Free Essay

Ford Motor Company

In: Business and Management

Submitted By cera8461
Words 2454
Pages 10
Chapter 5 Case – “Ford Motor Company”

Instructor: Professor Pamela McLaughlin

Course: Management of Concepts – BUS 302

Date: July 17, 2011

* This case outlines 4 strategic options Ford is pursuing to increase its profitability. Describe each of the 4 options. For each option list 2 criteria you would use to evaluate the option.
The four strategic option that Ford Motor Company might pursue to increase its profitability is to (1) close down older plants in an effort to realign production and sales, (2) move the company to produce only smaller cars, eliminating or sharply reducing the SUV and truck lines, (3) take a dramatic step of dramatically reducing their North American presence and focus their efforts on international markets where they have been very successful, and (4) sell the entire PAG group, letting someone else figure out how to make money selling so few vehicles a year (Case Study, para. 3). When looking at any strategic plan, one needs to identify the decision criteria. Decision criteria are the standards used to guide judgment and decisions, states Chick Williams in Management. Naturally, the more criteria a possible solution meets, the better that solution will be.
Two of the criteria that Ford would need to consider if taking the option to close down older plants would be, buying out workers (severance agreement) and dealing with the political implications of a closure. A buy-out agreement results from the collective bargaining process between Ford and its workers union. Employees who accepted the agreement receive a severance payment as well as an additional payment for the cost of financial planning, job retraining, relocation or career counseling. In exchange for the severance payment, participants agree to separate from the payroll and to relinquish all recall and future employment rights with Ford. These agreements are generally required in all buy out situations states Miller Cohen, P.L.C. in his paper on The Effect of Buyouts/Severance Packages on Worker’s Compensation Benefits. Ford would also have to deal with the political implications of a closure or any kind, no matter the number of factories. Other companies could portray Ford as a weak company that is hardly staying afloat and consumers could loss trust in the company and move to competitor’s products. If there is no other option but to close the business, Ford should do this as soon as possible to stop the financial bleeding. Then Ford can look at the whole picture. Can they reduce and/or renegotiate their current debt? Can they financially afford to pay it down and pay it off? If a pay schedule can be agreed to, they are in position to work it through and come out free and clear.
If Ford took option two, which is to move the company to produce only smaller cars, eliminating or sharply reducing the SUV and truck lines, then Ford has the advantage of getting back to Henry Ford’s vision for the company as well as dealing with products that are simply not selling in today’s expensive gas environment. Henry Ford’s vision was to “build a car for the great multitude. It will be large enough for the family, but small enough for the individual to run and care for. It will be constructed of the best materials, by the best men to be hired, after the simplest designs that modern engineering can devise. But it will be low in price that no man making a good salary will be unable to own one — and enjoy with his family the blessing of hours of pleasure in God's great open spaces” (Great Minds, para. 1). SUV and trucks are not small enough for an individual to run and care for; nor are they low in prices that no man making a good salary can afford one. Also, as high as the gas prices are today, consumers are looking for better gas mileage vehicles to drive. SUVs and Trucks do not get good gas mileage even though they have a gigantic tank for gas. Yes the tank of gas in a SUV and Trucks are bigger than the smaller compact cars but SUVs and Trucks get around 16 miles per gallon, where smaller compact cars get around 28 miles per gallon.
Now looking at option three, Ford could take the dramatic step of dramatically reducing their North American presence and focus their efforts on international markets where they have been very successful. Europe, South America, and China have been very receptive to Fords vehicles and the company is doing well in these markets. While Ford's domestic sales have been generally quiet, Ford's European operations have increased share by producing many critically acclaimed vehicles well known for quality. The difference between Ford's domestic and international operations is a result of costly US manufacturing facilities caused by high wages, expensive healthcare and retirement obligations for union labor. By focusing Ford’s efforts internationally, domestic consumers will lose interest with Ford and buy competitor’s products.
Finally the last option that Ford has is to sell the entire PAG group, letting someone else figure out how to make money selling so few vehicles a year. PAG, Premium Automotive Group, which makes the company’s Aston-Martin, Jaguar, Land Rover, and Volvo brands, was originally intend as the platform for the company to enter the luxury car market; unfortunately these groups of vehicles have lost billions year after year. The hand-built PAG automobiles do not fit the Ford’s vision of doing things that Henry Ford put into place with his vision of the Model T. But on the other hand, it’s a logical idea, whereby Ford co-owns all the brands in the spectrum, and uses their technological strengths to create useable technology for all Ford Brands to utilize in product development. * In light of the possibility that market conditions can and do change, discuss at least 3 examples of how the company should build-in flexibility to back-up its decision-making process
Maintaining flexibility in the decision making process is apparent because “actions are sometimes poorly conceived and goals sometimes turn out not to be achievable” (Williams, 2010, p. 81). One of the best ways to achieve flexibility is by option-based planning, which is a process where one keeps options open by making small, simultaneous investments in many alternative plans. So let’s say the Ford decides to sell the entire PAG group. Instead of putting all their eggs in one basket, Ford could sell some of the PAG group, Aston-Martin & Land Rover, and they can start slowing down the production of SUVs and Trucks. By doing this, Ford will keep their name in the luxury car and SUV and Truck market, but will be able to move resources over to developing smart cars, which are better for the environment. Another option that Ford could do is to research on how to make their plants more environmentally safe or “green.” By doing this then Ford could shut down older plants, but instead of buy-out employees and dealing with political implications, they will be opening a “Green Plant.” One more option that Ford has is to cut back on the PAG group, while keeping their name still in the luxury car market, and increase the presence and force in international markets. If it cost Ford less to sell and produce vehicles international, then I don’t see why they should not pursue that market. * Discuss how an effective action plan can be created and how progress can be monitored.
