Ford Business Analysis
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- Date Submitted: 09/20/2011 08:06 AM
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Business Analysis III
Abstract
Today’s market is changing because of many factors, the first is globalization and the affect economies from around the world have on each other. The second significant change to the marketplace is increasing fuel prices driven by demand from growing countries such as China and India. American businesses such as Ford have to adjust to the changing markets. This is a normal function of a capitalist economy, especially when doing business in a global economy. Companies that can change and adapt to the new market will be successful. Strong management teams remain flexible, recognize the changes in a market and adapt to those changes. Ford has proven over the last six years that their management team can adjust and become profitable through proper strategy.
Business Analysis III
Changing Markets: Ford’s Unique Approach
Cutting Cost and Customers
The effects of the worldwide economic slowdown on the automotive industry have changed the way that Ford is approaching its management strategies. Ford was the only automaker based in the United States that did not take money from the United States government in the bailout of 2009. In the first quarter of 2011 Ford earned $2.55 billion, or 6.1 cents per share. Even though sales were at record low levels Ford successfully has adapted to the changing world market. Ford has emerged has the best positioned of the three United States automakers of Ford, General Motors, and Chrysler and in 2010 Ford surpassed Toyota in sales in the United States. For the first time since 1993 Ford has increased market share for two years in a row and for the first time in 50 years Ford outsold General Motors in the month of February.
In 2006 Ford borrowed $23.6 billion, even putting the Blue Oval, Ford’s Logo, up for collateral. Although the economy was healthy then, Alan R. Mulally, its new chief executive, said the money would give Ford “a cushion to protect for a recession or other unexpected event.”...
Abstract
Today’s market is changing because of many factors, the first is globalization and the affect economies from around the world have on each other. The second significant change to the marketplace is increasing fuel prices driven by demand from growing countries such as China and India. American businesses such as Ford have to adjust to the changing markets. This is a normal function of a capitalist economy, especially when doing business in a global economy. Companies that can change and adapt to the new market will be successful. Strong management teams remain flexible, recognize the changes in a market and adapt to those changes. Ford has proven over the last six years that their management team can adjust and become profitable through proper strategy.
Business Analysis III
Changing Markets: Ford’s Unique Approach
Cutting Cost and Customers
The effects of the worldwide economic slowdown on the automotive industry have changed the way that Ford is approaching its management strategies. Ford was the only automaker based in the United States that did not take money from the United States government in the bailout of 2009. In the first quarter of 2011 Ford earned $2.55 billion, or 6.1 cents per share. Even though sales were at record low levels Ford successfully has adapted to the changing world market. Ford has emerged has the best positioned of the three United States automakers of Ford, General Motors, and Chrysler and in 2010 Ford surpassed Toyota in sales in the United States. For the first time since 1993 Ford has increased market share for two years in a row and for the first time in 50 years Ford outsold General Motors in the month of February.
In 2006 Ford borrowed $23.6 billion, even putting the Blue Oval, Ford’s Logo, up for collateral. Although the economy was healthy then, Alan R. Mulally, its new chief executive, said the money would give Ford “a cushion to protect for a recession or other unexpected event.”...