Ford Company Case Study

Case Study

Ford Motor Company

Marcelo, Joey Roi S.

BSBA-MM 3-2s

Table of Contents

Point of view ……………………………………………………………………………….. 1

Time Context ………………………………………………………………………………….. 2

Background of the Study……………………………………………………………………… 3

Statement of the Problem …………………………………………………………………….. 4

S.W.O.T Analysis …………………………………………………………………………….. 5

Alternative Course of Action ……………………………………………………………..…. 7

Conclusion and Recommendation ………………………………………………………….. 8

Point of view:

The case deals with the hurdles, implications and the extent of virtual integration in one of the world’s largest automobile manufacturing company. ‘Ford Motor Company: Supply

Chain Strategy’ case focuses on the viability of implementing a supply chain strategy following

Dell’s model.

There are several factors which affect how an auto industry is managed and the way

Important decisions in regard to the company are taken. Ford was established by a visionary

Henry Ford in 1903 and it has been in business ever since. Its main competition till 1970’s was

With General Motors and Chrysler. However with the entry of Japanese companies like Honda,

Toyota and Nissan the firm faced stiffer competition with the auto market being over capacitated.

In 1995 Ford initiated the Ford 2000 plan aimed to restructure many of their key processes like Order to Delivery (OTD) and Ford Production System (FPS). They wanted to reduce the OTD from 60 or more to 15 or less days. FPS was created to convert the supply chain from a push type to a pull type. Ford aimed at reducing the number of suppliers which had grown to several thousands of different suppliers over the years as the company grew. Rather than focusing on selecting suppliers based on costs they wanted to develop close long-term relations with the Tier 1 suppliers who in turn managed and handled Tier 2 and Tier 3 suppliers.

The aim was to create a more cost effective supply chain. Ford provided its suppliers with its...