An action plan can help a company come up with a clear time line, identify responsibilities and establish the resources required to achieve their goals. Action planning also allows companies to identify the factors or conditions that will help or hinder them from goal accomplishment, as well as the ways they can increase reinforcing factors and decrease hindering factors. There are five steps to creating an effective action plan, (1) define what the company hopes to accomplish, (2) make a list, (3) prioritize, (4) determine costs and sacrifices, and (5) establish deadlines. Start by defining what exactly the company’s mission and goal is. What would they like there end result to be? What is the purpose to achieving this goal? What is the value in achieving this goal? Next, take the time to list every step, every resource, and every employee the company has who can help them reach their goals. Third, rewrite the list to help prioritize according to what resource, employee or step will help the company most in reaching their goals. Having employee’s involvement in setting their own goals increases their commitment to the goals. For example; sitting down with employees and brainstorming will get the employees involved in the overall goal of the company. Once the company has prioritized their list, they need to determine the financial costs and company sacrifices required to achieve their goal. If they are opening a new branch, determine how much money the company will be required to invest and how much employee time will be taken away as a result. An action plan is all about looking at the goal from a realistic viewpoint. Every action plan requires a deadline. Once the company has determined how to get there, next they need to determine how long it will take them to get there. The company needs to look back at their list and determine how long each task should take.
Evaluating an individual’s progress in achieving goals is critical to the success of the goal setting process. Progress can be monitored and assessed individually, externally, or both. Evaluating goal progress serves many functions: rewarding success, problem solving, identifying helpful resources or skill building activities, and adjusting goals if necessary. Once employees and or the company achieves their goals, the focus now shifts to goal maintenance. Emphasizing ownership of goals and making sure goals are realistic in the long-term can be crucial elements for ensuring sustainability of reaching the goals. * List at least 3 steps that make-up a workable plan and explain why each is important.
The success of planning depends upon five steps, (1) setting goals, (2) developing commitment to goals, (3) developing effective action plans, (4) tracking progress, and (5) maintaining flexibility. The first step is setting goals and with setting goals, goals need to be specific and challenging. The use of S.M.A.R.T. goal guidelines is an effective way to setting detailed and challenging goals by making goals “specific, measurable, attainable, realistic, and timely” (Williams, 2010, p.79). Second step in planning is developing goal commitment, which is the “determination to achieve a goal” (Williams, 2010, p. 80), unfortunately with employees, this is not automatic. All the members concerned with the organization must be involved in the task of preparing the goals. The viewpoints of the employees, who are actually going to perform the tasks, must be secured and their ideas may be incorporated in the goal setting process. And by involving employees into the goal setting process, companies will receive goal commitment from them because they are setting their own goals. Developing an effective action plan is the third step and it list the specific steps involved, employees how are responsible for what tasks, resources needed to reach the goals, effectiveness with which the forecast has been made. If the forecast is accurate, there is every possibility that the plan will be success. The plan should not be prepared to focus on the financial goals of the business alone. It must have something for the employees. There must be some provision in the plan to reward efficient workers. Some encouragement is necessary in the plan to motivate the employees to work harder. The plan must also be realistic. It should take into account the capabilities of both the managers and the employees. Both should not be required to work beyond their capacity. In other words, the plan must not expect too much out of every person. Tracking progress to goal achievement is the fourth step in a workable plan. There are two was to track progress, proximal goals and distal goals. Proximal goals are “short-term goals or subgoals” (Williams, 2010, p.80), and because they are short-term goals, they are more motivating and rewarding than waiting to reach distal goals. Distal goals are “long-term goals or primary goals” (Williams, 2010, p.80). Distal goals are the final goals to reach to finish the task. The last step in a workable plan is flexibility. Flexibility must be introduced in the plan whenever necessary so that the employees can work with sustained interest and effort. One method of maintaining flexibility is to adopt an options-based plan, which is the process of “keeping options open by making mall, simultaneous investments in many alternative plans” (Williams, 2010, p. 81). The management should not use pressure tactics and force employees to work for the sake of attaining the daily or weekly targets. * Discuss the option or combination of options you selected as the best course of action for Ford Motor Company and detail your reasons for selecting that option or combination of options.
The combination of options that I would select as the best course of action for Ford Motor Company would be selling part of the PAG group, decreasing productivity in SUVs and trucks, and increasing presence in international markets. PAG groups are far from the original vision of Henry Ford who wanted to produce vehicles that were affordable to everyone. I would suggest keeping some of the PAG group, for example, Volvo and Jaguar, but sell the rest. By doing this Ford is still a presence in the luxury car market but at a smaller expense to the company. Secondly, by decreasing productivity in SUVs and trucks, Ford can use the extra resources and cash to develop more environmentally safe vehicles with better gas mileage. By taking this option, Ford keeps there face in the SUV and truck market, but can know start to develop “smart cars” that consumers are very interested in. And lastly, by increasing Ford’s presence in international markets will increase productivity volume. The company is already doing well international and the cost of producing vehicles is less, then I see no reason not to increase.

