...SCMP MODULE 1, SESSION 9 FORD MOTOR COMPANY CASE STUDY Prepared by: Christine Godby, Accreditation Candidate Table of Contents Executive Summary Page 2 Issue Identification Page 3 Environmental and Root Cause Analysis Page 5 Alternatives and/or Options Page 9 Recommendations and Implementation Page 10 Monitor and Control Page 11 1|Page Session 9, Ford Case Study by Christine Godby Executive Summary As Director of Supply Chain Systems, I have reviewed the analysis by my esteemed colleagues of our current supply chain and our recently implemented strategies to date. We have made significant changes to our supply chain through Ford 2000 and we should be proud of our achievements! Our use of information technology (IT) has enabled us to work together as a global team, even though we are on different continents. We have successfully reduced our supplier network which and work as a team with our current suppliers as well as enjoy cost savings and a more reliable supplier network. Our development of the Ford Production System (FPS) has resulted in a leaner more responsive and efficient manufacturing operation and our Order to Delivery (OTD) initiative has reduced our order to delivery time from 45-65 days to just 15 days! This being said, the global market is extremely competitive and I believe is challenging us in ways we have not seen before. With emerging technology and the ability to reach global audiences through the...
Words: 2087 - Pages: 9
...Case Study of Ford Motor Co. Executive Summary Ford Motor Co. was second largest automobile company in the word, with revenue $.144 billion and more than 370,000 employee (in 1996), with extended operations to 200 countries. Ford dealing with a huge number (thousands) of suppliers and dealers in daily basis, which create high level of complexity combined with other internal and external factors have pushed Ford to search for solutions in order to overcome the costly supply chain challenges that they are facing and may continue to face in the future if they didn't find a proper solution . the main issues with their current system is: the inefficient control of their large data base and complex network of suppliers, the existence of independent distributors and their inability to communicate and serve their customers directly. Ford realized that they should modify their supply chain in order to make it more cost effective and more profitable, in order to solve this issue for launched a full organization re-structures business process plan called (FORD 2000), by segmenting their market to 5 Vehicles Centers (VCs) for product development activates, each (VC) was responsible about for developing of vehicles in a particular customer market, By partly adapting the virtual integration direct business model of Dell Co., Ford can use the emerging information technologies and internet as well as new ideas from high tech industries in order to interact and transact with their...
Words: 1853 - Pages: 8
...Ford Case Study Natausha Blakley Dr. Jayna Newell Principles of Management February 12, 2011 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. 1. In my first opinion the company should close down old plants to realign production as well as sales. If the company continues to loose billions of dollars year after year adjustments need to be made somewhere, so the concentration should be put in the plants that are successful and slow production in the lagging plants or just simply close down. Second I would choose to reduce the SUV and truck lines because of the high gas prices throughout the country simply because the smaller cars would be more gas efficient, more cost efficient, and a lot of money being lost through the lack of being able to sell the expensive SUV’s which also doubles in cost to fill up and drive on a daily basis. Most Americans are buying the smaller cars because of the recession or the public opinion that we are in a recession. Third, would be to go ahead and sell the premium automobile group to somebody that would be able to make use and profit off of the lack of sales year after year. Cars like Jaguar and especially Aston Martins which are one of the most expensive cars in the world, don’t really sell on a large scale in the US except for the wealthy percentage of the population, so selling...
Words: 1241 - Pages: 5
...Assignment # 1 - Chapter 5 Case - “Ford Motor Company” Fred Baylor Principles of Management - BUS 302 Professor Khaki Weber October 31, 2010 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. Ford is a household name and has been around for over 100 years. Their slogan, “Built Ford Tough”, is engraved in the hearts of a lot or people, both employees and dedicated customers. In order for things to start to look up for Ford, they must develop a project plan that will work, but make the plan flexible enough to adapt if market conditions change. A solid project plan should include making certain that they are compliant with the United Auto Workers (UAW), so that jobs, benefits and retirement is impacted and falls under the guidelines that are in place. It will be impossible to make changes and this area not be impacted. The plan should include selling all or some of the products from their luxury car line, maybe not all at one time, but a gradual dissemination. The demand for luxury cars these days have declined and consumers are not sure if they have the value that they have had in the past. Lastly the plan should include extending their presences in the international market where they have been successful. Europe, South America, and China have been very...
