Ford Case Study Natausha Blakley Dr. Jayna Newell Principles of Management February 12, 2011
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.
1. In my first opinion the company should close down old plants to realign production as well as sales. If the company continues to loose billions of dollars year after year adjustments need to be made somewhere, so the concentration should be put in the plants that are successful and slow production in the lagging plants or just simply close down. Second I would choose to reduce the SUV and truck lines because of the high gas
…show more content…
When the economy was doing well, Ford could afford to over produce their lines of vehicles because it would ultimately pay off in the long run but that isn’t the case now and it’s costing the company lots of money so they can reduce the production of the vehicles that are not selling and concentrate more on the cars that are selling well. The UAW union also needs to come together and figure out a way to renegotiate the long term contracts to make to make it so that it’s still favorable for workers but most importantly for the best interest of the company. Company operations are being heavily affected because of the current design of the contract and the dwindling economy’s lack of spending. Just like in pro sports, the union needs to address that problem because the old ones were only beneficial because of the thriving environment, and it is not applicable now. Third in the PAG group cars are not going as well as originally planned so either Ford needs to get out of the luxury car market for now or hire somebody with superior knowledge of the luxury market to make some of that money back before they end up loosing their financial backup that is keeping them above water, but if your loosing billions of dollars every year then you may just have to operate those plants only in places that are successful.
Discuss how an effective action plan can be created and how progress can be