Premium Essay

De Havilland Case

In: Business and Management

Submitted By ray2364
Words 1672
Pages 7
Executive Summary:
Ford Motor Company was incorporated in 1903 in Michigan,USA by Henry Ford and 11 partners with a starting capital of 28000 US $ in cash.
The company witnessed tremendous growth and became one of the top three car manufacturers in North America. Sales reached 150 billion $ in 1996 with a total of 370,000 work force worldwide.
The company stayed innovative and progressive in its strategy and business model.
In the 1970's, the car market became more competitive with the Japanese manufacturers like Toyota and Honda gaining grounds in the auto market worldwide by producing high quality vehicles with extended life time.
In 1999 Ford acquired the Swedish company Volvo to establish a foot hold in Europe and launched a campaign called "Ford 2000"to reengineer the company infrastructure and IT strategy that aimed at reducing their vehicle centers to 5 worldwide and requiring information technology to be the driving force and the link between the various company divisions.
In doing so, Ford was trying to build a model similar to the one adopted by Dell computers to improve supply chain and delivery times. Dell launched the "direct business model" or "virtual integration" where Dell contracted with reliable suppliers to produce and assemble hardware and software for its computers and note books and tried to sell its products directly to organizations and individuals through the internet by cancelling the role of the retailers or intermediaries.
I recommend the implementation of this model at Ford in the long run. There are few similarities between the car and the computer businesses but lots of differences Also Ford has to focus first on improving the quality of its vehicles to compete with Japanese manufacturers and adjust its corporate culture to make it responsive to change and more dynamic.
Immediate Issue:
Terri Takai, Ford Director of Supply

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