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 accident. 3. Frustrated about her attempts to know more about the accident she called the truck driver’s insurance company (Great West casualty Company) and the adjuster told her that the case is closed. 4. Assuming that Ms. Lang may file a case against the insurance company, adjuster filed a lawsuit for damages to the truck for $2,886 to Joyce Lang. 5. The whole issue was covered in local and regional newspaper. Eventually the Wall Street Journal also wrote an article on it. 6. Great West Casualty Company is a subsidiary of the Old Republic International Corporation, which is a specialty insurance company. Old Republic International has 9 subsidiaries and is regarded high in terms of innovation and corporate planning.
B. Critical Issues 1. The way Zucaro found about these incidents (reading The Wall Street Journal) shows that there is a very bad communication in the company. (As very well said “A man surprised is half beaten”). 2. After talking to Ms. Lang on phone adjuster interpreted that she might file a lawsuit against Great West Republic. (Her verbal messages were complementing her tone of speaking- Angry). 3. Old Republic International has just one employee responsible for all corporate