Case Analysis Great West Corp and Old Republic

1513 WordsApr 21, 20127 Pages
I. Company’s reputation at stake. With increasing negative media exposure resulting from Great west Company’s claims against Witherspoon’s estate, management has to take some corrective actions to overcome the crisis and to save the company’s reputation in the market. Following filing the lawsuit against Witherspoon, the company is losing its customer base and is continuously being targeted by the media. A. Background Facts 1. After Ms. Witherspoon’s car broke down, she tried crossing the freeway for help. But a truck ran into her and she died on the spot. 2. Upset and angry, her daughter Ms. Lang called the truck driver and the highway Patrol to know more about the accident, but they gave her different statements about the…show more content…
There were no checks and balances. 2. It will save the company’s reputation in the market. After realizing their mistake and dropping the lawsuit the company will be considered as an ethical firm. As of now, the company is considered unethical and media is projecting its image as a company who thinks just about profit. (profit centric firm rather than a people centric firm). 3. By doing this the company will regain losing customer confidence in them. 4. Also, the whole issue is covered by the Wall Street Journal which is bringing more attention. So to be on the safest side, the company must drop he lawsuit and must forgive the claim. B. Minor Justification 1. By doing this the company has to bear the cost of adjusting the claims to the truck driver but these economic considerations are almost negligible for a company like Great West Casualty. C. Great West Casualty and Old Republic International Co. must revise their communication procedures or they should follow a Crisis Communication plan. 1. There should be proper alignment between the communication procedures followed by the parent company and by the subsidiary. So that in future, if something like this happens employees can refer to those code of conducts/ manual and thereby, helping them better solving these issues. Iv. Implementation A. Tasks a. Internal Communication 1. Old Republic Corp. must ask Great West Casualty to dismiss the case as soon
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