Vertical Integration Ford Essay

437 WordsNov 10, 20112 Pages
To begin our comparison of Dell Computer and Ford Motor Company, let’s begin by discussing the similarities between the companies. The main similarity is in their operating principles. As stated within the case study in the book, all of the principles that led to Dell’s success are in place in some form at Ford. It should be noted that most of these operating principles are newer additions to Ford, through the Ford 2000 efforts, but they are still part of the company’s operating structure. Moving on to discuss the divergences between Ford and Dell we see many differences. Specifically size is a big difference. Dell has 16,100 employees while Ford (including automotive and financial services) has 363,892 employees. Looking at the case study, we also see sizeable difference in the assets, revenue, manufacturing facilities and more financial information between Dell and Ford. As well, Dell and Ford have significantly different processes related to the ownership of inventory, suppliers, forecasting, and demand. Finally, Dell and Ford have different corporate cultures. Dell is an entrepreneurial, new company that can react quickly to change and does not have a lot of people or history to slow it down. On the other hand, while Ford is innovative, they are slow to react to changes in the industry and the employees do not have the same way to doing things as the Dell employees. So, as stated by looking at the similarities and differences between Dell and Ford, we are left with many differences and only one real similarity. For a company trying to model itself from another company, it would seem that Ford would be unable to do this from Dell, just looking at their sheer differences. We next move on to look at the benefits that virtual integration has provided to Dell. The case discussed three benefits that virtual integration has realized within Dell, the

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