Logistics and Value Chain Analysis-Ford Motor Company

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Executive Summary The Ford Automotive Company is an American Multinational Enterprise (MNE) based in Dearborn, Michigan, Detroit. The second largest automaker in the U.S. operates out of three regions, Europe, Latin America and Asia Pacific with 78 globally located plants and approximately 213,000 employees. As a multinational enterprise the company’s activities have a significant impact on the environmental, social and economic systems. The central objective of the report aims to identify how these activities are organized in the major stages of the value chain. In addition, the report will identify other key areas with regards to the importance of the concepts to an international business, the context, segmentation, international…show more content…
This resulted in Ford being the first of the US Big 3 automotive car manufacturers to change its strategies by producing smaller vehicles designed to achieve competitive pricing, improve fuel economy, safety, performance, quality and technology. (2010/11 annual report), “Ford and our foreign and domestic competitors became increasingly dependent on sales of trucks and large SUVs”. 7. Market Segment Global expansion of Ford Company became difficult to manage, thereby weakening product strength in all segments and all markets. Industry demand and consumer taste experienced change in large segments of the market when fuel prices soared in early 2008, the start of the downturn of the global economy. The focus on the company’s homogenous products in trucks and larger vehicles switched attention in the North American portfolio to a new line of midsize cars. The global shift in market demands for smaller, more fuel-efficient vehicles became even more apparent. Thus, began the production of the new Ford brands in Europe, Africa and Asia markets, of smaller vehicles to meet changing consumer preferences. These strategies proved to be very successful with the new fuel-efficient cars, such as, the Ford Focus and Fiesta. Ford is emerging as a market leader in the production of electric powered vehicles, which is a new segment in a growing environmentally friendly market. 8. Context – Aspects

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