In addition, the firm has a highly coordinated logistic system mostly handled by outsource firms that allows the company to have an excellent inventory management and appropriate schedule production activities. Moreover, Ford being a pioneer in ensemble line and mass production in the auto industry has allowed the company to gain competitive advantage in manufacturing processes that leads to decreased costs and time becoming another core competency.
Another important core competency is global supply chain management. The company works close with their suppliers in order to gain competitive advantage. Ford offers long term contracts to its main suppliers allowing the company to build a stronger relationship and partnership attitude. This close relationship beneficiates both parties. Ford is able to get the most cost effective and high quality product delivered in a timing manner and suppliers are able to improve environmental sustainability of their products and processes. Ford was the first car manufacturer to require suppliers to certify their environmental management systems according to the ISO 14001. Some of the environmental requirements by Ford includes: the use recycled materials whenever feasible, reducing materials that are harmful for the environment, increasing the use of ecological materials and using materials that will improve vehicle interior air quality.
Capabilities:
Ford Motors through its ONE Ford plan reinforces the importance for employees to work as ONE team in order to create a strong and profitable company which is beneficial for all, and make part of their organizational capabilities. The company focuses in creating excellent products, full line of vehicles from small fuel efficient models to...
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...(satellites) that are also in charge of delivering the final products.
Ford believes in investing heavily into R&D since product development and quality based in customers and markets’ needs are extremely important for the company. Ford is committed to produce cars that are not only aesthetically appealing but with the highest technology including electrified vehicles such as hybrids, plug-in hybrids and battery electric models. The latest technological advance for the company is the Ford C-MAX Solar Energi Concept. This is the first-of-its-kind sun-powered vehicle that offers the benefits of a plug-in hybrid without depending on the electric grid for fuel. This vehicle is equipped with a special concentrator that acts like a magnifying glass, directing intense rays to solar panels on the vehicles roof and provides a combine 100MPGe (EPA estimate 108MPGe).
Until recently, the Ford Motor Company has been one of the most dynastic of American enterprises, a factor which has both benefited the company and has brought it to the brink of disaster. Today Ford is the second largest manufacturer of automobiles and trucks in the world, and it’s operations are well diversified, both operationally and geographically. The company operates the worlds second largest finance company in the world, and is a major producer of tractors, glass and steel. It is most prominent in the US, but also has plants in Canada, Britain and Germany, and facilities in over 100 countries.
Ford uses a global area division organization design, setting up subsidiary companies for the different countries/regions that it is operating in....
Imagine how life would be if our society did not have cars. Today, our society is depended on cars for our daily routines. From getting our food, clothes, and technology to just going to the store across the street, cars are a very important part of our society. In the 18th century, only the wealthy people had access to automobiles, and they only used cars for fancy transportation and to show off their money. This was because of the extreme prices of cars in the 18th century. With these high prices not many people could afford them, especially not the working class. Henry Ford reevaluated the automobile industry in the late eighteenth and early nineteenth centuries. With Ford's enthusiasm to mechanics, he perfected the assembly line, developed cheap cars for the common people, and sparked an era of mass production. Because of this, Ford paid higher and his actions allowed the common people to have access to cars.
Ford’s research and development capabilities act as strength to the company as customer wants and needs constantly change. Ford currently operates fifty-six research and development centers focused on improving the quality of Ford’s vehicles. Also, Ford invests billions of dollars every year to improve quality, performance, and overall customer satisfaction.
