In a recent news article of CNN (CNN, 2014), Ford said it will pay an average of $8,800 to about 47,000 hourly U.S. workers, up about $500 from last year. They are going to pay record profit sharing checks to United Auto Workers members after posting record profits in North America (Isidore, C., 2014). Ford also took a very innovative approach for motivating employees, which is ‘ONE Ford Approach’. While they have many types of employees and work arrangements, all of their employees together create a skilled and motivated team aligned around their overall ONE Ford objectives. Their ONE Ford plan aligns our efforts toward a common definition of success: having ONE Team, ONE Plan and ONE Goal for an exciting, viable Ford that delivers profitable growth for all (Ford Corporate, 2013).
This led to Henry Ford’s vision of everyone being able to afford a Model T Ford come to fruition by getting the cost of the vehicle down to $360. Ford wanted his workers to be able to afford the vehicles they helped produce so he double his workers’ minimum wage in 1914. Ford’s use of expert power has come through their CEO’s. The founder, Henry Ford, was the first CEO and while he may not have started the organization as an expert in the automobile industry, he became an expert and was able to lead Ford Motor Company to many profitable years. This continued with his son and grandson, Edsel Ford and Henry Ford II.
There are five main types of power, legitimate, reward, coercive, referent, and expert. All of these types can be effective, depending on the organization and its mission. In this case, Alan Mulally was brought in to turn the Ford Motor Company around and back to the successful name brand that it’s been for years. Without a doubt, Mulally had to used legitimate power when stepping into the position of CEO. I recall from the text that on his first day, he asked “Where’s the Taurus?” and told those senior leaders that they “have until tomorrow to find a vehicle to put the Taurus name on.” I feel as if Mulally has a combination of leadership styles.
[4] The Ford Motor Company produced 1708 two-cylinder cars in its first year, by 1915 they produced a million cars, but under the new system of higher wages and lower prices this rose to two million cars a year. [5] It was this idea of assembly line, mass production of a car for all, not just the rich, along with increasing workers' wages ($2.40 to $5.00 per day) and thereby decreasing car prices that changed the automobile industry and forged Henry Ford into the history books as a trailblazer. [6] Everything was privatised including owning their own iron mines, coal mines, forests, railway and steamships - pure efficiency. [7] Eventually Ford went global, parts shipped to 35 branches in USA and to the international branches so cars were being made externally, and not just in one
In 1908 the birth of the model T car sold nearly 15,500.00 in the United States alone. By 1914 Henry Ford, at the Michigan Highland Park plant, he stayed ahead of his time. He started using the innovative production techniques to complete the bodywork of the Model T in ninety three minutes faster, by using the constant
MGMT 0455 PERFESSIONAL DEVELOPMENT OF MANAGEMENT General Motors LEADERSHIP QUALITIES Diane McClendon 3/24/2010 General Motors or GM as most people know it by was founded on Wednesday, September 16, 1908, in Flint, Michigan by William C. Durant and Co-Founder Charles Stewart Mott. Gm was located in Flint until The mid-1920s then moved to Detroit. In the 1920s and 1930s GM took control of the Yellow Coach bus lines that helped form Greyhound bus lines and replaced train transports with buses. for over 100 years General Motors become one of the world's largest automakers in the United States. GM has led in global sales for 77 years in a row (1911-2009) longer than any other automaker and does business in more than 130 countries.
Ford Motor Company: Supply Chain Strategy Case Critique Summary They began by introducing the background information and problem statement for Ford Motor Company. The brief overview of Ford ranged from its start in 1903 to the strategic evaluation of Dell today. Ford had taken notice of the tech company that had revolutionized the computer industry, and Ford wanted to do the same in the automotive industry. They admired the way Dell had implemented a pull system that allowed them to interconnect the supply chain as a whole. From the Suppliers to the Dealers, their goal was to create a system that reduced the barriers between them and created a customer demand driven system.
In 2012 VW Group had a net profit of €15.4 billion. Describe the boundaries of the firm Horizontal VW Group competes in an industry where there are many large and small companies that exist. Since the early 1990s VW Group has continuously increased its portfolio of car brands, it has currently 12 different subsidiary car companies: Audi, Lamborghini, Bentley, Bugatti, Porsche, Ducati, Man, Scania, Seat, Skoda, Suzuki, Volkswagen Commercial Vehicles and Volkswagen Passenger Cars. VW Groups policy of horizontal integration is essential to their growth strategy, the best way to beat rivals is to join forces and become stronger. All twelve subsidiary car companies are run separately with their own board of directors, financial statements, engineering and manufacturing facilities etc.
Budget Rent-A-Car and International Compensation 1. Description of the case Morris Mirkin founded Budget Rent-a-Car Corporation in 1958 in a Los Angeles storefront with an initial investment of $10,000. He began renting Chevrolets at $4 a day and $.04 a mile. Budget began international operations when it opened stores in Canada and Puerto Rico in the mid- 1960’s. Expansion into Great Britain occurred a few years later.
Evaluate the current state of Skoda’s business in the UK with reference to both internal and external factors Executive Summary Skoda is known as one of the oldest automobile manufacturers in the world, and it based in the Czech Republic. It has established many large markets and the main markets in Asia and Europe. This report evaluate the current state of Skoda’s business in the UK, and analyses both internal and external factors of Skoda through SWOT and PESTLE analyses. Introduction Volkswagen AG (VAG) is the largest car manufacturer in Eastern Europe, and its world car market share is 12% per year (Times 2008). In 1991, Skoda became a subcompany of the Volkswagen AG, and Volkswagen AG purchased a 70% stake in Skoda company, the procurement of the remaining 30% of shares in 2000 (Marketline 2011).