Ford Motor Company Supply Network Analysis

This essay is to discuss the supply network of a product of a specific brand. The supply network means setting an operation in the context of all the other operations with which it interacts. Ford Motor Company is the best example to illustrate the supply network better. So, before illustrate the supply network, let’s talking about ford Motor Company. Ford Motor Company founded by Henry Ford in June 16, 1903. It is an American multinational automaker. Its headquarters are in Dear-born, Michigan, United states. But Ford Motor Company isn’t the first one to build or make a car. The industry of making a car had a long journey. The automobile industry started in the 1890s. The United States was the leader in total automobile

Ford makes lots of car. But, the product that the essay will make the light on a car called “Fiesta”. Fiesta has lots of features. It has a navigation system, audio system, and rear view camera. It also has My-Key, which is a feature that can help others drive the person car more responsibly. Another thing, it has Hill Start Assist which is a technology to help the driver prevent rollback. It also has really nice colors such as Ingot Silver Metallic, Oxford White, and Tuxedo Black Metallic. Ford Motor Company is a successful company, and any successful company has a competitors. The major competitors to Ford Motor Company are BMW, FIAT, KIA, Peugeot, Mercedes-Benz 's, Mini, and Honda. There are lots of competitors to

The company has to make a profit or revenue. The company should know how much money will be paid to make a product. So, there is something called “Cost structure). Cost structure means the types and relative proportions of fixed costs (which is direct labor, manufacturing overhead) and variable costs (which is direct materials, commissions, production supplies, piece rate wages) that a business incurs. The concept can be defined in smaller units, like product, service, product line, customer, or division. Cost structure is used as a tool to measure prices. So, the cost structure concept is a management accounting concept.it has no applicability to financial accounting. There is something called “Profit margins”. Profit margin shows the percentage of revenue that a company has as profit after accounting for fixed and variable costs. To know the profit margin the company should divide net income by revenue. The profit margin is mainly for internal comparisons, because acceptable profit margins are different between industries. For companies with significant fixed costs, wide profit margins reduce the risk that a decline in sales will cause a net profit loss. Ford makes 5.00% in 2015 as profit margins. To be successful is not just about making money, or profit, it’s about study your steps before doing them. So, big company should have an inventor, and place to put it in.