The mass production method inspired from Ford and Taylor lead to the success of the American motor vehicle companies. About Taylor and Scientific Management The major change came through the work of Fredrick Winslow Taylor and his theory of scientific management system. It was not that Taylor was unique or completely new; only time and motion study could be put in that category. The trend was already moving towards systematic management such as formal management methods or by cost ... ... middle of paper ... ...and Fordism that lead to the increasing productivity and decrease in skilled workers between the years 1919 and 1929. Taylorism and Fordism both help capitalists take control over the worker and a means of increasing production.
Today in this Era of Modern Technology, new designs and innovations of existing technology have been used to improve our quality of life. Mankind now are surrounded by modern tools and gadgets which we can not live without such as computers, smartphones and modern vehicles such as automobiles and motorcycles. These things are quite expensive in the beginning but fortunately, these items are getting cheaper ever day because of the industries manufacturing these items in high quantity. Industries were greatly modernized in the Industrial Revolution with the development of factories and further innovated by Henry Ford with the introduction of assembly lines while using the division of labour which cuts down the industries some expenses due to higher efficiency and productivity. Now the industries are using automated machines replacing human labour in factories to manufacture the products aided by the development of robotic technology and computers.
While most industries have an effect on the economy, the automotive industry has far-reaching implications for most Americans. Not only are the workers affected but the many spin-off jobs created as well as the consumers that must purchase the automobiles manufactured. The automotive industry is considered elastic. The prices fluctuate depending on supply and demand. For example, when the economy takes a downturn and car sales are down the automakers attach incentives to the purchase of new vehicles to stimulate sales such as interest-free loans, rebates and lowered prices to encourage Americans to purchase their goods.
Ford's innovation of the assembly line transformed the automobile industry from just an expensive piece of fancy metal with wheels to a productive machine of American society. Many people assume that Henry Ford invented the assembly line, however, they were wrong. Henry Ford only improved it very greatly and used it in his factories to produce them better and faster. Ford perfected it to be used for mass production. The assembly line allowed for production to increase in the factories.
For example, there was divided authority between workers and managers, as well as inefficiencies, contradictions of interest and market competition. Whilst Fordism helped improve certain areas of management and society, there were also a few problems that arose from it. Fordism was truly revolutionary touching all areas of the industrial sector, creating a new scientific management. It brushed away the old fashioned features related to the early 20th century capitalist society whilst at the same time sustaining economic development. Merkle, 1980 states Fordism wasn’t completely compatible with capitalism, however Henry Ford succeeded in slowly eliminating the ‘bubble and glut economy’ (Lind,M., 2013).
Power of Negotiation With Customers The second force that has made Ford to become profitable is the power of negotiation with customers. Clients exert significantly influence over Ford. In fact, there are moderate substitutes in the car industry where customers can choose from, so Ford has strengthened clients’ satisfaction to addresses the external factors (Ferguson, 2015). Ford has also taken strategic actions to deal with changes in clients’ preferences and needs to prevent terrible consequences for the company. Also, the company is always offering cheaper cars and finance plans to its clients through Ford Credit.
Swan (2013) state that in 1908 Henry Ford released the Ford’s first car that Model T. However after he invented assembly line, the cost of car reduce form $825 (1910) to $290 (1925). Nowadays, the assembly line is still popular around the world. Assembly line has two points of benefit that Specialization of labor and Uniform product. Firstly, the significant advantage as Hamel (2013) reported that assembly line allows workers and machines to focus on specific parts, which can increase efficiency of production. Large assembly line can mass production of goods and the high productivity of mass production could reduce the... ... middle of paper ... ...ne will be reducing, but in future it will not be disappear.
During the 20th century, the automobile changed American society in many ways. Before the automobile, travel took twice as long and people did not see how they could explore the world outside their home. New ideas were created to simplify lives of Americans and industries boomed creating economic prosperity. After the automobile, new positions became available and gave many Americans the opportunity to make a living. Travel was made easier and faster.
This scenario focuses on the small part of the marketplace that is not well served by existing businesses. A focused company will supply a narrow segment of products and services their wants, interests, desires and needs. The key secret of this focus strategy is to provide a tight group especially well, and not targeting to produce products which are many but do not satisfy the consumers directly as per product or service quality. In our case of Ford Car Making, for instance, It will be advantageous advanced height. Although most of the people are not this far tall, to some extent the focus strategy would have helped in making sales of different customers, unlike the other competitors who would not have discovered this
The Model “T” was less expensive than most cars, but the majority of the people still could not afford to buy one. Ford realized that he needed a more cost-effective way to produce the car in order to lower the price enough to make it affordable for everyone. He and his team of experts looked at other Industries and found four principles that would make their goal of creating a less expensive car happen. These principles are as follows: inter-changeable parts, continuous flow, division of labor, and reducing wasted efforts. Using interchangeable parts meant making individual pieces of the car the same every time.