Manufactures motorized wheelchairs in its bridgeport

Assignment Help Strategic Management

Reference no: EM131727199

The Amigo Company manufactures motorized wheelchairs in its Bridgeport, Michigan, plant, under the supervision of Alden Thieme. Alden is the brother of the firm's founder, Allen Thieme. The company has 100 employees and does $10 million in sales a year. Like many other firms, Amigo is faced with increased liability insurance costs. Although Alden is contemplating dropping all coverage, he realizes that the users of the firm's product are individuals who have already suffered physical and emotional pain. Therefore, if an accident occurred and resulted in a liability suit, a jury might be strongly tempted to favor the plaintiff . In fact, the company is currently facing litigation. A woman in an Amigo wheelchair was killed by a car on the street. Because the driver of the car had no insurance, Amigo was sued.

1. Do you agree that the type of customer to whom the Amigo Company sells should influence Thieme's decision regarding insurance?

2. In what way, if any, should the outcome of the current litigation affect Thieme's decision about renewing the company's insurance coverage?

3. What options does Amigo have if it drops all insurance coverage? What is your recommendation?

Reference no: EM131727199

Questions Cloud

Four tissue types of the human body : Describe the various functions of epithelial tissue. In your post, describe the multiple morphologies (shapes) and structures of epithelial tissue.

Explain the process of creating a transgenic organism : Explain the process of creating a transgenic organism. What are some of the benefits of creating transgenic organisms?

What is the best strategy you can use to clarify the concept : in-text citations and references in correct APA format and the introduction, three body paragraphs, and conclusion

Find probabilities for the given events : A computer is used to generate n = 6 random integers, each between 0 and 9 (with replacement). X = the number of even numbers among the six numbers picked.

Manufactures motorized wheelchairs in its bridgeport : The Amigo Company manufactures motorized wheelchairs in its Bridgeport, Michigan, plant, under the supervision of Alden Thieme.

Transmission of hiv and spread of aids worldwide : Transmission of HIV and spread of AIDS worldwide. New advances in treatments for HIV disease.

Discuss about the uniform random variable : Suppose that X is a uniform random variable where X is between 0 and 10. What is the probability that X will be between 0 and 3?

Which nutrients act as electrolytes : 1. What is an Electrolyte, and which nutrients act as electrolytes? How do electrolytes maintain osmotic pressure?

What benefit does google company gain from offering : What benefit does google company gain from offering these benefits to their employees?Why do these benefits appeal so strongly to millenials?

User Account

All Pages