Ford Case Study

1142 WordsAug 27, 20115 Pages
1. The case creates four options to choose from. Discuss at least three criteria the company should use to decide which of the four listed options is best and the reasons why each criterion should be used. The first option identified is to close down older plants in an effort to realign production and sales. In taking this option, comes many other outcomes. With the downsizing of older plants to restructuring management there are the workers that are involved. The company has to make the decision if they will take a risk-avoiding strategy which aims to protect an existing competitive advantage or a risk seeking strategy which aims to extend or create a sustainable competitive advantage. If plants are closed or are being replaced with new high tech facilities there are misplacement of workers. As a company, I think I may choose the risk seeking strategy, hoping to extend what the company has but also enough to compete with competitors if the market begins an upturn. I am not sure if this will save all employees but hopefully it will help some. The second option would be to move the company to produce only smaller cars, eliminating or sharply reducing the SUV and truck lines. I think that this is a good option, but the company should produce the cars that are in demand. Ford is known for their F150 heavy duty pickup trucks along with the Ford Mustang muscle car. I think consumers are still willing to buy these items. Ford is an American legion, you have consumers that are able to still purchase these cars, maybe not a mass of them but they are some. I would not eliminate the production of these vehicles. I would reduce the number of all vehicles per year and in turn produce the cars that are in demand by regional markets. The third option is to take the dramatic step of reducing your North American presence and focus your efforts on international markets where

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