, 2000, and applies to the Radial 9235/75R15 ATX, ATXII, and Wilderness tyres. The ATX and ATXII tyres were produced at workss in the U.S. , Canada, and Mexico ; the Wilderness tires come from the Decatur, Illinois works. As of October 16, 2000, 119 deceases in the U.S. have resulted from jobs with these Firestone tyres. Experts say there may be every bit many as 250 deceases and over 3,000 hurts related to the callback. Accidents occur when beds of tread Peel off from the tyres, frequently doing the vehicle to turn over over. These accidents have occurred most frequently with Ford Explorers equipped with Firestone tyres. # 8220 ; Ford functionaries estimate the defect rate is 241 tyres per million for 15-inch ATX and ATXII tires # 8221 ; ( Firestone Tire Recall Legal Information Center ) . The cause of the tread separation is still a beginning of contention for Bridgestone/Firestone. Bridgestone/Firestone denies that the tyres are faulty. Firestone besides claims that high temperatures and high velocities encourage the tread separation, theorizing that consumers may be at mistake. High heat and humidness in some of the workss may besides hold caused the dislocation of the adhesion. The deficiency of air conditioning in some countries has been fifty inked to the corrosion of the brass-coated steel in the steel-belted radials. Prior to the official callback of the Firestone tyres, four former employees at the Decatur works gave depositions sing the allegations against Bridgestone/Firestone. Each of the employees had worked at the works for over 30 old ages and had retired after a acrimonious work stoppage in the mid-1990 # 8217 ; s. The employees claim that out-of-date stuffs were used to do tyres, that supervisors frequently encouraged cheapjack patterns such as spliting bubbles in the tyres to cover up the defects, and that accent was placed on production instead than quality. One of the employees had been an inspector at the works and claims that high production quotas made it hard to sufficiently inspect the tyres before they left the works. He besides claims that the # 8220 ; green tyre, # 8221 ; the carcase of the tyre on which the steel belts and paces were applied, were frequently set on the land, doing dust to lodge to the green tyre and weave up in the concluding merchandise. Claims were besid es made that the chemical used refresh the adhesion may really hold straight caused harm to the gum elastic ( United Press International, 08/14/00 ) . Opportunities Because Bridgestone/Firestone is non dependent on its original-equipment concern for its endurance, Firestone # 8217 ; s hereafter is non every bit blue as some may believe. Gross saless of heavy-duty truck tyres account for more net incomes than the rider auto tyre gross revenues. Besides, if Firestone # 8217 ; s North American concern all of a sudden plummeted, the extra capacity could be aimed toward Europe, where Bridgestone has been progressively picking up market portion. Menaces As a consequence of the many jobs that Firestone has experienced a figure of menaces have surfaced. Firestone # 8217 ; s rivals are quickly increasing production to catch replacing concern. On September 29, 2000, Ford decided to fit the 2002 Explorer with Michelin tires instead than Firestone tyres. Ford finally plans on allowing traders and clients choose the trade name of tyres they want on their vehicles. The populace is going progressively flighty about any of Firestone # 8217 ; s tyres although the huge bulk of them are safe. The public merely sees this as a Firestone job and non as an stray incident of production. These menaces are peremptorily damaging to Firestone # 8217 ; s repute and hereafter concern minutess. Recommendations We recommend that Firestone take specific stairss to carry through good religion and quality back to their consumers. Firestone will necessitate to concentrate on the European market as a major purchaser of their merchandises and stress the rider auto market. Working to construct better OEM dealingss and upgrading workss will non merely force them to break engineering but will make a # 8220 ; cheques and balances # 8221 ; type environment. They will necessitate to rewrite processs from the underside up, making new policies to coexist with the ascent of the works. We recommend for their dealingss with consumers to concentrate on reconstructing market portion in the U.S. by originating a PR run that brings to illume Firestone # 8217 ; s ISO 9000 enfranchisement and concentrate on merchandise quality and safety. Execution Old ages 1-5 