Words: 1461 - Pages: 6
...Ford Case Report Virtual Integrate or Not? Table of Contents -------------------------------------------------------------------------------------------------------------------------------Executive Summary 3 Issue Identification 4 Environmental & Root Cause Analysis 4-5 Alternatives 6 Recommendations 7 Implementation 8 Monitor and Control 9 Executive Summary Being one of the top 3 auto manufacturers, Ford had been challenged for their leading position in the auto industry by their foreign-based competitors (Honda and Toyota) in past decades; at the same time auto industry was overcapacity which lead to more fierce competition. How could Ford maintain competitive power and market share in auto market? Improve quality, decrease price and fast response to...
Words: 2056 - Pages: 9
...CASE ASSIGNMENT: Ford Motor Co. 1. One Ford; One Big Turnaround In 2006, as the United States was nearing one of the worst economic recessions in its history, Ford Motor Co. was best known for big brawny pickups, gas-guzzling SUVs, and the all-American Mustang. That year, Ford posted a $12.6 billion loss. In 2007, it posted a $2.7 billion loss, and U.S. and global economies dove into a three-year recession. During that recession, Ford’s major U.S. competitors (General Motors and Chrysler) suffered such losses that the U.S government gave them massive bailout loans and both companies filed for bankruptcy. Ford, however, executed a series of key strategic maneuvers, asset divestitures, cost-cutting initiatives, and layoffs to weather the storm without bailouts. The result is a very different company and brand. A major part of Ford’s strategy involved significant changes in the products it had to offer. For years all the Detroit automakers had largely ignored the market for small cars, but the oil shock of 2008, increased regulatory pressure, and changing consumer demand made it clear that the focus had to change. Understanding the shift in consumer demand when he became CEO in 2006, Alan Mullaly started a massive consolidation of Ford’s product lines. One of Mullaly’s goals was to have a stable of products clearly defined for each market segment around the world—small, medium, and large cars, utilities, and trucks. Mullaly set a goal for Ford: reduce the existing 97 nameplates...
Words: 939 - Pages: 4
...Synopsis Ford is working to change its marketing strategy for developing compact cars. The Focus is Ford’s most popular economy car, and for years has been a low cost, reliable car. Ford is now beginning a new stage of the Focus by now offering the car with numerous additional features, resulting in a luxury car feel with the same Ford logo. With the rise in gas prices, and the current economy climate, Ford foresees a push from larger vehicles to smaller cars. This change in consumer preference stems from the superior gas mileage and reduced ecological footprint that compact cars provide. Currently, Ford markets the Ford Focus to the United States and the European market. The cars that they make for each market are different based on consumer preference. The current Ford Focus selling in the United States is more economically friendly, with the base model having a very affordable starting price. In comparison, the current Ford Focus found in the European market has additional features not found in its counterpart, but at a higher price. The 2012 Focus will have the ability to satisfy many different classes of people from its base model, the S, to the top of the line luxury found in the new the Focus Titanium trim package. By manufacturing the Focus for both the U.S. and the European market in Wayne, Michigan, Ford will save a plethora on development costs. A $28,090 price tag for a fully loaded 2012 Ford Focus sedan may discourage some consumers. However, one must consider...
Words: 1960 - Pages: 8
...Herramienta de Sustentabilidad. Cambio Organizacional - Procesos de Aprendizaje Organizacional hacia la Sostenibilidad. Breve descripción de la empresa. Ford Motor Company fundada en 1903, tiene en su ADN conceptos de lo que hoy se da en llamar Sustentabilidad, transmitidos por su fundador Henry Ford, quien desde un comienzo contempló en los procesos de manufactura soluciones ecoeficientes, minimización de desperdicio, reciclado de materiales, etc. a la vez de políticas de avanzada en lo que respecta a beneficios al personal. En 1913 Ford Motor Company instaló su primera sucursal sudamericana en Argentina. En aquella época los vehículos se importaban desde Estados Unidos de América ensamblados y listos para usar. Hoy, 95 años después de su creación, Ford Argentina produce en su planta industrial de General Pacheco, automóviles para el mercado local y para diversos destinos de exportación. En 1961 se inauguró la planta industrial y oficinas en la localidad de General Pacheco, provincia de Buenos Aires, con una superficie de predio de 1.308.000 m2 y edificios de 252.200 m2. En su Planta Pacheco, Ford ha buscado la eficiencia y la eficacia mediante la práctica de sistemas de excelencia que permitan garantizarle un crecimiento continuo, a ella y a sus grupos de interés, el principal de los cuales es la comunidad donde desarrolla sus operaciones. Ford ha apostado siempre a la educación como motor de todos los cambios, manteniendo la capacitación del personal como principal fortaleza e inversión...
