Logistics and Value Chain Analysis-Ford Motor Company

4824 Words Nov 15th, 2012 20 Pages
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
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The company’s diversified operations include Ford Credit Company and Hertz Rental Corporation.
The paper will examine how Logistical and value chain strategies have been used in Ford’s overseas operations, why such choices were made and suggestions as to future strategies.

2. Definition “The Value Chain is a method of categorizing generic value-adding activities within an organisation. The main activities respectively are ‘inbound logistics, production, outbound logistics, sales and marketing, maintenance. Activities are supported by: administrative infrastructure management, human resources management, R & D and procurement”. ‘Competitive Advantage’ Michael Porter (1985)

3. Ford Motor Company Background
Ford’s first shipment was in July 1903, one month after incorporation. The Company later expanded into Britain in 1928 and shortly thereafter, in Germany. In the late 1970s Ford produced half of its company’s global vehicle production outside of the United States.
Ford Motor has survived many economic trials, including the 1929 ‘Great Depression’, the difficult decade of the 1980s, the recall of defective vehicles and more recently the global economic recession of 2008 which resulted in a slow-down in sales and impacted the firm’s financial performance.
Ford’s involvement in the international market is founded on
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