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Posted on January 31, 2008 by Murad Ali | Posted under Business
Model T to Hybrid: Threats
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Around 1946 Ford adopted the scientific methodical control processes that helped to speed up production, increase efficiency and reduce mistakes (Hindo & Herbst, 2006). Through this method Ford was a major contributor to World War Two's success. They were able to crank out military machinery in both an efficient and cost effective method that was almost unseen by any of the European counterparts. Ford's track record remained strong until the Pinto came production and it was viewed by the public as though Ford made a conscious choice of profits over safety (Bonamici, 2005). At this time Ford held the belief that the amount of lawsuits and payouts over a few deaths was more cost effective then putting in place safety controls. It was conscious decision that created a negative image of Ford but since there were few competitors it didn't seriously damage the company in the long-term. Since this time Ford has been successful keeping pace with other automobile industries but as international competition with smaller versions of cars became a reality Ford, as well as other American auto manufacturers, began to suffer. The biggest downfall Ford realized was that they were not able to see the growing trends of globalization. In today's world Japanese and Korean cars are a powerful force to be reckoned with and are increasing market share in both the U.S. and Europe (Bongard, 2006). The quality of these cars is high and the price is more affordable then many American brands which continue to lose market share year after year. As Ford slips further down the world's top three list the Company must make hard decisions. Ford must rethink its global strategy in the face of a declining public image and increased international competition. Their vehicles need to have stronger appeal outside the United States if the company desires to be more then an American novelty. They may need to rethink their designs, cost, processes, labor management, and other aspect of their competitiveness. The Company has come a long way since its original first 13 investors and it is doubtful that these investors would have any idea what a success their company became (Mortimer, 2003). It is also doubtful that they would have ever known about the challenges the company currently faces with post-war Japan. Bonamici, K. (2005). 1872: Ford decides to let the Pinto explode. Fortune, 151 (13). Bongard, A. (2006). Ten going on twenty. Ten going on twenty. Automotive News Europe, 11. Foote, C., Whatley, W., & Wright, G. (2003). Arbitraging a discriminatory labor market: Black workers at the Ford Motor Company, 1918-1947. Journal of Labor Economics, 21 (3). Hindo, B & Herbst, N. (2006). Timeline. Business Week, 3998. Mortimer, J. (2003). In the beginning, the prospects were dim. Automotive News Europe, 8 (11). Vettraino, J. (2007). Henry Ford could never have thunk it. AutoWeek, 57 (33). About The Author: Murad Ali is a three time published author, a business professor, a human resource manager and helps companies get ahead by drawing more visitors. (Author Exposure and Website Customers) www.article-agent.org (Free author submission and website content) www.article-agent.net (Business articles) www.themodernbusinessworld.com (Dating articles) www.datingdesires.blogspot.com |
Tags: AUTOMOBILE INDUSTRY, BRAND MANAGEMENT, BRUTAL BUSINESS, FORD, GLOBAL ENVIRONMENT
