Ford Motor Company
Case Study of Ford Motor Company
History, Development and Growth
Ford Motor Company has been a vital American automaker since its incorporation in 1902. The car maker was started at that time by Henry Ford and has continued with some member of the family on the board of directors since that time. The company began selling individually manufactured vehicles, but moved to an innovation devised by the founder soon after. Henry Ford wanted to make a car that was easily mass manufactured. He came up with the Model A concept. Ford had all of the parts pre-made and then as the individual cars progressed through an "assembly line" parts were added at different stations until the car was complete at the other end of the line. With this new method of manufacture, Ford Motor Company was able to undercut the competition in price per vehicle. Following this, Ford grew astronomically.
Through the years since its inception Ford has had the ups and downs of any auto manufacture, mainly regarding the production of certain vehicle lines. The Model A was followed by the Model T. which became the standard vehicle for middle America. In 1958, Ford started a new line of cars called the Edsel (named after one of Henry's sons). This car was not popular with the public from the start, and production ended in 1960. In the 1960's two of Ford's vehicles lines started their runs as icons. The first pony car, the Ford Mustang, debuted and was an instant hit. The F-series pickup trucks also became the American standard during this time. The F-150 became the bestselling vehicle in the world in the 1980's and remains so. With a rich history of innovation and market leadership, Ford has always been a company that others looked to as an American ideal (Funding Universe, 2004).
Recently, the company has seen some of the same rough times as the rest of the country. The economic downturn hit the automobile industry especially hard, but Ford was the only one of the "Big Three" American automakers which did not take money from the federal government. The company remained true to its founding principles, and did not take a handout. One of the reasons that Ford has been able to successfully weather the difficult economic times is that they have been a leader in green technology (Ford, 2010). The company has become dedicated to producing cars which reduce the amount of gasoline that is required for operation. Because Ford has started to transition to alternative fuel technologies for all of its brands, has introduced new technology, and has continued to manufacture vehicles with impeccable safety records, they are uniquely positioned within the American market (Ford, 2010). Ford has streamlined operations by selling off some of its subsidiaries and discontinuing others. They have not had to close many plants, but have remained loyal to their customers and employees. Due to all of these factors, Ford remains a success.
SWOT
Strengths
Ford Motor Company has many strengths that have made it one of the strongest companies in America. It is the fifth largest automobile manufacturer in the world (second in America), the company is the number seven company of the Fortune 500 list, and they produced more than 5 million vehicles in 2009 (Ford, 2011). The company has a presence around the world that is rooted in strong sales in both North America and Europe. The Ford brand is known worldwide as one that promises quality and dependability. In 2010 Ford received more awards from JD Power & Associates for customer satisfaction than any other manufacturer (Nestor, 2010). Five of their vehicles were at the top of their category among all entries and 14 others were mentioned. Ford has also developed alliances with European and Asian automakers that have enhanced its innovation, quality and sales in foreign markets. In 2010 Ford motor produced a full-year profit of $2.6 billion. This was the first time in six years that they enjoyed a full-year profit gain.
Weaknesses
Ford has suffered, as have many other automakers, from the economic downturn that has threatened the world. The company had to sell off several of its subsidiaries (Land Rover and Jaguar to Tata Motors of India, and Volvo), and they have had to reduce their stock in other companies (Mazda and Aston Martin) (Nestor, 2010). This has reduced their overall sales capacity and has weakened their total worldwide stance. They have been forced to close some plants in foreign markets and sales have decreased in fiscal years 2008 and 2009....
Ford Case Strategic Case Study: Ford Motors Company Overview Ford Motors is one of the oldest and largest auto manufacturers in the world, and despite being enormously hard-hit by the economic downturn of the recent past the company has returned to profitability and has been successful in redefining its strategy and realigning its resources to achieve its strategic ends (Ford, 2012; Hoover, 2012; Reuters, 2012). With internationally-based sourcing, manufacturing, distribution, and sales operations,
Recommendations The key competitive advantages that Ford Motor Company of Canada must concentrate on include the following. First, the continue growth of supplier relationship management and tight integration at the quality level of sourcing and procurement (Baker, Artinian, 1985) is critical. This will alleviate any increases in the 78% of their cost structures that are dedicated to sourcing and procuring products, well above industry norms. Second, the use of R&D funds
Those five steps are: Analyze the Situation and ask the following questions: Are we making any major changes in our business process? How do those changes impact our employees job functions? What information and training will our employees need to continue being successful in their jobs? How will our employees best accept and integrate this information and training? How do our employees learn? How can we get this information and training to our employees? Are there any
Ford Motor Company's Current Market Position Company Overview Quality Issues at Ford Motor Company Human Resources Role Strengths Weaknesses Opportunities Threats Financial Impact of Recalls on Ford Motor Company The Ford Motor Company was founded by Henry Ford in 1903 who along with 11 other investors signed the article of incorporation for the organization. Since then, the Ford name has experienced tremendous growth and has been awarded with substantial significance in the automotive industry. It is one of the
Ford Motor Company Business and corporate governance plan for Ford Motor Company Key components for corporate governance plans Ethics Business Goals Strategic Management Organization Reporting Current issues for Ford Motor Company in corporate governance plan Shortage of Parts from OEM Suppliers Company Structure Corporate Responsibility Committee Marketing Committee Define the current need for a governance plan Ethical business Approach Business Objectives Role of Stake Holders Structured Decision making Process Share Holder's Concerns Accountability and Transparency Development of corporate governance plan Corporate Code of Conduct Audit and Risk Committee Remuneration Committee Nomination Committee Performance evaluation Risk Management Shareholder's
Ford Motor Company Alan Mulally has transformed Ford Motor Company from a firm that only a few short years ago was floundering in an industry-wide morass of mismanagement, inefficiencies and no sense of direction. Since assuming the helm at Ford he has devised a plan that identifies specific, communicated goals for both management and labor that ensures that the transformation from the brink of insolvency to profitability not only takes place,
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