Ford Motor Company's Transformation

Good Essays

When Ford Motor Company saw rapidly changing technologies dramatically impacting how the world did business it also recognized that for the organization to remain competitive incorporating these technologies would be critical. The emergence of e-commerce presented an opportunity to improve company structure for information sharing and process changes that could also enhance relationships with suppliers, dealers and customers. This technology would, in the president's words, " allow us to integrate the diverse processes that make up a complex business in a way that was very difficult to do before." The real challenge would be if and how Ford could effectively implement the change to transform how it did business both inside and outside the organization.

The Problem

The idea of moving to a more efficient e-commerce lacked a fully developed implementation plan and did not identify ways to overcome the barriers associated with making the system fully utilized. The plan would mean not only implementing the technology itself, but also having the organization's seven automotive brands and four divisions that spanned 200 countries with 400,000 employees use it to conduct business. There was limited consideration for coordinating communication, generating internal support, and accounting for cultural and functional variances. Beyond internal factors, Ford needed to consider how to make e-commerce work with suppliers, dealers and customers to build the stronger relationships it envisioned.

Course Concepts

The Ford Motor Company transformation incorporates several course concepts. The analysis and recommendations will focus on three key managerial competencies: strategic action, communication, and plannin...

... middle of paper ...

...e computer, as the president suggested. It was flawed logic to assume because an individual had a computer he would have desire or necessary resources to use it. It would have been more logical to provide computers to those who want them and computer access at work combined with an incentive system and training to get individuals more familiar with computer use.

Addressing the external groups would require the same fundamental components as used internally, but with consideration for each audience and the desired goals.


Ford's vision in using e-commerce to integrate processes across their organization was wise in the wake of a technology driven economy. However, adapting the company to a new way of conduction business would require extensive planning, leadership and support that was not evident in the president's introduction of the plan.
Get Access