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General Motors 1

General Motors faced safety issues with some of its vehicle models that led to customer deaths. This damaged GM's reputation and market share. The document discusses how GM can improve communication with customers to reassure safety. It recommends being fair, clear and neutral in communication, understanding customer influence on brands, and being aware of impact on stakeholders. Open communication about safety issues and measures taken can help rebuild trust and GM's falling value.

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84 views

General Motors 1

General Motors faced safety issues with some of its vehicle models that led to customer deaths. This damaged GM's reputation and market share. The document discusses how GM can improve communication with customers to reassure safety. It recommends being fair, clear and neutral in communication, understanding customer influence on brands, and being aware of impact on stakeholders. Open communication about safety issues and measures taken can help rebuild trust and GM's falling value.

Uploaded by

NobiaWahab
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Running Head: (General Motors Safety Recall)

General Motors (Safety Recall). How can they better the


communication with their customers to reassure safety in their
vehicles
[Student Name]
University Name

Running Head: (General Motors Safety Recall)


Table of contents
Need of Safety communication in automobile industry
How to deal Automobile Safety problems
Line of code for general Motor communication

Be fair, clear, and neutral


Keep in mind influence of consumer upon brands
Be aware about your influence on stakeholders

Running Head: (General Motors Safety Recall)

Executive summary
Communication is an effective mean of delivering message and understanf

Running Head: (General Motors Safety Recall)

Need for Safety communication in Automobile industries


Safety is one of the major issues that are faced by many automobile companies through
out the world. As the technology grows more advance Hi-tech features are added to
automobiles. These features attract the customers through out the world, however, side by
side it also give birth to the quality accessing issue. Compromise on quality or paying less
attention towards some features will harm to the overall worth and image of a brand. A
brand is combination of personality, identity, characteristics, and attributes of a person
that use it (Kotler, 2003). General Motors is also one of the biggest brand with1.6 million
older compact car model of automobiles publicly faces many safety issues in their
different models.

Problem with General Motors


Krisher (2014) stated that General Motors (GM) had faced many hindrances from the
year 2004 because thirteen car crash deaths due to ignition problem in the automobile
engine. The National Highway Traffic Safety Administration (NHTSA) had fined General
Motors (GM) of about $3.8 billion because of escalating rate of accidents due to different
problems in their automobiles. GM CEO Mary Barra directed the employees to find the
bone of contention behind this issue and take an immediate abatement measures to get rid
of it. Although, company had loose a significant number of its customers and undergo
through the bankruptcy in 2009. It biggest growing competitor Toyota cash this situation
and cover the biggest market share with its more advance and eye catching models of
cars. More than one decades delay in the recognition and disbursement of the ignition
problem not only scare customers but also damage the goodwill of company.
How to deal with the automobile safety problems?
De Blasio and Veale (2009) have stated that organization internal and external crisis are
enough to crash the image of the business. It is the responsibility of corporate
management to refresh the image through post crisis communication with current and
potential customers. Communication will be helpful for regaining the lost image brand
and the business. Inter relationships between internal and external stakeholder of the
business will be helpful n rejuvenating the image of an organization (Weiner, 2006). New
CEO of GM has increased communication with public about the safety issues in the
automobiles and necessary measure taken by the company for the sake of securing the
life of the consumers. Hitherto, NHTSA consider GM as slow comminuting, responding,
and acting company (Niedermeyer, 2014).
Line of code for General Motors communication

Running Head: (General Motors Safety Recall)

General Motors can accelerate their falling reputation by following the following rules of
communication for securing falling value of their brand. These rules are as followings
Be fair, clear, and neutral
Keep in mind influence of consumer upon brands
Be aware about your influence on stakeholders
Be Fair, Clear, and Neutral
There is a huge gap of communication present between General motors and consumers. It
would be cover by running extensive marketing campaign at global level. In these
campaigns GM should clearly present their ideas by keep focusing desire, perceptions,
and expectation level of target consumer about the automobiles and the company.
Communication should be transparent, vivid, and in the 100% interest of the target
consumers. Core part of the communication should comprise upon the delivering all
types of information regarding the strength, weakness, and benefits of the automobile. So,
that customer feels free and imagines clear idea about the consequences of the product in
near future. such process is also clear from the following diagram.

Fig: Fair communication with people


Keep in mind influence of consumer upon brands
Customer choice is the running fuel of the business. In order to capture power of
customer upon the sale of the product be ready to create such type of simulated
environment in which customers use different brands of general motors automobiles and
give their comments and views about the different features of the products. Customers
can bring fame and defame about the product. They are connection with each other
through working environment, social media and society. They share their experience and
comments about the status of different products. So, it should be first and foremost
priority of the business what are they saying and what are doing should go in harmony
with each other. It is apparent from the last decades of ignition problem and alarming rate
of accidents that due to automobiles at one region of the world bring defame, scare
consumers and eventually bankrupt the General Motors (GM).

Running Head: (General Motors Safety Recall)

Fig: process of conveying a message


Be aware about your influence on stakeholders
Stakeholders are core part of the business such as customers, employees, supplies,
partners, shareholders and investors. It is essential to communicate with them through
effective media and expand advertisement campaigns at global level. Before, passing any
statement about current situation of General Motors spokes person, should be prepare
him/herself with astute backup of that is requires for the sender to transmit information
the receiver at different regions of the world. as it is also clear from the following
diagram.

Running Head: (General Motors Safety Recall)

References
De Blasio, A. and Veale, R. (2009). Why say sorry? Influencing consumer perceptions
post organizational crises. Australasian Marketing Journal, 17(2), 75-83. Retrieved from
http://yadda.icm.edu.pl/yadda/element/bwmeta1.element.elsevier-a6dac4f7-a388-3c559555-a1bf05a38489
Kotler, P. (2003). Marketing management (11th ED.). Upper Saddle River, NJ: Prentice Hall.

Krisher, T. (2014, March 5). US safety agency demands reams of documents, data from
General Motors in compact car recall. Associate Press, US. Retrieved from

Running Head: (General Motors Safety Recall)

http://www.usnews.com/news/business/articles/2014/03/05/us-agency-demands-recalldata-from-general-motors
Niedermeyer, E. (2014, April 2). Analysis: Why Mary Barras dont-know-anythingabout-anything claim rings false. Blooming News, Financial Post. Retrieved from
http://business.financialpost.com/2014/04/02/analysis-why-mary-barras-dont-knowanything-about-anything-claim-rings-false/
Weiner, D. (2006). Crisis communications: managing corporate reputation in the court of public
opinion, Ivey Business Journal, March/April 2006, 1-6.

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