Words: 3067 - Pages: 13
...Introduction Considered as one of the most renowned brands in the world “Unilever” is among the top grossing consumer goods companies with product sales ranging across 190 countries. As a matter of fact, approximately 2 billion people in the world use a Unilever product day to day. Operating as a dual listed company, Unilever N.V and Unilever PLC is considered to be a single economic entity. Unilever is a benchmark company that many other companies dream of idolizing due to their corporate and social responsibilities and also due to the standards they have set for themselves in the worldwide market. Year | Turnover | Underlying Sales Growth | Operating Profit | Net Profit | Diluted Earnings Per Share | 2010 | Euro 44262 Million | 4.10% | Euro 6339 Million | Euro 4598 Million | Euro 1.46 | 2011 | Euro 46467 Million | 6.50% | Euro 6433 Million | Euro 4623 Million | Euro 1.46 | 2012 | Euro 51.3 Billion | 6.90% | Euro 7.0 Billion | Euro 4.9 Billion | Euro 1.54 | 2013 | Euro 49.8 Billion | 4.30% | Euro 7.5 Billion | Euro 5.3 Billion | Euro 1.66 | 2014 | Euro 48.4 Billion | 2.90% | Euro 8.0 Billion | Euro 5.5 Billion | Euro 1.79 | The above table showcases the overall performance of Unilever from the year 2010 to 2014 as a company. If one were to analyze the statistics that are available within this table, they would be able to come to several conclusions regarding the performance of the company, such as, * The amount of turnover has had its ups and downs throughout...
Words: 1325 - Pages: 6
...Introduction and Review of case Ford Motor Company, American automotive corporation founded in 1903 by Henry Ford and 11 associate investors. (htt28) It is the multinational corporation and the world's third largest automaker based on worldwide vehicle sales. The Company operates in two segments: Automotive and Financial Services. Automotive includes Ford North America, Ford South America, Ford Europe, and Ford Asia Pacific Africa region. Financial services include Ford Motor Credit Company and Other Financial Service. The Company manufactures or distributes automobiles across six continents. Its automotive brands include Ford and Lincoln. Other Financial Services includes a range of businesses, including holding companies and real estate. Effective September 26, 2013, Ford Motor Company acquired Livio, a developer of software. (htt29) Ford Motor Company is one of the largest car makers in the world. In the past the ford sold large number of vehicles that are fuel efficiency. In 2007 ford receive the severally awards and its revenues increased to $173.9 billion, while producing over 6.5 million automobiles. By 2005 ford losses the market share and due to high labor cost and high price of gasoline the ford company lost $ 12.6 billion in 2006. The demand of ford automobile is decreased in the market and the labor cost is increased furthermore the company was suffered from labor surplus. To control over its expanding labor costs the company and the United Auto Workers, contracted...
Words: 911 - Pages: 4
...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 mobility solutions to millions of US citizens. By year 2020, Ford will be able to fully implement...
Words: 4697 - Pages: 19
...Executive Summary Although Ford is a successful company in the world, with increasing competition and new technology improvement, Dell’s succeed by implementing “Virtual integration” , Teri Takai, Director of supply chain system, has to choose if Ford will make a change implementing Virtual integration based on Dell's model, or just stay as Ford is currently doing. Some are arguing that virtual integration is not feasible for Ford because of Ford’s business is totally different from Dell and business complexity makes Ford no way to go that road. However, others believe the Dell’s model will succeed in Ford as well because of new information technology and similar business principle will make it work in Ford. Ford should implement the virtual integration model even Ford is much more complex then Dell, but Ford can not simply copy Dell’s model because the vehicles are not like a computer that you can order online and delivery by a carrier. They need to create a plan based on Dell model but focus on Ford’s business and conditions. Teri Takai should be the key person and work together with IT, Purchaser s, Sales and accounting department to start the program: to reduce inventory by building strategic supplier relationship . the ordering system should change form old model ( PO to suppliers, products go to Ford warehouse and then to distribution centers, dealers then customers ) to the new model ( orders to suppliers then products to distribution channel ) that is heavily relying...
