...Business Analysis Part III MGT 521 June 18, 2012 Business Analysis Part III The focus of this paper will be to review recent economic trends and how these trends have and influencing the company. How strategic initiatives taken by Ford pertain to both operational and organizational revisions, as well as, tactics that have been or could be implemented by the Ford to reach their strategic goals. Conversely, a review of the role human resource management plays in aiding the company in the achievement of its business goals, concluding with a review of the salient points. Economic Trends and Strategies In 2009, Ford’s sales and revenues (in millions) were at $103,868 for automotive sales and $12,415 for financial service, for a total of $116,283. However, global economic trends influencing the Ford Motor company for 2010 did show increased sales and revenues by $12.671 (OneFord - Ford Motor Company, 2010). Nevertheless, in the most recent annual report from 2011, it has been shown that while the total returns to shareholders for the 2010 fiscal year were slightly higher than those in 2011, Ford has continued to show an increase in total company sales and revenues, in the automotive sector, sales were also up by $8,888. That being said, the year-end sector balance sheet data shows Fords 2011 total assets at being $179.248 (Ford Motor Company, 2011). Decline in sales from previous years was in part due declining product sales...
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...Effective Strategies Paper MGT/312 June 29, 2015 Gregory Lucht Effective Strategies Paper Most adults today have had the pleasure of driving a Ford, or they know someone who has. Henry Ford was known as an amazing innovator. Ford's history comes with great stories of success; however the recession that started in 2000, caused the Ford Motor Company to experience some downturns. After ending his stay as President and CEO of Boeing Commercial Airplanes, Alan Mulally joined Ford Motor Company and helped change its path towards bankruptcy. This study will describe the team-building techniques and strategies used by Alan Mulally to transform the Ford Motor Company. The research conducted on the condition the company was in when he took over and where it is today. The strategy used to establish the team and how the plan executed will be discussed. Also, the rationale will be provided for other procedures that could have utilized in a similar situation. Who Is Alan Mulally? Alan Roger Mulally was born in 1945 and is an accomplished business executive worth over twenty-three million dollars. Companies look to him for innovative ideas that will get them going again. After college, he decided to join the Boeing organization as an engineer. Here, he was able to contribute to the different Boeing models; including the 777 project. He eventually moved up within his department due to his incredible contributions. According to "Ex-Ford Ceo Alan Mulally Joins Google’s Board Of Directors"...
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...build, he has the challenging task of improving Ford's brand image and returning the company to profitability. Mulally has invited your consulting firm to advise his management team on restoring the company's reputation and viability. Assigned to the project, you have been asked to evaluate Ford's situation and prepare a report with the following content: 1. Define and discuss Ford's business-level strategy. a. How can the company's value-chain activities be better linked to create value for the company? b. How can Ford successfully position itself in terms of the five forces of competition? c. In what ways can the company effectively manage customer relationships to increase strategic competitiveness? d. What conditions and tools can facilitate Ford's efforts to produce differentiated products at relatively low costs? 2. Outline a rough competitor analysis. What can be learned about expected competitor behavior by using the model of competitive rivalry to understand Ford's situation? 3. What role will strategic leadership play in helping Mulally and the organization meet its strategic objectives? Be prepared to discuss your analysis and findings with your consulting team to formulate recommendations for Mulally. STRATEGIC ACTIONS: STRATEGY FORMULATION 1. Define and discuss Ford's business-level strategy. Ford's business-level strategy is a differentiation strategy, in which the company tries to produce vehicles...
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...The Transformation of the Ford Motor Company Most adults today have had the pleasure of driving a Ford, or they know someone who has. Henry Ford is known as an amazing innovator. In 1903 with $28,000 in cash, Henry Ford started the Ford Motor Company, whose automobiles changed how the world moved (FORD, 2014). Ford’s history comes with great stories of success; however the recession that started in 2000, caused the Ford Motor Company to experience some down-turns. After ending his stay as President and CEO of Boeing Commercial Airplanes, Alan Mulally joined Ford Motor Company and helped change its path towards bankruptcy. This study will describe the team-building techniques and strategies used by Alan Mulally to transform the Ford Motor Company. Research was conducted on the condition the company was in when he took over and where it is today. The strategy used to establish the team and how the strategy was executed will be discussed. Also, rationale will be provided for other strategies that could have been used in a similar situation. Who Is Alan Mulally? Alan Roger Mulally was born in 1945 and is an accomplished business executive worth over twenty-three million dollars. Companies look to him for innovative ideas that will get them going again. After college he decided to join the Boeing organization as an engineer. Here, he was able to contribute to the different Boeing models; including the 777 project. He eventually moved up within his department due to his amazing...
