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Ford Motor Company Matrix Analysis

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Ford Motor Company is one of the company that practice the matrix structure. A matrix structure is a structure that is a combination of a global product, area or functional arrangement. (Doh, 2005) Ford is a centralization authority company. Whereby the parent company takes care of operation and having a traditional corporate hierarchy. For instance, general manager report to vice president and vice president report to chief executive officer. In this case, the president and vice president of Ford Europe, John Fleming have to report to the CEO of Ford Motor Company Alan Mulally, Alan Mulally himself have to report to executive chairman William Clay Ford. This is commonly known as the top down approach. Ford Motor Company is operate by the combination …show more content…

As exhibit 1.1 demonstrate, CEO Alan Mulally is the top management follow the corporate operation officer. On the left of matrix axes is the functional group including production, marketing, finance, human resource and similar department to operate the business. Next, on the top are geographical region which divided into three different geographical area to operate the business in globe. Ford Motor Company divide into three region including Ford America, Ford Europe, Middle East and Africa and Ford Asia Pacific. Every region manager will handle operation under their region. In matrix structure ford motor regional subsidiary work together with their functional group to run the operation smoothly. For example, all three subsidiary share information with product development about the need, taste and culture of their respective …show more content…

Structure allow company better control, more productive, and better communication. However, Ford Motor Company structure is more efficient as compare to Volkswagen. Volkswagen as a bureaucratic structure organization would limit its employees only perform task or field that they skill and specialize. Besides that, its limit the employees view. Where the lower level employees in the hierarchy will hesitate to react to decision that make by higher level employees. Because employees are focused on performing specialize task, they will have a limit view outside their scope. For example, an engine designer will have limited view on a car structure if they are not working together with car designer. On the other hand, Ford Motor Company is more efficient in term of information exchange. Information sharing in matrix structure flow vertically and horizontally. Since employees can source information from other department, these lead to more cost effective as department do not need to spend for gathering information. Last but not least, matrix structure makes company more creative and innovative which is one of the most important aspect to automotive industries. Employees not solely focused on specialize scope and allow to share information and idea to different department. In addition, it does not hamper the company’s efforts. When company use its organizational structure efficiently. And Volkswagen

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