Operations Logistics and Supply Chain Management: Challenges Faced by Ford of Britain

This essay discusses the challenges faced by Ford of Britain in operations, logistics, and supply chain management due to external factors such as social, environmental, and economic. It also provides recommendations to improve the organizational performance of Ford.

OPERATIONS LOGISTICS AND
SUPPLY CHAIN MANAGEMENT

TABLE OF CONTENTS
ESSAY.............................................................................................................................................3
REFERENCES..............................................................................................................................10

ESSAY
Overview-
Operations, logistics and supply chain management are considered as most beneficial and
useful elements of any company, because it contributed to make a firm productive and
progressive. Management practices related to each term in turn provide several benefits to
companies. As they take benefit of increasing productivity, performance and profitability extent.
Operations and supply chain management terms drive the attention of companies toward gaining
competitive advantages, when both practices conducted in appropriate manner. The current
assignment is based on Ford of Britain, which falls under category of leading automotive
organizations in the UK. The overall essay will explain challenges, faced by company operations
and supply chain managers related to their operational areas.
Key operation, logistics and supply chain management issues faced by operations & supply
chain manager in Ford of Britain-
The success and growth of any company is depended on their operational and functional
units' performance. New product development (operation area) and logistics mix (supply chain
management), are one of those areas, related to these managers faced problems within chosen
organization, which may put negative impact on business productivity and performance as well
as profitability level. Operation and supply chain managers are facing issues in the context of
two selected areas, just because of some external factors such as social, environment and
economic (THE TRIPLE BOTTOM LINE: WHAT IT IS & WHY IT’S IMPORTANT, 2020). These
three forces are included in specific concept and that is triple bottom line, which posits that
companies should commit to measure their environmental and social impact. New product
development is important and beneficial for chosen company because it may help to gain
competitive advantages, while it may affect negatively in term of consuming time. It can be said
that productive development strategy implementation may enable Ford to retain customers who
may contribute to increase its profitability. On the other hand, it can be critically analysed that
product development may consume a lot of time and require appropriate market research.
Economic factor-
Fluctuation related to economic measures like personal income of population, cot of
underemployment, establishment churn, job and economic growth, level of employment
distribution, etc. may put negative impact on specific operation or function of sectors like

automotive and companies that operate under that (Birkel and Müller, 2020). For example, in
case of Ford in Britain, ration of job growth is decreasing just because of pandemic as people are
losing their jobs in bulk, which unable them to order a new car or vehicle and buy the same. This
force is related to new product development operation of company, which lead to decrease the
sales and success chance of its venture into automotive industry, where competition between
existing and new brands reach higher. As an economic measure, less employment growth in
market may bring challenge for operation manager to earn profit as they determine number of
decreasing customers base. It can be critically analysed that decreasing job ration may provide
firm chance to hire skilled people. In the chosen company manager may face challenge to
develop new product that affect their customers base. This factor, contribute to make this issue
more complicated which affect in negative manner.
Social factor-
Changes related to unemployment rate, consumer trends, relative poverty, life styles and
buying decision of individuals. For example, in the context of Ford in Britain, changing life style
and consumer trends, may put negative impact on logistics mix and new product development
operations of company. It may lead to decrease extent of customers demand related to vehicles,
as they expect to purchase a car with some new features according to the generation. For
instance, in recent time people prefer to purchase buy semi-automatic cars that help to make
travel quite easy and comfortable for them (Varyash and et.al., 2020). As this force may affect
negatively upon new product development and inventory management operations of Ford. Just
because of social factor, managers in the company may face issues, which is quite important for
them to overcome as they may lead to decrease organization operational effectiveness that is not
appropriate for venture growth. It may also affect positively, when firm consider the needs and
all the social factors that help to increase its productivity and increase profitability, more than
other companies that operate in same market or industry.
Environmental factor-
As final element of triple bottom line, environment factors are concerned with making a
positive impact on earth, which is possible when a company may conduct sustainable business
practices. In case of chosen company, climate change is one of those environmental forces or
measures that may put negative impact on its supply chain activities such as logistics mix, which
included networks, transportation, inventory capacity and inventory and channels of supply chain

