Ford Motor’s organizational structure is designed according to regional markets. Other characteristics of this organizational structure are based on the global scope and nature of Ford’s business. Ford Motor’s structure is based on business needs in dynamic market conditions round the world. A firm’s structure typically defines the configuration of structure elements and the system of interaction. In Ford’s case, the structure a lot of or less directly relates to the world automotive industry condition. The international scope of Ford’s operations conjointly determines the key structure elements needed to resist competition and market risks. In this regard, Ford’s position as the second biggest U.S.-based automobile manufacturer is a sign of …show more content…
Other characteristics of this structure are based on the global scope and nature of Ford’s business.
Features of Ford Motor’s Organizational Structure
Ford’s structure is designed keeping in mind the necessity to regulate operations consistent with regional market conditions. Markets belonging to the same region have similarities that Ford used as basis for regional structuring. The primary features of Ford Motor’s structure are:
Corporate Hierarchy: Ford follows a conventional corporate hierarchy in its structure. For example, Executive Vice Presidents report to CEO, Middle managers report to these executive VPs. This characteristic of Ford’s structure supports conventional business management approaches that are designed for effective top-down management.
Regional Geographic Divisions: Ford has quite massive geographic divisions in its structure. Ford’s structure is split into solely 3 geographic divisions that cover all its markets round the world. A bearing of this feature of the structure is the relative easy integration of business strategies. Ford’s distinguished regional geographic divisions are (a) the Americas, (b) Europe, geographic area, and Africa, and (c) Asia Pacific. An executive VP is assigned a
A structure depends on the organization 's objectives and strategy. In a very centralized structure, the highest layer of management has most of the choice creating power and has tight management over departments and divisions. In a much suburbanized structure, the choice creating power is distributed and also the departments and divisions could have totally different degrees of independence. Wal-mart’s structure is built upon its risk management, safety and claims management process. Google Inc. has gained much attention and acclaim for its unusual organizational culture, which is designed to establish loyalty and creativity. Although both Google and Wal-mart focuses on risk management and they specialized on two different factors. Google focus more on creativity, loyalty and keeping its employees happy. Wal-mart tends to help customers by saving money, claims and promoting within the company.
Organizational structure is a system used to define a hierarchy within an organization which improves operational efficiency by providing clarity to employees at all levels of a company. A systematically outlined structure can also provide direction for internal promotions, allowing companies to create employee advancement routes for entry-level workers. In other words, it identifies each job, its function and where it reports to within the organization. Harley-Davidson’s organizational structure, for example, assists centralized control of the business through the company’s arrangement of its components in terms of their interactions and functions. As one of the world’s oldest motorcycle manufacturers in the world, Harley-Davidson Inc. maintains this organizational structure and centers its current focus on a limited number of markets. While the business continues to grow by international expansion, Harley-Davidson’s corporate structure focuses mainly on the fact that most of the company’s revenues are generated in the United States. Thus, Harley-Davidson has a functional organizational structure that is based on the company’s current focus on the motorcycle markets in developed countries, especially the United States, in addition to ensuring centralized control of business activities. The basic characteristics of Harley-Davidson’s organizational structure include Function based groups, Centralization, and Global hierarchy.
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
Every external factor exhibits an open door or risk that the business must address through vital activity. As one of the main five players in the worldwide car industry, Ford guarantees that it addresses the issues in its PESTLE analysis. These issues are an immediate determinant of the hierarchical advancement direction of Ford.
The presence of Ford Motor cars is very strong in terms of global aspect, because it operates in six continents. So they are present all over the world.
Organizations that strive to be a leader in an industry must look beyond their domestic boundaries and expand into international markets. The Ford Motor Company remains the second largest automotive manufacturer in the United States and fifth largest automotive manufacturer in the world with Toyota leading the way. This essay will address the Ford Motor Company’s strategic approach to compete internationally and identify which resources and capabilities make it attractive to compete internationally. Additionally, the Ford Motor Company’s diversification strategy options will be described. Lastly, we will identify how chosen diversification strategy options would lead to a strategic fit for the Ford
Ideas introduced in the article assist in understanding Ford’s current situation. Ford reported sharp falls in U.S. auto sales in May 2008. Sales of its most profitable pickups and SUVs suffered the most (“US Auto Sales Slide”). Some of the main
The foremost tangible resource the company holds is a well-established manufacturing global unit. Ford is a multinational auto manufacturer but its headquarters remains in Michigan, USA. Ford is the second largest manufacturer in the US and fifth in Europe. The company still continues to expand globally in other nations, primarily in China and Russia as it has formed joint venture partnerships. (Maverick, 2015) They have an
The Ford Motor Company and General Motors have greatly influenced and shaped the global automobiles industry over the 20th Century. While there are other big car-makers both in the United States and elsewhere in the globe, the two companies have been the commonest and significant players across the entire sector. This research focuses on an argument of how competition between both companies has benefited them.
A mutual fund manager is a person who actively buys or sells and sometimes both funds. They are experienced in implementing a funds strategy used for investing and manages its trading activities as well as the portfolio. Choosing whether or not to invest in Ford Motor Company will take the use of a SWOT analysis and learning about the stakeholders of the company.
Ford decided to expand internationally to increase sales, spread production sites, and to increase their research and development. The company believed that economies of scale and supplier flexibility would improve cost efficiency and supplier efficiency. Ford felt that these factors
Ford’s vision statement, “people working together as a lean, global enterprise for automotive leadership” (Thompson, 2015) has three major points that surrounds the vision statement; which are global leadership, emphasis on stakeholders, and lean business (Thompson, 2015). Each area is a specific point that Ford concentrates on in order to better the business. Global Leadership indicates that Ford wants to become a top player in the international market; Ford achieves Emphasis on Stakeholders through enhancing their HR policies and corporate social responsibility strategies for employees, customers, investors, and others; and Lean Business which they have
The Ford Motor Company, founded in 1903 by Henry Ford, is synonymous with American innovation and capitalism. With iconic branding and revolutionary
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.
Due to the coordination and control problem that surfaced during the 1920s, most large American corporations that include GM had adopted the Multi-divisional organizational structures better known as the M-form structure to respond to the crisis. M-form consists of operating divisions, each representing a separate business or profit centre in which the top corporate officer delegates responsibilities for day-to-day operations and business-unit strategy to division managers. Each division represents a distinct, self-contained business with its own functionality