...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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...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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...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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...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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...FORD MOTORS * Background Ford motor company is an American multinational automaker; headquarter in Dearborn, Michigan, basically in Detroit. Founded by Henry Ford in the year 1903, company products are automobiles; the commercial ones are fords name and the luxury ones under Lincoln, both brands under the same company. Ford Company have participation in the market share stock of New York, also has contribution over Mazda and Aston Martin, Japan and UK respectively. Being the second largest automaker enterprise in the US and the fifth in the globe, Ford has global revenues of $118.3 billion, by the year 2008. Manufacturing 5.532 million vehicles and manage over 213.000 employees in 90 plants and facilities around the globe. For a certain period Ford manufacture a line of trucks, bus and tractors. The company discontinued from their products within market only focusing in commercial vehicles. Ford manufacturing methods had a huge impact on the culture and the concept of ensemble cars, “Fordism” was the popular name for those techniques, an industrial workforce using elaborately engineered manufacturing sequences classified by moving assembly lines, was basically the concept of Fordism, know by the year 1914 worldwide. Ford used to be the manager of Mercury luxury brand for the US market, the company discontinued form market in the year 2011. Ford also acquired some subsidiaries over the years, like Jaguar and Land Rover for example, before being sold to Tata motors...
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...Case Study Discussion and Executive Summary June 27, 2011 MGT/216 Case Study Discussion and Executive Summary This paper explores “The Ford Pinto Case” managing of business ethics. Numerous factors suggest within this research that Ford Motor Company was negligent and violated its code of ethics. To understand how relationships are affected a closer look at Ford Motor Company missions and values will align Team B’s personal values with Ford Motor Company. In this paper the study to examine are the role of people, products, and profits in the decisions made regarding the Ford Pinto. Key factors surrounding the Ford Pinto Case The death of Lynn Marie Ulrich, Dana Ulrich and Lynn’s sister, and Judy Ann along with many others was what brought the controversy of the Ford Pinto’s faulty gas tank placement to a climax. After so many unnecessary deaths the release of the Ford Pinto was the responsibility of Ford’s CEO Henry Ford II and Ford’s new president Lee Iacocca. Iacocca reduced the average production of a car from three and a half years to a little over two years. Iacocca was aware that during crash testing the Pinto’s gas tank exploded upon collision but was desperate to expedite the vehicle’s release on his deadline. After the discovery of the Pinto’s faulty gas tank, Ford’s president decided it would be costly to make changes in the Pinto’s gas tank location and its size. The Ford Pinto cost $2000 and making changes would increase its price thus possibly...
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...The Case of the Ford Pinto By James Abstract Product harm crisis can be defined as a sudden break in a product’s life cycle (Siomkos, G.J and Kurzbard. J. 1994). In 1971 the Ford Motor Company created a product harm crisis with the introduction of the Ford Pinto. The Ford Pinto is known to be one of the most dangerous vehicles ever produced in automotive history due to several serious design flaws. This paper will identify the factors that contributed to the product harm crisis, compare and contrast the findings of various studies on a product harm crisis and finally synthesis the research findings and provide a post mortem recommendation to the Ford Motor Company on how the Ford Pinto product crisis should have been handled. The Case of the Ford Pinto In 1968 the Ford Motor Company decided to market a vehicle that was small, inexpensive and would appeal to all car buyers. The Vice President of Ford Motor Company at the time was Lee Iacocca. Mr. Iacocca approved the plan for the Ford Pinto based on the parameters of the car weighing 2000 pounds and costing $2,000.00 dollars (Danley J. 2005). By placing these parameters on the car’s designers, they were limited from the beginning and ended up with a failed product. The key factors that contributed to the product crisis included the Ford Pinto being rushed to production in twenty five months, the timeframe to production causing designers and producers of the car to cut corners and finally...
