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.
A SWOT analysis of Ford motor company is as below: Strength: High Employee Productivity and Employee relation: Besides being one of the strongest brands all over the world and having a well-built brand portfolio, Ford also has a very unique strength which is high employee productivity. They have a very hospitable relationship with their employees (Kotler & Armstrong, 2014), which generates loyalty in return. According to Elangovan, & Xie (1999), Employee relation affects on employee job performance directly. They also stated that, “Employee job performance is one of the most important factors within business analytics for maintaining and increasing productivity for companies (1999). 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.
This movement causes a decline on sale but help company keep margin. In a word, GM is now preparing for a big blast in the future, and become the best in its peers. 3, The first goal is keep the high productions and take advantages of price. This goal is easy to achieve because GM is one of the world’?s largest auto maker. As a result, production and efficiency will not be a problem.
Task 1 P1 Describe the type of business, purpose and ownership of two contrasting organisations. In the first of a series of articles Helen Lyne looks at two contrasting business organisations that operate in the North West How different can two organisations be? The first business I will look at is Ford Motor Company .Ford is an international car manufacturing company that has been in business since 1903 and was founded in America by a man called Henry Ford, initially set up in Detroit. Ford soon became dominant in Americas manufacturing industry and at the time was one of America’s largest employers. With new efficient and cheap methods of production like the ‘production line’ Ford’s products (cars) became cheaper than anyone else’s and the Ford business soon came to Europe and other places around the globe.
Ford Motor Company’s Future Innovation Ford Motor Company is considered one of the largest automobile makers throughout the world. This multinational and multimillion dollar company has expanded its production of truck, cars globally and is considered one of the largest financial contributors in marketing vehicles like Ford, Mercury, Lincoln, etc. This automaker is transforming some of the truck manufacture plants to make smaller and fuel efficient vehicles. This supports the consumer high demand for smaller and better fuel efficient cars. In 2010 Ford financial gains was very profitable something Ford did not anticipated to happened that soon.
The four functions of management, planning, controlling, organizing, and leading, may seem like simple tasks, but how does Ford Motor Company master these tasks in light of the many external and internal factors that it faces daily? This paper documents the strategies and techniques used by Ford Motor Company to overcome factors in globalization, technology, innovation, diversity, and ethics. Globalization Globalization gives automobile makers an opportunity to broaden its consumer base on a worldwide level (Hammond, 2009). In 1993, Ford’s new Chairman and CEO, Alex Trotman, announced his plans to globalize the Ford Motor Company (The Henry Ford, 2010). This year, the company has 70 plants worldwide employing about 166,000 people (Ford Motor Company, 2011).
However, Henry Ford did not cut down the cost of labour. As a matter of fact, he increased the wages for the workers who worked in his company. One of the workers in Ford Motor company has claimed that Henry Ford was an eccentric and genius boss. Ford believed that cars should be affordable to the workers who made the car so that the workers could go for a ride on sunday. Ford built a mass production but what he really wanted was a mass consumption.
The automobile industry is one of the most important industries in the world, affecting not only the economy but also the cultures of the world. It provides millions of jobs for people, generates billions of dollars in worldwide revenues, and provides the basis for a multitude of related service and support industries. Automobiles changed transportation in the 20th century, improving the way people live, travel and so on. Auto companies are now experimenting with cars powered by such alternative energy sources as natural gas, electricity, and solar power. With the rise of customers demand, the competitions among the automobile industry are becoming more and more intense.
It is very important to note that Lexus was an incorporation of the Toyota motor vehicle dealers. Reportedly, the Lexus grew rapidly hence becoming America’s luxury motor best-selling line. Arguably, the organization had good marketing strategies that aided in the business success of the Lexus. Lexus took twelve years to grow into international levels (Jones, 2012: 39). One major economic contribution of the Lexus car manufacturing organization and company is that it has created thousands of job opportunities, to skilled manufacturers and marketers.
To ensure the quality of the products being produced at Lincoln, employees were only compensated on products that were not defective and employees had to repair the products on their own time in order to receive payment for them (p.132). The piecework payment system was a process that was received favorably by employees and gave employees the impression that they were their own boss and had complete control over their job. Year end bonuses, another process of Lincoln’s incentive system, relates directly to the piecework payment system. The total year end bonuses were determined by the performance of the company and these bonuses were generally increased as a result of lower production costs. On average, the bonuses