Though the course of research I will be discuss the best case options for Ford Motor Company. The best back up plan for flexibility and decision making. How an effective action plan can be created. Also, identify three steps to make a workable plan and why they are important. Finally, discuss the best option for the Company and reasoning for choosing it.
Case Options
Ford Motor Company has been one of the most prominent automobile produces for the last 100 years. In recent years Ford Motor Company has been losing money. In efforts to save the company we will analyze three different plans to realign the company. The first option is to close down older plants. Hoping that closing down older plants would in turn realign production and sales. There is a large cost to buying out the workers, and shutting down the plants. Then on the other hand this leaves a window open that there would be a desire for Ford Automobiles once there is a short supply. This would cause consumers to shop with other competitor’s. Grand strategies are a broad strategic plan used to help and organizations achieve its goals, so three types of strategies are growth, stability, and retrenchment/recovery (Williams, 2010). The first option of closing down older plants is an example of a retrenchment strategy. This option should be considered because after closing down some plants and cutting employees this will save the company a lot of money. This will allow the other plants to make a recovery and balance out. For example Sears saw a large decline in earnings and began reducing cost and cutting jobs (Williams, 2010). A year later Sears retrenchment strategy returned and was successful about a year later (Williams, 2010). Hopefully, the same...
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...s I would sell the premium auto group, stop producing the SUV and Truck lines for the time being. I would refocus and design cars that are smaller and more environmentally friendly and cost/gas efficient. This will help get back to the vision of Henry Ford. Henry Ford vision was to produce cars that were affordable to the masses. I would also push exporting these cars overseas. Since the cars have been accepted internationally a better designed car would be just as accepted as the cars are now. I would sell the PAG because they are losing billions of dollars a year and not selling a lot. I would stop producing large SUV and trucks for the time being. The economy is being effective and families cannot afford the price of these vehicles. Just eliminate them and cut your losses
Works Cited
Williams, Chuck (2010) Management. Mason, Ohio. Cengage Learning.
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A SWOT analysis is used to assess a company’s strengths and weaknesses found within the company, as well as opportunities and threats that emerge from the external environment. In this analysis, the main strengths, weaknesses, opportunities, and threats facing the Ford Motor Company will be discussed to provide a powerful analysis tool that supports the planning process for marketers.
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General Motors is one of the world's most dominant automakers from 1931. After 1980s economic recession the main goal for automobile companies was cost reduction. Customers became more price-sensitive. Also Japanese competitors came into market with the new effective system of production. So market was highly competitive and directed toward price reduction. The case states that in 1991 GM suffered $ 4.5 billion losses and most part of the costs of manufacturing was due to purchased components. GM NA hired Lopez in order to find the way from "extraordinary" situation and reduce costs.
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bills when they are due and to take care of unexpected needs for cash, while
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Ford Motor Company Strategic Audit Abstract The purpose of this paper is to give a brief detail of the strategic audit of Ford Motor Company. The method of research used was Internet research by topic. In addition to the class textbook audit example used, other written references in the area of Ford Motor Company were used, in order to develop the subject more in detail.
During the year 2005, Ford Motor Company brought in Alan Mulally, once a leader at the company Boeing. Mulally decided to implement a strategy called ‘One Ford’; this plan would ultimately lead to the employees becoming one team, using one plan, and looking towards one goal. Because this plan was going to execute a complete overhaul on the company, an aggressive training program needed to be put into place for the company to implement the plan correctly. By following this plan, the company would eventually meet their “One Goal”, which was profitable growth for all. By creating a strong product and producing customer loyalty, Alan Mulally knew the company would begin to see positive results and profitable growth. According to Alex Ta...
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