...Ford Pinto Case In the late 1960s Ford Motor Company developed the idea of the Ford Pinto. Foreign automobile such as Germans and Japanese manufactures dominated the small car market. Ford Motor Company did not want to stay behind in production. Chief Executive Officer, Henry Ford II and Lee Iococca’s rushed building new compact cars out in the market within two and half years which, was the Ford Pinto and the shortest production planning. Production and distribution of the 1970s Ford Pinto stirred controversy regarding safety concerns. Ford’s desire to compete with the foreign manufacturers led Ford to overlook known design flaws and their own ethics while in search of higher profits. Ford assigned a team of engineers to work on nothing but the Pinto. This team was required to stick to Iacocca’s goal of “the limits 2000”; this meant that the car could not weigh more than 2000 pounds. This became a challenge for the engineers and created concerns regarding the placement of the fuel tank. Because of the accelerated production the testing was not done thoroughly. Out of 11 Pintos subjected to rear end collisions, eight failed the test. Only the three with baffles between the tank and bumper and a special interior tank lining met safety standards. The project was almost complete, and it was not possible to make redesign revisions and meet the deadline for the release of the Pinto. The car met the requirements for the American public. It was not long before...
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...Ford vs Chevrolet Ford and Chevrolet (Chevy) are in the automotive industry and have been in completion for many years start back in 1908, both companies started in the state of Michigan and have been battling it out for profits, market share and hometown bragging rights. Ford was founded in the suburb of Dearborn, Michigan and Chevy was founded in Flint, Michigan. Ford and Chevy both are good-producing sectors, they both manufacture automobiles that are similar but different. They each have a mission statement, Ford’s mission statement “One Team, One Plan, One Goal.” Ford’s mission statement is defined to each part of the statement, One Team meaning people working together as a lean, global enterprise. One Plan meaning aggressively restructure to operate profitably at the current demand and changing model mix, developing new products our customers want and value, finance our plan and improve our balance sheet, and work together as one team. One Goal meaning an exciting viable Ford delivering profitable growth for all. Chevy’s mission statement is an unofficial statement “We win when the customer says we win.” Chevy has an unofficial mission statement but uses more of Five Principles to guide its business, Safety and Quality First, create long-life customers, innovate, deliver long-term investment value and make a positive difference. Both Ford and Chevy are oligopoly competition, being that both companies supplies a large portion of the automotive industry. Being in...
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...Ford Motor Company Pinto Case Karen Nollet, Alonso Miller, Michael Morra, Pamela Tenori MGT/216 Abstract In 1971, Ford Motor Company (FMC), on the advice of then vice-president Lee Iacocca, introduced the first subcompact vehicle, the Ford Pinto. After production, Ford discovered a defect in the design on the fuel system; the gas tank was placed in the rear of the vehicle. This error could cause the vehicle to explode on low speed rear end collisions. Ford conducted a risk/analysis to determine whether to recall the vehicles or leave the situation as is and suffer the consequences as they arise. After concluding that the vehicles could be modified for $11 per vehicle, Ford decided not to recall the vehicles. Based on their risk/analysis the cost to recall the vehicles sold would be $137 million, Ford determined that it would be more profitable to leave the vehicles as is and pay out costs in lawsuits because this figure adjusted to $49.5 million, substantially lower than the cost to recall the product. Ethics and morals would appear to be ignored for profit and gain. Ford Motor Company Pinto Case Ford Motor Company Mission Statement (1996), “We are a global family with a proud heritage passionately...
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...Ford’s Current Performance and Corporate Governance Introduction The purpose of this paper is to brief detail of the Ford Motor Company. The different aspect of their development and future production in discuss in the paper below. This company was selected by our team because of Ford Motor Company has come a long way despite having going through auto industry crash a couple of years ago. The company was founded in 1903 by Henry Ford. He was 39 when founded the company. He started producing cars in Detroit, Michigan where he introduce the first engine, which had a removable cylinder head and the first safety glass in windshield. Within a decade of starting, Ford led the world in the expansion and refinement of the assembly line. He also crested a scientific laboratory, which was responsible for the invention of the SQUID device. By the 1980’s, Ford introduces several highly successful vehicles around the world. Even to this day, no cannot think about getting a new car without thinking about some type of ford vehicle. Even though the first modern automobile was already created, Ford’s plan was to create a low price engine powered car that the average man could afford. 2014 was a year that started a successful plan into the right direction. Despite having a $12.6 billion in losses and plants years ago they have regain quite well for themselves. Their financial reports show a company growth and improvement in the fiscal health department. `Their pre-tax operating profit of...