Reference
Williams, Chuck. (2010). Management
Case Study, Ford Motor Company
Cohen, Miller, P.L.C. (2006), The Effect of Buy-outs/Severance Packages on Worker’s Compensation Benefits, http://www.millercohen.com/CM/ArticlesAndCases/Effect-of-Buy-Outs.asp Great Minds think differently, Henry Ford’s Vision A-Z,
http://www.greatminds.ie/Henry_Fords_Vision_AZ/Default.339.html…...

Similar Documents

Premium Essay

Ford Motor Company

...“Ford Motor Company” Barbara Wilson Professor Andrea Dennis Business 302 February 7, 2011   Discuss at least three criteria the company should use to decide which of the four listed options is best and the reasons why each criterion should be used. “Steps to Rational Decision Making” Define the problems: Ford Motor has been losing money for years, particularly in its North American operations. Option one is to close down older plants in an effort to realign production and sales. The best criteria decision to use should be “Steps to Rational Decision Making”. The first step in decision making is to identify and define the problem. Identify Decision Criteria are the standards used to guide judgments and decisions. Weight the Criteria. After identifying decision criteria, the next step is deciding which criteria are more or less important. Some companies use mathematical models for weighting decision criteria, all require the decision maker to provide an initial ranking of the criteria. Some use absolute comparisons, in which each criterion is compared to a standard or ranked on its own merits. Another method uses relative comparisons, in which each criterion is compared directly to every other criterion. Some criteria weight that guided decision maker’s judgment to close or not close the company included the cost of present inventory sales. Also cost to buying out the workers, shuttering the plants, setting up a new business and selecting a new location......

