
Alan Mulally was brought on to help turn around Ford.
We wrote about how BP is trying just about everything to make a comeback a few weeks ago. While a few oil spills are tough to recover from, most people have forgotten an incident that BP had recovered from: The Department of Justice fined the company $50 million in 2007 for safety violations at a Houston refinery that exploded in 2005, killing 15 people and injuring 170.
For big companies, bounding back from corporate scandal or public disaster is difficult — but it isn’t impossible. For example, these companies were able to pull through and come back successfully:
Apple: Steve Jobs had to prove himself a second time; the CEO and cofounder of Apple, was ousted from the company in 1985 after losing trust of the company’s board members. Innovation at Apple lagged in the years that followed. Sales dropped 18 percent, on average, for three years from 1995 to 1998. Job’s return to the Cupertino, Calif., company in 1997 helped right Apple, which went on to revolutionize the digital music and mobile phone industries.
Ford: Ford Motor CEO Alan Mulally, brought on board in 2006, is overseeing a turnaround for that carmaker. Mulally cut Ford’s workforce by one-third and pared back company brands, creating a smaller team with a tighter focus. His approach seems to be working: Ford’s revenue increased 13 percent to $28.1 billion in the first quarter of 2010, compared to the same period the previous year. Profit, up for the fourth consecutive quarter, reached $2.1 billion.
Bridgestone/Firestone: These companies rolled out a campaign-themed “Making it Right,” featuring its president, chairman and CEO John Lampe, along with racecar drivers Mario and Michael Andretti in 2001. That was shortly after federal investigators said faulty tires on Ford light trucks and SUV’s were the possible cause of a number of crashes that resulted in 46 deaths. The Nashville company recalled 6.5 million tires and offered replacements. But the debacle was drawn out when Bridgestone discovered it just didn’t have enough tires to go around.
General Motors: General Motors, after accepting $50 billion in taxpayer bailout funds, aimed to assuage uneasy consumers in 2009 by running an ad campaign featuring Chairman Ed Whitacre. The ads promised a 60-day money-back guarantee for dissatisfied buyers of new GM models and contributed to what is expected to be a return to profit this year.
While advertising and changing CEOs (which is actually something BP has done; Tony Hayward is no longer in charge) can help a company come back on top, it doesn’t always work…so the question is, will anything work for BP?