Preview

Global Innovation and Sustainability: Ford Motor Company

Powerful Essays
Open Document
Open Document
3894 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Global Innovation and Sustainability: Ford Motor Company
Table of Contents

Table of Contents…………………………………………………………………………………………………1
Abstract……..………………………………………………………………………………………………………..2
Case Study: Economic Impacts of the Auto Industry………………………………………………3
Influence of the Auto Industry………………………………………………………………………3
Fall of the U.S. Auto Industry………………………………..……………………………………………….3
Government Bailout……………………………….…………………………………………………….4
Ford’s Reaction to Crisis……………………………………………………………………………………….5
Ford Motor Company Overview……………………………………………………………………5
Henry Ford’s Vison………………………………………………………………………………………5
Rebranding and Strategizing………………………………………………………………………...6
Restructuring Progress………………………………………………………………………………………...7
Globalization………………………………………………………………………………………………………..8
Growth in New Markets………………………………………………………………………………..9
Ford’s Innovation………..……………………………………………………………………………..10
Supporting New Growth ……………………………………………………………………………10
A Letter From William Clay Ford Jr……………………………………………………………..11
Developing New Products…………………………………………………………………………………..11
Working as One Team………………………………………………………………………………………..13
Conclusion………………………………………………………………………………………………………...15

ABSTRACT:

In 2008, the automotive market in the United States crashed; The United States Government used a portion of the ‘$700 billion bailout fund’ to bail out General Motors and Chrysler. Ford, however, turned down the bailout funds and chose to use a government loan program instead. This decision buried Ford Motor Company under billions of dollars in debt. This paper explores the turmoil that Ford Motor Company faced, and the innovation that has allowed them to overcome their endeavors. This paper will also cover some of the innovation and vision that Ford has developed to create a future of sustainable success.

CASE STUDY: ECONOMIC IMPACTS OF THE AUTO INDUSTRY

The influence of the automotive industry runs deep in the United States economy. The auto industry supports numerous jobs and economic benefits through related



References: Amadeo, K. (2011, August 29). The auto bailout. Retrieved on October 21, 2011 from http://useconomy.about.com/od/criticalssues/a/auto_bailout.htm Cole, D. (2008). Car research memorandum: The impact on the u.s. economy of a major contraction of the detroit three automakers. Retrieved on November 2, 2011 from http://www.cargroup.com  Daniels, N. (2011). Ford motor company: history. Retrieved on November 16, 2011 from http://subscriber.hoovers.com/H/company360/history.html?companyId=10597000000000  Ford sustainability report 2010/11. (2011). Retrieved from http://corporate.ford.com/microsites/sustainability-report-2010-11/operations Fordvideo1. (2011). Ford evos concept: Technology: [Theater]. Available from http://www.youtube.com/watch?v=WyBO32jz7Vg  Hill, K. (2010). Contribution of the automotive industry to the economics of all 50 states and the united states. Retrieved on November 2, 2011 from http://www.cargroup.com  World 's most ethical companies rankings. (2011). Retrieved on November 16, 2011 from http://ethisphere.com/worlds-most-ethical-companies-rankings/

You May Also Find These Documents Helpful

  • Powerful Essays

    Eco 550

    • 2765 Words
    • 12 Pages

    For this assignment, General Motors is the automobile company that will be reviewed and researched in detail. In the year 1908 William Durant, who was already known as a leader in this industry for horse drawn vehicles, founded General Motors. "At its inception GM held only the Buick Motor Company, but in a matter of years would acquire more than 20 companies including Oldsmobile, Cadillac, and Oakland, today known as Pontiac" (General Motors, 2012). In this paper GM 's income statement will be reviewed to figure out the following calculations: the number of cars sold each quarter, the elasticities, marginal cost, variable cost, and fixed costs. After figuring out these calculations, there will be a clear answer to what the future options are for General Motors if they decide to expand.…

    • 2765 Words
    • 12 Pages
    Powerful Essays
  • Satisfactory Essays

    Mr. Jason

    • 923 Words
    • 4 Pages

    | * Consumers demand for these vehicles remained unclear * Product of capacity of manufacturers was limited which affected their supply * U.S. economic growth in 2011 was sluggish * Competition is projected to increase dramatically * Automobile…

    • 923 Words
    • 4 Pages
    Satisfactory Essays
  • Better Essays

    mkt Case study

    • 1714 Words
    • 5 Pages

    During the year 2006, Ford Motor Company suffered its biggest operating loss to date at the cost of $12.6 billion. A year later in 2007, things didn’t improve much as Ford posted a $2.7 billion loss. This corresponded with increasing deterioration in market share, with the majority of these losses being captured by other competitors. Ford had seemingly fallen down a slippery slope, and found itself in a hole it was struggling to surface from. This was all gearing up to the three-year recession that hit the U.S. and Global economies extremely hard. Ford’s competitors, General Motors and Chrysler, found themselves also struggling to get a foothold suffering such losses that both companies had to ask the government for massive bailouts while also filing for bankruptcy. Ford was apparently heading for the same disastrous bailout, but then Alan Mullaly stepped in as the new CEO and implemented a series of crucial strategic maneuvers. These strategic maneuvers that he coined as “One Ford,” aided them in getting a foothold out of the hole in which they dug for themselves by losses in market share. One such important strategic maneuver utilized by Ford was the reorganizing of its product line. It did so by standardizing components and making a stable of products that is more clearly defined for each market segment (Senna, 2013).…

