Premium Essay

Small Cars Test Ford Resolve

In: Business and Management

Submitted By ikatiebug8
Words 1017
Pages 5
Katelyn Austin
MGT 499
“Small Cars Test Ford Resolve” Founded by Henry Ford, Ford Motor Company has become the third-largest automaker in the world. Based in Dearborn, Michigan—a suburb of the Detroit area, the company has been in operation since June 16, 1903. Ford receives credit for the innovation of the assembly line. He was able to save nine hours and fifty minutes in producing his Model T car with the assembly line. He ultimately reduced the time to one hour and thirty three minutes. By mass-producing these cars, they were able to flood the market with their product, increasing sales to 501,461 in 1915 and were expected to reach one million. Ford is not the only automobile manufacturer in Detroit. General Motors and Chrysler also exist, together with Ford comprising the Big Three. When the economy started to sink, GM and Chrysler could not change their systems quick enough to avoid bankruptcy; only Ford reversed their systems quickly enough to keep their company afloat. Before the bankruptcy crisis, Detroit’s Big Three would resort “to steep incentives and cut rates to rental companies to clear bloated inventories” (Ramsey, 2012). In the summer of 1995 an article titled “It’s A Buyer’s summer as Car Dealers Cut Prices, Clear Inventory” was written in The Day newspaper, by Richard Truett, began to explain as to why the auto makers created these cuts. At this time, due to higher interest rates to slow the economy and keep inflation at bay, many manufacturers offered big rebates and cut-rate financing to attract buyers to their products. The automakers would still produce the 60-day supply of vehicles but when the car lots became full, they would offer incentives to get buyers interested in their products—rather than another brands. I believe that during this time the automakers did not take into account the economy while mass-producing these

Similar Documents

Free Essay

Case of the Ford Pinot

...Analysis The Case of the Ford Pinto The Ford Pinto first rolled off the Ford Motor Co. production lines in 1971 and stayed in production in its original state until 1978. The vehicle engineers were tasked to develop the vehicle and put it into production within 25 months, which was nearly half the time in which the average new vehicle is put into production. The Ford engineers were aware that rear-end impact safety tests were pretty standard at the time, but they were not required by the National Highway Traffic Safety Administration at that time. The vehicle was rushed into production anyway to compete with foreign compact cars being developed by the Japanese during that time period. Only after the vehicle was made available to the public was the vehicle tested. The Ford Pinto ended up failing the rear safety test, due to the fact that it was susceptible to fire from rear end collisions. Ford engineers determined that the problem could be resolved by installing a baffle, which protected the gas tank from being punctured during rear-end collisions. The part would have only cost between $6.65 and $11 to be install, but the Ford Motor Co. determined through cost-benefit analysis that the cost of lawsuits would be less than the cost of installing the baffle and decided not to install the baffle. Ford Motor Co. also failed to notify customers of the problem and offer them the option to have the baffle installed. Between 1971 and 1978 the Ford Pinto would be involved...

Words: 1565 - Pages: 7

Premium Essay

Ford Motor Company – Supply Chain Strategy

...the supply chain strategy “Virtual Integration” from companies such as Dell. Although there are several main differences between the two companies which is visible in the comparison, pieces of Dell’s virtual integration strategy can be applied to Ford’s supply chain to improve operations. Through this solution, Ford will implement information technologies and internet, along with innovative concepts from high tech businesses, in order to directly interact and perform transactions with their suppliers and customers. This solution will allow Ford to increase its sales by gaining customer satisfaction and by providing rapid communication with their suppliers, manufacturers, and customers – but also keep current client that enjoy buying from dealerships. Since Dell and Ford are two different types of industries, a modification of the virtual integration system currently used by Dell will be applied. Aspects of the virtual integration system will be added concurrent to the current supply chain system, which will remain. This is critical since trying to introduce the full virtual integration business model alone and eliminating the existing supply chain system would put ford in high risk of losing current...

Words: 1723 - Pages: 7

Premium Essay

Toyota's Quest to Regain It Reputaion, Market Share and Sales

...this to be the biggest crisis in the auto industry since the bankruptcies of GM and Chrysler while others thought that Toyota would not be able to rebound from this problem in a short period of time. This paper will explore the decisions that Toyota faced with its problem of regaining its reputation, market share and sales. In efforts to assess this problem, I will be using the PrOACT approach. According to our textbook, “an effective decision-making process will fulfill these six criteria: • It focuses on what’s important • It is logical and consistent • It acknowledges both subjective and objective factors and blends analytical with intuitive thinking. • It requires only as much information and analysis as is necessary to resolve a particular dilemma. • It encourages and guides the gathering of relevant information and informed opinion. • It is straightforward, reliable, easy to use, and flexible. (Hammond, 1999, p.4) The PrOACT approach does just this. It simplifies the problem and provides more clarity to the decision situation. Problem, objectives, alternatives, consequences and tradeoffs are elements of smart choices that will be discussed within this paper to simply Toyota’s decision scenario. Problem and Objectives The objectives in Toyota’s quest to discern how to regain its reputation,...