Words: 381 - Pages: 2
...------------------------------------------------- Executive Summary Although Ford is a successful company in the world, with increasing competition and new technology improvement, Dell’s succeed by implementing “Virtual integration” , Teri Takai, Director of supply chain system, has to choose if Ford will make a change implementing Virtual integration based on Dell's model, or just stay as Ford is currently doing. Some are arguing that virtual integration is not feasible for Ford because of Ford’s business is totally different from Dell and business complexity makes Ford no way to go that road. However, others believe the Dell’s model will succeed in Ford as well because of new information technology and similar business principle will make it work in Ford. Ford should implement the virtual integration model even Ford is much more complex then Dell, but Ford can not simply copy Dell’s model because the vehicles are not like a computer that you can order online and delivery by a carrier. They need to create a plan based on Dell model but focus on Ford’s business and conditions. Teri Takai should be the key person and work together with IT, Purchaser s, Sales and accounting department to start the program: to reduce inventory by building strategic supplier relationship . the ordering system should change form old model ( PO to suppliers, products go to Ford warehouse and then to distribution centers, dealers then customers ) to the new model ( orders to suppliers...
Words: 1835 - Pages: 8
...Case Study of Betty Ford Substances like alcohol are used for many reasons. Alcohol is frequently used as a means of celebration, and also to assist in diminishing feelings of being anxious or overwhelmed. Some people use alcohol in social settings, whereas other people may drink alone. The use of alcohol to self-medicate when challenges come up in everyday life can cause significant problems. In many instances a person can become totally dependent on alcohol so that he or she can function appropriately. If a person builds a tolerance to alcohol, he or she will most likely need to drink every day as well as consuming larger amounts in order to achieve the same feeling. One of the most prominent and well-known instances of alcoholism and substance abuse is Betty Ford. Betty Ford was married to President Gerald R. Ford and was thought to be one of the most powerful first ladies in our history. Betty Ford’s achievements include her sponsorships of breast cancer awareness and women’s rights (Meyer, Chapman, & Weaver, 2009). Even though Betty Ford was acknowledged and respected for these achievements, she turn out to be an even greater inspiration in society when she admitted to and overcame her lifetime battles with prescription drugs and alcohol. Betty Ford was raised in Grand Rapids, Michigan and was the only daughter and youngest of three children (The National First Ladies’ Library, 2012). Even though Betty had a pleasant and positive childhood, her mother was considered...
Words: 1249 - Pages: 5
...what substances like alcohol is used for. Some use it to commemorate a special occasion or a special moment. Some individuals may use it to relieve themselves when they are feeling weighed down. Individuals tend to use alcohol in different situations. They could drink while alone, around others, or in a social environment. When an individual faces everyday challenges in their daily life it could cause alcohol use to become a problem. A person will tend to become dependent on alcohol when having increasing issues with their emotional and physical health. Betty Ford is a case of substance abuse and alcoholism that became a famous case. Throughout this essay I will discuss Betty Ford and her issues with substance abuse and alcoholism. I will also analyze the biological, emotional, cognitive, and behavioral components of the disorder from substance abuse. Client Description Current Description Betty Ford grew up in Grand Rapids, Michigan as the youngest of three children and the only daughter to father, William Bloomer, and mother, Hortense Neahr (The National First Ladies’ Library, 2012). Although Betty’s experiences growing up were both positive and pleasant, her mother was a perfectionist who had exceptionally high expectations for her children, and her father was a traveling salesman who very rarely spent time at home. When Betty was 16 years of age her father passed away. Because her father rarely spent time at home, it wasn’t until after his passing that she discovered...
Words: 1389 - Pages: 6
