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Case Study on Ford Motor Company PDF

   

Added on  2021-05-31

11 Pages2534 Words1531 Views
FORD MOTOR COMPANY 1FORD MOTOR COMPANYByClass (Course)Professor (Tutor)Name of the SchoolCity and StateThe Date

FORD MOTOR COMPANY 2Table of ContentsIntroduction........................................................................ 3Body................................................................................. 4Recommendations................................................................ 8Conclusion ........................................................................ 9Appendices ..................................................................... ...10References........................................................................ 11

FORD MOTOR COMPANY 3IntroductionAccording to Jeyarathnam (2008), the success of any business organization depends on factors such as finances, environment, and competition. Some organizations tend to do better than othersin the same industry depending on the strategies that they put in place to ensure that they remain relevant in the competitive market. This report, therefore, aims to compare and contrast a successful and unsuccessful company in the automobile industry from the strategic management perspective. In this case, the companies under study are Ford Motor Company and Toyota MotorCompany. The purpose of this report is to identify the main challenges that Ford Motor Company is facing and then recommend possible solutions for the company that is likely to solvethe problems they are facing in the marketplace. For instance, one of the reasons why Ford Motor Company is lagging behind is that they are very slow when it comes to innovation and adapting new technology to create models that are impressive to the customers (Peng and Meyer 2016, p 79). While their competitors like Toyota and General Motors are coming up with hybrid models Ford is yet to reveal its hybrid technology. On the other hand, this report intends to explore the reasons behind the success of Toyota Motor Company for it to be the world’s leadingautomobile company.

FORD MOTOR COMPANY 4Ford Motor CompanyFounded in 1903 by Henry Ford, the Ford Motor Company commonly known as Ford is one of the leading Americas automobile makers. Additionally, the company is placed fifth world’s largest automobile manufacturers after General Motors, Hyundai-Kia Toyota, and Volkswagen as per the report given in 2010. The company sells all vehicle models including tractors, commercial, and luxury cars with luxury cars under Lincoln brand while the commercial vehiclesare mostly are Ford brand. In 1914, Ford introduced large-scale manufacturing strategies commonly known as Fordism with the aim of being the leading automobile manufacturers in the world while providing the consumers with quality and affordable products. Based on the global report of 2009, the company’s total revenue stood at $ 118.3 billion, total equity totaling to negative $ 17.311 billion, while the assets were $ 222.997 billion (Ford.co.uk 2018). Ford’s financial challenges started in the early 21st century during the financial crisis which almost made the company bankrupt. Despite being a leading automobile company, Ford is facingsignificant problems that are preventing it from fully utilizing the opportunities that are presentedby modern technology and other social and economic factors. If these challenges are not resolvedearly, they may make the company shut down in the near future. Some of these challenges are discussed below, and at the same time, some recommendations are given to ensure the company’s sustainability in the competitive market. 1.Change in customer needs When economic and financial factors are put into consideration, it is obvious that majority of car owners prefer vehicles that are cost-effective in terms of fuel consumption. Many people before purchasing a car will first look at how effective it is when it comes to fuelling. With most of the

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