...Ford Motor Case Study Table of Contents Executive Summary 3 Introduction 4 Issue Identification 5 Environmental and Root Cause Analysis 6 Alternatives and Options 8 Recommendations 10 Implementation 11 Monitor and Control 12 Exhibits 13 Executive Summary After reviewing Ford Motor supply chain, we became aware of its very complex nature. Due to this complexity we are forced to search for alternatives to overcome the costly supply chain challenges faced by our industry both now and in the future. The present system has an inefficient control of a large database and a vast and complex network of suppliers. We need to change our supply chain in order to make it more cost effective and profitable. After careful analysis we recommend the implementation of a partial virtual integration system, similar to the system used by Dell Computers. With this system, Ford will use information technology and the internet to interact and transact with both their suppliers and their customers. Ford can increase their sales by providing better customer service and faster communication from the supply end through to the manufacturing division and right on to their end user, the customer. This system will be implemented with their existing supply chain so Ford will cover both markets at the same time. If Ford concentrated only on the virtual system their competition would put them out of business, so...
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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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...Executive Summary: Ford wanted to adapt the idea of virtual integration to improve its supply chain. By the use of technology; it wanted to reduce its working capital and increase profits. Moreover, the company was emphasizing more and more on shareholder value and customer responsiveness so they were looking into reengineering some of their processes which can help improve their current forecasting model and reduce OTD cycle times substantially. With new business models prevailing, Ford did not want to be left behind; they were looking at high-tech industry’s growth in the recent years and thought if they could implement some these ideas to their business. Ford has always been a forerunner in employing technology to overcome its constraints of information flow between its global manufacturing sites, they wanted to implement a similar I.T solution to get the better of its suppliers. But having such a large supplier base was making it difficult to manage; then they looked at high tech industry’s leading player DELL who was not only growing phenomenally every year but was also successful in building proximity to both its suppliers and customers. A comparative analysis of Ford and Dell’s SCM operation helps understand the differences in their organizational models and find strategies that could be applied for Ford’s success. Different areas like supplier management, sales, inventory management and customer experience have been compared to identify the bottlenecks in Ford’s operation...
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...Ford Motor Company Case Study Executive Summary The Ford motor company has been a progressive leader throughout the history of the company. In order maintain this leadership, it has had to adapt to the ever changing business environment and market conditions. With the emergence of new information technologies and ideas from new high-tech industries, it must evaluate how these tools can be utilized to further the business. Recently, virtual integration has been proven very successful to companies like Dell and Cisco. However, this approach is best suited for companies that have very few layers of suppliers as well as more centralized production. The Ford motor company cannot simply change their entire supply chain to fit this model. That being said, some of these theories and practices can still be incorporated into Ford’s current supply chain. These must be calculated changes, involving various departments within Ford’s organization, collaborating with their most valued and dynamic suppliers. With Ford already moving somewhat toward this direction with suppliers who provide complete subsystems for their automobiles, further changes in these areas should prove feasible with limited risk. Issues • Determining whether or not to incorporate the virtual integration model used by other recently successful firms such as Cisco and Dell • Uncertainty on how to utilize emerging information technologies to interact with suppliers • Many...
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...Ford Motor Company Case Study Introduction and Background The world-renowned automobile organization, Ford Motor Company, located in Dearborn, Michigan, has recently taken on a new CEO. This CEO has changed many things drastically in a short amount of time, including many positive things but also has implemented a few negative changes. Even with the drastic changes, the company still lost billions of dollars in the first three years under the new CEO’s reign, though the third year saw fewer losses than the second year. The CEO must deal with and must overcome many issues, internally as well as externally, to help the company get back on its feet and begin making profit again. Facts The new CEO has been employed at Ford for three years now, and is known for taking Boeing Airlines from suffering huge losses to making huge profits. Ford Motor Company took him on as a means to turn around losses and provide the company with new guidance. The company certainly took on a new direction, with one of the first acts being to bring back the Ford Taurus into the line and dropping truck and SUV production by forty percent. However not all changes were positive, as 46,000 jobs were cut. This decision was made to attempt to consolidate the company’s expenses as the company borrowed $23 billion but has already spent almost $15 billion of it, with no way of paying it back anytime soon. Issues The company is not only suffering considerable losses financially, but is dealing...
