...Thursday, November 13, 2014 [Ethics of the Automobile Industry: Ford Motor Company] | By Amir Rafih, Jordan Mather, Jennifer Sprague, Eric Parr, Gloria Ledi, and Meshal Mustafa | | (04-71-300 ) Business Ethics in a Global Context by Dr. Kent Walker Table of Contents Executive Summary 3 Introduction 4 Global History & Development of Automotive Industry 4 Value Chain of the Automotive Industry 6 PEST Analysis 7 Political Factors 7 Economic Factors 9 Social Factors 9 Technological Factors 10 Stakeholder Interests 11 Shareholders 11 Domestic Part Suppliers 12 CAW/UAW (Employees) 12 Customers 12 Environmental Groups 13 Stakeholder Position Analysis 13 CEO 13 Customers 13 Competitors 14 Analysis of History of Recalls and Assessment of Ethics 14 History of Recalls 14 Potential for Improvement 16 Economic, Social and Environmental Impacts of the Global Automobile Industry 17 Utilitarianism 17 Feminist Ethics 18 Postmodern ethics 20 Kant’s categorical Imperative 21 Corporate Social Responsibility, Corporate Social Responsiveness and Corporate Social Performance 22 Conclusion 27 References 27 Appendices 29 Executive Summary Before only the wealthy could afford cars but this changed with the Ford Model T. This car was specifically targeted at average family household by making it affordable to own. By 1918, Model T was owned by half of American car consumers (LoveToKnow, 2014). Standards must be set for companies...
Words: 9752 - Pages: 40
...Environmental Challenges of the American Automotive Industry Post economic recession has seen a return of the American automobile manufacturers (most specifically the Big 3, though Chrysler was bought by Fiat). Still environmental challenges to American automobile manufacturers are many: global competition occurring here and abroad; reduced demand; product safety recalls; environmental/emissions regulations; and fluctuations in the economy. All of these challenges have an impact on every American automobile manufacturer as well as global automakers, just to differing degrees. The environmental challenges also impact the consumer. This essay will discuss those challenges and how they can challenge the American automobile manufacturing industry...
Words: 898 - Pages: 4
...refulgent history of automobile development for over one hundred years. As one of the leading vehicles manufacturers and prestigious brands in the world automobile industry, Ford’s solid brand management is its major strength. In 2014, Ford stands as the second largest automobile manufacturer in the United States and fourth largest in the world (Forbes). Furthermore, the firm ranks eighth among the largest American corporations in the 2014 Fortune 500 companies list. In the past decade, Ford succeeded in building credible and reputable auto products – its vehicles are visible on the roads throughout the United States. The company has garnered a loyal customer base and reputation through its quality goods and services. In fact, due to its mature US market and loyal customer base, Ford ranked second on a best car brand perception survey about customer satisfaction and brand loyalty (Consumer Reports). Ford endured despite the major financial hits of the 2008 recession because of its extensive knowledge of US market and consumers, and its great reputation in its home market for reliability, performance, and durability. In fact, Ford has leveraged its strong market position and brand name to intensify its competitive advantage and expand into international markets in over two hundred countries. As a result, Ford has achieved magnificent profits, especially in major developing countries like China and India. According to a Ford press release, last year Ford increased sales by...
Words: 789 - Pages: 4
...consistently key developments in order to improve products, customer base, and market share.Their first Expansion began with entering foreign markets, but Volkswagen currently focuses on product diversity, specifically the addition of SUV offerings. Volkswagen operates in a mature and well-established industry. The strong rivalry, relations with suppliers and customers, substitute products, and potential competition all contribute to this environment. Volkswagen’s distinctive competencies of being highly innovative, customer-focused, and responsible allow it to compete effectively in this market. Milestones (Key developments/launching of key products) Volkswagen is a very well-known brand that has produced many models over the years. Volkswagen has launched at least one key product and had at least one key development every decade since the 1940s. This trend began in 1945 when Volkswagen began producing cars. At the end of World War II, Volkswagen began production of cars after having produced military equipment and weapons during the war. With this, production came one of the most famous Volkswagen models, the Beetle. Although this is such an iconic and popular Volkswagen vehicle, the company no longer produces new Beetles. The last one produced ever was made in Mexico and left the factory on July 30, 2003. During the 1940s, in addition to the production of one of the most highly...
