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Ford Motor Company

Essay by   •  June 30, 2013  •  Case Study  •  832 Words (4 Pages)  •  1,486 Views

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Ford Motor Company Case Analysis

The automobile industry uses a large amount of energy when manufacturing vehicles and the design of the product determines how the customer will consume energy. Ford motor company has had success in the U.S. market as they are the only auto maker that has earned two million in sales for 2012 (Ford-b, 2013, para. 1). The automobile industry needs to focus on sustainability to keep pace with consumers evolving wants and needs in order to remain competitive.

Synopsis of the Case

The automobile industry recession in 2008 caused three major auto companies (Chrysler, GM, and GMAC) to ask the government for a bailout to avoid bankruptcy. These companies expressed that bankruptcy would trigger over 3 million layoffs within one year, which would plummet the economy into further recession (Amadeo, 2013, para. 1). Most Americans opposed the bailouts, saying that automakers brought their near-bankruptcy on themselves by not retooling for an energy efficient era, thus reducing their competitiveness in the global market (Amadeo, 2013, para. 4).

Relevant Factual Information about the Problem or Decision the Organization Faced

Ford motor company fell behind on releasing fuel economy vehicles when CEO Jacques Nasser pledged that Ford would boost fuel economy of the SUV's by 25 percent within five years (Warner, 2008, para 1). "And while Toyota has been selling hybrid cars in the US for almost a decade, Ford won't have its first one on the market until 2009. Ford didn't even have much of a conventional small-car business to fall back on when US consumers pulled a U-turn" (Warner, 2008, para, 19).

Explanation of Relevant Concepts, Theories and Applications Derived from Course Materials

CEO Alan Mullaly was hired as CEO to change the direction of Ford and sold Jaguar, Land Rover and Mazda because they were failing brands and Ford was posting billions in losses. The automobile industry has fluctuated with the needs of consumers and the condition of the economy. The new leadership at Ford decided to change its strategy to reduce capacity, pricing strategy and create innovation. This was done with Ford's "Go Further" brand messaging. "Ford's Go Further program targets building customer integrity by delivering cars and trucks that are fun to drive; price competitively and are leaders in fuel economy" (Roth, 2013, para.4).

Ford is using the focus on sustainability to get lean in their production process and to get back to simplifying production by decreasing the platform of vehicles. Globally this strategy will allow Ford to use the same platforms across its global markets. By using ONE Ford plan, Ford will simplify operations, increase safety and fuel efficiency and improve production globally (Miller,

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