Ford Motor Company Essay Example | Topics and Well Written Essays - 5250 words

Ford Motor Company - Essay Example This report will give a comprehensive analysis of the external and internal factors and aspects that has lead the company to crisis. The first part of the analysis demonstrates a summary about the company and its problems in general. From the analysis in the second part it is found that poor management and decision making is the biggest problem of Ford. Ford is also loosing the market edge on Hybrid and Small cars segment. A fish bone diagram is used to represent the various challenges that have lead to the loss of profitability for Ford. The analysis helped to arrive at the issues which are management, competition, recession and quality. Excessive family control and poor decision making are the major management issues. Similarly, competition from Japanese car makers and other small and hybrid car makers are the major competition lead issues. Low demand and rippling effects of the recession are the recessionary issues. Finally product defects and recalls following that are the qualit y issues that affected ford. The analysis had also put forward various other solutions that will help the company to come back to profitability. Huge reduction of the family’s stake in the business is among the primary solution for Ford. The later part of the report describes a detailed cost benefit analysis for arriving at the right decision for the company. Some of the alternatives solutions available for Ford are as follows: invest huge in R&D, expand the market, develop more small cars, gradually exit the stake from other auto companies, invest in strategic alliances, gradually increase the marketing expenses, emphasize the message of quality. ... Ever since its inception Ford has acquired and sold many of the big brands in the industry. Jaguar & Land Rover and Volvo are the leading ones among them. Following the crisis that hit the company and which almost lead to their failure, it has to restructure itself thoroughly. As a part of it, Ford even discontinued its Mercury brand. Ford was one of the pioneers of ‘Mass Production’ concept. Ford introduced the assembly line system in the automobile production that enabled the roll-over of large number of cars within limited time. The Model T was the first Ford model to undergo assembly line production. â€Å"When the United States became involved in World War I (April 1917), the Ford Motor Company placed its resources at the disposal of the government.† (Funding Universe, 2011) Following the retirement of Henry Ford in 1918, the company’s operations were looked after by his son Edsel Ford. Ford faced the first financial problems in 1921 when the company h ad $58 million in debt and the company had only $20 million with them to meet this. But the various strategic moves that involved sales of maximum automobile and only through cash, reduction of inventories by one third, and various other cost reduction techniques helped them to increase cash inflow. Within no time Ford raised around $87 million which gave them a surplus amount even after meeting all its debt obligations. â€Å"The vision of Ford Motors is to become the world’s leading consumer company for automotive products and services. The mission statement of Ford is to that they are a global family with a proud heritage passionately committed to providing personal mobility for people around the world.  We anticipate consumer need and deliver outstanding products and services that improve people's