Ford: Managing Its Environment

1263 Words6 Pages
1. List the various ways in which Ford has attempted to manage its environment over time.
Ford Motor Company, one of the big three automakers in the US, has changed over time. Gone are the days when one could buy a model T “in any color as long as it is black”. In its early days, Ford wasn’t an automaker per se.. It had various suppliers for different auto parts and simply assembled them together to produce the Ford brand. This approach to manufacturing did not come with its own problems. The primary concern with such approach is the management of quality. Ford had not control over the quality of products it received from suppliers. Ultimately, the quality and reputation of the Ford brand was hinging on the quality standards of others. The
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Ford established its own Kerietsu linkage system. Ford bought interest in Engine-maker Cummings, glassmaker Excel and tire and parts-maker; Decoma. To compete on the international front, Ford bought a minority ownership of Mazda, and Kia Motors, Austin Martin and Jaguar. Economies of scale in research facilities and shared technologies enabled Ford to increase its competitiveness in the market place. To further increase its presence in other industries and to diversify, Ford bought 49% of Hertz-Rent-a-Car, established Ford Credit Financing. Lastly. Ford joined other automakers in R&D to develop more fuel efficient, environmentally friendly, and lighter automobiles and…show more content…
Managing suppliers and their quality is critical for any industry. In an oligopolistic auto industry, the actions of one manufacturer affects the actions of the other competitors. An automaker needs to adapt and adjust its strategy to manage its environment in a dynamic competitive industry. Static strategies are bound to lead to failure. Ford has avoided a static approach over time and adapted to the prevailing environmental factors at the time. The agility of Ford and its quick adaptation to an ever-changing environment has enabled Ford to better control the quality of its products, stay competitive, and expand its international presence.
Organizational change is the process by which an organization redesigns its culture and structure and transforms itself from its present state to a desired future one to increase its ability to use its capabilities and resources more effectively. That is exactly what Ford has done over the years. It has kept on transforming itself to better control its external
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