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...Ford vs Dell Executive Summary FORDs current method of controlling all aspects of the manufacturing is outdated and is limiting the corporation’s annual results. In order to stay competitive and become efficient again, FORD needs to re-evaluate their current supply chain and implement key portions of DELLs vertically integrated supply chain model. A proper implementation will increase information flow between suppliers, departments and dealers resulting in a reduction of redundant inventory and focus towards just in time inventory. All of these factors will further drive up the already US industry leading profit margin per vehicle. In order to accomplish these goals FORD needs to refocus the Purchasing department’s responsibilities, consolidate and develop suppliers that deliver finished high level components and increase the information flow across all points of the supply chain. These steps will help to introduce a more pull-based system. Contents Issue identification 1 Environmental and root cause analysis 2 Alternatives/Options 3 Recommendations 4 Implementation 5 Monitor & Control 6 Issue identification • Current order to delivery (OTD) is more than 60 days. • Management of large supplier network. • Utilization of IT is lacking. • Purchasing isn’t integrated into Product development. • Independent dealership network has resulted in FORDs loss of control over customer service experiences. This network also...
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...ase study of Tata Motor Acquisition of Jaguar and Land Rover You are Here: Home > Management Case Studies > Case study of Tata Motor Acquisition of Jaguar and Land Rover According to industry analysts, some of the issues that could trouble Tata Motors were economic slowdown in European and American markets, funding risks, currency risks etc. Acquisition of Jaguar and Land Rover provides the company with a strategic opportunity to acquire iconic brands with a great heritage and global presence, and increase the company’s business diversity across markets and product segments.- Tata Motors, in April 2008. “If they run the brands as a British company and invest properly in new product, it will be successful because they are still attractive brands.”- Charles Hughes, Founder, Brand Rules LLC, in 2008. “Market conditions are now extremely tough, especially in the key US market, and the Tatas will need to invest in a lot of brand building to make and keep JLR profitable.”- Ian Gomes, Global Head, Emerging Markets, KPMG, in 2008. Acquisition of British Icons On June 02, 2008, India-based Tata Motors completed the acquisition of the Jaguar and Land Rover (JLR) units from the US-based auto manufacturer Ford Motor Company (Ford) for US$ 2.3 billion, on a cash free-debt free basis. JLR was a part of Ford’s Premier Automotive Group (PAG) and were considered to be British icons. Jaguar was involved in the manufacture of high-end luxury cars, while Land Rover manufactured high-end...
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...In the article, Ford Pinto Fuel-Fed Fires, “the Center for Auto Safety petitioned the National Highway Traffic Safety Administration to recall Ford Pintos due to defects in the design of the strap on the gas tank which made it susceptible to leakage and fire in low to moderate speed collisions,” (Ford), clarifies the conception that improvements are indefinite. Not in this case, “Mark Dowie of Mother Jones Magazine, published documentation that Ford Motor Company was aware of the weakness in the fuel tank before the vehicle was placed on the market, but it would be “cheaper” for Ford Motor Company to pay liability for burn deaths and injuries rather than modify the fuel tank to prevent the fires from occurring. Dowie also showed that Ford Motor...
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...Running head: FORD PINTO CASE STUDY PAPER Ford Pinto Case Study Paper Learning Team B University of Phoenix MGT /216 Organizational Ethics and Social Responsibility SB09BSB10 Leatricia Cash June 2, 2010 The ethical issues surrounding Ford Motors in regard to the company’s production and release of the Ford Pinto brought the integrity of the organization into question by internal and external shareholders in the 1970s (Engineering.com, n.d.). Understanding the various ethical dilemmas faced by personnel who helped with the design and build of the Pinto provides clarification as to why the organization’s reputation as a quality supplier of automobiles was put into question by consumers. Analyzing the Ford Pinto Case Study, the following information will contain an outside viewpoint in regard to the Ford Pinto case that will illustrate viewpoints on the issue based off personal perspective. A recommendation on dealing with the issues Ford Motors faced with the Pinto are provided to illustrate the ethical approach Ford could have used during the production phase and after the vehicle entered the consumer market. The recommendation will be backed by examples of external and internal social pressures that have influenced the decision to recall the Ford Pinto. In addition, the evaluation of this case during 1971 and in current day is illustrated in the readings to compare and contrast the situation based on the...