Words: 1261 - Pages: 6

Premium Essay

Ford Motor Company

...Horizontal Analysis of Balance Sheet E – Company’s Rations compared to Industry Averages Industry Overview: The automobile industry is comprised of companies that design, manufacture, engineer, assemble, and market automobiles and motorcycles and provide leasing and financial services. Industry performance is closely linked with economic performance. The auto industry represents one of the largest segments of the U.S. economy. The U.S. industry is dominated by the Big Three, General Motors, Ford Motor Company, and Chrysler. The auto industry employs nearly 6.6 million people nationwide which represents about 5% of private sector jobs. Surging oil prices have shifted demand away from SUV’s and light trucks to more fuel efficient options. This change in consumer preferences has caused German, Japanese, and Korean manufacturers market share of the industry to expand. The American companies are still trying to adapt their product lines to be in line with the changing preferences. The global automobile market can be divided into six segments. There are the three mature markets and three relatively new markets through emerging economies. The mature markets include North America, Japan, and Western Europe. The three emerging markets represent Asia-Pacific, Eastern Europe, and Latin America. The worldwide leader in the motor vehicle industry in the mid – 2000’s was the United States. Currently, Japan is now the worldwide leader. At the end of 2008, the Worlds......

Words: 3250 - Pages: 13

Premium Essay

Ford Motor Company

...Ford Motor Company Alan Mulally, CEO, Ford Motor Company Leadership and Organizational Behavior November10, 2010 by Walid Mediouni Dr. Yohannes Abate Fall 2010 Washington DC campus Strayer University 1) Discuss the role of leadership and how it can impact organizational performance. The role of leadership in an organization is like the role of a general in the army; they both plan and lead a group of people to accomplish a goal. The leader of an organization can make it a successful business because of their leadership style or they can cause an organization to fail. A good leader can be compassionate to the employees needs, listen to their complaints and communicate with their employees. In the case it is stated, “Alan Mulally’s leadership has resulted in Ford making some strategic moves.” (Hellriegel et al., 2011) His skills and style helped Ford to move ahead in the industry during an economic recession. 2) Discuss Mulally’s leadership style at Ford Motor Company and provide examples of how his actions fit this style. According to Lewis Booth, chief financial officer at Ford,”Alan’s style is pretty relentless.” He says,” If this is the reality, what are we going to do about it?” (Hellriegel, 2011). Mulally is a typical example of a learning leader. (Journelism.org, 2010) What’s most impressive is Mulally’s “results oriented” leadership style. (American Power, 2010). Mulally’s leadership style is relationship behavior. Hellriegel defines......

Words: 998 - Pages: 4

Premium Essay

Ford Motor Company

...Ford Motor Company’s Strategic Human Resources John Lucas Liberty University HRM 530 Strategic HR Management Dr. Al Bryant Summer 2014 Ford’s Business and Human Resource Strategy One team, one plan and one goal unites the human resources and business challenges into an integrated strategic plan for Ford Motor Company (Ford, 2014). Ford develops and supports its employees and business through labor relations, business operations, compensation, benefits, work force planning and recruiting, organizational development, personnel relations, human resource strategy, learning and development, aggressively restructuring to operate more profitably at the current economic demand and changing model mix, accelerate the development of new products our customers want and value, finance our plans while improving our balance sheet and work together as an effective team (Ford, 2014). Ford has ensured that its human resources strategy is aligned with its business strategy by encouraging focus, teamwork and a single global approach, and through training and workforce development, employee efforts are aligned to reach a common definition of success (Ford, 2014). Automotive leadership through teamwork to develop customer satisfaction, employee and essential business partner relationships, dealers, investors, suppliers, unions, councils, and communities where Ford has established its presence (Ford, 2014). Ford’s team develops high quality green, safe products, maintains a strong......

Words: 824 - Pages: 4

Premium Essay

Ford Motor Company Swot

...Ford Motor Company: Strategic and Operational Plans Eric R. Scott Management 521 September 29, 2014 Alisa Fleming Ford Motor Company: Strategic and Operational Plans The Ford Motor Company is one of the first automotive companies in the United States and the world. Today Ford is the second largest U.S. automaker and fifth largest vehicle seller in the world. The Ford Motor Company manufactures and sells a wide variety of automobiles, trucks, buses & automotive related parts. Using the SWOT analysis format, we will look at Strategic and Operational plans that are critical to the future of the company. Strategic Plans Increasing global market share is the first strategic plan the Ford Motor Company, as an organization must focus on. Drawing on their strong engineering capabilities, Ford has been an innovator in the automotive industry and will need to continue to be a leader. Producing some of the most technological advanced vehicles, Ford has been a leader in their industry. Today Ford is focusing on hybrid & highly fuel efficient technologies to gain an advantage over their competitors. Specifically Ford has been developing Hybrid Electric Vehicles (HEVs) that use ECOnetic innovations. ("Company Spotlight," 2010) Offering significantly improved gas mileage as well as low operational costs; Ford vehicles attract customers worldwide. Looking towards emerging markets, Ford will also increase their global market share through their manufacturing,......

