The Ford Motor Company: Process Gap Analysis

920 Words Feb 5th, 2018 4 Pages
For instance, the organization has been unable to anticipate changes in consumer demands and has not met the increasing demand for small size and fuel efficient engines. This has subsequently led to the weakening of the company's position in face of the foreign competition, namely the Japanese automakers, and has also reduced the American company's ability to withstand the economic crisis.
The company is now faced with a weakening financial condition, which has resulted in its need to close down plants, downsize the staff members and take on more debt. In such a context, a new problem arises for Ford Motor Company, namely the fact that they had to recall numerous sports utility automobiles as these stood the risk of "engine fires connected to the anti-lock footbrake connectors" (MBA Lecturers, 2010). The issue posed safety threats for the passengers, but also damaged the company's reputation.
The main cause of the process gap in Ford's operations and the cause for the recall was represented by an insufficient testing process within the firm. By 2012, the company had recalled over 500,000 automobiles, most of which were from the United States. So far, only material damages have been reported as a result of fire breaking out in the engines, but no human casualties were registered. The automobile maker has…

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