I remember a very famous case study of Ford Motor Company that says the importance of teamwork. Mullaly was just the guy to come in with a fresh perspective and get things turned around. However, the company has reached a pivotal impasse where timely planning has become crucial. In the mean while company focused on producing smart cars that werenot price sensitive and offered the functionality of traditional ford cars. They have focused on designing and manufacturing and have been very successful, however with increasing competition, global markets and over-capacity the company needs to look at ways to improve profitability. The auto industry took a drastic hit financially when the 2007-2008 financial crisis occurred.
They market to consumers who are willing to spend more money on a better quality vehicle. This system is theintegrated interface developed by Ford and Microsoft that operates on Microsoft WindowsEmbedded Automotive operating system. Yes, Ford is earning profits. The company is recovering not because of Mr. Carriers with half-empty trucks would often cross routes with each other en route to the same plant. It is, thus, apparent that Toyota is a socially responsible company while Ford seeks to promote its economic goals at the expense of the social goals. Describe each of the four options.
The leader implements minimal control or manipulation on their followers. Case Study- Ford Motor Company Stacey Planz Strayer University Principles of Management Bus302 Professor Osburn January 22, 2011 Case Study- Ford Motor Company 1. This was a big change for Ford because they had the same old mentality and senior management for 40+years. After observing the assembly line and mass production that had made Ford rich, they were unimpressed. Learning-Based Approach; traditional planning assumes that initial action plans are correct and will lead to success. To determine and execute strategies for the four options managers at For Ford Motor Company have to be aware of the essentials steps in preparing a workable plan.
Plus, Penske implemented accountability procedures and advanced logistics management technologies to gain more visibility of its overall supply network. There are approximately 328,000 employees and has made an estimated 6. However, foreign entrants into a new market could become a threat with strategic alliances, with help major manufacturer brand reputation. He has both the credibility because of his name and the ability because of his style to marshal all those forces and get them, moving forward. Granted that he belongs to the lineage of great Ford past heads, he definitely have good genes.
Initial reading is to get a rough idea of what information is provided for the analyses. In the plan, the firm aims to unify its global organization to achieve consistency and synergy. Volvo was sold to Chinese manufacturer Geely Automotive in August 2010, and Ford discontinued the Mercury brand at the end of 2010 Dess et al, 2012, p. When you know where you are going, how you getting there, who is assisting and how long it will take allows you to be flexible when conditions change. Best alternative should be selected must be the best when evaluating it on the decision criteria.
Ford Motors has also improved on the variety products taken to the market. The plants are currently producing more cars supply than the consumers are purchasing demand. Lastly, the key problem Shanks identified was on the supply side: if overhang of excess capacity remains, market growth would not translate into adequate profit margins Grant, 498-500. Automobile production capacity utilization in 2011 never exceeded 81% in any country Grant, 497. . Figure 1 Ford Model T Source: The famous Ford Model T. Herein, the opinion and ideas of the followers are being valued by the leader and each follower encompasses different tasks set by the leader.
Secondly, its products are widelyaccepted by the consumers and integrating with the first factor, the company has increasedmarket share. While he was working at the illuminating company he constructed his first Quadricycle in 1896 and Thomas Edison encouraged Ford to go ahead with his plan and build a second better model. The company also emphasizes personal development through team involvement and support. We need to change our supply chain in order to make it more cost effective and profitable. Sometimes he dropped off on the assembly line to check up and frequently buys his lunch to the cafeteria where he will casually talk to the people there.
He likes to communicate and understand the issues ofhis people rather than being understood. The role of organizational culture. Ford has managed to enter intothe contract with the American worker union for their support and strike free working conditions. Ford does not want to produce more cars than they sell. Retrieved January 22, 2011 from Stayer University Course 302 Courseroom.