Essay Sample on Chrysler Bailout Decision

Introduction

Some decisions made without much thought due to the impact of their reparations revolve around particular issues that instigate their consequences. The problems include uncertainty, complexity, or the effects owing to the choices we make cause us to have different opinions on specific issues affecting us on our minds. It is of the essence to predict the reputations of any short-term or long-term impacts due to the decision we make. The issues instigating our decision-making capacity require scrutiny, evaluation, and assessment of the immediate and hidden implication. This paper will show the personal thoughts on issues revolving around the 1979 Chrysler Bailout decision. Chrysler Corporation is in the automobile business in the United States. In 1979, the company fell into the verge of bankruptcy prompting it to borrow an estimated $1.5 billion loan from the federal government.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

Narrating the tale revolving the Chrysler situation, the first person's comments show that it's important to explain the reasons that prompted the government to decide to bail out Chrysler. The automobile company was a significant player in the American economy, and the threat of its bankruptcy had a massive impact on the performance of the countries general economy. Chrysler had tried to renegotiate its debts and organizational structure due to the bankruptcy conditions probe. The justification of the federal loan guarantees was forced by the indispensable situation that would have otherwise taken the turn of events. The government finds itself without any alternative in making the bailout decision. From the argument, one can perceive that the government was in good faith to bail out the company despite the high risk involved when the situation went otherwise.

On the second person's comments, the problem-solving strategy implemented in the Chrysler bailout is political favoring the highest probability interest groups to receive the highest reward. The decision- making process involves the commitment of taxpayers money in a shaky and inappropriate venture. Though, the government played an important role in reviving the falling company to make sure that economic position in the country maintains the ranking regardless of the exposure of the associated funds. From the argument, one can argue that Chrysler's management took maximum advantage on their upper hand positions to ensure that the government came to their aid. However, this decision-making process failed to factor the consequences of the previous bankruptcy situations. Thus, the government should have reorganized the structures in the company to secure the risk factor of committing taxpayers' money in compromising positions.

Conclusion

The third person's comments revolve around the backup plan. The reasons contributing to Chrysler's savior was to save the numerous jobs that depended on the Chrysler Corporation, national security implications, keeping the suppliers' fate as well as maintaining the American Automobiles situation. Therefore, the problem faced by Chrysler in the frontline contributed to the long-term growth and stability of the country's economy overall as the first-hand benefits. The government's hasty decision did not factor a scenario where the first plan did not succeed. Ordinarily, the decision makers overlooked to chances of failure, but they needed to lay an alternative strategy just in case. It was necessary to have alternative plans like liquidation of the company or change of hands as stand backups.

References

Wilcox, D. L., & Cameron, G. T. (2009). Public relations: Strategies and tactics (9th ed.). Boston: Person/Allyn and Bacon.