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...the internal and external environments to certain people in the corporation (Wheelen & Hunger, 2010). Conducting an environmental scan for the two following companies will offer a background to increase chances and distribute the resources in expectation of the changes in the environment. The competitive advantage, measurement guidelines, and the effectiveness of the measurement guideline will be reported on for Ford and Dell. Ford The Ford Motor Company has been a force in the automotive industry since the early 1900’s. Ford has been a company that has endured trials and tribulations and has even recently been able to prevail in our economic downfall. An analysis of their standards, views, missions and values, we can understand how it is that they have remained a strong force within the automotive industry. Ford takes a unifying approach in their business stance when concerning their mission. Their mission is to work as "ONE Ford" with the focus, team work and a single global approach, aligning employee efforts towards a common definition of success" (Ford n.d., para. 3). They also incorporate a “One Plan” approach addressing Ford’s approach to their products. The four-point business plan consist of; aggressively restructure to operate profitably at the current demand and changing model mix, accelerate development of...
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...Applied Ergonomics 34 (2003) 23–28 Technical note Corporate ergonomics programme at Ford Motor Company Bradley S. Joseph* Ford Motor Company, Health Protection Services, WHQ 532-B6, P.O. Box 1899, Dearborn, MI 48120-1899, USA Abstract The use of ergonomic principles in automobile assembly and manufacturing operations has become an important part of a comprehensive health and safety process as well as an integral part of the engineering systems. Ford Motor Company has developed an ergonomics process to manage issues related to injury and illness (e.g., musculoskeletal diseases) and to ensure the appropriate use of human resources on the plant floor. The ergonomics programme uses joint labour and management teams to identify and evaluate jobs and develop and implement solutions. This paper summarises the efforts of the Ford Motor Company in implementing and maintaining the programme. Key strategies are outlined that provide important links to internal organisational units that are critical to fully utilise the ergonomics process. In addition, the paper outlines differences between proactive and reactive efforts and shows the importance of using the information generated by the initiatives for process improvement. r 2002 Elsevier Science Ltd. All rights reserved. Keywords: Ergonomics process; Proactive; Reactive; International 1. Background Ford Motor Company is the largest producer of trucks and second largest producer of vehicles in the world. They produce 70 different...
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...Ford Motor Company | Spring 2013 Final Project | By Drake Dukes, Sarah Miller, Josh McKeon, Mackenzie Sowers, and Danny Lee | 5/9/2013 | Introduction Ford Motor Company aka “Ford” is an American multinational automaker headquartered in a suburb of Detroit, Michigan founded by Henry Ford and incorporated in 1903, 109 years ago. Ford introduced methods for large-scale manufacturing of cars through the use of the world famous assembly lines. Ford Motor Company engages in the development, manufacture, distribution, and service of vehicles, parts, and accessories worldwide. Ford markets cars, trucks, parts, and accessories through retail dealers in South America, Europe, Turkey, Russia, and the Asia Pacific region (SEC). Ford is the second-largest US-based automaker behind General Motors and the 5th largest in the world behind its domestic counterpart, GM and foreign rivals Volkswagen, Toyota, and Hyundai. The company operates through two sectors, Automotive and Financial Services. Under the Automotive sector, the company sells automobiles and commercial vehicles under the Ford brand and luxury cars under the Lincoln brand. Ford also owns small stakes in Mazda of Japan and Aston Martin of the United Kingdom. The financial services sector provides financing products, which include retail installment sale contracts for new and used vehicles; leases for new vehicles to retail customers, government entities, daily rental car companies, and fleet customers; wholesale financing...
