Ford
Ford Motor Company
Heloise V. Posey
Strayer University
Professor Marla Boulter
Principles of Management (Bus 302)
January 28, 2011
Abstract:
Ford Motor Company was founded in 1903 by Henry Ford who lived in Detroit, Michigan therefore giving birth to Detroit 's title of automobile capital of the world. The first retail dealership was opened by Stephen Tenvoorde in 1903 in St Cloud, MN. Mr. Ford was a visionary of the idea of mass production. Mr. Ford 's ability to make automobiles affordable is cited as a driving force behind the automobile industry and the creation of a middle class in America.
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.
Closing down older plants in an effort to realign production and sales would not be a
good option at this time. This will involve a trickle effect of layoff which leads to loss of wages
and or pay cuts, unemployment rising families suffering.
Moving Ford to produce only smaller car and eliminate/reduce the SUV and truck lines
would possible help and eventually hurt Ford. Today 's economy and the high price of gasoline
will support Ford 's decision to produce smaller cars on one hand but then the consumer will have
to go to other companies to purchase their SUV and trucks thus causing Ford the loss of this
revenue.
Selling the entire Premium Automotive Group (PAG) and letting someone else figure out
how to make money selling so few vehicles a year. Selling the PAG would bring Ford back in
line with Ford 's way of doing business anyway possibly exclusively with Lincoln and Mercury.
The PAG was a group within the Ford Motor Company and was formed in 1999 to oversee the
business of Ford 's high end automotive operations.
Of the four options I think Ford 's efforts of taking
Heloise V. Posey
Strayer University
Professor Marla Boulter
Principles of Management (Bus 302)
January 28, 2011
Abstract:
Ford Motor Company was founded in 1903 by Henry Ford who lived in Detroit, Michigan therefore giving birth to Detroit 's title of automobile capital of the world. The first retail dealership was opened by Stephen Tenvoorde in 1903 in St Cloud, MN. Mr. Ford was a visionary of the idea of mass production. Mr. Ford 's ability to make automobiles affordable is cited as a driving force behind the automobile industry and the creation of a middle class in America.
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.
Closing down older plants in an effort to realign production and sales would not be a
good option at this time. This will involve a trickle effect of layoff which leads to loss of wages
and or pay cuts, unemployment rising families suffering.
Moving Ford to produce only smaller car and eliminate/reduce the SUV and truck lines
would possible help and eventually hurt Ford. Today 's economy and the high price of gasoline
will support Ford 's decision to produce smaller cars on one hand but then the consumer will have
to go to other companies to purchase their SUV and trucks thus causing Ford the loss of this
revenue.
Selling the entire Premium Automotive Group (PAG) and letting someone else figure out
how to make money selling so few vehicles a year. Selling the PAG would bring Ford back in
line with Ford 's way of doing business anyway possibly exclusively with Lincoln and Mercury.
The PAG was a group within the Ford Motor Company and was formed in 1999 to oversee the
business of Ford 's high end automotive operations.
Of the four options I think Ford 's efforts of taking
References: http://www.time.com/time magazine/article http://retailindustry.about.comFords-company- mission- statement Williams, Chuck Cengage Learning Management 2010 Custom Edition www.Ford.com Automotive Intelligence News .