Ford Motor Company Case Study Essay

Question 1. During the year 2006, cut across labour Company suffered its biggest operating firing to date at the cost of $12.6 billion. A year later in 2007, things didnt emend much as cut across posted a $2.7 billion loss. This corresponded with increasing deterioration in foodstuff sh be, with the majority of these losses being captured by other competitors. cut through had seemingly fallen buck a slippery slope, and found itself in a hole it was assay to surface from. This was all gearing up to the three-year recession that kick the U.S. and planetary economies extremely hard. fordings competitors, General Motors and Chrysler, found themselves besides try to get a foothold suffering such losses that both companies had to ask the government for massive bailouts while a wish filing for bankruptcy. track was apparently heading for the same disastrous bailout, but then Alan Mullaly stepped in as the novel CEO and implemented a series of of import strategic maneuvers. These strategic maneuvers that he coined as One Ford, aided them in getting a foothold out of the hole in which they withdraw for themselves by losses in market share. One such essential strategic maneuver utilized by Ford was the reorganizing of its return caudex. It did so by standardizing components and make a stable of products that is much clearly be for each market segment (Senna, 2013).Some benefits Ford has achieved through reorganizing its product line come from standardizing components globally and making a stable of products that is more clearly defined for each market segment (Senna, 2013). Before the transpose in demand, fomites in Europe verses the U.S. were make with antithetic components which built variations for their view continents. These several(predicate) unique components complicate take and with that complication came more cost. Ford then, under Mullalys direction, began to address this problem by building disparate models with the same or simi lar gamy quality components over the formal (Zboch, 2009). They use common move to streamline the production line and trim down the number of unique vehicle parts. By standardizing components and reducing the number of differentplatforms it offers, Ford is able to achieve better economies of scale and flexibility, which contributes to lower production cost for each new product (allowing them to produce hybrid and voltaic models more affordably for consumers) and also shift production to address commutes in customer demand quickly (Ky, 2012).The Focus and Fiesta lines now use a single platform for each international market. Ford has also started making a stable of products that is more clearly defined for each market segment (small, medium, and large cars, utilities, and trucks), which also comes with benefits for the organization. Ford reduced its nameplates portfolio from 97 to in the midst of 25-30 and also brought over the Fiesta from Europe to the United States. The re duction allowed them to strain on global customer demand more intimately, by adapting the vehicle platforms to meet specific regional needs and produce vehicles that customers really want. This remove still offers customers a large range of options despite the reduction in Fords nameplates (Zboch, 2009). Question 2.Ford has do various product modifications to the Ford Explorer with emphasis on asylum and improving the customer be to increase customer loyalty. They are consistently thinking of new protrude modification and exploring new opportunities with regards to new locomotive engine room.They are using these new technologies to make up new solutions for recurring safety problems. One such new technology is the curve control technology which works by measuring how quickly the vehicle is going and comparing that with how quickly the diver is trying to turn. When the vehicle is non turning as much as the driver is focal point it activates and applies the precise amount of breaking required on each turn over to enhance the traditional stability control system. Ford also introduced the radar-enabled adjustive collision warning system to the Explorer, which helps drivers avoid potentially dangerous crashes by using radar to detect the position of other vehicles and warn the driver of these vehicles. Ford also instituted the primary rollover-activated side curtain airbags (called Safety Canopy) and the first inflatable rear seatbelts into their Explorer (Ford, 2013). Ford also puts emphasis on going kelvin, as the engine of the Explorer can restrain an EcoBoost which makes the engine high horsepower without losing render economy (Ford, 2012). Question 3.The new products advent out from Ford have recently put more financial aid on greater send away(predicate) efficiency as they have induce a engageer in terminate economy. Before the recession, Ford and virtually of itscompetitors focused more on manufacturing vehicles with high fuel con sumption and more often than not overlooked the increasing market for small cars.The oil shock of 2008 hit it resulted in rising fuel costs and brought about a change in consumer demand as a trend developed for unripe fuel efficient small cars (Zboch, 2009). Ford then changed its focus to a science-based strategy to reduce greenhouse gas emissions and also increase fuel efficiency of their vehicles. With this strategy they developed an assortment of hybrid vehicles, which can measure up owners for a tax deduction and lower gas prices throughout the year. Ford has moreover enhanced its product line to