Ford Motor Case Study

1291 Words Jul 29th, 2014 6 Pages
Executive Summary:
Ford wanted to adapt the idea of virtual integration to improve its supply chain. By the use of technology; it wanted to reduce its working capital and increase profits. Moreover, the company was emphasizing more and more on shareholder value and customer responsiveness so they were looking into reengineering some of their processes which can help improve their current forecasting model and reduce OTD cycle times substantially. With new business models prevailing, Ford did not want to be left behind; they were looking at high-tech industry’s growth in the recent years and thought if they could implement some these ideas to their business.
Ford has always been a forerunner in employing technology to overcome its
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Ford has to find a different way to eliminate reseller’s margin to increase sales so they should focus on improving their supply chain and manufacturing costs.
Another major difference between Ford and Dell is organizational; at Ford purchasing was organizationally independent of product development historically but at DELL purchasing activities reporting to product development which makes them flexible to market changes.
Alternatives and/ Options
Ford can adapt to Dell’s virtual integration model and try to sell cars online but there are far more disadvantages to Ford as the market is not ready for this business concept yet. They would have to change their entire operation which will be a huge task or an organization of its size. On one hand Ford is trying to bring value to its shareholders investment so this costly move will not be approved by the management. With the loss of dealership they can even lose business to their competition.
As another option, along with its current sales model of selling via dealership, Ford can start an online car buying portal as a pilot project on its website which will be industry’s first of its kind. This will open up a new market for them and help them understand their customers better.
Recommendation and Implementation
Ford has already initiated some great ideas in the form of Ford 2000, FPS, OTD, FRN and

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