Words: 1510 - Pages: 7

Premium Essay

Ford Case Study - Supply Chain

...depreciation costs that mark the PC industry • operated on a negative cash conversion cycle – by receiving payment from its customers before it paid its suppliers for components • build strong, stable relationships with the large corporations and other organizations who are its core customers Issue Identification Ford continues to face increased completion from foreign competitors while operating in an industry that is experiencing significant over-capacity. In the face of the challenges presented to us, we must determine if Ford should embrace the direct business model which utilizes “virtual integration” that has driven Dell to become a clear leader in their industry. Further, if we chose to utilize “virtual integration” based on the Dell model, we will need to develop and implement significant changes in the some of our most fundamental supply chain operations. In addition, we must determine how Ford should utilize emerging information technology to transform the way we interact with supply chain members. While progress in this area will be integral should Ford choose to pursue “virtual integration”, it is also a stand-alone issue even if Ford does not choose to pursue the “virtual integration” approach to supply chain management. It is imperative our decisions regarding these issues align with Ford’s key strategic objectives of placing emphasis on shareholder value and customer responsiveness....

Words: 4378 - Pages: 18

Free Essay

Total Quality Management

...strength contemplate of high-end products comparable Mercedes, Gucci, or even Apple. Though, quality is energetic to each commercial, even if the target client is by the low-end or form market. “Dr. W. Edwards Deming, innovator of quality development approaches, speaks that the client's meaning of quality is the lone one and only that substances. Consequently, what must quality define to you?” In place of centuries, Ford Motor Business needs repeated us: Quality is job one. The situation actually must be the goalmouth for altogether of us. Promise to quality reproduces our individual standards and eventually controls whether we can contest in the willing of commercial. Consumers are the last justice. Occupational decision-making Jack Welch, supposed, “The worth period is upon us. If you can't vend top-quality manufactured goods at the bottommost value, you're working to be out of the game.” Better-quality consumer gratification, continued heights of income and greater than before ineffectiveness are the eventual tests challenging any group and these tests are omnipresent in all customer and commercial marketplaces. Eventually, the group that overwhelms these tasks is the one and only that...

Words: 2768 - Pages: 12

Premium Essay

Ethics

...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 to not sell faulty cars. Regulations are set...

Words: 9752 - Pages: 40

Premium Essay

Examination of the Potential Consequences for the Jaguar Brand Resulting from Its Takeover by Tata Motors of India.

...Jaguar Dealerships (Leeds) and to the people who agreed to share their views with me which assisted in the research process. Pg.-3 Table of Contents Pages Acknowledgements 2 Abstract 4 1. Introduction 6 2. Literature Review 10 2. (A) what is a Brand? 2. (B) why is Branding important? 2. (C) Branding of Cars 2. (D) The issue of Declining Brands 2. (E) Country of Origin 3. Research Methodology 21 4. Research Analysis and Findings 35 5. Conclusions 43 Bibliography 46 Appendix One- Learning Statement Appendix Two- Dissertation Proposal Appendix Three- Questionnaire’s used for Primary Research Pg.4 Abstract The research started with the...

Words: 16736 - Pages: 67

Premium Essay

Global City Auto Sales, Inc. Ford Global City

...Business Global City Auto Sales, Inc. FORD Global City Strategic Management Paper Submitted to: Mr. Real So In Partial Fulfilment Of the requirement in Strategic Management (STRAMAN K36) Submitted By: Calantoc, Kimberly Kate L. Chua, Maris Danica T. Gamboa, Beatriz Suan, Ada Lynn M. Te, Krislynn Audrey C. 1 Table of Contents I. Table of Contents II. Acknowledgements III. Executive Summary IV. Introduction V. External Environmental Analysis 1. Definition of Industry 2. Analysis of Present Task Environment 3. Analysis of Potential Changes in the Macro-environment 4. Threats and Opportunities 5. External Factors Evaluation (EFE) Matrix 6. Industry and Competitive Analysis 7. Competitive Performance Matrix (CPM) VI. Analysis of Internal Environment 1. Company Overview 2. Corporate Values 3. Value Chain Analysis 4. Strengths and Weaknesses 5. Financial Analysis 6. Internal Factors Evaluation (IFE) Matrix VII. TOWS Matrix VIII. Strategic Plan 1. Vision and Mission 2. Objectives: Strategic and Financial 3. Evaluation of Present Corporate Strategies 4. Proposed Corporate Strategies 5. Corporate Social Responsibility 2 II. Acknowledgements Thank you to Ford Global City for answering all our queries about the company and its competitors. 3 III. Executive Summary Ford Global City is an automobile dealership that sells brand new Ford brand new Ford cars. They also provide car services, maintenance and repairs for these cars. In its 14 years of existence, they...