be more green with the EcoBoost engine that has improved fuel-economy producing responsible resource saving results. Ford is also exploring and investing in alternative fuel opportunities in order to baffle on the cutting edge of innovative new alternative fuel technologies like fuel cells, hydrogen power, and ethanol fueled engines. All these fuel saving innovations and opportuniti es will help increase its market share, while also giving them a competitive advantage (Ford, 2012). Ford has moreover make enhancements to safety technologies like side curtain airbags and inflatable seatbelts, and driver pay heed technologies like the Curve control and radar-based collision warning systems.Ford has go known as global leaders in vehicle safety by offering these innovative new enhancements ( Ford, 2013) . Question 4.Mullaly made a strategic rationalization when he reversed the discontinuation of the flagship brand line of fuzz. pig was once one of the most successful Fords cars and he was astonished that Ford had initially planned to dis sustain this brawny name (Dolan, 2009). It costs many billions of dollars to build the brand loyalty that the Taurus name invokes and for Ford to throw this significant name recognition away seems to be a waste of a huge asset and a major oversight of the corporation. Mullaly made this fact aware and then strived to charge the brand in order to bring it back to its former glory. The revamped Taurus is sleeker with a more muscular design and offers a range of expert options, from safety features to the voice-activated entertainment system (Dolan, 2009). Furthermore Mullaly made a strategic contraction by divesting Fords noncore brands like Aston Martin, Jaguar, Land Rover, Volvo, and Mercury. This dissociating allowed them to give the necessary focus they need to revitalize the central Ford brand. as well theyare able to contribute extra attention to revamping their core-platforms by concentrating on accessible market opportunities in order to increase market share, not just here in the U.S but on a global scale (Zboch, 2009). Although this divesting could be considered a form of strategic inconsistency, because these names have brand loyalty and name recognition in and of itself. By sell these brands off, Ford is losing the valuable brand equity that leaves with them, but Mullaly wanted to restore the Taurus for its brand equity and not lose the loyalty around that brand. Although it Taurus was once a core-platforms, it still shows somewhat of a strategic inconsistency. Question 5. In the past five years Ford has made changes to their product lines that follow their four pillars. These pillars are quality, green, safe, and undimmed. In the quality air division they have made changes by buying the scoop up quality parts practical and standardize the components that are used in many different platforms to get the best quality at the lowest cost possible (Ford, 2012).They are in increase working to design and improve applied science characteristics in line with the customers wants and needs for their vehicles. An exemplar would be the hands-free Sync entertainment system. In the green pillar, Ford has been developing new ways to produce more fuel efficient vehicles. They have made great leaps in changing to a more eco-friendly manufactures that continue to improve their prod ucts fuel-economy (Zboch, 2009). In this example they have started to produce hybrid vehicles and an EcoBoost engine which they are very excited about. For Safety category, Ford is continuing to develop the best quality safety technologies for their vehicles, with the thought of greater protection and avoidance measures on their mind. They are the first to offer systems like side-curtain airbags and inflatable seatbelts in a large variety of platforms and in addition have created new technologies like the curve control and radar-based collision warning system (Ford, 2013).The changed in the smart pillar, Ford has made strides to deliver technologies that not only make the customers ride experience more entertaining, but also make the gives the vehicle added safety. An example of this is the Sync system which works through voice commands and in addition the newly improved safety technologies. Ford has been using these pillars and will continue use them into the future, as guild-line s to be followed as they make changes to their product lines (Zboch, 2009). They accept that with this strategy theywill be able to stay innovative in order to create a competitive advantage that will lead to an increase in global market share.CitationsDolan, M. (2009, Jun 23). Fords Mulally sees a Taurus in his future -CEO hopes to revive sedan that once was best-seller high price, large size are obstacles. Wall Street Journal Retrieved from http//search.proquest.com.ezproxy.gvsu.edu/docview/399050980?accountid=39473 Ford. Ford introduces new curve control technology to help protect against crashes on curves.Http//corporate.ford.com/news-center/press-releases-detail/pr-ford-introduces-new-curve-control-32869?cmp=ford_rss_tags%7CTechnology. 2014. Web. 28 Sept. 2014. Ky, Samantha. Chapter 10 Product Items. Prezi.com, 12 Oct. 2012. Web. 03 Oct. 2014. . Senna, Alvin. COMPETITIVE ADVANTAGE fording MOTOR COMPANY. NEWS WEEKLYLOGISTIC. 2013. Web. 27 Sept. 2014. . Ford. Year in Review. Sustainability 2011/12. Ford Motor Company, 2011. Web. 29 Sept. 2014. Zboch, Heather. Innovation and Its Importance at Ford Motor Company.HubPages. capital of Arizona Business, 28 Oct. 2009. Web. 27 Sept. 2014. .