    • 1714 Words
    • 5 Pages
    Better Essays
  • Good Essays

    In the fall of 2008, General Motors, Ford and Chrysler-known for decades as the Big Three encountered a very serious automotive industry crisis that they haven’t met before. This unprecedented crisis made these three leading companies in automotive industry step at the edge of bankruptcy. Facing this critical problem, automotive companies can not deal with this severe difficult situation all by themselves then they turn to the United States Federal Government for help not only once but several times. According to a report published by Center for Automotive Research in the United States, the United States Federal Government successfully avoids a lose of 28.6 billion dollars by offering assistance to automotive manufacturers in this crisis. Even though this amount of money can not be comparable with the tremendous amount of money the United States Federal Government loaned to the automotive industries, it does demonstrate that the government has done something really helpful and successful in term of the outcome of this action and the federal government’s functions in some extent. Therefore, as far as I am concerned, the United States Federal Government should have assisted the automotive manufacturers from going bankrupt. Then I will illustrate my reasons to support my opinion in the following statement.…

    • 908 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    In 2005 the US automakers were incurring huge losses due to spiraling fuel costs and economic slowdown across the globe. Adding to the losses were rising prices of components and reversals of vehicles for product complaints. By the end of the first quarter of year 2006 the balance sheets of the three giants were deep in red and strategies for saving the corporations from Chapter 7 of the US Codes were broadly discussed. Major chunks of the businesses were being sold and massive lay-offs accompanied with shut downs were a common phenomena globally.…

    • 5631 Words
    • 23 Pages
    Powerful Essays
  • Best Essays

    "How the U.S. Auto Industry Picked Up Speed in 2011." PBS. PBS Newshour, 5 Jan. 2012. Web. 29 Nov. 2012. <http://www.pbs.org/newshour/bb/business/jan-june12/autoindustry_01-05.html>.…

    • 4747 Words
    • 19 Pages
    Best Essays
  • Good Essays

    Annotation: The economic crisis negatively affected every American in some way or another. Companies such as GM and Ford saw a great reduction of sales from the financial chaos. 2008 was the year that the motor companies were given the opportunity to benefit from TARP. GM restructured their company’s $62 billion debt through borrowing from TARP up to $18 billion through the end of 2009. There was a loss of over 100,000 jobs and a total of nine plants were closed (Cooney et al., 2009). This article discussed the economic crisis and how government intervention affected the motor vehicle industry.…

    • 1686 Words
    • 7 Pages
    Good Essays
  • Good Essays

    In 1890 the American auto industry was born, it was the fastest growing auto industry in the world. By 1928 the first affordable automobile was released. The Ford Model T shortly after the American market became dominated by three major car manufacturers. Ford, Chrysler and General Motors. Those companies continued to prosper and become extremely successful. That was until the late 1970's when oil prices skyrocketed and increased competition from foreign auto manufacturers severely affected the companies. As time went on the companies started getting better, But by 2008 the same problems that happened in the 70's repeated themselves. That's when General Motors and Chrysler filed for bankruptcy…

    • 1452 Words
    • 6 Pages
    Good Essays
  • Better Essays

    Traditionally the demand for vehicles has been supplied by large automobile manufacturers and the development of supporting infrastructure. This leads one to question what factors preceded GM’s 75% drop in share prices over 10 years (Wasserman, 2009). Unfortunately for G.M.’s financial situation, the unmitigated internal mismanagement and lack of profitability stemming from uncompetitive products were eventually beyond internal control by the recent economic downturn. Thus, G.M. sought Chapter 11 bankruptcy protection on June 1, 2009 and, subsequently received $50 billion in a taxpayer bailout (King, McCracken & Spector, 2009). Of note, the variables responsible for the bankruptcy may be understood and could have been predicted through the study of G.M. `s organizational behaviors. Grasby, Crossan, Frost, Haywood-Farmer, Pearce and Purdy (2004) define organizational behavior as an…

    • 1084 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Comparative ethics

    • 1411 Words
    • 5 Pages

    By the mid-1900’s, 25 percent of the employed population worked in the manufacturing sector. In the state of Michigan, the “Big Three” automotive…

    • 1411 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    References: Impact on the U.S. Economy of the Successful Automaker Bankruptcies." Retrieved April 5, 2014,…

    • 601 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    During the 2003 -2007 periods, the US automotive aftermarket demonstrated fairly slow but steady rates of growth and is expected to continue over the forthcoming five years (DataMonitor, 2007). As stated by AAIA, “Overall aftermarket sales increased in 2004 to $257.0 billion, an increase of 5.4 percent from 2003. An increasing number of miles driven by an ever-growing vehicle population helped the aftermarket increase in 2004. Sales in the automotive aftermarket (cars and light trucks) totaled $190.5 billion and sales in the heavy duty vehicle aftermarket totaled $66.5 billion” (AAIA, 2008).…

    • 2968 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    Bus620 Wk 2 Assignment

    • 1790 Words
    • 8 Pages

    There are numerous external factors that impact the auto industry and whether or not product marketing will be successful. Luckily, businesses can take action to make sure they are as pro-active as possible to ensure success. Unfortunately, despite planning, research, and the pro-active measures some things will also be out of one’s control and require adaptability if nothing else. With that being said, perhaps the biggest hindrances to the automobile industry are the political factors. Trade restrictions, tax policies, employment regulations, and consumer protection legislation, fair and safe markets, political influences on business infrastructure can all vary substantially from one country to the next (Finch, 2012). This is…

    • 1790 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    The 1965-1972 automobile industry was a low competitive environment, and as a consequence was a profitable industry. Indeed, during this period:…

    • 1507 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Automobiles have been around for hundreds of years and average people have found these fascinating machines one of the most exquisite inventions. Not only are these cars for pleasure, but are convenient, an opening to freedom, and one of the most important necessities for America’s growth in the Economy. As many cons as there are for having a car, pros outnumber that list. In the modern world, automobiles need to remain in the lives of most Americans because their lives depend on automobiles.…

    • 731 Words
    • 3 Pages
    Good Essays