Words: 5059 - Pages: 21
...the company’s image in response to a $10M recall in 2010. The vehicles that were recalled resulted from an introduction of acceleration-related accidents for which Toyota encountered hundreds of lawsuits (Jacobs & Chase 2014). Naturally, the recalls and lawsuits threatened to tarnish the company’s image. Thus, in an effort to reconstruct this persona, the company improved in its total quality management (“TQM”) program which resulted in many new marketing strategies including, global advertising campaigns, technological developments, quality and safety reforms (Kozaki, Oura & Amasaka, 2012). Specifically, this included one of the new marketing initiatives included an international computer database being able to track all repairs, while decreasing customer complaints from months, to days (Jacobs & Chase, 2014). Additionally, Toyota accommodated the advertising strategy by eliminating national advertising campaigns for which they promoted the cars for safety, dependability, and reliability. The automaker also reorganized its just-in-time (“JIT”) and the Toyota Production System (“TPS”) production processes (Amasaka, 2009). Toyota announced a new managing director to restore and overlook all safety-related concerns, in addition to the company building Swift Market Analysis Response Teams (“SMART”), teams responsible for finding safety defects and determining the cause of accidents in the US and internationally (Jacobs and Chase, 2014). It is crucial that Toyota utilize the...
Words: 3031 - Pages: 13
...First Name Last Name Professor Marc Hamilton MGMT 5603032 Management Policies and Practices 1 June 2014 General Motors SWOT Analysis Founded in 1910, General Motors is one of the largest and highly valued cars, trucks and automobile manufactures in the United States with a vision to design, build, and sell the world’s best vehicles. General Motors is a company that has significant impact on our U.S. economy. As I do a SWOT analysis on General Motors I will evaluate the company’s strengths, weaknesses, opportunities, and threats, to gain perspective on GM and there future as a company. STRENGTHS: Product Branding. First and foremost, General Motors has produced and branded a variety of automobiles both international and region specific such as Chevrolet, Buick, GMC, Cadillac, Baojun, Holden, Isuzu, Jiefang, Opel, Vauxhall, and Wuling which for some have become household names. From electric and mini-cars to heavy-duty full-size trucks, monocabs, and convertibles, General Motor’s dynamic brands offer a comprehensive range of vehicles in more than 120 countries around the world (About GM). Global Presence. Another strength GM shares, is their global presence, with factories in Brazil, Russia, India, and China (collectively BRIC) along with having assembly, manufacturing, distribution, office, and warehousing operations in 55 other countries. Of those BRIC factories, GM has the strongest presence in China due to their emerging economy that continues to grow gradually...
Words: 873 - Pages: 4
... Professor Gary Shelton BUS 508: Contemporary Business Strayer University August 31, 2014 The history of the automobile began during the late 1700s when European engineers began producing powered vehicles that consisted of combustion, steam, and electrical motors. The 1900s also proved to be a time when the uncertainty of determining which type of motor could actually power the automobile was in question as well. The production of the first U.S. automobile in 1901 by the Ford Motor Company has revolutionized, and changed the course of the auto industry as we know today. In the beginning of its production, automobiles were considered a luxury that only the rich could afford, but today, it is viewed as a necessity that can provide consumers with the freedom to take them anywhere they choose. Henry Ford (Ford Motor Company) helped to shape the auto industry by pricing cars to be affordable, and paying his employees’ wages that would allow them an opportunity to afford to purchase the automobiles they produced. General Motors has been in the auto industry for more than one-hundred years, and has produced about 450 million automobiles worldwide. Although there has been a decline in the production of domestic and foreign automobiles by more than thirty percent in the past fifty years, General Motors way of doing business must reflect positive change in order to ensure its survival. The strategy of Brand Re-structuring...
Words: 2037 - Pages: 9
...by: Wenru Dai May 30, 2014 Professor Anna. Phillips Management 405 Table of Contents Cover/Title Page……………………………………………………………….1 Table of Contents…………...………………………………………………....2 Executive Summary.………...……………………………………..………….3 Organizational Overview……………………………………………………..4 Global Alliances and Strategy……………………..………………………….6 Organizational Strategy………………………………………………………….….9 Political/Culture………………………………………………………………...…...13 Conclusion………………………………………………………………………..…16 Work Cited……………………………………………………………………..……17 Executive Summary: Toyota Motor Corporation is one of the biggest motor companies in the world, although it started as a Toyoda Automatic Loom Works. From a small company to a worldwide cooperation, I believe there are a lot of thing I can learn. That’s why I choose Toyota Motor Corporation as my case. Toyota Motor Corporation is a Japanese automotive manufacturer headquartered in Toyota, Aichi, Japan. In 2013 the multinational corporation consisted of 333,498 employees worldwide and, as of January 2014, is the fourteenth-largest company in the world by revenue (Overview). The company operates both automotive, under the brand Toyota, Lexus, Hino and Daihatsu, and non-automotive. According to Japan Corporate News network, in 2007, the firm sold over 8.5 million vehicles in more than 170 countries. Toyota aims at localization and collaborates with automobile companies in foreign countries in order to be the leadership in automobile market. Although Toyota...
