Allen Rue MGMT 6510 March 29, 2013 Ford Motor Company: Staying “Ford Tough” Ford has used many strategies to remain as one of the top automobile manufacturers in the world. Two of these strategies have dealt with legitimate power and expert power. Henry Ford obtained legitimate power from Ford Motor Company because of his position as CEO and founder. Henry used this power to lead the construction of an all in one plant where the processing of raw materials, parts, and final automobiles were produced in one factory. 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.
They continue to develop new affordable automobiles with new advance technology that has captivated the suppliers, dealers, shareholders, employees and the communities. Ford continues to strive on their mission, vision and values. It all began with Henry Ford (1863-1947), where he stated “I will build a car for the great multitude” and that seems to be the cored for this giant automaker. They continue to stand by the father that started it all back in 1903 with a promising vision. In 1908 the birth of the model T car sold nearly 15,500.00 in the United States alone.
And that’s where Firestone ended up stabling the Firestone Tire and Rubber Company. At first, Harvey Firestone’s business did not do so well, even had others make his tires. Eventually in 1903, they improved the tires performance and began to make their own products. When catering to the needs of the automobile industry, Firestone caught the attention of Henry Ford in 1906. Firestone and Ford created a business relationship when Ford placed a large order for tires for his automobiles.
Typically it took automobile makers approximately 3.5 years to release an automobile to the public. However, Lee Iacocca felt that this timeframe was unacceptable and Ford could have the Pinto ready in two years. During the crash test phase it was recognized that the fuel tank caught on fire if rear-ended. However, because production procedures were overlapping this discovery would cost Ford too much money to stop production and redesign a safer model. Ford proceeded with the current model, and the Pinto was debut in 1971 (Trevino, 2006, p.116).
Global Strategy-Ford Motor Company and John Deere “Henry Ford not only founded the Ford Motor Company, he helped give birth to the automobile industry in the United States. With his innovations to the manufacturing process and his commitment to his workers, he became a true American legend of the twentieth century. Although Ford died in 1947, his name continues to be stamped on every car and truck that rolls off a Ford assembly line today” (Ford). In 2006, Alan Mulally was brought in as Ford Motor Company’s new president and CEO. Mulally was faced with an overwhelmingly complex situation.
No Title In the article “Just Say No” by Bill O’Reilly, he writes about the bailout, or loan, that the major American motor companies Ford, GM, and Chrysler are requesting. He discusses the problem and states that the Federal government should not bail out the auto industry until the unions work out a deal that will benefit the companies, unions, and the American economy. He covers the economy and how it has suffered over the decades because of the business-people being irresponsible and running these large companies poorly, not just the auto industry. From the beginning to the end of the essay, one can tell that Mr. O’Reilly is against the bailout. He starts off reminding the reader about Nancy Reagan, the former first lady, and how she rose up against drug abuse in the late 80’s with the term “Just Say No”.
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.
However, as a result, the Pinto did not undergo all necessary safety tests before it was released. According to a Ford engineer, “Safety wasn't a popular subject around Ford in those days. Whenever a problem was raised that meant a delay on the Pinto, Lee would chomp on his cigar, look out the window and say 'Read the product objectives and get back to work’.” (Engineer). When Ford finally tested the car for rear-end impact it was determined that the car was dangerous in that the fuel tank was not strong enough to be at the back bumper. Collisions at speeds as low as 20 miles per hour could puncture the fuel tank and cause fires.
Ford Motor Company Ford Motor Company is one of the first American automotive companies that successfully manufactures and sells automobiles, trucks, buses and automotive part. It was founded by Henry Ford on June 16, 1903. The company sells automobiles and light commercial vehicles under the Ford brand and luxury brands under the Lincoln brand. (Ford Motor Company, n.d.). 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.
Sweatshops have always been an issue within the Apparel Industry; companies seek out cheap alternatives to having mass production of clothing for cheaper rates. Merchandise buyers seek out the cheapest manufacturers of products that are high on demand, causing them to purchase from manufacturers that operate illegal sweatshops. A number of manufacturing companies exclusively deal with the exploitation of workers for their own economical benefit. This issue sadly affects everyone worldwide, especially in Asian countries because the government does not enforce laws against sweatshops. The Apparel Industry is the most affected because of this; workers are obligated to work long shifts without any consideration of their well-being.