Business Public Relations Quality Automobiles

Question: Describe abou the Business Public Relations for Quality Automobiles. Answer: 1. Press Release For Immediate Release: 10/25/16 Takashimi Ho 012-3456789 Email: cars@hotrod.com Website: www.hotrodcars.com Mitigating the Hotrod Crisis Chicago, USA: Hotrod is committed to manufacturing the best quality automobiles and we take every incident report and feedback from our valued customers sincerely. In response to the recently reported cases of the Buick model, Hotrod conducted a thorough investigation after which they found a lethal issue with the floormats. According to the reports and facts presented by Highway Safety Administration (HSA), to date (as of August 2003), there was a horrifying car crash in Southern California, where the Buick ES350 model was reported to be accelerating out of control killing all passengers in the car. However, because their customers are the main priority, it is their duty to protect them from being harmed. Therefore, Hotrod have suspended the sales of their eight-best selling vehicles as safety is a priority. For customers who already have Buick model, it is Hotrods duty to inform them about the lethal floormat and the ways they can mitigate the issue to prevent any harm. Hotrod has called a recall as the cars have safety-related defect. The recalled cars shall have the old accelerator pedals replaced with the new. Until servicing is provided and the units are redesigned, the customers are advised to remove the floormats from their Buick. We apologize for the inconvenience and harm caused to the public due to the usage of Hotrod cars. We are trying to make the recall as quick and efficient as possible, said Takashimi Ho. Such a promising statement made by the CEO ensures the existing and potential customers to believe in Hotrod. The following tactics can be executed by the owners of the vehicles to prevent any uncertainty that might cause harm. Firstly, any driver who finds their Hotrod accelerating unintentionally, must first change their gear transmission to neutral, push the brakes, steer off road and shut the engine off. A special message is for the customers having the car model with push button to start the engine. The customers who do not have a traditional key to start, but a push button must depress the button for three seconds if the car is not parked. The customers are also advised to remove the accelerator pedal so that it does not interfere with the floor mats. The cars may also include onboard computers with a new program which has the feature of overriding the electronic accelerator pedal after the passenger presses the brake pedal. Therefore, it is analyzed that Hotrod is set to take actions for mitigating the crisis. When it comes to long-term customer satisfaction, the company is obligated to resolve all the complaints. Additionally, Hotrod believes in meeting its Corporate Sustainability Model (CSR) by addressing its social concern. Here, in this case, the lives of millions of buyers are at risk that is well understood by the automaker. The company halted all the sales after they identified condensation in the pedals electronic sensor as the cause. This cause reported no incidents or injuries as it is a rare condition. However, the company is working to develop a new tested pedal to enhance performance and assure safety. We apologize for re-iterating the previous comments such as inaccurate and misleading statements, as it does not correct the underlying defect, added Takashimi Ho. He further said, We are further looking and investigating very single accident that has been reported for the same cause in the last three years since 2003. Not only the floormats, but also the drive-by wire system shall be validated to eliminate all uncertainties causing accidents or risking our customers future. Hotrod has investigated all the issues that have been brought to their attention. With the help of engineers and experts, the company shall devise strategies for remedying the problem with the vehicles. The public can be confident in the brand and its safety as the CEO takes efforts to resolve the complaints of its customers. 2. Advice to CEO and Senior Management Due to the tarnished brand image of Hotrod, the company requires brand rehabilitation. Brad rehabilitation shall help the organization in creating customer loyalty and confidence in the business. A few advices and recommendations are provided to the CEO and senior management so that Hotrod can improve its brand reputation. Hotrod must sincerely consider starting a new project. The company can consider building a new model which is socially and environmentally friendly. It is never too late to fix what has been spoiled. The company must try to not dwell on its past. Also, Hotrod must be an open book to its customers, clients and other stakeholders. The company must own to the crisis. There is no scope to lose momentum. Hotrod must continue to build network within and outside the organization. Hotrod must not lose momentum and take on new projects for restoring customers confidence. Hotrod must seize its moment to shine as it can be an ideal opportunity for showcasing the other strengths. An aggressive recovery can help in establishing a better relationship with the customers as well as suppliers. It is natural for any organization to escape or hide so that they can focus on energize. However, Hotrod must show up bigger and better talents so that the people can forget the mistakes or crisis and focus on the new achievements made by the company. The situation must be framed constructively as the people must understand that perfection is unrealistic. Personalized statements must be provided that indicate that Hotrod shall never repeat its past mistakes. Admitting the mistake is not enough, showing goodwill and making up to it is important too. The media must be monitored for any negative reviews about Hotrods brand image. The senior management must be prepared to provide a positive response. The public must know what was done so that it can be avoided from happening again. A few calls may be made to the top clients and their testimonies for future must be taken. The social media influences people greatly. Hotrod must update all its social media accounts and reflect their stance. The brand statement needs to be re-established with a new mission and vision. Moreover, Hotrod can provide compensation to the families who have lost their lives in the accident caused due to the Hotrod cars. Also, the passengers who have been inured can also be provided with compensation. Some mount can be donated for charity so that cultural and moral reputation is enhanced. 3. Analysis of Hotrods Actions An analysis of the actions of Hotrod in relation to brand restoration is considered as under: a) Credibility of Explanation No, I do not find Hotrods explanation credible. This is because the case started in August 2003. Hundreds of reports had been filed with the government since 2001 but no action was taken by the company. Hotrod did not make sufficient investigation and tests and called out letters stating that no defects existed. The company ignored over 1,200 complaints regarding unintended acceleration. However, it made claims that the software override fix shall help in resolving the issue. The figures of complaints, deaths and accidents kept on increasing but no severe action was taken by Hotrod to address or mitigate the issue. The car model continued to sell in the market as no public awareness was made regarding the defect. b) Belief in Truth I am uncertain if Hotrod is telling the truth. The statements about not able to find defects and the strategies that would help in mitigating the crisis would be true. However, the company must have stopped its production and sale of the Buick model when the problems were encountered. Hotrod mentioned that this issue was a rare set of conditions in which the accelerator pedal became harder to depress. This led the pedal to get stuck in a depressed position. Moreover, it did not mention why the company waited seven days for stopping the sales after a recall was announced. c) Acting in Public Interest I believe that Hotrod is acting in public interest. The customers are also advised to remove the accelerator pedal so that it does not interfere with the floor mats. The cars may also include onboard computers with a new program which has the feature of overriding the electronic accelerator pedal after the passenger presses the brake pedal. However, the company may choose to compensate the victims of the car crashes caused due to usage of Buick model acceleration. Simply suspending the sale of vehicles is not sufficient. Hotrod can adapt more strategies to enhance its reputation in the market. Another reason due to which I believe that Hotrod is acting in public interest is that, after they realized their mistake, they froe the sales. This led to a drop of shares by 5.4%. The recall shall cost the company a hefty amount which is considered as a necessity. Therefore, the strategy to mitigate the issue through recalling is a good action in public interest.