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...Ford Motor Company – Case Study Jason Austin Denine Rood Jeanne Sands Like apple pie and a summer baseball game, Ford Motor Company has come to symbolize America, the land of opportunity. This America is a place where a person with scarcely any means can take little more than an idea and transform it into one of the most successful companies in the world. This is the story of Henry Ford and the Ford Motor Company. Consider the following quote from the Ford Web site. Ford Motor Company entered the business world on June 16, 1903, when Henry Ford and 11 business associates signed the company's articles of incorporation. With $28,000 in cash, the pioneering industrialists gave birth to what was to become one of the world's largest corporations. Few companies are as closely identified with the history and development of industry and society throughout the 20th century as Ford Motor Company. Henry Ford and his business partners where true entrepreneurs. Today, when we think about Ford, we think about innovation. From Henry Ford’s revolutionary idea of the assembly line to the new vehicles that Ford introduces every day, innovation has always been a cornerstone of Ford’s business. One little known fact is that Ford embraced QFD (Quality Function Deployment) , a Japanese quality methodology, into their product design process significantly earlier than most companies in the United States. This embracing of new ideology has led Ford to offer products...
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...Ford Pinto: A Study of Ethics In the 1960s Ford Motor Company, under pressure from stakeholders and the pressures involved in competing with the foreign vehicle market set out to manufacture a vehicle that was smaller, lighter and less expensive than the competition’s product. This vehicle was designed and moved into production within 2 years, much quicker than the 3 ½ year company norm and is still the shortest vehicle production planning schedule in history. The result: The Ford Pinto. While the Pinto was in the design phase it was decided that the fuel tank would be placed under the rear fender instead of over the rear axel to allow for more trunk room in the car. This design however, was quite flawed. The Pinto being smaller than the other American made cars was not built using the same frame design; a design that was manufactured to prevent the fuel tank from exploding upon a rear impact collision. Upon testing a serious defect was found with the placement of the fuel tank. It was determined that if the Pinto was involved in a rear end collision the fuel tank may rupture and burst into flames causing serious injury or death to the passengers. Team A will be examining the ethical dilemmas involved in the case and the solutions that we would recommend today and the solutions that would have been ethically appropriate in 1971. Lee Iacocca was the president of Ford Motor Company in 1971 and was the directive authority behind the creation of the Ford Pinto. He wanted a...
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...Strategies Case Study Assignment 2 STUDENT NAME: Professor: Dr. Wright BUS 508: Contemporary Business Raleigh, NC May 5, 2013 Determine how each corporate differs from the other The corporate cultures of the two companies are very different. One example. GM pulled its ads from Face book. Ford is doing more with Facebook. Another, GM bailed out by the government, Ford weathered the storm. The social media strategy of each company is extremely interesting. GM is going to go the traditional route. Ford has embraced the tools of social media to connect with its customers. I think that gives Ford a competitive edge. General Motors Company is an American multinational automotive corporation headquartered in Detroit, Michigan, and among the world's largest automakers by vehicle unit sales, employing 202,000 people and doing business in some 157 countries. They also have five different business segments. They also provide on star vehicles safety, security and information system. As the second-largest automobile company in the world, Ford Motor Company represents a $164 billion multinational business empire. Known primarily as a manufacturer of automobiles, Ford also operates Ford Credit, which generates more than $3 billion in income, and owns The Hertz Corporation, the largest automobile rental company in the world...
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...Raju Sharma COMPARING AND ANALYZING FINANCIAL STATEMENTS TO MAKE AN INVESTMENT DECISION Case Study of Automotive Industry Business Economics and Tourism 2012 1 VAASAN AMMATTIKORKEAKOULU UNIVERSITY OF APPLIED SCIENCES Bachelor of Business Administration ABSTRACT Author Title Raju Sharma Comparing and Analyzing Financial Statements to Make an Investment Decision: Case Study of Automotive Industry. Year 2012 Language English Pages 72 + 5 Appendices Name of Supervisor Jukka Paldanius The purpose of the thesis was to evaluate and compare the financial statements of different companies to rate their performances. The emphasis was to be able to choose among several companies the best one to invest in. The aim of the study was met by comparing the risk of different companies, their rate of return, future trends and their strengths and weaknesses. In the theoretical section of the thesis different factors affecting the capital market were discussed, with the focus being on the risks of an investment. Basic financial statements and ratios were discussed briefly. Next cross sectional and time series techniques to compare the financial statements and ratios were revealed. Most of the information from the theories was later on used in the empirical part of the thesis. In the empirical study, initially the financial statements of different companies were taken to compute the ratios, risk, average return, to make trends and common size statements. Then a quantitative interpretation...
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