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...integration strategies from companies like Dell to portions of Ford’s supply chain strategy. Although there are several key differences between the companies, the restructuring plans of Ford 2000 have set a viable foundation to implement Dell’s virtual integration strategy in inventory management, customer service and support and suppliers’ management. The redesign of the process must include design not only of the supply chain but also of fulfillment, forecasting, purchasing, and a variety of other functions that historically been considered independently within the Ford hierarchy. Teri believes that implementing virtual integration by building on Ford’s key initiatives and projects including Ford Production Systems (FPS), Order to Delivery (OTD) and Ford Retail Network (FRN) that are currently underway will make their supply chain run more smoothly with less bottlenecking, reduced inventory, and better overall performance. Managers could overcome the complex and inaccurate manual process of forecasting and procuring parts which would result in reduced OTD lessen costs and enhance customer satisfaction. Further improved Supply Chain management will improve Supply Chain responsiveness and increase shareholder value to keep investors interested in the company. ------------------------------------------------- Introduction Due to increase in market competition, supply chain superiority of competitors, high profitability of financially equal companies, Ford’s CEO, Jac Nasser...
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...Environment and Root Cause Analysis 8 - 9 Alternatives and Options 10-11 Recommendations 12 Implementation 13-14 Monitor and Control 15 Conclusion 16 Ford Motor Company Executive Summary As director of Supply Chain Systems, Teri Takai recommends implementing virtual integration strategies from companies like Dell to portions of Ford’s supply chain strategy. Although there are several key differences between the companies, the restructuring plans of Ford 2000 have set a viable foundation to implement Dell’s virtual integration strategy in inventory management, customer service and support and suppliers’ management. The redesign of the process must include design not only of the supply chain but also of fulfillment, forecasting, purchasing, and a variety of other functions that historically been considered independently within the Ford hierarchy. Teri believes that implementing virtual integration by building on Ford’s key initiatives and projects including Ford Production Systems (FPS), Order to Delivery (OTD) and Ford Retail Network (FRN) that are currently underway will make their supply chain run more smoothly with less bottlenecking, reduced inventory, and better overall performance. Managers could overcome the complex and inaccurate manual process of forecasting and procuring parts which would result in reduced OTD lessen costs and...
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...3. FORD’S CURRENT STRATEGY In order to meet the future consumers’ trend forecasted by the automotive industry, Ford wants to reposition itself and its business model regarding as how to better satisfy consumer needs, which is to produce smaller economic cars that the US middle-class customers value. Therefore, it seeks to take a new direction and to bring a revolution to the automobile industry, and to revive its glory years. A number of vehicle programs have been changed, delayed or even dropped throughout 2007. Ford officials believe that the shifts are aimed to get the right products to the market faster, with the emphasis on reducing costs and accelerating product development. 3.1 TOWARDS MORE ECONOMIC VEHICLES Ford’s current business strategy is to make new mobility solutions that are fuel-efficient and environmental-friendly, and at an affordable cost to consumers. By monitoring the US market, Ford has detected a change in consumers’ purchasing behavior: the fact that the sales of trucks & minivans constantly fell since 2004 (the “peak” year), while small cars sales have been growing since the same year. This is a clear indication that the trucks in the US is in its declining stage, whereas smaller cars are favored in consumers’ eye. The ever-rising fuel price is another incentive for future car owners in buying more economical, thus smaller cars. Therefore, Ford’s vision of its short-term to medium-term strategy is that the firm will be able to bring affordable...
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...Running head: INNOVATIVE CHANGE AT FORD MOTOR COMPANY Innovative Change at Ford Motor Company Keller University Human Resources 587 August 24, 2014 Abstract Since Alan Mulally took over as Chief Executive Officer (CEO) for Ford Motor Company the business has been transformed into a powerful competitive force in the global automotive industry. An examination of the company’s communications surrounding Mulally’s retirement and the appointment of Mark Fields as the new CEO demonstrate how Ford used positive and candid communications to overcome resistance to the change. Actions as simple as providing verbal and nonverbal cues have a powerful influence on how others perceive a change (Nekoranec & Fourrier, 2013). A proposed alternative communication plan, including the use of more communication channels with increased frequency, would have helped the company address some of the fear and uncertainty among stakeholders. An example of an internal memo is provided to show how the use of positive and supportive descriptions of the change can motivate stakeholders to act as change agents on behalf of an organization by embracing the change and recognizing their essential role in the process. Innovative Change at Ford Motor Company In the past few decades Ford Motor Company has experienced a series of disruptive changes pertaining to the company’s leadership. In 2006, the appointment of Alan Mulally as the company’s Chief Executive Officer...
