Case Study on Ford Essay

900 Words Sep 17th, 2014 4 Pages
Introduction and Review of case Ford Motor Company, American automotive corporation founded in 1903 by Henry Ford and 11 associate investors. (htt28) It is the multinational corporation and the world's third largest automaker based on worldwide vehicle sales. The Company operates in two segments: Automotive and Financial Services. Automotive includes Ford North America, Ford South America, Ford Europe, and Ford Asia Pacific Africa region. Financial services include Ford Motor Credit Company and Other Financial Service. The Company manufactures or distributes automobiles across six continents. Its automotive brands include Ford and Lincoln. Other Financial Services includes a range of businesses, including holding companies and real …show more content…
The ford company makes a balance between the work demand and number of employee.
Contribution Factors to Ford’s Large-Scale Labor Surplus In 2006 the company suffered from the labor surplus. The demands for Ford automobile were decreased, so that the company couldn’t afford to produce more automobile. The profit decreased and further more they have gone to debt. There was 54, 000 US employee, 23,900 salaried workers in North America and about 12,000 US worker eligible for retirement. The company was paying them their salary and other benefit, but no benefits for the company. So, the labor cost has increased but the values added in the company by those employees were decreased. Ford Company faced the labor surplus because of its high cost structure and decreased in the demand of automobile. There was no work for all employees in the company but the ford paid salary and other benefit to all employee even there are not contributing and involving in the production. As there was decrease in sales of Ford automobile, they had surplus in their work force. Moreover they were unable to afford to keep all the employing paying their salary. They also had to bear financial loss. Hence they were eager to cut down their entire work force. (htt91)
Tactics to Pursue Employee Buyouts and Attrition As company faced the labor surplus at first stage, and gradually began to face the loss on the financial position of the company, because Ford had to pay salary to all the

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