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...Ford Motor Company (Case Analysis) Group #6- TGAA TTH 1:00 Member 1- Taylor O’Neill Member 2- Knyra Ratcliff Member 3- Alex Perkins Member 4- Xu Han Member 5- Kevin Carter Member 6- Alex Dundon/ Nick Tran Presentation Date: 11/17/15 Introduction Our group has chosen Ford Motor Company as our case analysis subject. Ford is an American multinational automaker and was founded by Henry Ford in 1903. Ford Motor Company is the second largest automaker in the United States and is also the fifth largest automaker in the world. Throughout the paper we will be sharing background information of the company such as the vision statement, mission statement, company history, the industry, and our company’s strategy. We will also be sharing the elements of Ford’s internal and external environment (includes historical and competitor financial information), problem statements, possible alternative solutions to those problems, and our recommendations as to which alternative solutions would be best used in response to the problems at hand. Towards the end of our case analysis on Ford Motor Company there is a visual present for both the SWOT analysis and the grand strategy matrix. We have provided appropriate and significant content in completion of this case analysis. Background Vision Statement “To become the world's leading Consumer Company for automotive products and services. (Homepage, 2015)” Mission Statement “One Team. People working together as a lean, global enterprise...
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...abilities to be a successful leader. The role leadership can have a significant impact on an organization’s performance. The role of leadership sets the tone for the organization and has a trickle-down effect. For example, the organization I work for has been through its share of leaders. Every time the leader changes, it is immediately noticed in the actions of the management team. The management team typically adjusts their management style to that of the new leader. As a result, the entire organization is affected. 2. Discuss Mulally’s leadership style at Ford Motor Company and provide examples of how his actions fit this style. Mulally’s leadership style at the Ford Motor Company is participative. He encourages the employees to participate, but retain the final say over the decision-making process. Employees feel engaged in the process and are more motivated and creative. Based on the case study, Mulally feels that communication is essential. For example, Mulally states, “Everyone has to know the plan, its status, and areas that need special attention” (Organizational Leadership, p. 544). Mulally offers guidance to the employees, but he also participates with the employees and allow input from the employees. A symbol of this can be taken from the...
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...Introduction Ford Motor Company was founded in 1903 by Henry Ford and eleven business associates. The company was responsible for the innovation of the moving assembly line where employees would remain in the same place while performing the same task on each automobile that move along the assembly line. Ford Motor Company has been a prominent car producer for over 100-years – an icon of U.S. manufacturing. However, the company has reached a pivotal impasse where timely planning has become crucial. Hence, to reestablish the brand and Henry Ford’s original vision to produce “cars that were affordable to the masses” (What Would You Do? Ford Motor Company, n.d. p. 1). This case study will examine four options; the first option is whether to close down older plants in an effort to realign production and sales. The second option is to re-engineer the company to produce smaller cars eliminating or sharply reducing the SUV and truck lines. The third option is to take the unprecedented step of dramatically reducing North American presence and focus the company efforts on international markets where the company has been very successful. The fourth option is to sell the entire Premier Automotive Group (PAG). To determine what the criterion for the Ford Motor Company four options are, Ford’s management team should collectively utilize the rational-decision making model that is define as “a systematic process in which managers define problems, evaluate alternatives, and choose...
