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Whirlwind Corporation - Edited

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Whirlwind Corporation Case Study

The management understands the importance of their business's reputation. A company

with a robust positive reputation attracts more people since it is perceived as providing more

value (Kobrak, 763-786). However, in some instances, the reputational damage could be

mitigated when the management prompts fast control measures. As such, this paper seeks to

propose an effective recommendation Whirlwind Corporation should adopt in its case.

The Executives of Whirlwind Corporation should promptly issue a press release

acknowledging the faults in their washing machines, recall the products and promise to

reimburse each customer. Since the company had already issued a non-voluntary recall of

500,000 dryers the same year, repairing or replacing the washing machines will not be the ideal

solution until the company determines the root cause of the problem and implement the solution

across its electronics products. The company should designate a center staffed with researchers

from different universities and institutes to replicate the causes of fires in the washing machines

and the driers and evaluate all aspects of the electronics and work with independent test labs to

assess the issues.

Although Whirlwind Corporation will suffer huge financial losses, this course of action

allows them to demonstrate to its customers that they value their safety more than profit. And

that, their well-being of its customers is what matters to them. As such, the company should

accelerate its efforts to determine the primary cause of the fires while creating a new quality
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assurance process that Whirlwind Corporations and its manufacturers must adhere to ensure that

its customers receive better products with improved safety. The brand will improve and

customers will start to trust the company over time (Mao, 213). However, if the company shows

it values short-term revenues and only repairs the product and returns to customers, the problem

might reappear in the same product or different and the company would never recover again.

Brand is essential in attracting and maintaining customers. However, reputational damage

poses a challenge to the brand and could negatively harm the company. As such, companies

should be ready to respond very fast in case of such occurrence and address their customers and

shareholders while at the same time taking action. In the case of Whirlwind Corporation, the

second recall will negatively impact them, however, by addressing the issue and showing

customers they value them more, the damage will only sustain for short time.
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Works Cited

Kobrak, Christopher. "The concept of reputation in business history." Business History

Review (2013): 763-786.

Mao, Junjun. "Customer brand loyalty." International Journal of Business and Management 5.7

(2010): 213.

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