Analysis Of Ford Motor Company

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Introduction: Ford Motor Company The Ford Motor Company (usually known as Ford) is an American multinational automaker located in Dearborn, Michigan. The company was founded by Henry Ford and incorporated in 1903. The company sells automobiles and commercial vehicles under the Ford brand, and most luxury cars under the Lincoln brand. Ford introduced methods for large-scale manufacturing of cars and large-scale management of an industrial workforce using elaborately engineered manufacturing sequences typified by moving assembly lines; by 1914 these methods were known around the world as Fordism. As of 2010, Ford is the second-largest U.S.-based automaker and the fifth largest in the world based on vehicle sales in that year. Ford has seen success in the international market, and is ranked in the top ten fortune 500 companies. Ford was the tenth-ranked overall American-based company in the 2013 Fortune 500 list, based on their global revenues in 2012 of $134.3 billion. (CNN, 2014) Ford’s International Operations Ford began international operations early on as a company. In 1925, they opened a manufacturing plant in Japan. This plant was closed in 1940 due to increased political tensions between the United States and Japan due to World War II. Ford has also been in Europe since the 1960s. Ford has international manufacturing operations set up in several countries, including the United States, Canada, Mexico, China, the United Kingdom, Germany, Turkey, Brazil, Argentina, Australia, and South Africa. In addition to these, Ford also has a cooperative agreement with the Russian automaker GAZ. Ford uses a global area division organization design, setting up subsidiary companies for the different countries/regions that it is operating in.... ... middle of paper ... ...rica. There will need to be an assessment of the political risk versus the potential gains and growth in the newly emerging markets of the Middle East. Ford has had some failures in the past. They have recently had to cut jobs in Russia, due to a declining automotive industry in Russia and tension caused by the Ukrainian conflict. (Reiter, 2014) The decline of the ruble, Russia’s currency, is also a contributing factor to Ford’s lack of success in the Russian market. When announcing the relocation of their main operating plant, which will cut close to one thousand jobs, Ford also stated that the Russian market had shifted towards SUVs rather than the compact cars that Ford was producing and marketing for the Russians. (Rosevear, 2014) Hopefully, this lack of success in Russia will provide Ford with feedback that will be necessary when operating in the Middle East.

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