Case Study- Ford Motor Company
Case Study- Ford Motor Company
Stacey Planz
Strayer University
Principles of Management
Bus302
Professor Osburn
January 22, 2011
Case Study- Ford Motor Company 1. The case creates four options to choose from. 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: i. Economically profitable; to maximize Ford’s profits, it’s clear that North American factories are not doing good and are the major sources of losses. Ford has lost a substantial amount of market share to its competitors and is not doing well during/after crisis ("Ford Motor Company", 2010) Ford doesn’t want to produce more cars than it sells; in fact, it might be good to produce a bit less than it could actually sell (Ford Motor Company, 2011, p. 1). ii. Cost of Staff; in Ford’s North American operations is expensive due to unionization. The United Auto Workers (UAW) represents most of the company’s production employees ("Ford Motor Company", 2010), and the contract terms over the years have been designed to provide significant long-term support to those employees benefits such as retirement, job protection (Ford Motor Company, 2011, p. 1). These generous benefits now weigh down the company operations (Ford Motor Company, 2011, p. 1). iii. Access to Markets; my third criteria would also boost my point to shut down the North American facilities and focusing on the other regions of the world. Since Ford is doing well in any other regions, they should concentrate on those markets and it would be easier to access those markets ("Ford Motor Company", 2010). Europe, South America and China have been very receptive to Ford vehicles and the company is doing well in these markets (Ford Motor Company, 2011, p. 1). 2. In light of the possibility that market conditions can and do change, discuss at least three examples of how the company should build-in flexibility to back-up its
Stacey Planz
Strayer University
Principles of Management
Bus302
Professor Osburn
January 22, 2011
Case Study- Ford Motor Company 1. The case creates four options to choose from. 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: i. Economically profitable; to maximize Ford’s profits, it’s clear that North American factories are not doing good and are the major sources of losses. Ford has lost a substantial amount of market share to its competitors and is not doing well during/after crisis ("Ford Motor Company", 2010) Ford doesn’t want to produce more cars than it sells; in fact, it might be good to produce a bit less than it could actually sell (Ford Motor Company, 2011, p. 1). ii. Cost of Staff; in Ford’s North American operations is expensive due to unionization. The United Auto Workers (UAW) represents most of the company’s production employees ("Ford Motor Company", 2010), and the contract terms over the years have been designed to provide significant long-term support to those employees benefits such as retirement, job protection (Ford Motor Company, 2011, p. 1). These generous benefits now weigh down the company operations (Ford Motor Company, 2011, p. 1). iii. Access to Markets; my third criteria would also boost my point to shut down the North American facilities and focusing on the other regions of the world. Since Ford is doing well in any other regions, they should concentrate on those markets and it would be easier to access those markets ("Ford Motor Company", 2010). Europe, South America and China have been very receptive to Ford vehicles and the company is doing well in these markets (Ford Motor Company, 2011, p. 1). 2. In light of the possibility that market conditions can and do change, discuss at least three examples of how the company should build-in flexibility to back-up its
References: Cornwall, J. (2004). Valuation and Exit Planning. Retrieved from http://www.drjeffcornwall.com/2004/07/ Ford Motor Company. (2010). Retrieved from http://kmresults.com/solutions/search?q=Ford+Motor+Company Harris, R. (1998). Decision Making Techniques. Retrieved from http://www.virtualsalt.com/crebook6.htm The Analysis Of Strategic Rationale And Implications Of Ford UK Plant Closure. (2005). Retrieved January 22, 2011, from http://www.ivoryresearch.com/sample3.php Williams, C. (2011). Planning And Decision Making. In (Ed.), Management (pp. 76-93). Mason, OH: Cengage Learning. (Original work published 2010) (“Ford Motor Company” (Winter 2011). Retrieved January 22, 2011 from Stayer University (Course 302) Courseroom.