Words: 3540 - Pages: 15
...innovation when handling consumer complaints. HISTORY For over fifty years Toyota has been a brand its consumers considered to be trustworthy, and reliable. The first Toyota dealership opened within the United States on October 31, 1957 in Hollywood, California. This would become its headquarters and a mere 288 vehicles were sold this first year. Since this time Toyota has expanded across the United States currently operating a total of ten plants which assembles more than a million vehicles per year. The company currently has nearly 39,000 employees. It prides itself on extending its managerial hand to other corporations such as Apple and Google, contributing more than 700 million dollars towards the American economy. Specifically focusing on safety, education, and the environment within the United States. In 1961 Toyota ceased the manufacturing of the Toyota Toyopet, making the Land Cruiser the companies golden goose until 1965 when the Toyota Corona was developed. This caused the companies sales to increase in the upwards of twenty thousand vehicles per year by 1966. By 1972 Toyota had sold a million vehicles, and in 1975 it took the title of “No 1. Imported Vehicle “from Volkswagen. Over many years Toyota pitched many campaign slogans such as: “You Asked for It/You Got It” “Oh What a Feeling”, and the “Toyota Jump” to persuade consumers to purchase their vehicles. In 1986 Toyota became the first automobile maker to sell over a million vehicles within a year’s time. Toyota’s...
Words: 2334 - Pages: 10
...Go-Green activities or sponsoring charity event are example of an act of giving back to the community (Kayla Matthews 2015). Milton Friedman proclaimed that “The social responsibility of business is to increase its profits” (Milton Friedman 1970), and has wide-ranging of benefits well beyond the economic profits only. But why don’t more organizations to join and invest in CSR program because the financial benefits from it are hard to measure and they chose to become a benefit organization to satisfy the profits return to their shareholders. In the end of 2015, Toyota beaten Volkswagen and remain world’s largest automobile manufacturer (Bertel Schmitt 2015). Toyota motor corporation is a Japan-based company that mainly involved in automobile business and established in 1936 with its founder Kiichiro Toyoda (Toyota.com). Until today Toyota produce 10 million vehicles per year, 300 thousand of employees and reached a capital of 400 billion yen (Toyota.com). As a well-known organization in the world, they cannot deny their social obligation and...
Words: 1954 - Pages: 8
...Massive Recalls and Driver Deaths from the Perspective of Organization Design and Decision-Making Abstract Japanese automaker, Toyota was a quality assurance trademark trusted by consumers worldwide. Though, in recent years, the company has been inundated by numerous vehicle recalls. Toyota’s quality problems surfaced when it was forced to recall nearly 7 million vehicles in the late part of 2009 (Chris, 2010). The recall crisis of 2009-2010 prompted a wave of negative publicity for the company (Chris, 2010). Many issues were discovered that led to the recalls. Sticky gas pedals, pedal entrapment, and software glitches that affected braking in some models were some of the problem areas (Trudell, 2014). Over time, the safety related recalls continued growing. In fact, by May 2011, the automaker had recalled close to 20 million vehicles (Trudell, 2014). Naturally, the numerous recalls and lawsuits that ensued threatened to damage Toyota’s image; thus, to rectify this the company should organize its decision processes more efficiently. Keywords: organizational change, recall, total quality management Introduction For decades, Toyota set the standard for quality and reliability in the automotive industry. In fact, the Toyota brand has been touted as the pinnacle of automotive excellence by rating industries and industry consultants (Piotrowski & Gray, 2010). The automaker founded in 1937, has strived over the years to manufacture superior quality automobiles (Rajasekera...
