Ford Motor Company

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(BUS 302): Week (4) – Assignment # 1: (Ford Motor Company) (1/21/2011)
(Shalema Rodriguez) (6448862787)
Student
(Strayer University)
Professor Chester Galloway
(BUS 302): Week (4) – Assignment # 1: (Ford Motor Company) (1/21/2011)
(Shalema Rodriguez) (6448862787)
Student
(Strayer University)
Professor Chester Galloway

1.Discuss at least three criteria the company should use to decide which of the four listed options is best and the reasons why each criterion should be used.
Based on the case study (what would you do?) it listed four options for the Ford company, here are the three criterion the company should use to decide which of the four listed is best and the reasons why each criterion should work and be used. The first rule for testing these 4 options is the reason for being in business to make a profit, which is what the stock holders expect. The next judgment would be to examine the options and weigh the profitability of each or a combination of them. The next standard would be longevity or measuring what options would sustain the Ford Motor company for years to come. Let’s look at option 1 that suggests closing older plants to realign production and sales. The criterion is you don’t want to produce more product than you can sell in this case it is cars. Ford Motor Company has been losing money for years particularly in its North American operations. According to Mandy Bennett’s Ford Motor company 2004 annual report “The Ford Motor Company has had many (Bennett, 2004) disappointments in the past several years”. These criteria should be examined and applied just as Mr. A Mulally (CEO of Ford Motor company) negotiated with labor unions to successfully slash more than 30,000 jobs, and close factories. Ford spent $700 million on severance packages and paid layoff expenditures for union workers. This in turn gave Ford a cash cushion to float on for the time being while working out long term profitable plans. (S Holmes, 2006)

2. Discuss at...
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