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...The Ford Pinto Case Team B Management 216 May 10, 2011 Ian Finley The Ford Pinto Case The horrific tragedy that took place on August 10, 1978 involving Judy Ann Ulrich, Lynn Marie, and Donna Ulrich was a real eye opener to a lot of consumers regarding the Ford Pinto. A van collided into the back of the young girl’s car causing the Pinto to collapse, the fuel tank to rupture, and the car to engulf into flames. Donna and Lynn Marie were trapped inside and suffered to death as a result of the combustion of the vehicle. Judy Ann was able to be extracted from the wreckage but passed away several hours later at a hospital. Two months prior to the casualty, Ford recalled all Pintos produced from 1971 to 1976 to repair their inadequate gas tanks. Ford only took the initiative for the recall after it was revealed that more than fifty people had died in Pinto-related collisions. With the introduction of the Ford Pinto, Ford’s desire for competition, led the company to overlook known construction flaws and their own moral code to endure higher profits. Lynne Marie and Donna Ulrich, along with Richard Grimshaw and the unidentified neighbor; how do you assign a value to a human life? According to the Ford Motor Representatives in the Ford Pinto Fires Case, it is quite simply done with a cost/benefits formula analysis. We’d like to believe that those lost are the only people that mattered, the people whom Ford Motor Company should have considered when they turned down a $137.5...
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...each other, and that they deliver value to the firm and its customers. The three companies we have just mentioned illustrate that industries are fluid and that success is not guaranteed. Two of the firms came to prominence by taking on industry incumbents and developing new value propositions. The third was extremely successful and lost this position. While there is much debate on substance, there is agreement that strategy is concerned with the match between a company’s capabilities and its external environment. Analysts disagree on how this may be done. John Kay (2000) argues that strategy is no longer about planning or ‘visioning’ – because we are deluded if we think we can predict or, worse, control the future – it is about using careful analysis to understand and influence a company’s position in the market place....
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...Project Part I, Strategic Business Unit Proposal: The Ford Motor Company Strategic Business Unit Proposal: The Ford Motor Company Industry Background The Automotive Industry is one of the most important industries in the economic sector worldwide. Most of the industrialized countries produce their own brand of cars and/or trucks. According to the International Organization of Motor Vehicle Manufacturers statistics, during the year 2010, over 78 million of cars and trucks were produced in over 50 countries worldwide, with China, Japan and the United States as the world top three producers. The Automotive Industry started in Germany with the introduction of the gasoline power internal combustion engine in 1876 by Nikolous Otto (the same type of engine that is used today). In 1885 Karl Benz started the first production of an automobile, a three wheeler that was delivered for the first time in 1886. In Springfield Massachusetts, the Duryea brothers, Charles and Frank, were fascinated with Karls Benz’s idea of a “horseless carriage” and in September 1893, they successfully road tested their automobile on the streets of Springfield. The Duryea Motor Wagon Company became the first automobile production factory in America and by 1896 they had sold a grand total of 13 “horseless carriages” (Wright R.A, 1996). After the Duryea Brothers, many others followed with the most famous being Henry Ford, who established The Ford Motor Co. It was said that at one point America had...
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...Ford Motor Company Billie Warren OMM 692: Organizational Management Strategy Adrienne Osborne January 14, 2013 Executive Summary- Ford Motor Company (Ford) has been a leader in the auto industry, however, over the past few decades has continued to lose market share to foreign competition. The current weak United States economy combined with rising fuel prices and increased political pressures regarding global warming, presents several challenges to Ford and the entire auto industry. These current challenges provide exciting opportunities for the auto company who must reduce cost, get fresh capital, and quickly develop and produce, new efficient, economic autos, and alternative fuelled vehicles. The global auto industry will continue to grow with 80% of the global auto industry’s growth from now until 2014 is expected to come from emerging markets. However, for Ford to succeed they will need to address several internal issues regarding legacy costs, unions in the United States, and the development of a wide range of new vehicles that consumers consider the new “must have” vehicles instead of the large trucks and SUVs (Scribd.com). Looking to the future Ford will have a global presence in these critical emerging markets like China and India, and have the knowledge and expertise in efficient and alternative vehicle technologies required to move the company forward. For Ford to achieve the vision of being synonymous with alternative vehicles...