Words: 14032 - Pages: 57

Premium Essay

Leadership

...person need in order to be successful at motivating and directing others. Yet true leadership skills involve something more; the ability to help people grow in their own abilities. It can be said that the most successful leaders are those that drive others to achieve their own success. There are many leadership styles and has lot many leadership qualities attributed to the styles. Which one is perfect and what qualities make a good leader is slowly becoming the context and situation oriented. The dynamics and characteristics of this 21st century world are greatly varied than previous centuries. As the society becomes faster paced and dynamic the problems and challenges are also evolving in rapid fashion, making them even more difficult to resolve. People perception and demands on their leadership is also changing fast. They demand new styles of leadership which provide solutions, not necessary an autocratic way but a blend of different styles and qualities to suite these dynamic, challenging, complex 21st and future centuries. In this article “A Vision to 21st century Leadership”, you will be presented my vision on leadership model required for this challenging 21st century and future. It starts with introduction on leadership styles, qualities and goes back to history for literature review. The review gives great importance to select historical leaders of this world, who inspired me and lessons for...

Words: 5442 - Pages: 22

Premium Essay

China Auto Sector Policy 2012

...enforce trade agreements and laws, to market barriers and government policies that increasingly favor Chinese manufacturers, which could affect business operations and prospects of international companies doing business in (or with) China. China’s auto industry has developed extensively through foreign direct investment, which has come in the form of alliances and joint ventures between international automobile manufacturers and Chinese partners. These international automobile manufacturers, who generally dominate the higher end of the Chinese market, have focused on making cars for China’s large and fastgrowing market. The domestic Chinese automakers, who occupy the lower end of the market, struggle to improve design and quality to expand sales overseas. China exports and imports relatively few vehicles. Most of the cars produced in China stay in China and its vehicle exports are mostly light trucks and passenger cars shipped to developing country markets. Automotive trade between the United States and China has increased in recent years,...

Words: 19818 - Pages: 80

Free Essay

Wind Tunnel

...which air is blown from one side by a huge fan at high speeds. The middle part of the tunnel is called as throat. It is the place where the test model is placed. Various sensors are attached to the test model and the data is collected in the room near it. The data collected issued to reduce the aerodynamic drag and minimize fuel consumption and also increase the speed of the cars, trucks, planes, etc. also aerodynamic properties like lift, drag, forces, moments are measured with the use of wind-tunnel. In wind-tunnel air is blown over the test model which is kept stationary at the throat. This will produce the same effect as it would be produced if the vehicle is moving at high speeds on a road. For more accurate results the tunnel is sometimes equipped with rolling road to prevent the boundary layer forming on the floor which may affect the test results. * What are wind tunnels? Just as its name suggests, a wind tunnel is a tube or tunnel that has man-made windblown through it at a certain speed. Scientists and engineers put a model of an airplane in the tunnel and then study the way air moves around the model. By looking at the way this smaller model acts in the wind tunnel, they get a pretty good idea of how a real life-sized airplane of the same design will probably fly. It is a lot easier, cheaper, and safer to build and test a model than to build and fly a real airplane. * How do wind tunnels work? Wind...

Words: 7745 - Pages: 31

Premium Essay

Management

...2001 to become the second-largest Japanese automobile manufacturer. As of August 2008[update], Honda surpassed Chrysler as the fourth largest automobile manufacturer in the United StatesHonda was the eighth largest automobile manufacturer in the world behind General Motors, Volkswagen Group, Toyota, Hyundai Motor Group, Ford, Nissan, and PSA in 2011. Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand, Acura, in 1986. Aside from their core automobile and motorcycle businesses, Honda also manufactures garden equipment, marine engines, personal watercraft and power generators, amongst others. Since 1986, Honda has been involved with artificial intelligence/robotics research and released their ASIMO robot in 2000. They have also ventured into aerospace with the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420 Honda Jet, scheduled to be released in 2012. Honda invests about 5% of its revenues in research and development. History From a young age, Honda's founder, Soichiro Honda (17 November 1906 – 5 August 1991) had an interest in automobiles. He worked as a mechanic at the Art Shokai garage, where he tuned cars and entered them in races. In 1937, with...

