Discuss about the Introduction to Management for Brand Purchasing.
It has been said that ‘perception is reality’ since what we perceive is what we then accept as reality and as fact. Do you think that this is the case with Great Wall Motors?
Yes, I think this is the case with Great Wall Motors, due to a competitive car markets in the world. Australia is among top countries in the world with the highest car selling business. Australia has hundreds of different car models and brands. Perceptions in the car selling business is a critical issue, being used by customers when making decisions on which model and brand to purchase. This perceptions should not to be overlooked by the company. Models and brands are crucial issues which do attract people to buy a product (Barrows, Powers & Reynolds, 2012). Many people have different opinions on their favorite choice. Quality and prices are used to determine whether or not someone will purchase an item. An increase or decrease on vehicle sales is affected by the general customer perception. That is why Great Wall concentrate on the word ‘Great’ on the brochure headline for V Series Ute (Buchbinder & Shanks, 2012). This headline which states ‘How great can a great Ute get?’ has attracted many people nationwide consider purchasing their vehicles.
Is the perception that some consumers have that the vehicles are of relatively low-quality accurate?
The perception from some consumer that the vehicles are of relatively low quality is true. This is seen when motoring writer Toby Hagon and his companions bought a Great Wall X240 and test it over several Australian deserts. They had to have several repairs done by the dealer, under the warranty. They continue to encounter many problems from the door seals slipping out, cupholder not functioning, parking sensors failing to work and number plate missing (Rmit University, 2012). Those where among the many problems experienced by some consumers who bought this vehicles. Furthermore, the engine struggled up hills and the car had instability which required them to constantly pay high attention while driving (Wilton, 2013). The consumer had to frequently change gear due to the engine having less power. When the company refused Hagon request for Ateco to provide car test was inevitable evidences that this company’s vehicles is of low quality compared with their competitors, such as Hyundai, Nissan and Toyota. Hagon purchased a one year old second hand X240 which cost 15000 dollars from a dealer and sold it for lesser price of 11500 dollars after the adventure.
Is it worsened by the asbestos situation?
It was worsened by the discovery of asbestos components in the engine and at the exhaust system on almost all Great Wall vehicles. The discovery was noticed after a week when Hagon published his review on the Great Wall X240 Ute. When this came to notice the Australian safety authorities decided to make resolution to provoke almost 25000 Great Wall vehicles. After this incidence Ateco decided to solve the problem by immediately ordering their suppliers to change those parts affected on all new cars imported from China (Griseri, 2013). The issue escalate when the general public come to the realization that the company was hiding a vital information which affects them directly. Furthermore, Australians are usually very sensitive on problems posed by asbestos. Paul Bastian, of Australian Manufacturing Workers Union echoed this sentiment called on Ateco to replace all asbestos gaskets on every cars at their own cost. Bastian further argues that criminal prosecution should be taken against the company’s officers if they knowingly went against Australia’s laws related to health and safety (Anderson, 2012). After the asbestos problem news was received by the world, the shares of Great Wall drastically dropped on the Hong Kong Stock Exchange.
Do you think that Ateco handled the asbestos problem appropriately? Provide support for your response.
Ateco did not handle the problem appropriately. Because when they discovered the problem they immediately instructed their suppliers to change the parts affected on all new cars imported from China without informing the general public. Ateco continue to work with the authorities on how to respond to the problem and all this time public was blindfolded, without a single hint of what was going on. Moreover, Ateco knew that Australians are much more sensitive with the problems caused by asbestos exposure (Arnold, Chapman & Clive, 2014). The Australian population started being seriously concern about the effects posed by asbestos when they were misled by former Australian-based manufacturer James Hardie. Hardie lied to them about the lethal diseases that can arise from being continuously exposed to asbestos. Thanks to the late Bernie Banton effort to bring to light the ill activities carried out by James Hardie. The findings led to James Hrdie accepting and taking liabilities by compensating the victims of asbestosis (Haddow, Bullock & Coppola, 2014). He further admit that his company knew the dangers asbestos could have caused for generations. The company later stopped manufacturing building and industrial materials from lethal substance.
Ateco did not want to take fully responsibility for this damaged caused by the company. However, Ateco argued that it was the Chinese manufacturing partners fault regarding their engines safety. The company’s staff knowingly broke the Australia’s laws by using asbestos. It is explicitly clear that Ateco has incredibly fail to provide detailed information to Australian citizens on the danger that is caused by asbestos to the users of their brand (Anderson, Sweeney,Williams, & Wisniewski, 2014). On the same breathe, it is very clear that most of the Australian who has earlier acquired Ateco’s brand are still using it, therefore, it could be prudent for the firm to communicate effectively on the possible lethal threat posed by its brand which can eventually result to health complications as evidenced above or even fatalism. However, as the matter is, Ateco has really failed in providing the important information and therefore one may suggest that it is an accomplice to the said illegal deal much aware of its threat and performing their business wittingly (Phillips, Neal & Webb, 2012). Considering the fact that use of asbestos was banned in more than 55 countries, it was common knowledge that Australia was not an exception in this case. This therefore implies when one uses the said material at the expense of people’s life, they are contravening the stipulated law of the country (Baaij, 2014). Different researches from different countries had clearly shown the risk or threat caused by the said products. As such, using it is totally exposing the nation to great threat and that is total contravention of Australian laws.