Words: 4041 - Pages: 17
...Smith, 2010). It is how a company handles these ethical situations, however, that defines their character. General Motors is a company that has been around for over one hundred years. They have been an industry leader in the manufacturing of automobiles in the United States for decades, but they have recently come under fire for the mishandling of a harmful action. General Motors vehicles manufactured between 2003 and 2007 had a faulty ignition switch installed in them which can cause the car to suddenly turn off, leading to the power steering, power brakes, and airbags becoming inoperable. This factory defect has caused General Motors to recently recall approximately 1.37 million vehicles. However, General Motors has known of this issue for ten years and “elected not to replace a part that would have cost 57 cents a car because of cost and the lack of 'an acceptable business case' for doing so" (Isidore, 2014). From the apathetic handling of the recall to the greed-infused decision to save a few dollars, General Motors has been acting like a company with little ethical compass. CEO Mary Barra has issued a statement of apology, giving her “apologies to everyone who has been affected by this recall…especially to the families and friends of those who lost their lives or were injured” (General Motors, 2014), but good ethics should be preliminary actions not post-factum reactions. The lives that were injured and lost because of the actions by General Motors cannot be returned with...
Words: 496 - Pages: 2
...OVERVIEW Toyota Motor Corporation (Toyota or "the company") is one of the leading auto manufacturers in the world. It is engaged in the manufacture and sale of motor vehicles. Toyota sells its vehicles in more than 170 countries and regions worldwide. The company has operations in Japan, North America, Europe and Asia. It is headquartered in Toyota City, Japan and employed 338,875 people as of March 31, 2014. The company recorded revenues of JPY25,691,911 million ($256,919.1 million) during the financial year ended March 2014 (FY2014), an increase of 16.4% over FY2013. The operating profit of the company was JPY2,292,112 million ($22,921.1 million) in FY2014, an increase of 73.5% over FY2013. The net profit of the company was JPY1,823,119 million ($18,231.2 million) in FY2014, an increase of 89.5% over FY2013. KEY FACTS Head Office Toyota Motor Corporation 1 Toyota-cho Toyota City Aichi Prefecture 471 8571 JPN Phone 81 565 28 2121 Fax 81 565 23 5721 Web Address http://www.toyota.co.jp Revenue / turnover 25,691,911.0 (JPY Mn) Financial Year End March...
Words: 3228 - Pages: 13
...University of La Verne BUS 330: Business Finance Toyota Motor Corporation (TM) F/S Ratio Analysis Case Prepared by Toyota Motors Corporation is a Japanese automotive manufacturer. Its headquarters are in Toyota, Aichi, Japan. Toyota was the largest automobile manufacturer in the 12th largest companies in the world by revenue. Furthermore, in 2012 Toyota was the largest manufacturer by production, of which, it was ahead of General Motors and Volkswagen Group. Toyota is a multinational corporation with a rough estimate of 330,000+ employees worldwide. A fun fact about Toyota is that, it is the world’s first automobile manufacturer to produce more than 10 million vehicles per year. In addition, Toyota was the largest listed company in Japan. This rank was taken by market capitalization and by revenue. It was worth more than twice as much as the second listed company. Toyota is not only in the automobile business, they have also ventured into other business areas like: Manufacture and sales of textile machinery, materials handling equipment, as well as into the logistics business. “Toyota Industries strives to enhance its corporate governance based on the belief that maintaining and improving management efficiency and the fairness and transparency of its corporate activities is of utmost importance” (Toyota). Toyota has a divisional organization system, with significant authorities delegated to each of the business divisions; furthermore, Toyota has established...
Words: 3136 - Pages: 13
...Introduction Automobile industry globally and in India is one of the key sector to economy. The well-developed Indian automotive industry produces a wide variety of vehicles, passenger cars, light medium and heavy commercial vehicle multi utility vehicles such as jeeps, scooters, motorcycle, mopeds, three wheelers, tractors and other agricultural equipment etc. India is emerging as one of the world’s fastest growing passenger car markets and second largest two-wheeler manufacturer. It is also home to the largest motorcycle manufacturer and the fifth largest commercial vehicle manufacturer. The industry currently accounts for almost 7% of the country’s GDP and employs about 19 Million people both directly and indirectly. It’s currently the seventh-largest producer in the world with an average annual production of 17.5 Million vehicles, of which 2.3 Million are exported. The Indian automobile market is estimated to become the 3rd largest in the world by 2016 and will account for more than 5% of global vehicle sales. It is the...
Words: 1412 - Pages: 6
