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Environmental factors of the automotive industry
Environmental factors of the automotive industry
Environmental factors of the automotive industry
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2.1.1 Supply Chain Standard
Ford has determine their supply chain standard in order to achieve standard production procurement process. Ford Company have their incorporate Global Term and Condition. In term their term and condition that provided by Ford Company, suppliers need to follow the condition such as the guideline of social responsibility, Anti-Corruption Web-Guide outlines their prohibition of child labour, forced labour (including human trafficking), physical disciplinary abuse and any infraction of the law. In the Environmental regulation, such as Web-Guide sets out environmental requirements, including the elimination of materials of concern and increasing the use of sustainable materials whenever technically and economically feasible
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In the first stage, supplier need to create the roadmaps as a multi -year plan to increase the environmental performance through either greenhouse gas (GHG) emission reductions or water use reduction. Stage 2, which is collect the baseline data whereby to enter into roadmap. In the stage 3, implement the practices and also report the reduction after implemented in the stage 4. For the final stage, list the best practices and give to Ford’s Company for implemented in their facilities. Other than that, other important thing to share the commitment towards their supplier that has been mentioned by Ford’s itself which are can share the responsibility of environmental and social. This share will improve the quality of information with continue the compliance and regulation. What Ford company share the commitment with their supplier one of them are provide their supplier with tools to build the capability, provided worksheets on emissions tracking and reporting and on code of conduct development, sharing training materials, as well as information and guidance on our compliance and training processes. Finally, Ford have share everything to their own supplier for achieve the goal in give benefit to both of them in the businesses context. In the Ford sustainable of supply chain, they also has highlighted their shared and commitments in the Aligned Business Framework (ABF) as …show more content…
Thus, it become as a best practices in developing sustainable supply chain. In this context, Ford the only one from the automotive industry in that group and have approximately 20 stakeholders in this invitation. Based on that, Ford are lead developers of an online portal of tools and resources that is designing to assist the business practices in embedding sustainability in supply chains.
CSR Europe Automotive Working Group on the Supply Chain Sustainability
Since 2011, Ford Company has been joined the CSR Europe Automotive with others seven automotive makers also joining this group. The goal of this group are to working in group. They are share the experiences and information about sustainable issues in the supply chain. From sharing the experience and information, they are gain the knowledge and develop the common tools, work together on the common project and also send the common message in the supply chain that concerning about sustainability’s of activities and requirements.
Participate in several cross-industry organizations on the issue of conflict
This was noted as a bold endeavor with a substantial amount of risk. Tom Folliard, the CEO of CarMax used innovation to redirect the current trend of standard practices, (De Wit, & Meyer, 2010). Through expansion, CarMax provided a wide variety of automotive brands to their customers, not limiting their sales to only a few makes and models, (De Wit, & Meyer, 2010). CarMax also eliminated the past practices of pressure sales by establishing fixed prices. The Team agreed that CarMax had gained a competitive edge in the market by catering to the consumer through a variety of products with set prices and no sales pressure. AutoNation CEO, Wayne Huizenga was noted as quite the entrepreneur with an initial focus on Waste Management and Block Buster Videos, an example of fragmented industry, (De Wit, & Meyer, 2010). This diversity definitely has its advantages, but can lead to misdirection regarding sustainability in one industry. The team noted similarities between the CEO’s regarding their creativity and defiance of industry rules. As the team compared the different strategies of CarMax and AutoNation, we noticed two different methods of application, each were effective yet differed in application. In a bold move, AutoNation, under new CEO Mike Jackson, followed the CarMax strategy of implementing set prices and eliminating high-pressure sales, (De Wit, & Meyer, 2010). Through creative thinking, AutoNation improved upon their practices by implementing Smart Choice software, which enhanced customer satisfaction by reducing transaction times, (De Wit, & Meyer, 2010). AutoNation captured the competitive edge over CarMax by catering to the automotive manufactures with a focus on brand versus variety, (De Wit, & Meyer, 2010). The
...th a growing proportion of elderly people. Global market dynamics and innovations in big data and social networking are transforming the business strategies of companies everywhere—and forcing them to rethink fundamental rules of engagement. For better or worse, the future entrepreneurs will have to surface as one the most disruptive forces. As big data pushes for alternative ways of working – proactive solutions that drive information must quickly figure out which new policies and tools can be utilized most effectively. This grants enormous opportunities for key technological breakthroughs that will be needed for the next generation of transport.
Ford Motor Company current mission statement is “committed to provide personal mobility for people around the world”. With that in mind their vision is to become the world’s leading Consumer Company for automotive products and services. By improving everything they do, the company provide superior returns to their shareholders (Vision, Mission, Values).
The problem with pollution prevention is that it requires people to understand more than the intimate details of the production process; they must also understand the technical possibilities. Many corporations have environmental managers, which are generally responsible for helping corporations comply with the law. According to the case study, the work of environmental managers often expose them to many pollution prevention solutions, but they often have trouble getting access to production areas. Production often sees Environmental Managers as "the compliance police".
