Case Analysis - Ford Motors

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A Case Analysis on Ford Motor Company Introduction Henry Ford’s Motor Company is one of America’s biggest prides in automotive industry. It is a multinational corporation and the world's fourth largest automaker based on worldwide vehicle sales, following Toyota, General Motors, and Volkswagen. The founder, Henry Ford incorporated the company on June 16, 1903. At 1980’s, under the leadership of his grandson Henry Ford II, several bad decisions had been made regarding the organizational structure for being an autocratic leader. Some internal problems were also contributing to the company’s loss in the business. Several times the company has experienced crisis to lose billions of dollars and faced a wide range of criticism for producing cars designed for yesterday’s consumer and poor quality. A phenomenon downturn happened at the early 1980’s to auto industry including Henry Ford’s Motor. The company encountered severe economic losses as a result of a reduction in market share, as well as the high costs incurred by labor contracts and the development of automobiles that met the new federal standards. In 1980, the company lost $1.54 billion, despite strong profits from the truck division and European operations. Ford lost a further $1.06 billion in 1981 and $658 million in 1982 while trying to affect a recovery; its market share fell from 3.6 percent in 1978 to 16.6 percent in 1981. Statement of the Problem Henry Ford II being an autocratic ignorant leader was unable to accept his subordinate’s idea thereby failed to recognize the current market’s demand. He was unwilling to change their old car design “Pinto” to small car design which was popular at that time. Objectives To adapt a democratic organizational structure for a better management. To recognize current market’s demand. Scope of Work The study will focus on the recession happened between 1979 to 1982. FORD SWOT ANALYSIS Strengths Well-known brand. Affordable price...
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