Car makers account for a big part of the tyre market. For this ground we feel that Firestone should work to construct better OEM dealingss. This will assist Firestone to keep its net incomes and market portion while traveling through this disruptive phase. This should be pursued throughout the execution procedure and may go a lasting portion of Firestone # 8217 ; s selling plan. Old ages 1-4 We feel that Firestone should implement these alterations over a five-year term. The first measure in implementing these alterations will be to concentrate on the European market where Firestone has seen an addition in market.Firestone # 8217 ; s jobs have received much less promotion in the European market and the potency for increasing market portion is much better than in the US market. While concentrating on the European market, accent should be moved from the light truck market to the rider auto market. Firestone # 8217 ; s recent jobs have been confined to their light truck tyres with no existent harm being done to their repute as a quality rider auto tyre maker. Firestone # 8217 ; s greatest growing potency lies in the rider auto subdivision of the European market. Old ages 2-4 These alterations should be implemented in old ages 2 through 4. This should let Firestone adequate clip to procure the capital required for this stage of the execution procedure. The following measure in the execution procedure is to upgrade out-of-date machinery in bing workss. This will assist to see that jobs with merchandise quality do non originate in the hereafter. This may besides take to a decrease in fabrication costs and increased profitableness. As workss are upgraded, an attempt should be made to rewrite works processs from the underside up. Using a # 8220 ; bottom up # 8221 ; procedure should assist to increase employee morale and consequence in a higher quality finished merchandise. This may besides assist Firestone avoid future labour relation jobs. Year 5 We feel that over the following five old ages the callback be forgotten by most US consumers and Firestone can get down to reconstruct market portion in the US. This will be done through a monolithic PR run. The run should concentrate on Firestone # 8217 ; s ISO 9000 enfranchisement, merchandise quality and safety. Educating consumers on the degree of quality needed to achieve an ISO 9000 enfranchisement should assist to relieve consumer uncertainties on Firestone # 8217 ; s merchandise quality. Other steps taken to increase merchandise quality, such as works remodeling, should besides be focused on. Through out this # 8220 ; reconstructing # 8221 ; process a panel of executives from Firestone # 8217 ; s fiscal, fabrication, selling, and technology sections will be appointed to supervise and measure each phase. This squad will do quarterly appraisals of the program # 8217 ; s advancement and consequences, which will be reported to the company # 8217 ; s senior executives. They should besides do recommendations as to any alterations that should be made to the program. Bibliography Beginnings: Chappell, Lindsay. Automotive News, September 11, 2000 v75 i5893 p46. # 8220 ; Analysts: Future OK for Firestone. # 8221 ; Chappell, Lindsay. Automotive News, September 11, 2000 v75 i5893 p47. # 8220 ; Firestone # 8217 ; s Non-Ford Customers Show Little Concern Over Recall. # 8221 ; Chappell, Lindsay. Automotive News, September 25, 2000 v75 i5895 p8. # 8220 ; More Firestones for Honda Civic # 8221 ; # 8220 ; 3 providers may sell tyres for following Explorer. # 8221 ; Automotive News, Sept 4, 2000 v75 i5892 p8. # 8220 ; The tyre flap: behind the feeding frenzy. # 8221 ; Business Week, October 16, 2000 i3703 p126. Firestone Tire Recall Legal Information Center, hypertext transfer protocol: //www.firestone-tire-recall.com Grimaldi, James V. and Caroline Mayer, Washington Post, # 8220 ; 4 Former Firestone Workers Deposed, # 8221 ; August 24, 2000, pE01. Hess, David. National Journal, September 16, 2000 v32 i38 p2896. # 8220 ; Firestone # 8217 ; s Other Tire Debacle. # 8221 ; # 8220 ; A Company Under Fire: Did Firestone make Enough to Protect Its Own Workers? , # 8221 ; Newsweek, September 18, 2000 p30. # 8220 ; Ford, Fireston knew of tyre jobs for years. # 8221 ; United Press International, September 29, 2000 p1008271u8435. # 8220 ; Testimony Indicates Abuse at Firestone, # 8221 ; United Press International, August 14, 2000 p1008226u6557. Wilson, Amy. Automotive News, September 4, 2000 v75 i5892 p8. # 8220 ; Labor Unions Unrest Adds to Bridgestone/Firestone # 8217 ; s Problems # 8221 ;