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Ford Motor Company Case Study

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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.

• 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 tiers of suppliers, all with different levels of sophistication
• Fierce global competition
• Pressure from shareholders to increase value of company
• Pressure from management to improve customer responsiveness
• Contrast amongst corporate culture – some want to keep Ford’s business model the same, some want to restructure it entirely

Environment and Root Cause Analysis
The auto…...

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