Ford Motor Company
August 13, 2011
A mutual funds manager is trying to decide whether or not they would be willing to invest in the Ford Motor Company. In order to make an informed decision the potential mutual funds manager will look at how recent economic trends are influencing the business, strategies the company has used or could use for adapting to changing markets, tactics the company has implemented to achieve their strategic goals, and the role human resource management plays in helping the company achieve its business goals.
Ford Motor Company
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At some dealerships the price of used cars are higher than new ones because they are in demand and dealers are attempting to make up the difference due to the decline of new car sales (Auto Liquidator, 2011).
The trend of having a big gas guzzling vehicle is a thing of the past. SUVs, pick-up trucks, and any other vehicle considered a gas guzzler are no longer in demand. Consumers opting to buy new cars are buying vehicles that are more fuel efficient. Since the restructuring of the big three, the industry is now producing cars that are fuel efficient, reducing emissions, and cars like hybrid and electric ones that take alternative fuels (Franchise Direct, 2003-2009).
Adapting to Changing Markets
Globalization has affected Ford’s business strategies because they expanded operations worldwide. Ford manufactures and distributes automobiles in 200 markets on six continents and has 108 plants worldwide. This allows more free trade between the United States and Europe, Asia, Pacific, Central and South America, the Caribbean, Africa, and the Middle East (Ford Motor Company: International Operations, 2009). Ford Motor Company took the time to restructure the company. They also redesigned their product line during the recession and became innovative. Ford Motor Company has launched a global powertrain strategy that is building a network of flexible engines and transmission plants that improve quality and manufacturing efficiency. Under Ford Motor Company’s global powertrain strategy, next-generation engine plants worldwide will use a medium-sized production model of about 325,000 units annually, enhancing efficiency and allowing Ford to adapt quickly to changing market needs (Ford, 1998-2011). Ford Motor Company opened the first flexible manufacturing plant in Cleveland, Ohio and has opened other plants in different locations throughout the world.
In the North American region Ford Motor Company is planning to produce 630,000 vehicles by September 30, 2011. Ford also expects to increase vehicle sales in the United States while the Japanese reestablish the supplies that were lost in the tsunami. They are investing in several ventures to become competitive globally. They invested several hundreds of millions of dollars in new factories and partnerships in Asia-Pacific and South Africa, making investments in India to become a larger market, have invested $350 million with joint venture partner for a transmission plant in China, and investing $72 million to expand an engine factory in Chennai, India (Ford earns $2.4 billion in second quarter, 2011).
Achieving Strategic Goals
Ford Motor Company has added some technological advances to their newly improved and redesigned cars. Ford’s SYNC system is an option customers can have added to their vehicles. SYNC is a system that can be voice activated and it gives the driver hands-free access to directions, information like the news and weather, and traffic (Ford, 2011).