Henry Ford was one of the principle illustrators of Scientific Management. He revolutionized the concept of mass production and changed the world by developing new, innovative business practices that enhanced efficiency and productivity. He created a manufacturing model that marked an era and led industrial manufacturing to continuously grow around the world, a model that is known as Fordism. Fordism brought success and innovation, not only to the whole American manufacturing industry, but also all over the world between the years 1903 and 1926 (Smith, 2011). However, these practices were not always as perfect, as there are many drawbacks within his practices that influenced both Ford Motor Company and the motor industry as a whole, which brought
This case involves Ford and the Japanese tire manufacturer, Bridgestone/Firestone. The Ford Explorers which were prone to rolling over, came equipped with Firestone defected tires. The tire seemed to have a defect that caused the tread to separate from the whole of the tire and cause the vehicle to flip. Although Firestone knew about such defects, they continued to produce despite knowing the deadly consequences that lay behind their actions. The Explorer also had a bad reputation of rolling over and Ford knew it. As a result, fatal accidents occurred from these two combinations. Since this was a very serious safety issue, Ford and Firestone were ordering the recall of problem tires in Saudi Arabia, Venezuela and Asia but not in the United States. So, did the company act ethically in resolving this crisis? No, the companies failed to fix the problem in the United States. According to NHTSA, the tires have caused many deaths and injuries in the United States. In fact, these accidents would have not occurred if both companies have solved the problem immediately. Thus, despite the obvious safety issues, there were also fundamental ethical issues.
So the discussion on internal and external analysis clearly defines that where the competitive advantage of Ford Motors is and where it is lacking. People who have durability as their first priority will go for Ford but they lack in some of their strategies which the management should consider and work on it. We also came to know that Ford is an innovative company from the very first and also serves local demands with the help of related and supporting industry. But in some points they have taken wrong decisions which compel them to sell some of their brands to others. The good news is they are doing hard job to maintain their performance regarding their star and cash cow products to remain in the competition.
Many economic factors exist that impact the development of Ford Motor Company's strategic plan and it’s no small task to project how some of these factors might change as the strategy is being realized. Consider the prospect of expansion into a new market like China or Mexico. Economic changes like currency devaluation will make Ford’s product more expensive to their target market potentially reducing overall sales revenue. Oil prices as we’ve seen in the U.S. economy can also play a big factor as large vehicles become less desirable and more fuel efficient compact cars gain market share.
Wernle, B. (2012). Ford plugs into new segment with C-Max Energi. Automotive News, 87(6544), 16
Environmental concerns have been raised from time to time because of the dependency on the gasoline-fueled engine as the chief auto powertrain technology. This has resulted in exposing many automobile users to unpredictable prices of fuel. These issues were, however, the reason for the inception of Tesla Motors so as to bring into existence another set of automotive which serves the similar purpose; but uses another form of energy that being electricity to drive them instead of the disadvantageous gasoline-powered engine. This invention was influenced by a number of factors in terms of their planning and performance (Hunger, 2010).
Ford Motor Company current mission statement is “committed to provide personal mobility for people around the world”. With that in mind their vision is to become the world’s leading Consumer Company for automotive products and services. By improving everything they do, the company provide superior returns to their shareholders (Vision, Mission, Values).
The American Automotive Industry, popularly known as the U.S. Automotive Industry is one of the most rapidly evolving industries in North America. It is generally oligopolistic with a few players who in the past have been known to avoid price competition among themselves. The industry consists of industries manufacturing vehicles, car parts, replaceable parts and those engaged in assembling parts into complete models. However, the most dominant players in this industry are the vehicle manufacturers. The players design various models, produce the various parts that each model needs and assemble them into a finished product before availing them to the market. General Motors, Chlysler and Ford motors, dominate the U.S. Automotive mobile. They are popularly referred to as “The Big Three”.
Ford- focused differentiation, medium pricing, breadth of product line is high. A strength is their pick-up truck market share, a weakness is perceived reliability and styling on some of the lines.
Ford’s business level is the integrated cost leadership/ differentiation strategy; this involves engaging in primary and support activities that allow the company to simultaneously pursue low cost and differentiation. This strategy is flexible and enables Ford to use technology to control the production of variety of products in moderate, flexible qualities and with a minimum manual interaction, whose goal is to eliminate cost verse product variety. Cost leadership is a strong strategy, but it can be undermined by the frequent changes in technology, the imitation of cost advantage and lost of focus on consumers. Ford’s differentiation strategy focuses on developing a unique product that consumers are willing to pay and the combination of these two strategies enables Ford to stay on its core competencies.
With about 187,000 employees and 62 plants worldwide, the company’s automotive brands include Ford and