Ford Motor Company
Professor Doreen Rainey
October 31, 2010
Ford Motor Company located in Dearborn, Michigan has an alarming problem. Ford Motor has lost money in its North American sector of operation in the past years, despite its increase of models. In an attempt to attain a larger portion of the car market Ford Motor acquired some luxury models. Ford Motor moved some what away from Mr. Ford’s vision to produce cars affordable for the masses when acquiring luxury models. In order to reduce loses that are being acquired each year Ford must come up with a solution. There are four options that must be viewed to reduce losses. First is the reduction ...view middle of the document...
Option three is another way that Ford could reduce its declining profit line. Let’s see how option three fits in to the S.M.A.R.T guidelines. Specific goal would be the focusing on the international market and reduce it present in North America. This goal can be measured by tracking annual international sales. The goal is very much attainable by reducing it present in North America and increasing its focus on it already successful international market. An good example would be a one dollar bill, you can divide a one dollar bill many way but it will always just equal one dollar, so in order to increase your money to other share you must remove some of the money from another share in order to make that increase. That is what Ford Motor Company needs to do with its North America and International markets to decrease its losses. If Ford Motor focus more on it strong influences in the international market and back away from its slumming North American market the goal of reducing lost is realistic.
The last option that Ford could use to reduce its declining profit line is option four the dumping of the Premium Automotive Group. Let’s see how option four fit in to the S.M.A.R.T. guidelines. Ford specific goal would be dumping its Premium Automotive Group which makes Aston-Martin, Jaguar, Land Rover, and Volvo brands. This could be measured by tracking the annual difference in revenue. The goal is attainable by convening over the Premium Automotive Group plant to economic smaller car producing plants. Dumping the Premium Automotive Group would remove the operation losses this branch has placed on Ford making it goal of reducing it losses realistic.
In light of the possibility that market conditions can and do change, discuss at least three examples of how the company should build-in flexibility to back-up its decision-making process. One method a company can remain flexible in it decision-making process is options-base planning. Options-base planning is “keeping options open by making small, simultaneous investment in many alternative plans” (Management, 2011, p.81). By remaining flexible this allows a company to focus more on the winning plans and removing or reducing the unpleasant ones. When the market conditions change a company must be ready to change also to fit the market. One way to adapt and remain flexible is to leave commitments open b y maintaining slack resources. “Slack resources, that is a cushion of resources, such as extra time, people, money, or production capacity, that can be used to address and adapt to unanticipated changes, problems, or opportunities” (Management, 2011, p.81). Other way for a company to remain flexible during the possibility that the market conditions changes is planning from top to bottom. If the entire company is on one accord planning can run much smoother, when the goals and actions plans at the bottom and middle or the organization support the decision and action at the top of the...