The guidelines and provisions set within the Ford Motor Company’s agreement with the UAW would bind them legally to fulfilling their obligations. The impact the economy would have on the Ford Motor Company was significant labeling the company, the weakest of the three automakers with affiliation to the UAW (Lucas & Furdek, 2010). During this timeframe, the Ford Motor Company would undergo changes which would present obstacles in regards to legality. In terms of downsizing to cut cost, the company would consider laying workers off and employment termination. However, these lay-offs and terminations would need to be upheld with evidence that would support and justify letting an employee go or the Ford Motor Company could potentially experience
250-251). This allows workers and customers alike the opportunity to voice their opinion on matters regarding the company and what improvements can be made. In 1991 the Delta Credit Union saved money by deciding against building new buildings. Managers took heed to customer inputs by improving efficiency and ambiance in the already established buildings. After the customer suggestions were implemented growth in sales increased by 25% (Thompson, 2004, p. 251).
Credit crunch and recession are great examples of external factors influencing the business. If the people are suffering from recession, they will not have money to spend money and this is how it affects the businesses. The current instability in Iraq is a good example of what may happen to businesses. In business it’s very important to understand, monitor and adapt to the political environment, because it crucially affects every business. Some of the very important factors are: Government stability effects businesses in a great range by competing with businesses to lower their costs, transparency is another important factor where anything the business does is revealed to the government and the government know exactly what they are up to.
For example, during Tesco’s horse meat scandal, Tesco had to spend a lot of money to replace products and stop the problem. Furthermore, not only did Tesco had to pay for that but had to compensate for the fall in sales and loss in their revenue. Therefore, quality is important to Tesco as it will stop them having to replace products and compensate for the fall in sales/revenue. Therefore it can be said that quality for a business, such as Tesco, is very important. This is because high quality could sustain or improve a business’s reputation, reduce costs and bring about loyal, repeat customers.
Fords benefits from unionization because the union contracts can be negotiated and any work issues can be resolved, such as workplace safety, wages, and benefits. As a unionized company, the management at Ford will also benefit from UAW to keep its workers online to avoid low productivities. Another benefit of Ford Motors as unionized company is employees work satisfaction because of high wages, more fair practices, and guaranteed employments that leads to less company turnover. With the recent economic downturn many American businesses suffered losses, but with the help of the UAW Ford could overcome the economic barriers. In 2011 Ford and UAW agreed on a new contract approving profit sharing and signing bonuses in lieu of annual pay raises in setting the wages and benefits for 112,000 workers.
These American companies need to be reestablished in order to create homeland jobs. Now that these companies are becoming relevant again we need workers to fill those jobs spaces. The problem now is many high quality manufacturing jobs are available now, but this country does not have the workers with the proper skills to fill these jobs. The President is encouraging companies to help citizens in unfortunate circumstances gain skills in order to carry out these
Part four is to cut the deficit, reducing the size of government and getting the national debt under control so that America remains a place where businesses want to open up shop and hire. Finally, part five of Mitt’s plan is to champion small business. Small businesses are the engine of job creation in this country, but they will struggle to succeed if taxes and regulations are too burdensome or if a government in Washington does its best to stifle them. Mitt will pursue comprehensive tax reform that lowers tax rates for all Americans, and he will cut back on the red tape that drives up costs and discourages hiring. This election presents a clear choice, and an important one: Will America once again be the best place in the world to start a business, hire a worker, or find a job?
When he started his Ford Motor company he was always looking out for his customers and his employees. When he realized that too much time was being spent trying to create one car at a time, he came up with the idea of using the assembly line method or mass production. By using this method it greatly cut the cost of production per vehicle so instead of keeping prices high, it actually lowered them. He also raised the pay of his workers. He is one of the big reasons that the United States has a middle working class because of his great generosity for his workers.
He started Nissans evolution process by closing down inefficient factories, reduced Nissans workforce, curbed purchasing costs, shared operations and introduced new products. Ultimately, Nissan became on of the world’s most profitable automotive companies. Some may consider him a savior but he is undoubtedly a Visionary leader. There are traits that a visionary leader must posses and Ghosn possessed the following traits that allowed him to become such a leader: Visionary leadership requires management to acquire a global mindset. Ghosn illustrated this trait of open mindedness when he reinforced his global aspirations by making English, not Japanese, the official language of Nissan.
Interest rates were consistently on the incline during the time Welch took over as CEO of GE. Jack Welch was both a transformational leader who showed an aggressive reasonable style of leadership. He did not let the recession discourage him from keeping a competitive advantage over the competition. He set a standard for each business to make sure that GE was either #1 or #2 in their current industry or they would disengage. His strategy was to "fix, sell or close", for example, when Welch took charge of the company his objective was to fix the problems delaying GE from operating to its fullest potential, sell the company if it is more of a liability than an asset, or close the organization and start from scratch.