This assignment focuses on internal analysis of Ford Motor by doing SWOT analysis and external analysis by doing Pestle analysis. The assignment also focuses on the strategic performance analysis on the basis of Porter’s Diamond Model, BCG Matrix and Blue Ocean Strategy. SWOT analysis showed that, Ford Motor has strength on heritage, global aspect, brand name, innovation etc. It has weakness on market share, global competition and affected by economic recession. The opportunities lie on small cars, fuel efficient cars and production market in India and China due to lower cost. Threats are coming from high price of petrol, raw material, labor and competition from other companies. Pestle analysis showed that, Ford maintained worker friendly company and able to cope up with financial crisis during recession. They focused on advertisement. Also go for joint venture with Microsoft to bring new technology in the car. They produce environmental friendly cars. A...
Strategy implementation involves establishing programs and tactics to create a series of new organizational activities, budgets to allocate funds to the new activities, and procedures to handle the day-to-day details (Wheelen, Hunger, Hoffman, & Bamford, 2015). Essentially, after a company determines the direction of their program, it is the how that particular direction will be accomplished. It also answers the question of what resources must be moved or sold to meet the allocated budget. For example, Ford Motor Company set up a program with the sole purpose of discovering alternatives to the foam that was being used in the manufacturing of car seats (Ford Motor Company, n.d.). While this program has a great deal of potential, there are different aspects that would have to be measured and verified before it can be considered a successful course of action by the company.
Many vehicle manufacturers have paid more attention on CSR to sustain their business development. Environmental management schemes, green supply chain management and labor codes of conduct are widely recognized and implemented within the industry (Martinuzzi et al., 2011). Automakers also rate it more important comparing to other factors of the company. For instance, the disclosure of the general movement of social and environmental accountability, according to the established opinion leaders in the automotive industry, is increasingly positioned at the forefront of any economy and business context (Russo-Spena et al.,
Climate change in automotive industry represent both threat and opportunity in the business. It gives opportunity for the car makers to develop a new technology that is more environmental friendly, which can reduce the amount of green house gas emission. It also gives the carmakers to create a more energy efficient in their operations, which can cut the unnecessary production costs. Other opportunity is the fact that they will use this global concern to further research and investigate the use of creating a new energy source, and helping reducing the pollution caused by the use of fossil fuels.
Sustainability of the supply chain has increasingly become a crucial aspect of corporate responsibility. Apart from being good for business, management of social, economic, and environmental effects of supply chain remains the right thing to do. Constantly changing markets have created complex landscapes that businesses must navigate to build sustainable supply chains. Sustainable supply chains aim at creating social, economic, and environmental value for all stakeholders throughout the supply chain. Building sustainable supply chains not only benefits the stakeholders but also aims at safeguarding business interests. Businesses can easily become sustainable by understanding who they are and working closely with people. Nestle is company that has been at the forefront in advocating for sustainable supply through the ‘creating shared value’ platform. The report makes recommendation on the role of supply chain management in attaining sustainability.
Ford is enjoying an increase in customer satisfaction, sees huge revenue opportunities for developing and retaining loyal product advocates, and has taken both complexity and cost out of the supply chain.
The decline in Profit margin in 2014 was because of their less revenue in the North American market where they make good margins with their larger vehicles as shown in Figure
Manufacturing businesses and business leaders need to increase their focus on key success factors such as: innovation, productivity improvement, investment in people & skills, and funding. Innovation is not just about retention and development, or the latest technology. It’s also about practical and efficient problem solving and business transformation. In the manufacturing industry, this can be achieved by: refining or exploring new supply and distribution channels, establishing new business offerings, developing leaner organizational arrangements, improving processes, providing a better customer experience, and accessing green, clean technology – high on the agenda for environmentally conscious customers (Performance, 2011)
Ford’s business level is the integrated cost leadership/ differentiation strategy; this involves engaging in primary and support activities that allow the company to simultaneously pursue low cost and differentiation. This strategy is flexible and enables Ford to use technology to control the production of variety of products in moderate, flexible qualities and with a minimum manual interaction, whose goal is to eliminate cost verse product variety. Cost leadership is a strong strategy, but it can be undermined by the frequent changes in technology, the imitation of cost advantage and lost of focus on consumers. Ford’s differentiation strategy focuses on developing a unique product that consumers are willing to pay and the combination of these two strategies enables Ford to stay on its core competencies.
The focus of Mercedes-Benz on CSI emphasises the attitude towards sustainability in our communities. Project partnerships are developed with Companies which can add fundamental value towards the CSR project with the aim of creating practise models which can be replicated and can add value to more communities, which in turn will impact positively on society.
Competition for good things like public health, making the earth safe to live are positive aspects of competition, but global competition can also have a downside concerning the environment. This is true for the production of vehicles, as companies are coming with designs and new models with improved engines, but fuel consumption and the pollution of the air remains the same. In addition to the concerns about car manufacturing and driving, we should also consider the impact of construction areas where new houses are being built, with many truck with loads going across the country. This is an important contribution to pollution, which creates both air and noise pollution. Japan and Europe auto manufacturing based in US has recently involved activities to improve fuel efficiency of their vehicles. The European car makers planned to design a new engine and at same time to develop long distance vehicles. The autos made in Europe, for example Daimler Chrysler, recently came out with a new product which is a vehicle with 3 liters per hour, and also a diesel engine, which consumes 3.4 liters of fuel per 100