Ford Motor Company

Ford has many types of human resources and work arrangements, and all the employees together create a skilled and motivated team aligned around the objectives of Ford (Supporting One Ford - Sustainability Report 2013/14 - Ford Motor Company, 2017).

Ford Motor Company has been and till the date is known as the king of innovations in the automobile industry. Their research & development department and innovation of interchangeable parts in moving assembly lines resulted in extraordinary global extension for them. They are an old heritage who ruled and still doing impressive jobs in the global automobile market. Some prestigious motor brands are also owned by Ford.

Ford was very successful throughout his career and was very generous. He donated 7.5 million to build a hospital that was later named after him (“Henry Ford”, Columbia Electronic Encyclopedia). Ford also developed the Ford Foundation which funds education and research programs (“Henry Ford”, Biography.com).Ford also was generous to his employees. In the article “Henry Ford” on Biography.com it is noted the Ford increased the daily wage to five-dollars in

The Ford Motor Company’s Lincoln marque has fallen far since 1998, the last year it was the top selling luxury automotive brand in the United States. These days, the segment is dominated by BMW, Lexus, and Mercedes-Benz with Audi, Cadillac, Acura, and Infiniti also outselling Lincoln.

J., & Ghauri, P. N. (2015). International business strategy: theory and practice. London: Routledge, Taylor & Francis Group.

Henry Ford incorporated Ford Motor Company on June 16, 1903 (H Staff, 2009). With 12 investors and 1000 shares, the company had spent almost all of its $28,000 cash investment by the time it sold the first Ford Model A on July 23, 1903 (F Staff, 2017). But by October 1, 1903, Ford had turned a profit of $37,000 (F Staff, 2017). Henry Ford was able to increase production thus increasing profits by inventing the first ever assembly line (H Staff, 2009). Ford operates in the stock market through the consumer durables sector and is a part of the motor vehicle industry with a market cap of $42.4 billion (FT Staff, 2017). Ford Motor Company engages in the manufacture, distribution, and sale of automobiles (CNN Staff, 2017). Ford is a globally run

Here we list several important facts found in the main body of the case for further use in the later analysis.

Ford Motor company, founded by Henry Ford, is one of the longest lasting automobile companies in the world. Just like any business, corporation, or establishment, Ford Motors has a vision and a mission statement in which makes up the principals that they stand upon. The mission statement in simple terms is “One Team. One Plan. One Goal.” It is also called the “One Ford” mission, in which basically says that anybody that is connected with Ford has the same mission, in which metaphorically spells “unity” (Thompson, 2017). “People working together as a lean, global enterprise for automotive leadership, as measured by: Customer, Employee, Dealer, Investor, Supplier, Union/Council, and Community Satisfaction,” is what exemplifies one team. “Aggressively restructure to operate profitably at the current demand and changing model mix; Accelerate development of new products our customers want and value; Finance our plan and improve our balance sheet; Work together effectively as one team,” exemplifies one plan. Finally, the goal of Ford Motors is “An exciting viable Ford delivering profitable growth for all” (Thompson, p.1, 2017). The vision statement of Ford Motor Company is, People working together as a lean, global enterprise for automotive leadership.” The leadership of the automotive is ultimately measured by everyone who is connected to the company in which includes the employees, suppliers, communities, customers, investors, and dealers,” (Business, 2015). In order to carry out a vision, one must have a plan of action in order to carry out the vision that has been set. Ford Motors constantly works toward their vision by building, “great products, a full family of vehicles – small, medium and large; cars, utilities and trucks – with best-in-class quality, fuel efficiency, safety and smart design; strong business, based on a balanced portfolio of products and global presence; and better world, accomplished through our sustainability strategy,” (Business, 2015). The mission and vision statement of Ford Motor Company is definitely effective.

The amount of cash that Ford is carrying on its balance sheet is too much considering that additional money not used for the advancement of the company belongs to the owners of the firm, the shareholders. Having too much cash on its balance sheet will be a disincentive to Ford’s employees who consequently will feel not feel an urgency to perform and add value to the company. Notwithstanding the fact that the company is always on the lookout for acquisition targets even after already purchasing Jaguar Cars, Volvo Cars, and Land Rover in the past ten years, it is imperative that the company does not engage in such activities for the sole purpose of “empire

increased 30% in 1994 and 34% in 1995 over the average net sales of 1991-1993.

For this question, we need some measurement of liquidity to compare the turnover rate and reservation of cash for Ford, GM, Chrysler and compare those measurements in different years to see if Ford have too much liquidity which means too much cash. Quick ratio is liquidity measurement which is a variant of the current ratio. It focuses on quick assets, which are those assets likely to be converted to cash within a relatively short period of time.

Although collectivism has traditionally been associated with eastern cultures (Härtel, Fujimoto, Straybosch, & Fitzpatrick, 2007), motor companies like Ford and Toyota moved away from Taylorism and demonstrated the value of teamwork in vehicle manufacturing (Winfield & Kerrin, 1996). However, MMC’s reward system of individual production bonuses did not acknowledge the value of teamwork. Moreover, an unspecified dollar amount that was eroded by inefficiencies in the production process did not provide an incentive to improve production. Not only should these individual production bonuses be quantified, the company should also consider a reward system for foremen to acknowledge their efforts in encouraging individuals and teams to achieve higher production.

Ford in 2011 is on the rebound, having recovered from the darkest hours in the late 2000s. The company for the company is that many of its competitors are also rebounding, and there are significant long-run changes in the automobile industry. Ford needs to determine a strategy that will take the company through the next decade, and improve the company's competitive position. The company has four of the top fifteen best-selling cars in America, but also needs to set strategy globally, as many of the best automobile growth markets are overseas. Another strategic consideration is that CEO Alan Mulally remains in the process of changing the organizational culture at Ford, which had become stagnant and unresponsive to the changes in the industry environment.

Faced with an overwhelmingly complex situation, Alan Mulally has been brought in as Ford Motor Company's new president and CEO. As diverse global dynamics confront the company and competitive pressures continue to build, he has the challenging task of improving Ford's brand image and returning the company to profitability. Mulally has invited your consulting firm to advise his management team on restoring the company's reputation and viability. Assigned to the project, you have been asked to evaluate Ford's situation and prepare a report with the following content:

As trade increases hyper-competition grows forcing organizations to go global. By a company going global it requires them to rethink strategy and reform (Ananthram and Pearson, 2008). Global organizational structure is the way a company aims to merge local preferences with global strategy. The definition of global strategy is “strategic choices that have the characteristics of being globally uniform or integrated,” (Yip et al., 1997) such as standardization of products, uniform marketing, and competitive moves, but all globally (Townsend et al., 2004; Zou and Cavusgil, 2002; Bayraktar and Ndubisi, 2014). Global strategic strategy is a way to adjust to globalization. Globalization is “the economic and social process by which economies and communities grow inextricably interdependent “(Jhirad et al., 2009). The recent financial crisis (Das, 2010), large amount of poverty, and climate change are all problems that show how the world is globally connected because all countries impact each other (Jhirad et al., 2009).