operation. Just because of climate chain, firm may drive its attention of produce, supply and
transport those products that are sustainable and beneficial for environment in term of less
producing exploitation fumes that affect negatively upon environment (Ford Revealed the
Biggest Risk Factors Currently Facing the Company, 2019). As people prefer to buy a car that is
environmental friendly. In recent time, population are wary of pollution too much, and just
because of this concern they expect to buy those vehicles, which do not impact in negative way
upon environment and let it free from any harmful affects.
Along with positive aspect, this factor may impact negatively in term of emerging needs
for better resources that help to build sustainable brand image in the market.
How operation functions and supports the market that company serves-
In a company there are varied operations functions existed, and each function is
accountable to contribute to achieve set goals and objectives of a brand. Just like the other
companies, Ford in Britain also run its business with the support of varied operation functions
and these functions are defined with the help of choosing and applying specific supply chain
management model. Here, in order to define support of an operation function, service delivery,
infrastructure and other supportive elements, Value chain analysis theory used and applied in
brief manner below-
Primary activities-
Inbound operations-
Product production is one of the most important function of company, where skilled
employees by working together may support other sections to serve their satisfactory services
and provide quality vehicles to customers (Knez, Jaklič and Stare, 2021). It is fact that Ford
Britain production network is spread internationally, its assembly and manufacturing chains are
established throughout world from UK, US and Africa including China. This department may
always take initiative to collect those raw materials, which they may utilize to manufacture the
best and most demanding cars in market that target market prefer to buy from chosen brand
instead of its rivals those are existing and running ventures within automotive industry. Without
conducting this practice in appropriate manner, firm may face the worst situation that lead to
decrease its sales.
Operations-

As operating globally, firm may accountable to delivery and sell the best and unique
products. In order to do so, operational functions like assembling and production department
play vital role, in term of managing its several operations in many countries like North America,
Middle East, Asia Pacific, etc. By having good and skilled workforce, organization may able to
enhance the satisfactory level of its target audience and also enable to gain the attention of more
who may also obtain same service standards that existing customers are obtaining from longer
time and due to this reason they may now become loyal consumers of company, which is quite
amazing thing about its effective teams. This factor or element may affect negatively in case
when employees may do not manage each operation in positive manner.
Outbound logistics-
In order to grow venture and be competitive in automotive industry, Ford in Britain may
take support of its outbound logistic as operation function. For example, organization attempt to
serve the best services and deliver its goods on time in market, for purpose of these activities, it
may utilize a balance mix of transportation solutions that concentrate on reducing road miles and
optimize effectiveness apart from environmental sustainability (Amaya, Padulosi and Meldrum,
2020). Firm may collaborate with sustainable logistics partners, and dealers to appropriately
measure as well as enhance impact of transport down its supply network. Furthermore, in order
to obtain the benefits of competitive environment, it may take initiative to use own warehouses
where it may keep manufactured product safely and then supply according to market demand.
Marketing and sales-
Just like above operations functions, marketing and sales department also supports in the
context of delivering and providing products in varied designs. For example, marketing section
may contribute to grow firm by developing and promoting venture goods into influencing
manner, which is quite important for them to do so as it gain the attention of more individuals
towards buying organizations products (Adicha, and et.al., 2021). Ford in Britain may spend a
large amount on promotional activities and in order to make its aim achievable marketing
department support in varied terms. Furthermore, sales department also contribute to make their
company productive by analysing those products that sales are decreased last years and then
develop plan to add new features into that, which help to produce each item in profitable manner.
This activity may do not support firm to grow when the technologies related to sales and
marketing management is up to date.

Services-
Customer service department may make Ford able to retain and acquire potential
customers. For example, they accountable to satisfy people by solving their queries and
providing appropriate answer to them about products, their key features, etc. By providing
existing services in effective and appropriate way, this department may enable brand to be
competitive in market and always stay strong with wide customer base (Ayele and et.al., 2021).
Furthermore, in term of research and development activities, chosen section may effort to satisfy
their target audience, which is quite beneficial for organizational success. By conducting
effective investigation, employee may effort to boost the performance of brand and satisfaction
level of individual buyer.
Support activities-
Firm infrastructure-
Organization in order to manage all the delivery systems, procedures and activities of
employees may utilize specific infrastructure and that is matrix. It can be said that by using
matrix organizational structure, Ford in Britain may manage all its operations in effective
manner. It may obtain benefits in term of improving collaboration, coordination and flexibility at
Illustration 1: Value chain analysis
(Source: Value Chain Analysis: An Internal Assessment of Competitive Advantage,
2018)

