1 BACKGROUND Essay example -- Business and Management Studies

1 BACKGROUND1.1 intersection ride guild carrefour was the pi aneer of the move vehicle, only over 100 old age ago.Today, Ford Motor Company is a family of automotive brands consistingof Ford, Lincoln, Mercury, Mazda, Jaguar, Land Rover, Aston Martin,and Volvo, employing 350,321 (Yahoo Finance) workers in more than 200countries.1.2 Motor IndustryThe American oligopoly in the drive industry, consisting of Ford,General Motors and Chrysler, has suffered from poor financial resultsrecently. As reported by www.guardian.co.uk (16/06/03), the gigantic terceUS car-makers be wrestling with the combined effects ofover-capacity, growing competition from Europe and Japan, extensive pensionand health care costs, and a damaging increase in incentives to getcustomers into the showrooms.A real sign that the car industry is in the midst of major change camewhen www.reuters.com (25/01/04) reported that Toyota had overtakenFord as the instaurations second-biggest automobile manufacturer. Th eJapanese firms strategy of commission on quality, efficientmanufacturing and targeting new markets paid off with their marketcapitalisation, at $120bn, totalling more than the big threecombined.The main value driver for the motor industry is platforms, orproduction lines. The Japanese and European firms invested heavily inmulti-car platforms and can now base a number of cars on one platform,rather than the traditional method of one car per platform. This hasreduced their rooted(p) costs dramatically and allowed these firms to selltheir cars at much cheaper rates and profit market share. Developing newplatforms requires serious investment not just in financial terms, butalso in time. The big three are several years behind the newcompetition and because of this, American automotive research firmIceology estimate the market share of the big three could fall from60.2% in 2003 to 56.5% by 2006 ( transaction Week, 3867, 76).2 CURRENT cast2.1 Competitive PositionThe intense publicity generated by Fords recent centenarycelebrations diverted attention from the fact the company was trauma from slowing sales and dire financial results, such aslosing $5.5bn in 2001 (Strategic Direction, 19(1), 9). CEO JacquesNasser led Ford away from their core business and patronage replacinghim in 2001, the combined effects of his reign and the e... ...Can Ford mend This Flat?, Business Week, 2003, 3860, 50Detroit Tries It the Japanese Way, Business Week, 2004, 3867, 76Ford Feels the Pressure, Strategic Direction, 2003, 19(1), 9-12Big tercet Car Bosses Fight for Pole Position, Strategic Direction,2003, 19(11), 10-13Restructuring Ford Europe, European Business Review, 2003, 15(2),77 - 86 wheel around to the Medal - Enough is enough, Business Week, 2004, 3865,30fiscal ResourcesDataStream (Aston University Library)Internet Resourceswww.guardian.co.uk, Ford goes in for refit after 100 yearswww.reuters.com, Toyota overtakes Ford as No.2 car makerhttp//finance.yahoo.com/, Yahoo Financ ehttp//www.autointell-news.com/News-2002/January-2002/January-2002-3/January-16-02-p4.htm- Ford Motor Company Announces Revitalisation Planshttp//www.forbes.com/reuters/newswire/2004/03/02/rtr1282302.html -Fords Scheele sees deflationary price environmentTruby (2002) -http//www.detnews.com/2002/autosinsider/0209/25/a01-596413.htmSusanto (2003) - http//www.susanto.id.au/papers/JITFORD.aspLienhert (2004) - http//www.forbes.com/2003/12/15/cx_dl_1215feat.html