Case Analysis - Ford Motors

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A Case Analysis on Ford Motor Company Introduction Henry Ford’s Motor Company is one of America’s biggest prides in automotive industry. It is a multinational corporation and the world's fourth largest automaker based on worldwide vehicle sales, following Toyota, General Motors, and Volkswagen. The founder, Henry Ford incorporated the company on June 16, 1903. At 1980’s, under the leadership of his grandson Henry Ford II, several bad decisions had been made regarding the organizational structure for being an autocratic leader. Some internal problems were also contributing to the company’s loss in the business. Several times the company has experienced crisis to lose billions of dollars and faced a wide range of criticism for producing…show more content…
Using computerized robot and upgraded inventory. Weaknesses Autocratic management. Expansion of division will leave it weak to some areas. Confusions, duplicate work appear after building some centers. Opportunities Change to a democratic organizational structure for a better management Develop new design and models. Technology advancement lead to an organize and systematic growth. Shift from producing low-priced, stripped down models. Threats Strong price competition. Design competitiveness, Varying purchasing power of customers. Alternative Courses of Action To implement a new approach in decision making process Ford should start to pushed decision making to lower levels, by inaugurating a policy of employee involvement in plant (designing, engineering and manufacturing) in order to improve productivity under a supervision of a functional manager. Pros It makes the subordinate feels appreciated. Gather more ideas to contribute company’s success. Lessen the length of bureaucracy procedure. Cons Cannot accommodate all ideas coming from the subordinate. Superior might not receive adequate information of the decisions. To support the ACA above, selective subordinate must be chosen based on their ability and confidence in making a correct decision. This way, superiors may depend and have full trust on their
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