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...An organizational mission is an organization's reason for existence. It often reflects the values and beliefs of top managers in an organization. A mission statement is the broad definition of the organizational mission. It is sometimes referred to as a creed, purpose, or statement of corporate philosophy and values. A good mission statement inspires employees and provides a focus and direction for setting lower level objectives. It should guide employees in making decisions and establish what the organization does. Mission statements are crucial for organizations to prosper and grow. While studies suggest that they have a positive impact on profitability and can increase shareholder equity, they also support that almost 40 percent of employees do not know or understand their company's mission. Not only large corporations benefit from creating mission statements but small businesses as well. Entrepreneurial businesses are driven by vision and high aspirations. Developing a mission statement will help the small business realize their vision. Its primary purpose is to guide the entrepreneur and assist in refining the planning process. By developing a strategic plan that incorporates the mission statement, entrepreneurs are more likely to be successful and stay focused on what is important. The mission statement encourages managers and small business owners alike to consider the nature and scope of the business. Business Week attributes 30 percent higher return on several key financial...
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...Introduction Organizational mission is the basis of the organization on existence. It often reflects values and belief for top-managers working in the organization. Mission is wide definition of organizational mission. It is sometimes mentioned as a creed, the purposes, or the application for corporate philosophy and values. Good application inspires employees and provides with a reference point for an establishment of the bottom level of the purposes. It is necessary to be guided employees in decision-making and to establish, that the organization does. Mission of the application has crucial importance for the organization to prosper and develop. Not only large corporations receive benefit from creation of mission of the application, but also small enterprises, and so. Enterprise business moves with vision and high aspirations. Development of mission will help small business to realize the vision. Its basic purpose consists in managing businessman and to assist in perfection of process of planning. 1. COMMON ELEMENTS Though mission of the application vary from an organization to the organization and represent definiteness of each of them, all of them have similar components. The majority of operators descriptions of the target market of the organization include, geographical areas, their interest for a survival, growth and profitableness, philosophies of the company, and also the organizations of desirable image. For example: Our mission consists to become favorite...
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...Ethics Keith A. Bates Sr. MGT/498 4 April 2012 Richard Rignall Ethics Ethics and Social Responsibility in Developing a Strategic Plan Ethics are values that guide personal thoughts and actions in knowing right from wrong. Personal conduct and behavior is based on how the individual views unethical behavior. Social responsibility is the company, management, and employees working and conducting themselves by following rules of society. Companies that include ethics and social responsibility into the company's mission and vision statement have a greater chance of succeeding. Ethics is based on an individual's actions. These individual actions affect the business. Adelphia, one of The United States largest cable company, failed because of poor leadership. Leadership at Adelphia did not conduct business in an ethical fashion and these actions created an atmosphere of greed and corruption, which resulted in prosecution and jail time. Companies have a responsibility to the society that the company serves. Successful companies are organizations financially responsible, but do not place profit above social responsibility. Companies that demonstrate their commitment to society and consumers create an atmosphere where the consumers will return. Consumers need to feel safe with the products they purchased and have faith the company is responsible in the product design, pricing, and consumer safety. Corporations should consider their community and residents when formulating the strategic...
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...Introduction Ford Motor Company’s success is based upon flexibility, innovation, and the ability to provide affordable vehicles for the masses. Initially the company designed one model car (the Model A), that could be mass produced by an assembly line approach. As a result, the two-cylinder, eight horsepower engine was affordable at the price of $850.00, in 1903. In 2008, the Ford Motor Company established its “One Ford” business model, which was a comprehensive plan to sell numerous models globally. This approach expanded the company’s commercial opportunities from models that were designed with the local market in mind. So, although Ford escaped the bankruptcy and restructuring that befell its American rivals General Motors and Chrysler in 2009, the automaker still found itself needing to change its business model to remain solvent and to respond to changing customer tastes. Therefore, Ford’s business plan included bringing additional models to North America, such as its B-Max crossover, along with developing global engine and transmission technologies. Today, Ford continues to offer a large portfolio of reliable, affordable automobiles at reasonably competitive prices and remains as one of the industry leaders. Background The Ford Motor Company was started in 1903 by Henry Ford in Dearborn, Michigan and made its first sale, a Model A, on July 15, 1903. Some major milestones experienced by the Ford Motor Company happened in 1922 when Edsel Ford urged his father to purchase...
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