Words: 705 - Pages: 3

Premium Essay

Ford Motor Company

...other internal and external factors have made Ford realize they need to explore solutions to deal with the supply chain challenges leading to cost and the reality they are facing and may continue to face in the future. The majority of issues in Ford’s present chain result from inefficient control of their large supplier base and the complexity of their supplier network in addition to inability to communicate to server their end customers. Ford has realized the urgent need to change their supply chain in order to be more cost effective and more profitable for its shareholders. Since Dell and Ford are two different types of markets, one is in the computer manufacturing/distribution business and the other is in the automobile business, it does not seem right for Ford to implement the exact “virtual integration model” deployed by Dell. The fact the car buyer usually wants to touch and feel the car before they make a purchase of a car would put Ford at risk of losing their customers to the competitors. On the other hand when customers buy computers on-line they don’t have to worry about touching and testing the computers and they require a better price than the other retail avenues to buy computers. Some other considerations in this case are the consideration of the buying frequency of cars versus computers and financing requirements for a car versus a computer. Another consideration would be the number of suppliers to support Ford manufacturing versus Dell’s computer......

Words: 2308 - Pages: 10

Premium Essay

The Transformation of the Ford Motor Company

...The Transformation of the Ford Motor Company Most adults today have had the pleasure of driving a Ford, or they know someone who has. Henry Ford is known as an amazing innovator. In 1903 with $28,000 in cash, Henry Ford started the Ford Motor Company, whose automobiles changed how the world moved (FORD, 2014). Ford’s history comes with great stories of success; however the recession that started in 2000, caused the Ford Motor Company to experience some down-turns. After ending his stay as President and CEO of Boeing Commercial Airplanes, Alan Mulally joined Ford Motor Company and helped change its path towards bankruptcy. This study will describe the team-building techniques and strategies used by Alan Mulally to transform the Ford Motor Company. Research was conducted on the condition the company was in when he took over and where it is today. The strategy used to establish the team and how the strategy was executed will be discussed. Also, rationale will be provided for other strategies that could have been used in a similar situation. Who Is Alan Mulally? Alan Roger Mulally was born in 1945 and is an accomplished business executive worth over twenty-three million dollars. Companies look to him for innovative ideas that will get them going again. After college he decided to join the Boeing organization as an engineer. Here, he was able to contribute to the different Boeing models; including the 777 project. He eventually moved up within his department due to his......

Words: 1856 - Pages: 8

Premium Essay

Ford Motor Company

...Running head: FORD MOTOR COMPANY Leadership and Organizational Behavior Professor Michael Padgett Strayer University Ronetta Perry May 15, 2011 “Ford Motor Company” The Ford Motor Company, founded in 1903 by Henry Ford, is one of the largest auto makers in the world. In recent years, the auto industry, including Ford Motor Company, has experienced increase financial hardship. Ford lost $12.6 billion in 2006, $2.7 billion in 2007, and as a result of the biggest sales slump in decades, they lost $14.6 billion in 2008, making it the worst year in its history. But when the car industry went into what seemed like a death spiral during the global recession, Ford resisted taking the federal bailout and vowed to show the industry that the brand was built for toughness. Discuss the role of leadership and how it can impact organizational performance. “Leadership is commonly defined as establishing a clear vision, communicating the vision with others and resolving the conflicts between various individuals who are responsible for completing the company’s vision”(Media & Vitez, 2009). Traditionally there are four different leadership styles that suit the follower and their willingness; the telling style in which the leader gives specific directions and supervises closely, the selling style which helps builds confidence in the follower by the leader providing direction and encouraging two-way communication, the participating style in which the leader encourages......

