1 BACKGROUND Essay example -- Business and Management Studies

1 BACKGROUND1.1 hybridization ram company get across was the pi sensationer of the locomote vehicle, right over 100 age ago.Today, Ford Motor Company is a family of automotive brands consistingof Ford, Lincoln, Mercury, Mazda, Jaguar, Land Rover, Aston Martin,and Volvo, employing 350,321 (Yahoo Finance) workers in more than 200countries.1.2 Motor IndustryThe American oligopoly in the force industry, consisting of Ford,General Motors and Chrysler, has suffered from poor fiscal resultsrecently. As reported by www.guardian.co.uk (16/06/03), the forged terceUS car-makers argon wrestling with the combined effects ofover-capacity, growing competition from Europe and Japan, immense pensionand health care costs, and a damaging increase in incentives to getcustomers into the showrooms.A real sign that the car industry is in the midst of major change camewhen www.reuters.com (25/01/04) reported that Toyota had overtakenFord as the arenas second-biggest automobile manufacturer. TheJa panese firms strategy of centering on quality, efficientmanufacturing and targeting new markets paid off with their marketcapitalisation, at $120bn, totalling more than the big threecombined.The main value driver for the motor industry is platforms, orproduction lines. The Japanese and European firms invested heavily inmulti-car platforms and can now base a number of cars on one platform,rather than the traditional method of one car per platform. This hasreduced their headstrong costs dramatically and allowed these firms to selltheir cars at much cheaper rates and ingest market share. Developing newplatforms requires serious investment not just in financial terms, butalso in time. The big three are several years behind the newcompetition and because of this, American automotive research firmIceology estimate the market share of the big three could fall from60.2% in 2003 to 56.5% by 2006 ( lineage Week, 3867, 76).2 CURRENT adjust2.1 Competitive PositionThe intense publicity gener ated by Fords recent centenarycelebrations diverted attention from the fact the company was woeful from slowing sales and dire financial results, such aslosing $5.5bn in 2001 (Strategic Direction, 19(1), 9). CEO JacquesNasser led Ford away from their core business and condescension replacinghim in 2001, the combined effects of his reign and the e... ...Can Ford gear up This Flat?, Business Week, 2003, 3860, 50Detroit Tries It the Japanese Way, Business Week, 2004, 3867, 76Ford Feels the Pressure, Strategic Direction, 2003, 19(1), 9-12Big terce Car Bosses Fight for Pole Position, Strategic Direction,2003, 19(11), 10-13Restructuring Ford Europe, European Business Review, 2003, 15(2),77 - 86 wheel to the Medal - Enough is enough, Business Week, 2004, 3865,30 pecuniary ResourcesDataStream (Aston University Library)Internet Resourceswww.guardian.co.uk, Ford goes in for refit after 100 yearswww.reuters.com, Toyota overtakes Ford as No.2 car makerhttp//finance.yahoo.com/, Yahoo Finance http//www.autointell-news.com/News-2002/January-2002/January-2002-3/January-16-02-p4.htm- Ford Motor Company Announces Revitalisation Planshttp//www.forbes.com/reuters/newswire/2004/03/02/rtr1282302.html -Fords Scheele sees deflationary price environmentTruby (2002) -http//www.detnews.com/2002/autosinsider/0209/25/a01-596413.htmSusanto (2003) - http//www.susanto.id.au/papers/JITFORD.aspLienhert (2004) - http//www.forbes.com/2003/12/15/cx_dl_1215feat.html