workplace, which is important to increase between all candidates who are working in different
sections to achieve common aim. With chosen infrastructure, firm may attempt to encourage
open communication at work areas and also increase the productivity of employees. This force
may contribute to overcome current two chose issues in form of developing effective plans that
help to gain multiple benefits. On the other hand, ineffective organizational structure lead to
create more complications for management to deliver products and deal with product
development and logistics mix.
Human resource management-
Like all the departments or operation functions, HRM also support to serve services to
those individuals, whom firm target as its customers (Palacios-Mateo, van der Meer and Seide,
2021). They may help in term of building diverse workforce at workplace among which each
candidate may perform in productive and effective manner. In order to do so, they may take
initiative to hire talented people and also attempt to provide training to all, which contribute to
enhance and develop new skills among individuals, which they may utilize to satisfy target
customers appropriately, without making any major mistake that may put negative impact brand
image in automotive industry. It is essential for management to hire skilled people by complying
with regulatory terms that may consume time, require resources and efforts that is not possible
for management to do so in short term period.
Technology development-
For purpose of running venture in productive and profitable manner, Ford in Britain, may
utilize advanced technologies. For example, for purpose of promotion, it may use social media
and other digital marketing tools, which contribute to generate excellent brand awareness in
market as compare to its rivals. Organization may focus on improving its operational
effectiveness by investing more in technologies such as IT Systems, production operation,
through which its productivity and profits margin may increase rather than other brands. It may
also concentrate on using artificial intelligence to enhance its speed out of current production
lines. Along with positive impact, technology development affect negatively as it can be
critically analysed that technology implementation and utilization in the workplace may require
some expert suggestion and advanced IT expert.
Procurement-

In term of procurement, firm may overcome the negative impact of environmental factors
by collecting raw materials from those suppliers who are sustainable and conduct their practices
by following ethical business concept. By doing so, it may build strong and most impressive
brand image in market, which is not easy for any company to beat and imitate as it is quite tough
to develop so. World-wide procurement of company may permit it to support to local economies,
boost entrepreneurship and increase customer satisfaction along with acquiring new.
Sum-up
On the basis of above discussion, it has been summarized that organization has gained
competitive advantages and increased its performance level, by applying effective techniques in
the context of determined issues. Furthermore, it has enhanced its productivity extent by
following suitable suggestions and by taking initiatives in varied terms. It has been determined
from above analysis, that company has taken pleasure of increasing strategic strategies that
helped to overcome negative aspects. It has gained competitive advantages by overcoming
negative impact of certain factors and grabbing the chance to business success in term of
considering growth factors. From above analysis, it has been critically analysed that
implementation of each business activities increase profits and also affect negatively, when the
strategies implementation is not appropriate.
Recommendations-
 In the world of business, there are several approaches and effective techniques accessible
that has been utilized by many companies whether it is small or large within automotive
industry. Here, Ford can also take benefit of improving its organizational performance in
term of adopting way to develop a team workplace, who is accountable to continually
identify changes occur in market or sector, and any activity conducted by business rivals.
By doing so, they can take better decision to improve their performance, even the
business environment is not in favour of its organizational success.
 On the basis of above analysis, it can be said that Ford in Britain can improve its
operational and overall business performance, by monitoring performance of employees
against social, environment and economic factors that are putting negative impact on its
growth. Monitoring activities and practices can provide organization chance to determine
the areas where current and in the future changes required. By following this suggestion,
management within firm can obtain chance to be productive and profitable as compare to

its key rivals. In term of taking one step ahead towards business growth and excellent
success in automotive industry.

REFERENCES
Book and Journals
Adicha, A. and et.al., 2021. Value Chain Analysis of Goat in South Omo Zone, SNNPR,
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in Guatemala. Economic Botany. 74(1). pp.100-114.
Ayele, A and et.al., 2021. Value chain analysis of wheat in Duna district, Hadiya zone, Southern
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within the triple bottom line of sustainability–A systematic literature review. Journal of
Cleaner Production. p.125612.
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of Economic Structures. 10(1). pp.1-37.
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Varyash, I. and et.al., 2020. Triple bottom line and corporate social responsibility performance
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Online
Ford Revealed the Biggest Risk Factors Currently Facing the Company. 2019. [Online].
Available Through: <https://www.motorbiscuit.com/ford-revealed-the-biggest-risk-
factors-currently-facing-the-company/>
THE TRIPLE BOTTOM LINE: WHAT IT IS & WHY IT’S IMPORTANT. 2020. [Online].
Available Through: <https://online.hbs.edu/blog/post/what-is-the-triple-bottom-line>
Value Chain Analysis: An Internal Assessment of Competitive Advantage. 2018. [Online].
Available Through: <https://www.business-to-you.com/value-chain/>