Ford Case

Executive Summary:

In 1913, Henry Ford revolutionized product manufacturing by introducing the first assembly line to the automotive industry. Ford's hallmark of achievement proved to be a key competence for the motor company as the low cost of the Model T attracted a broader, new range of prospective car-owners. However, after many decades of success, customers have become harder to find. Due to relatively new threats to the industry, increasing numbers of cars and trucks are parked in dealer lots and showrooms creating an alarming trend of stagnation and profit erosion. Foreign-based automakers, such as Toyota and Honda, have expanded operations onto domestic shores and, in turn, have wrestled market share from American automakers. As a direct result, unit over-capacity has steadily risen, while heightened competition and diverse product lines have led to increasing customer demands.

Ford is currently operating under a standard supply chain model where it develops the product, obtains parts from suppliers, manufactures the goods, and then sends them through the distribution channel to the customers. Ford’s supplier network is complex with most suppliers selected for individual cost considerations not total supply chain costs. A purchasing department that is independent from product development manages supplier relationships. Ford’s distribution channel is made up of mostly independent dealerships which interact with the consumer and send orders back through the chain.

I am recommending benchmarking Dell’s success in vertical integration. Noting that we will take into consideration what is only applicable for Ford unique business process. We also noted important points that Ford need to improve on such as number of supplier base, also the level and kind of relationship we have with them. We will also look at the of information technology infrastructure that will support our goal. With this infrastructure we have to do change management process which...