In the event that there are any kinds of quality or safety issues, both companies should deal with them immediately by: identifying the problem, finding solutions that will address them for good and initiating recalls on the product. This will take place from the top management all the way down. If this kind of approach can be taken it would have reduced the chances that there will be possible crisis situations. While at the same time, it is creating a strategy that will quickly deal with these issues before they become out of control. ("Principals of Total Quality Management," 2011) ("Dealing with Defects," 2011) (Vogel, 2009)
Prepare to manage the Crisis, recognize the Crisis, contain the Crisis, resolve the Crisis, and profit from the Crisis.
To prepare and manage the crisis there are a number of different principals that must be embraced. The most notable include: effectively planning / implementing policies that will identify when there is a problem quickly, improving product development, taking into account the fact that there could be some kind of product recalls, establishing effective channels of communication within the organization, practicing for possible recalls and providing ways of identifying when product recalls are occurring. As far as recognizing the crisis there are number of different elements that must be embraced to include: increased vigilance, quickly identifying when there are flaws in the underlying product and having everyone accept responsibility for what is happening early. When it comes to containing the crisis there are variety of techniques that must be utilized to include: implementing voluntary recalls, communicating with staff members / customers / stakeholders, determining the causes of the defect and deciding how possible product adjustments will occur. As far as resolving the crisis, there are a number of tactics that should be used to include: working effectively with the media, having response teams address / manage the recall, fixing the design flaw responsible for the defect and reporting the progress of the recall. When it comes to profiting from the crisis there are several different elements...
These different elements are important, because they are identifying the offensive / defensive tactics that must be utilized, the kinds of security that are needed during the recall and the chain of accountability. As a result, Saturn practiced these different principals during their recall, while Audi continued to ignore the problems until it became too big to overlook. (Smith, 2000, pp.66 -- 67) ("Dealing with Defects," 2011) (Vogel, 2009)
Conclusion
When comparing Saturn with Audi during their product recalls, it is clear that Saturn prevailed. The reason why, is because: they quickly accepted accountability for any flaws, communicated with customers and fixed the issues. This helped them to show that they were able to go the extra mile for their customers and their dedication towards improving quality. While Audi was slow to respond to the problem and the solutions they proposed were only half measures that were not effective. These different elements caused the company to see damage to their image and the kind of products they were producing. This is the point that negative perceptions began to build against the organization and their ability to deal with a host of challenges.
Bibliography
Principals of Total Quality Management. (2011). Cliffs Notes. Retrieved from: http://www.cliffsnotes.com/study_guide/Total-Quality-Management-TQM-.topicArticleId-8944,articleId-8931.html
Dealing with Defects. (2011). CMA. Retrieved from: http://www.cmalaw.net/Articles/Dealing-with-Defects-Product-Recalls-and-Product-Liability-Suits.shtml
Smith, N. (2000). Harvard Business Review of Crisis Management. Boston MA: Harvard Business School Press.
Vogel, A. (2009). Study Describes. Eurekalert. Retrieved from: http://www.eurekalert.org/pub_releases/2009-05/giot-sdw051109.php