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...------------------------------------------------- ------------------------------------------------- Ford Motor Company Case Report ------------------------------------------------- Executive Summary Ford Motor Company has a long history, starting in Michigan in 1903. 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 company has implemented various programs and processes to create a lean, responsive system with better consumer forecasting. Their challenge is to continue to research ways to stay viable in current market and industry conditions. Dell Computers has been very successful with a direct model and virtual integration that may or not work well for Ford. CONTENTS * ISSUE 3 * ANALYSIS 4 * ALTERNATIVES 6 * RECOMMENDATIONS 7 * IMPLEMENTATION 8 * CONCLUSION 8 * REFERENCES 9 * ISSUE: The Ford Motor Company is facing a number of challenges including the direction of CEO Jac Nasser to focus on customer responsiveness and shareholder value to deal with increasing competitiveness, an industry with potential over-capacity and the expansion into globalized markets. Ford had begun to implement systems to reduce cycle-time, improve quality and to lower costs. Programs included consolidating product development into five Vehicle Centres (VCs), reeingineered...
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...David T. Narens Ford Motor Company and the Safety Case Harding University Abstract Ford Motor Company is a leader in influencing America and the world in automobiles. They are still true to the founding principles the company was founded on by Henry Ford by making affordable vehicles for the common man. They strive for innovation and creativity through their products. They have had safety issues in the past but it seems Ford finds a way to overcome challenges and put what matters most on top, the customer. Privacy Ford Motor Company has been around for most of the 20th century. Its great success is a result of many factors. Besides the ingenious creations and remarkable talent working for Ford, there is another reason that this company has had such longevity. The way that Ford Motor Company treats their employees is a major reason that Ford is such a dominant company in automobile industry. Ford treats their employees with the utmost respect and generosity. The employees can feel safe in their work environment without having to worry about their personal information being compromised my management. Ford trusts their employees and encourages them to bring any problem or concern to management so that it can be addressed and fixed. Ford does not have to invade their employee’s privacy to find out details about that employee. They create an environment of trust and loyalty. They create a morale that the employees feel comfortable in talking to others about apprehensions...
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...CASE STUDY Ford Motor Company Ford Motor Company, one of the world’s largest automotive manufacturers, has worked with Penske on several Six Sigma initiatives. As its lead logistics provider (LLP), Penske’s quality team of associates are trained in Six Sigma practices and work closely with Ford to streamline operations and create and maintain a more centralized logistics network. Together, they uncovered several areas for real cost savings as a result of reducing inbound carrier discrepancies, eliminating unnecessary premium costs and reducing shipment overages. Plus, Penske implemented accountability procedures and advanced logistics management technologies to gain more visibility of its overall supply network. Six Sigma initiatives streamline operations Penske Logistics began its relationship with Ford as lead logistics provider (LLP) for Ford’s assembly plant in Norfolk, Va. At the time, each of Ford’s 20 North American assembly plants managed its own logistics operations. A decentralized approach provided total control of logistics at the plant level, but presented costly redundancies in materials handling and transportation. Ford conducted studies to determine the benefits of transitioning the company’s decentralized logistic operations to a centralized approach. The decision was quickly apparent – centralization of the company’s logistics operations would increase both velocity and visibility throughout the network, as well as reduce supply chain costs. Shortly thereafter...
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...In this case, Nancy Denny was under the impression that she was purchasing a Ford Bronco. She was purchasing this Bronco because of its perceived safety benefits of its four-wheel-drive capacity and its ability to switch between two and four wheel drive if she had concerns about driving in the snow and ice. She testified that she did not purchase the Bronco for any off road purposes and that according to the sales presentation the Bronco was very suitable for commuting and for suburban and city driving. The sales presentation is geared to sell the Bronco based on all of its positives of everyday practical uses and does not go into detail of potential safety issues of this vehicle being engineered basically as an off road vehicle. According to Ford the vehicle had been intended to be used as an off-road vehicle and not designed as a passenger automobile, which is what Nancy Denny had believed she was purchasing, she was not at all interested in it’s off road use. (Halbert/Ingulli, 2012, p 307) There were three grounds in which Nancy Denny approached this legal battle with Ford Motor Company. The first of which was a strict products liability approach. This approach is used when a manufacturer places a product on the market for sale when the product has a defective. The manufacturer becomes liable for injuries suffered as a result of the product being defective when the product was used for its intended or reasonably intended purpose. Therefore, Nancy Denny would need to prove...
