Ford Motor Company Advantages And Disadvantages

The Ford Motor Company known as Ford, it is an American multinational automaker and their headquartered is located at Dearborn, Michigan, a suburb of Detroit. Ford was founded by Henry Ford and incorporated on the date of June 16, 1903. Ford Motor Company is a company based on the family-controlled companies in the world; Ford has been in continuous family control for over the 100 years. Even though it is a family-controlled company but they do have minority ownership, the other ownership is listed it on the New York Stock Exchange. The Ford Motor Company are selling their automobiles and commercial vehicles under the Ford Brand, and there sells most of the luxury cars under the name of Lincoln brand. Thus Ford once does own the other five

By having joint venture for Ford it will help to reduce the political risk and learn from the local personnel due to having different location company such as in the America branch there know the politic in America well so it will help the Ford Motor company reduce risk from the political of American and at the same time the other location branch able to learn the culture and trends from America. Lastly is there able to adapt into the market better. But it do having disadvantages for Ford to be joint venture which is there have to share their profit with the holder and other. Their political backfire in times of war and less ability to understand learning curve and location economies. Meanwhile for Volkswagen there are pursed on wholly owned approach, the advantages of pursed on wholly owned approach is there have high control to rule all the location branch of companies which it help the company having the same system. The other advantage is low technology dissipation risk as there having the same system thus their technology will be the same it will help to reduce their vehicle system would not go wrong. Next is there can location the economies and learning curve. For the disadvantages for pursed wholly owned approach is having high resource commitment, the company having more risk and having potentially limited markets. Based on these two approaches we can tell that the Volkswagen has been more successful as there have high control in everything in the automobile industry. Next is their expensive to able do more as there having the high control it can help to control their expenses. Volkswagen does have greater reward for their employee and there having fewer problems in technology