Words: 1432 - Pages: 6

Premium Essay

The Ford Motor Company

...Ford Motor Company Strayer University BUS 302 Professor Doreen Rainey October 31, 2010 Ford Motor Company located in Dearborn, Michigan has an alarming problem. Ford Motor has lost money in its North American sector of operation in the past years, despite its increase of models. In an attempt to attain a larger portion of the car market Ford Motor acquired some luxury models. Ford Motor moved some what away from Mr. Ford’s vision to produce cars affordable for the masses when acquiring luxury models. In order to reduce loses that are being acquired each year Ford must come up with a solution. There are four options that must be viewed to reduce losses. First is the reduction of older plants. Second produce only practical small cars. Third focus on the international market where Ford has been very successful and reduces it present in North America. Fourth dump the Premium Automotive Group (week 4, nd). Ford should use the S.M.A.R.T. guidelines, Specific, Measurable, Attainable, Realistic, and Timely (Management, 2011, p.79). Let’s take a look at the second option and view it with the S.M.A.R.T. guidelines. Ford specific goal using this option would be producing practical small cars to reduce the revenue lost. The American people are becoming more conscience of the rising gas price environment. SUVs and large car increase the usage of gas causing an increase in out of the pocket expense for personal vehicle. It is a proven fact that SUVs and large car......

Words: 1699 - Pages: 7

Premium Essay

Ford Motor Company

...Ford Motor Company Petris Irina Group 310 Contents General Presentation 3 Ford in Romania 4 Competitors 4 SWOT Analysis 5 Bibliography 6 General Presentation Ford Motor Company is an American multinational corporation which is ranked 3rd in the world in automobile production. Ford has always been in the top ten largest companies in the world by revenue and in 1999 was among the most profitable companies in the world and the second largest automobile manufacturer in the world. Type | Stock Company | Founded | June, 17, 1903 | Industry | Automobile | Products | Cars, vans | Area | Worldwide | Net profit | 5.664 billion USD | Total equity | 190.6 bilion USD | Employees | 160.000 | Henry Ford's combination of efficient factories, workers well paid and low prices revolutionized the automotive world and this process was known as "Fordism". . Ford is the largest company in the world belonging to a single family, the Ford family it’s in the management of more than 100 years. Ford in Romania In 2007, Ford offered 57 million euros for 72.4% stake in Automobile Craiova. Ford officially took over Automobile Craiova in March 2008. The new shareholder modernization project began in May 2008 and in spring 2009 he bought a packet acquired 22% stake held by SIF Oltenia Automobile Craiva. Automobile production at Ford's Craiova began on September 8, 2009, but at a very low rate, with about 10 cars per day, producing by the end...

Words: 644 - Pages: 3

Premium Essay

Ford Motor Company

...“Alan Mulally, CEO, Ford Motor Company” Chiquetta Silver BUS 520 Dr. Amine Ayad May 15, 2011 Discuss the role of leadership and how it can impact organizational performance. Leadership is the process of developing ideas and a vision, living by values that support those ideas and that vision, influencing others to embrace them in their own behaviors, and making hard decisions about human and other resources (Hellriegel & Slocum, 2011, p.4). Leadership is guiding people toward productive results to achieve the goals of the organization. It involves influencing people to move from where they are to some new place. An effective leader has the ability to motivate and influence others. Leadership influences organizational performance depending on the level to which the leader enables managers and team leaders to plan, organize, control, and act effectively. By accepting authority, responsibility, and accountability, managers can confidently face though situations that require decisions made. Both the manager and the subordinate must know how to distinguish right from wrong by using sound judgment. Likewise, the leader must to learn his own strengths and weaknesses at work as well as his personal life and seek new professional skills. Everybody has different opinions and attitudes towards values, lifestyles, and behaviors. Thus, an effective leader will use diversity at the workplace to combat the fierce competition in the market place. Cultural diversity within......

Words: 1305 - Pages: 6

Premium Essay

Ford Motor Company

...Ford Motor Company Kate What Would You Do? The case creates for options to choose from. Discuss at least three criteria the company should use to decide which four listed options are best and the reasons why each criterion should be used. I think that if I was working for the Ford Motor company I would think about shutting down older plants. I would close down the plants mainly because they are not selling the cars that they are producing, therefore causing the ford motor company to loose profit. I would also move away from producing larger cars, and move more toward producing cars that are better on gas. I feel like the customer would buy a car that’s better on gas, before they buy a car that looks good. The larger cars would mostly cause the greatest decrease in the profit, because some people just cannot afford to spend a lot of money in gas. If Ford can produce a car that people can afford to buy and will not break their pockets at the gas pump, I believe that the ford will be able to sell more cars. The other option I would choose is to reduce the number of plants in Northern America, and utilize our international markets. It would make sense that because people in North America are not buying ford cars like they used to, and our international markets are doing very well, that we would continue our mass production with our international markets and limit our production over in North America. In the light of the possibility that market conditions can and......