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...difficult for Ford to align themselves with so many different suppliers, so first he needs to shrink the supply base. However, the most important task for implementing ABF is receiving support from top management. Tony Brown needs Ford to commit to the principles of ABF in order to gain the trust of suppliers. If the suppliers believe that Ford is not actually committed to ABF, then they will not be willing to do it themselves. Also, if lower level Ford employees do not believe that top management is committed to ABF, they will continue working their own culture. Basically, it all starts from the top, management needs to show that they are seriously committed to change in order to convince others to commit to change. According to the case, Ford has historically based their supply chain strategy on price instead of efficiency, which upset both suppliers and employees. This shows both a lack of alignment from the suppliers and employees. This lack of alignment and trust shows that even though the business model has stayed the same for 100 years, it probably should be have changed earlier, so they need to start changing as soon as possible. As a Ford supplier, I would be concerned about Ford’s commitment to ABF and if my company would make the cut. Ford is asking if we can make a culture change in our practices, but why should we believe that they will too. Also, if we are cut from the supply base, we have just lost a big time buyer. Suppliers can take advantage of Ford in ABF...
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...Case Study Alan Mullay, CEO, Ford Motor Company “Alan Mulally, CEO, Ford Motor Company” Ford Motor Company was started in 1903 in Detroit, Michigan, by Henry Ford. 2006 brought a tremendous change to the multinational automobile producer, when Alan Mulally came to the head of line to lead Ford into a new era. In the past several years, Ford has been in danger of failing, causing a shift in its global position and a restructure of its company portfolio. Ford has become a global competitor with brands including Lincoln, Mercury, Mazda, Aston Martin, Jaguar, and Land Rover. Mulally was welcomed to his new position with a financial crisis waiting on his desk. Although never working in the auto industry, Mulally had a plan to manage Ford out of the economic down spiral it had it found itself with the foreseeable economic challenges of the entire US economy. Ford has reported losses for the pass several years. * Lost of $12.6 billion in 2006 * Lost of $2.7 billion in 2007 * Lost of $14.7 billion in 2008 * Lost of $1.4 billion in 2009 (first quarter) (Hellriegel, 2011) Mulally created more debt to make up the shortages by borrowing to keep Ford from government bailouts. Under the Mullaly reconstruction, Ford will discontinue the Mercury line in 2010 year end, maintained a stake in Mazda and Aston Martin and sold off subsidiaries Jaguar, Land Rover and Volvo within the last two years. While realizing the loses and selling of part of their portfolio...
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...consumer have made it necessary for leaders to create strong organizational cultures so that companies can continue to expand into the future. According to Hellriegel & Slocum (2011), Alan Mulally’s leadership has resulted in Ford making some strategic moves. His skills and style has helped Ford to move ahead in the industry during the economic recession. Ferrell, Hirt & Ferrell (2009) argue that an effective leader is one that is task-relevant and most successful when they adapt their leadership style to the individual or group they are attempting to lead or influence. By understanding the ins and outs of how things should be run within the company, a leader can quickly and efficiently adapt their leadership styles to the individual or group situation that requires attention. According to Ferrell, Hirt & Ferrell (2009), it is widely believed that leadership creates the vital link between organizational effectiveness and people’s performance at an organizational level. Effective leadership behaviors can facilitate the improvement of performance when organizations face today’s new challenges such as innovation-based competition, price and performance rivalry, decreasing returns and market volatility. Discuss Mulally’s leadership style at Ford Motor Company and provide examples of how his actions fit this style Mulally’s results oriented leadership...
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