Words: 4805 - Pages: 20

Premium Essay

General Motors Stratey Report

...General Motors Prepared for: Business Cluster Professors Prepared by: Team 7 Anthony Allio Joseph Allio Lauren Snitcher Nicholai Larroque Gregory Armamdo June 10, 2005 Table OF CONTENTS Introduction 4 Region Analysis 4 North America- GMNA 4 Europe- GME 4 Latin America- GMLAAM 5 Asia/Pacific- GMAP 5 Porters Five Forces 6 Rivalry 6 Barriers to Entry 6 Threat of Substitutes 7 Power of Suppliers 7 Power of Buyers 8 Competitive Advantage 9 Internal Analysis 10 Internal Strengths 10 GMAC’s Continued Earnings Growth 10 Marketing Strategy/Consolidation 10 GM LAAM/ GM Asia Pacific 10 Internal Weaknesses 11 Rising Health Care Costs 11 Weak Product Mix 11 Lack of Flexibility 11 Strategy 12 Retrenchment Strategy: Product Redevelopment 12 Overlapping models 12 Reinvention 13 Appendix 18 Introduction General Motors is a company that has been around for over one century and has been an integral member of the automotive industry since its inception. To understand General Motors one must simply look at their business philosophy which guides them today, and is embodied in the companies’ culture: product excellence and customer focus, act as one company, and move with a sense of urgency. Throughout this analysis of General Motors we have provided an in depth look at these philosophies, while in the end developing a future strategy for General Motors to implement in restructuring...

Words: 8972 - Pages: 36

Premium Essay

Term Paper

...Case 1: Specific Performance Remedy Denied on Equity Standard Campbell Soup Co. v. Wentz et. al. UNITED STATES COURT OF APPEALS THIRD CIRCUIT 172 F.2d 80 (1949) OPINION BY: GOODRICH The transactions which raise the issues may be briefly summarized. On June 21, 1947, Campbell Soup Company (Campbell), a New Jersey corporation, entered into a written contract with George B. Wentz and Harry T. Wentz, who are Pennsylvania farmers, for delivery by the Wentzes to Campbell of all the Chantenay red cored carrots to be grown on fifteen acres of the Wentz farm during the 1947 season . . . The contract provides . . . for delivery of the carrots at the Campbell plant in Camden, New Jersey. The prices specified in the contract ranged from $23 to $30 per ton according to the time of delivery. The contract price for January 1948 was $30 a ton. The Wentzes harvested approximately 100 tons of carrots from the fifteen acres covered by the contract. Early in January 1948, they told a Campbell representative that they would not deliver their carrots at the contract price. The market price at that time was at least $90 per ton, and Chantenay red cored carrots were virtually unobtainable. The Wentzes then sold approximately 62 tons of their carrots to . . . Lojeski, a neighboring farmer. Lojeski resold about 58 tons on the open market, approximately half to Campbell and the balance to other purchasers. On January 9, 1948, Campbell, suspecting that Lojeski was selling it "contract carrots," refused to...

Words: 42578 - Pages: 171

Premium Essay

Bmgt 380 Final Examination Question and Answers

...BMGT 380 Final Examination Question and Answers Follow Below Link to Download Tutorial https://homeworklance.com/downloads/bmgt-380-final-examination-question-and-answers/ For More Information Visit Our Website ( https://homeworklance.com/ ) Email us At: Support@homeworklance.com or lancehomework@gmail.com 1. Sam orally agreed to sell Ramie some land for $500,000. Ramie paid Sam the $500,000; Sam gave Ramie the deed to the land. Ramie took possession of the land and began building a cabin on it. One month later, Sam tried to retake possession of the land by arguing that the contract for the sale was invalid because it was oral, not written. Sam sued Ramie to invalidate the contract and retake the land. The court will likely conclude that Sam will: a) Win; the sale exceeded $500 so the contract must be written to be valid. b) Win; all land sales contracts must be written. c) Lose; because the contract was fully executed Sam cannot rescind the contract. d) Lose; because Ramie had begun building a cabin on the property, Sam cannot rescind the contract. 2. On Tuesday, Sam offered to sell his CD collection to Sandy for $100. Sandy replied, "I’m interested. I’ll think it over and let you know Thursday whether I want to buy the CDs." On Wednesday, Sam agreed to sell the CDs to Jason, and Jason immediately gave Sam a letter that stated: "Sam, I will buy your CD collection for $100. As we agreed, I will pay you on Friday when I pick up the...

Words: 3996 - Pages: 16