Words: 960 - Pages: 4

Premium Essay

The Ford Motor Company

...Abstract Ford Motors used to be a prominent automobile company in the past. The company is on the verge of bankruptcy because of unexpected/unusual expenses incurred in the form of changes in investment and extinguishment of debt liabilities. The company should devise a policy that curtails the cost of sales, particularly, structural cost. Ford needs vast managerial and structural changes. The company needs to revise its price patterns, designs and make new and attractive products for the ultimate user, mainly, middle-class groups. Ford also needs expansion in Europe and Mexico. Keywords: Ford motors, cost analysis, microeconomics, demand, recommendation Introduction Purpose Microeconomics is that the branch of economic science that analyzes the behavior of individual shoppers and corporations to do and perceive the decision-making method of each business and households. Economics is concerned with the interaction between individual consumers and sellers also because the factors that influence the alternatives created by both consumers and retailers. Especially, economics focuses on patterns of providing and demand and, therefore, the determination of worth and output in individual markets. The aim of this paper is to clarify however economics influences the Ford Motor Company. History Henry Ford was born on June 30th, 1863. Ford saw his first car when he was 12 years old. Henry and his father were riding into Detroit during that time span.......

Words: 2272 - Pages: 10

Free Essay

Ford Motor Company

...Ford Motor Company Alan Mulally, CEO, Ford Motor Company Kwatila Ghanyen Prof. Mike Petty BUS 520: Leadership and Organizational Behavior Strayer University Wednesday November 16, 2011 Alan Mulally, CEO, Ford Motor Company Allan Roger Mulally is the present Chief Executive Officer of Ford Motor Company. Ford has been struggling to survive since the 2000s but has regained tremendous profitability under the leadership of Mulally. In this paper, we shall discuss the role of leadership and how it can impact organizational performance, Mulally’s leadership style at Ford and how goal setting has helped Ford improve performance. Ws shall also assess Mullaly on each element in communication openness and the effectiveness of his leadership style and conclude by making recommendations on whether Mullaly should continue with his leadership style or use a different style. The Role of Leadership and How it Can Impact Organizational Performance Leadership is very vital to any organization or business; it guides people towards productive results and aims at achieving the goals of an organization. An effective leader is able to motivate and influence followers when there is a proper alignment between the leader and subordinate. Leadership has been recognized as a major factor in project success and charismatic transformational leadership has a substantially positive effect on organizational performance. (Huang, Hsu & Chiau, 2011) Leaders induce change in organizations......

Words: 1708 - Pages: 7

Premium Essay

Ford Motor Company

...Ford Motor Company Ford Motor Company In 2008, three major U.S. automakers asked the government for a bailout. Ford, along with GMC, was two of those companies. Ford was able to mortgage enough assets and avoid for a bailout to avoid bankruptcy. Since that time, Ford has made strides toward increasing their annual income, providing more fuel efficient cars, and becoming known in the global world market. After reviewing the 2010 income statement, Ford reported a full net income of $6.6 billion. It competitors, Honda reported a full net income of $6.88 billion and GMC a full net income of $6.17 billion. Even though GMC shares are higher, Ford showed higher earnings than GM. According to Ford’s 2010 annual report, the earnings per share increased by 80 cents a share from 2009 and that the net income is Ford’s highest in more than ten years (annual report). It would be beneficial for Ford management to investigate a variety of ways to increase interest among its internal and external stakeholders to purchase stocks which in turn will help to increase the overall net profit of the company. In looking at the balance sheet, Ford reported the most in liabilities and long term debt. However, Ford showed greater earnings assets than both Honda and GMC (Appendix B). Honda reported the lowest amount in liabilities and a significantly lower long term debt than Ford (Appendix B). Overall, GMC fared better than Ford on the balance sheet with the lowest long term debt and......

Words: 3407 - Pages: 14