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...The Ford Motor Company’s Supply Chain Management Landon Orchard 292 Windermere Court West, London, Ontario, Canada 519-661-7006 Landon Orchard is currently an undergraduate business management major at Ashland University, Ashland, Ohio North Central Ohio APICS Chapter Full-time undergraduate student The Ford Motor Company’s Supply Chain Management 2 The Ford Motor Company’s Supply Chain Management ABSTRACT The influx of foreign automobiles that flood the United States market is higher than ever before and American companies are struggling to adapt to this decrease in market share. Ford is one of the organizations that has restructured its supply chain strategy to better integrate suppliers into their system reducing cost and making delivery more efficient. INTRODUCTION Background of Ford As European and Asian car manufacturers continue to make advancements on the American markets, Ford's market share will decrease even further. One of the processes that Ford must improve is its supply chain management. By being able to speed up and better interact with suppliers and consumers, Ford will regain lost market share by communicating customer needs between themselves and their suppliers and acting upon these requests quicker and more efficiently. The Ford Motor Company has been the focus of supply chain operations analysts lately as they have begun to revamp their supply chains and how they interact with suppliers and customers. Ford has been a leading...
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...BLB 20058 – M – MSTRA- L MANAGING STRATEGY ASSIGNMENT FARUK SULEIMAN TP025329 WORD COUNT: 3694 WORDS UCMF1103MBAIT SCHOOL OF POSTGRADUATE TECHNOLOGY PARK MALAYSIA ASIA PACIFIC INSTITUTE OF INFORMATION TECHNOLOGY UNIVERSITY OF STAFFORDSHIRE SHARMILA A/P K. N. SETHUMADHAVAN EXECUTIVE SUMMARY Strategy is well explained as the effective use of well laid out plans to achieve success. It is no less of spectacle to attribute strategy to individual achievement, achievement from a company, a country or at the very least a non – financial institute to achieve strategic success. Ford Motor Company has in recent times lost its market share to emerging Asian companies such as Honda, Toyota, Hyundai and Nissan. As a new landscape of economic might surfaces, new car stereotypes are emerging. Finding a place in these segments is proving difficult for Ford Motors and hence need to change its strategies. Hyper-competition combined with tough economic times has pushed Ford to the edge of insolvency. This paper examines the issues that plague the company while using published models to make analysis on how and why the problems occur to better understand their potential impact on the company’s sustainable competitive advantage. Recommendations will seek to give strategic solutions to address the issues identified earlier. This research isn’t structured upon models to identify, analyze and solve issues but rather looks at the core of the problems within Ford Motors...
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...The publication of this IDA document does not indicate endorsement by the Department of Defense, nor should the contents be construed as reflecting the official position of that Agency. © 1999 Institute for Defense Analyses, 1801 N. Beauregard Street, Alexandria, Virginia 22311-1772 • (703) 845-2000. This material may be reproduced by or for the U.S. Government pursuant to the copyright license under the clause at DFARS 252.227-7013 (NOV 95). Preface This document was prepared for the Office of the Principal Deputy Under Secretary of Defense (Acquisition and Technology) under the task order Defense Manufacturing Strategy, and addresses a task objective, to provide a case study on integrated product/process development implementation. This case study will be used for acquisition and technology training purposes by the sponsor. Many of the incentives, strategies, and implementation approaches at Ford have parallels in and implications for the acquisition processes of the Department of Defense (DoD). The DoD student is asked to draw conclusions based on his or her own situation. The authors wish to thank the Ford managers who participated in this study: Mr. Gene Nelson, Ford Director, Advanced Manufacturing Pre-Program Engineering, and Ms. Gail Copple, Ford Investment Efficiency Manager. We are grateful...
