General Motors Company’s Recalls Issue

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Table of Contents

Introduction
Main Body
Conclusion
References

Introduction

There is no use denying that a coherent society dictates its own rules according to which a person or a company should be efficient to survive and become successful. The image of a company plays an important role in this very process. It is usually associated with a product which a company produces and its quality. That is why such a phenomenon as product recall can have a rather pernicious influence on the image of a company and destroy trust which exists among customers towards the products of this very manufacturer. Moreover, it also touches such important issues as the financial performance of a company, leadership and communication styles, ethical environment, and organizational challenges which a company faces. All these perspectives are vital for the functioning of every company and should be considered carefully. Under these conditions, it is vital to analyze the issue of recalls in terms of the functioning of General Motors Company to understand the main aspects of the issue better.

Main Body

The issue of recalls

First of all, it should be said that according to Kubler and Albers, the number of product recalls has considerably increased during the last years (2012). It is connected with a great number of different reasons. First of all, living in a consumer society, a person obtains higher demands for quality. Moreover, he/she understands that the law protects the rights of a customer, and there is the possibility to demand compensation. That is why companies prefer to recall various products if some serious problem has been discovered in their exploitation. Such a procedure could not but change the image of a company, though it is still needed in the modern world.

Considering the great importance of the investigated issue, companies often have a certain strategy that could help them manage the process of recalls most efficiently. In her article, Magno states that the level of professionalism shown by the company while performing this not very pleasant procedure could help save the remnants of its image (2012). That is why various companies and GM company among them, devote much attention to this issue. It should be said that the latest GM recalls obviously could be called a very difficult step which a company had to make to guarantee its existence; otherwise disappointed customers will not use its products.

Recalls and their influence on the quality of products and image of a company

Another aspect of the issue of recalls is connected with the question of quality. Souiden and Pons in their work tend to prove the idea that being rather unpleasant for the image of the company, recalls at the same time could help to save it and improve the quality of products (2009). Taking its products back, a company confesses that there are some serious problems with their quality, though, at the same time, it shows that it cares about its customers and tries to improve the quality of products. GM company created a special recall center whose main aim is to help customers determine whether their vehicle should be recalled. This step could be taken as a sign of care about GM company’s customers and help to improve its image.

Thus, unfortunately, even all these actions could not reduce to zero the negative influence of recalls on the image of a company. Smith, Thomas, and Quelch, talking about Intel recall, underlined that they had a pernicious influence on the image of the company (1996). Things were complicated by the officials’ unwillingness to recognize their fault and start the procedure of recalls. That is why crowds of furious customers importuned the main office of the company. Nevertheless, GM’s decision to organize recalls without any hesitation can be taken as a wise step, which helped to reduce the negative effect of recalls and avoid complaints from unsatisfied customers.

Efficient management under complicated conditions

Taking all these information into account, it is possible to state that in terms of world financial crisis and a great number of different problems connected with its aftermath which GM faces nowadays, it is especially vital for a company to be able to manage the issue of recalls efficiently and guarantee its further existence. The article Measuring the short-term spillover impact of a product recall on a brand ecosystem also underlines its importance, stating the fact that wise management of a company and clear approach to the issue of recalls can help to make its aftermath not so pernicious for a company and return trust of customers (Mackalski & Belisle, 2015). Finally, it is also vital to concentrate on some other products for a company to be able to suggest them to its customers and make them forget about the disaster of their previous product. Under these conditions, GM company’s project connected with new sources of energy and new vehicles can be taken as a good step to obtain the interest and trust of customers (Eberle & Helmolt, 2010).

Conclusion

Having analyzed the given information connected with the issue of recalls, it is possible to make a certain conclusion. It should be said that it has a pernicious influence on the image of a company and, that is why it needs to be able to manage this process efficiently and try to save the brand image.

References

Eberle, U., & Helmolt, R. (2010). Sustainable transportation based on electric vehicle concepts: A brief overview. Energy & Environmental Science, 3(6), 689. Web.

Kubler, R., & Albers, S. (2012). The Impact of Product Recall Communication on Brand Image, Brand Attitude and Perceived Product Quality, SSRN Electronic Journal, 1-33. Web.

Mackalski, R., & Belisle, J. (2015). Measuring the short-term spillover impact of a product recall on a brand ecosystem. Journal of Brand Management,22, 323-339. Web.

Magno, F. (2012). Managing Product Recalls: The Effects of Time, Responsible vs. Opportunistic Recall Management and Blame on Consumers’ Attitudes.Procedia – Social and Behavioral Sciences, 58(12), 1309-1315. Web.

Smith, C., Robert, T., & Quelch, J. (1996). A Strategic Approach to Managing Product Recalls. Harvard Business Review. Web.

Souiden, N., & Pons, F. (2009) Product recall crisis management: the impact on manufacturer’s image, consumer loyalty and purchase intention. Journal of Product & Brand Management, 18(2), 106 – 114, Web.

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