Public Disasters and Company Comebacks

BP is no stranger to disasters. In fact, after an explosion in 2007 that killed 15 and injured 170, the Department of Justice fined the company $50 million for safety violations. As they encounter another disaster with the uncontainable oil spill in the Gulf of Mexico, and the $69 million clean up bill they were recently presented with, is it possible for BP to make a clean comeback? Over the years there have been many companies to suffer public disasters such as corporate scandals and business fall backs.

The recent release of the new iPad is a prime example of company turnaround. Apple board members lost faith in their CEO Steve Jobs back in 1985. Jobs was inevitably let go from the company. Shortly after his departure, Apple sales began to drop and continued to do so by 18 per cent from 1995 to 1998. The eventual return of the company's co-founder in 1997 gave Apple the lift it needed by revolutionizing mobile phones and the digital music industry with it's popular ipods and itunes. Apple is currently a well-known, worldwide name brand.

Ford Motor's CEO Alan Mulally was introduced to the company in 2006 to oversee a massive turnaround for the company. Mulally took drastic measures when he cut the staff by one-third, reduced the company brands and inevitably created a more efficient and tighter working team. His tough approach has increased company revenue by 13 per cent in the first quarter of 2010.

After the recent filing for Chapter 11 bankruptcy protection two years ago, former Boeing executive Gordon Bethune lead Continental Airlines back to the front of the line. His great leadership skills saw him rebuild the company by restructuring everything from employee moral to consumer trust. The company has recently been turning a profit a short two years after the Chapter 11 filing.

In an effort to re-establish itself after accepting $50 million in taxpayer money for bailout, General Motors ran ads in 2009 offering a 60-day money-back-guarantee for any dissatisfied customers who bought new GM products. This attempt to regain credibility seems to be working as the company has actually posted a profit in the first quarter of 2010.

Bridgestone / Firestone managed a brand name comeback after federal investigators found faulty tires on many of Ford's light trucks and SUVs caused at least 46 deaths. With a massive recall of 6.5 million tires and some crafty advertising, Bridgestone / Firestone managed to 'Make it Right'. They cleverly sought racecar drivers Michael and Mario Andretti to help promote the company back in 2001.

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