Globalization: A Closer Look at the Ford Company
Awnnaleah Gardner
Everyday Sociology
8/8/2013
Barbara Mason
Globalization: A Closer Look at the Ford Company
Ford Motor Company multinational cooperation that uses outsourcing to lower costs and boost productivity. Until the 1980’s Ford had a supply chain that allowed them to control every aspect of the making and distributing of their automobiles. From the steel and rubber plants that make the parts, to building the vehicles, storage and shipping. Though this was a good way for the companies to promote local made in America vehicles it was not however time or cost effective. As a result of competition from other automotive companies Ford made the drastic changes of outsourcing the making of parts and manufacturing to other countries to speed productivity and lower costs.
The advantages to the local communities as a result of outsourcing is that there are jobs added to the community. The local communities that may have been struggling were given the opportunities to work for a company that produces good quality parts and manufacturing vehicles more quickly. The negative effects that this may have on a community is that more people would want to work for the outsourced company which leaves more local jobs open. Also if the cost of living may increase because of the growth from the industry, which would ultimately make living harder in those countries for the people that do not work for the outsourced company.
Global stratification affects the United States positively because it decreases the cost of manufacturing as well as the cost to pay the employees. This helps the companies to save more money than to keep the business in the United States. By outsourcing the company can save more money to pay the people higher up employees in the companies. At the same time global stratification has a negative effect on the United States because it takes jobs away from the local people. If more companies kept their businesses in the
Everyday Sociology
8/8/2013
Barbara Mason
Globalization: A Closer Look at the Ford Company
Ford Motor Company multinational cooperation that uses outsourcing to lower costs and boost productivity. Until the 1980’s Ford had a supply chain that allowed them to control every aspect of the making and distributing of their automobiles. From the steel and rubber plants that make the parts, to building the vehicles, storage and shipping. Though this was a good way for the companies to promote local made in America vehicles it was not however time or cost effective. As a result of competition from other automotive companies Ford made the drastic changes of outsourcing the making of parts and manufacturing to other countries to speed productivity and lower costs.
The advantages to the local communities as a result of outsourcing is that there are jobs added to the community. The local communities that may have been struggling were given the opportunities to work for a company that produces good quality parts and manufacturing vehicles more quickly. The negative effects that this may have on a community is that more people would want to work for the outsourced company which leaves more local jobs open. Also if the cost of living may increase because of the growth from the industry, which would ultimately make living harder in those countries for the people that do not work for the outsourced company.
Global stratification affects the United States positively because it decreases the cost of manufacturing as well as the cost to pay the employees. This helps the companies to save more money than to keep the business in the United States. By outsourcing the company can save more money to pay the people higher up employees in the companies. At the same time global stratification has a negative effect on the United States because it takes jobs away from the local people. If more companies kept their businesses in the
References: Austin, Jason; Rood, Denine; Sands,Jeanne. Ford Company Case Study. 2009. Retrieved from: Fontinelle,Eric. New York Times Cronicles. 2006. Retrieved from: http://www.investopedia.com/financial-edge/0410/ford-a-look-back.aspx.