Logistics and Value Chain Analysis-Ford Motor Company

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Executive Summary
The Ford Automotive Company is an American Multinational Enterprise (MNE) based in Dearborn, Michigan, Detroit. The second largest automaker in the U.S. operates out of three regions, Europe, Latin America and Asia Pacific with 78 globally located plants and approximately 213,000 employees. As a multinational enterprise the company’s activities have a significant impact on the environmental, social and economic systems. The central objective of the report aims to identify how these activities are organized in the major stages of the value chain. In addition, the report will identify other key areas with regards to the importance of the concepts to an international business, the context, segmentation, international business, institutional and governmental aspects as they all relate to Ford’s value chain. The report also includes critical analyses, such as a PESTLE analysis to identify factors in the macro-environment that will affect the firm. In the automobile industry the effects of using strategic innovative ideas and advanced technology is a major contributor to the fierce competition experienced with rivals. The Ford Motor Company has many challenges to overcome since the global crisis. The company’s board has submitted a Sustainability Report in which this report will refer to for recommendations as detailed in the proposals for the Company’s growth and positioning in the market during this difficult period. The Logistics and the Value Chain concepts with guidance of Michael Porter’s ‘Value Chain Model’ are the main areas the paper will focus on as applied to Ford Automobile Company, in its overseas operations. It will identify the value-adding activities in their respective categories of the firm’s, Infrastructure, Human Resource Management, Technology Development, Procurement, (support activities), and the primary activities of, Inbound logistics, Operations, Outbound logistics, Marketing and Sales and Service, resulting in the company’s targeted Profit Margin to provide a competitive advantage. The paper will reflect the recommendations and reasons for any changes.

Table of Contents
1.0 Introduction………………………………………………………………………………………………………………………..3
2.0 Definitions…………………………………………………………………………………………………………………………..4
3.0 Ford Motor Company Background……………………………………………………………………………………….4
4.0 Importance of Concepts to International Business……………………………………………………………….4
5.0 Context of the Organisation…………………………………………………………………………………………………5
6.0 Competitive Industry……………………………………………………………………………………………………………5
7.0 Market Segment…………………………………………………………………………………………………………………..6
8.0 Context – Aspects dependent on Ford’s Value Chain…………………………………………………………….6
9.0 Logistics and Value Chain Concepts………………………………………………………………………………………6
10.0 Ford’s Supportive Activities in the Value Chain…………………………………………………………………..7
11.0 Primary Activities of Ford’s Value Chain…………………………………………………………………………..10
12.0 How Logistics form part of the Value Chain………………………………………………………………………11
13.0 International Business Strategies……………………………………………………………………………………..12
14.0 Institutional Aspect………………………………………………………………………………………………………….12
15.0 Governmental Aspect……………………………………………………………………………………………………….14
16.0 Political Risk……………………………………………………………………………………………………………………..14
17.0 Analysis……………………………………………………………………………………………………………………………14
18.0 PEST Analysis……………………………………………………………………………………………………………………15
19.0 Recommendations……………………………………………………………………………………………………………17
20.0 Conclusion……………………………………………………………………………………………………………………….20
Referencing……………………………………………………………………………………………………………………………..22
Bibliography…………………………………………………………………………………………………………………………….23

1. Introduction
The Ford Motor Company
Henry Ford, a talented engineer, born in Michigan in 1863, established the Ford Motor company in June 1903, with $28,000 and 11 associates, signalling the birth of what was to become one of the...
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