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...the “Big Three”, felt encroached upon by foreign-based auto manufacturers. Ford created a Worldwide Web Organization (WWWO) in May 1996 as an internal resource of web technologies. July 4, 1997, Mike Ledford, Director of Process Reengineering released a progress report of internal use of web technologies and future web use policies as the second anniversary of the release of the company’s public web site (1). Since the inception of Ford’s WWWO, their web group grew to approximately 80, supporting an internal user base of more than 80,000 and eventually greater than 120,000. Ford’s “Web Farm” supported over 300 departments with an augment rate of about one per day. Ford had Ninety-two web applications with an average project life cycle of eight weeks (1). “Ford was in the business of designing, building, selling and servicing automobiles.” Additionally web technologies were viewed as a contributor of significant value to Ford’s core business. Ford had a financial services subsidiary that acquired significant revenues and profits, but their core business was the design and manufacturing of automobiles for the consumer market. While web technologies contributed greatly to Fords success, maintaining focus was imperative. Ford Motor Company based in Dearborn, Michigan was the “second largest industrial corporation in the world, with revenues approaching $150 billion and employees numbering more than 370,000 by year end 1996”. Their operations Smith 2 spanned 200 countries. Henry...
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...Strategic Strategy for Ford Introduction The proposed strategy will enable Ford to enhance the performance in the global environment. This will also ensure Ford survival and strengthen the financial restraints that are currently evident as a result of the current global economic recession. The proposed strategy will be determined by scanning the internal environment in terms of resources, capabilities and competences. The external environment in terms of the macro environment and market environment with regards to opportunities and threats will also be evaluated. Lastly, the strategic strategy must measure to the stakeholder expectations, as well as the inherent market related risks. 1. STRATEGIC DIRECTION SETTING 1. MISSION Ford Motor Company Mission Statement- One Mission,One Team,One Plan,One Goal. One Mission: FORD ONE TEAM- People working together as a lean, global enterprise for automotive leadership, as measured by: Customer, Employee, Dealer, Investor, Supplier, Union/Council, and Community Satisfaction ONE PLAN – FORD F- Future First Affordable choice of Automotive transportation regardless of Industry and according to consumer needs O- Outstanding Investments and returns for all R- Revolutionising the product offering according to consumer demands (Service Plan offerings) D- Drive train eco technology development- best smallest engine and lowest gas emissions globally ONE GOAL - An exciting viable Ford delivering profitable growth for...
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...Ford Motor Company’s Ambitious Revenue Management Strategy By: Russ Banham While Ford is not the only automaker targeting consumer car preferences, it is the only one with a vice president heading a unit on revenue management. Ford is also notable for its combination of three technology tools to sell the right car with the right mix of features to the right customer at the right price. It uses one tool to determine the car with the optimum package of features most likely to appeal to consumers in a specific market. Another tool, pricing software technology from Manugistics, determines which sales-promotion campaign should be offered on each car in each market. A third tool puts Ford dealers in the driver's seat to order the inventory most likely to wheel off their lots. With this knowledge in hand, Ford can gear its production, sales, and marketing to get the biggest bang for the buck. "There is a clear link between what customers want and what we build," says Lloyd Hansen, the spear head behind the project . "The problem has been finding it." Ford believes revenue management is that missing link and has the most leverage in industries with low profit margins. That's what makes it so critical in the auto industry, where pretax profit margins have historically averaged only about 3 percent," says Hansen. "If better pricing tools and processes can improve revenue by just 1 percent, and raise historical margins to 4 percent, bottom-line profits...
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...The Way of Ford Motor Company * Introduction * Although to be the only one remaining member which have escaped bankruptcy of the Big Three among the automobile industry by June 2009, Ford suffers $14.7 million loss of revenue and elimination of stockholders’ equity due to the record-breaking fall in demand for 2008,US. However, to understand Ford’s position today requires understanding the American automotive industry. * General Industry analysis * From 1900-2008, US motor vehicle production has a rapid increase to9, 000,000 from 1900 to 1967, after not, there is a graduate decrease to 3,000,000 until 2008. At the mean time, the median age of passenger car in US was Spiral upwards. Combine the two phenomenon, we can get that the automobile industry market is quite saturated and the demand fell down. Regard to the automobile manufacturing technology, despite less differentiation between manufacturers due to the converge of technologies and design, the technological progress was incremental and lead to the various segmentations in each country. Follow the two situations, there are 3 big issues were emerged. One was the deep demand of auto cars result in excess capacity. Another one issues was the high cost among the technological development. Last one issue was the lacking differentiation. However, it also offers automakers new product segmentations and market. For an insightful analysis, we need to look at more information in details. * Porter’s Five Forces...
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