What other options could organisations take when faced with a major public relations (PR) problem such as the one which currently confronts Ateco and their Great Wall and Chery brands?
Organizations faced with a major public relations problem like the one currently experienced by Ateco and their other brands have variety of options to overcome this problems. One of those plans to avoid public escalation is by engaging them on major issues which affect them directly. The general public have the rights to access information which affects their lives (Combe, 2013). When they feel being fooled around they will definitely react negatively on the company’s products. A problem when it has arisen it is advisable to accept and be held responsible for it, in real time will save an organization reputation. But constant denial and at later time the firm is proven guilt will tarnish the organization image. This image will take time and financial investment to regain it earlier glory. Doing a mistake intentionally is the biggest fault which may cause a companies to lose millions of money. Like the Ateco, they knew that Australians are much more sensitive with the problem caused by asbestos exposure (Horngren, 2013). But they disregard what they knew to be true and choose to go ahead and use lethal substances on their vehicles parts. Ateco would have said their image long ago was it not for the matter of dilly-dallying or concept of denial and blame game. Once a company’s reputation has been tainted it becomes difficult to reclaim it or rather for the company to cleanse themselves in public domain (Taylor, 2013). Ateco was supposed to respond immediately or take immediate action considering the fact that most of the customers had raised their concern on quality of their brand.
Another setbacks of Ateco is failure of the firm to inform the public on the dangers their brand has caused them. It could be prudent for the company to highlight all the possible threat that its brand had on its user for some precautionary measures to be taken in advance. Despite the fact that the firm is well aware and informed about the riskiness of using asbestos, it does not inform the public on this matter. This continue putting the public at risk as they are ignorant of what is taking place. This scenario is clear indicator that Ateco is not credible organization (Bhimani, 2012). The management lack integrity and capacity of leading an organization of such magnitude due to multiple blunder they are causing for their nation. Primarily, the firm would have called the experts of who would be able to ascertain the riskiness of their product and thereby communicate to the public on their finding. This could also be an easier way of building on the client’s trust.
Toyota’s stereotype of providing a high-quality vehicle was only slightly tarnished by a safety recall for their Hilux Ute in 2010. Are stereotypes always true?
Depending on the magnitude of the matter and knowledge that people, hold on particular item, stereotype still plays a fallacy role in marketing of a product. For instance, by the virtue of Toyota being notable company, any slight problem with its product may not be easily accepted by the masses. When one hears of Toyota brand, they expect something incredible or of high quality due to the position and the reputation of the company to many. As evidenced in this case, some of the company may use a famous company’s name to purport that they are affiliated to it (Schermerhorn, 2013). Once the said firm produces its brand, the population would rush for it due to the name attached to the brand. Hilux Ute is not an associate of Toyota, however due to their inclination to Toyota brand it was able to increase its sales on that particular year. However, as it came to occur, numerous problem were evidenced on the service and performance of Hilux Ute a fact that raised a lot of question from the public on quality of Toyota brands (Villafiorita, 2014). This brought most of the people to limelight not only to perceive an item due to its conventional belief but to take deep interest and confirm how it is operating in real life situation. Since Hilux Ute has come with big words and great way of captivating people. Most citizens were duped to believe that it is the most preferable vehicle than any other that has ever existed in the market (Andersen, 2013). It is from this perception that most of the clients were able to purchase this cars only to discover a lot of anomaly at latter stage. On the same breathe, the firm was able to capture the attention of the potential client by emphasizing the fact it was affordable cars as compared to the rest. Moreover, Ateco emphasized on durability and warranty that one was to be accorded once they have purchased the vehicle.
How can we manage in ways that lessen the negative impacts of the stereotypes that we hold of other individuals, groups, organisations or brands, especially if the stereotype has no real basis in reality?
The stereotype can easily be dealt with if the customer or the said population has clear information about the product. The issue of stereotype can easily be dealt with if the company comes out strongly and defend the reputation of its image or communicate about the ideal situation of their product (Combe, 2014). It is incumbent to state that companies need to work in a professional way in order not to mislead the population about their product. It would be prudent for the said firm give the public genuine information for them to make an informed decision on their brand. Looking at Ateco’s brand, there was an exaggerated message that was carried to the public (Horngren, 2014). At first people were impressed by the high quality and nature of ‘would be vehicle’. It was said that it was durable and one would be granted a three year warranty. But as it came to occur, the car not meet the required threshold and was not quality such. There were litany of complaints that was raised about its safety and quality.
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