Ford Motor Company: Challenges and Opportunities

Ford Motor Company: Challenges and Opportunities The purpose of the following report is to identify the most significant problems facing the Ford Motor Corporation and recommend a course of action that most adequately resolves the challenges of todays marketplace. It begins by outlining three of the major challenges facing the Ford Motor Company: Fords current business plan is not as financially and environmentally sustainable as it could be. Global economic markets are performing far worse than Ford had expected in prior planning. Fords market share in developing foreign markets is lower than desired. The report recommends that Ford should focus on creating a more financially and environmentally sustainable business model by developing energy efficient and environmentally sustainable automobile models in every vehicle class. These models should be developed without significant increases in consumer cost or decreases in overall performance. This is to be accomplished by revamping Fords research and development program. Some potentially promising areas of research include hybrid electric vehicles, natural gas vehicles, and electric vehicles. Ford has the opportunity to make the most progress by focusing on hybrid vehicle research and development. This is to be done by redirecting other RD expenditures and efforts, scaling back production to free up additional funds, initiating a new public relations campaign to inform consumers about the new sustainable Ford plan, and creating partnerships with leading technology and engineering firms. The report then presents an ethical screen outlining the moral considerations this course of action entails. While the creation of a more sustainable business model builds upon Fords ethical commitments, the loss of jobs resulting from proposed production and retail facility closures conflicts with these principles. And while a course of action that brings about greater job losses to Ford employees is less than ideal, it arises from market conditions. Lack of action may result in even greater job losses on a long-term scale. In this way, the recommended course of action resonates with the ethical commitments outlined in Fords Mission Statement. A feasibility report discusses Fords ability to achieve these goals. As of 2007, the Ford Motor Company maintained the second highest RD budget in the world, with a hybrid vehicle program already well underway. In the year 2000, Ford unveiled the first U.S. made hybrid-vehicle, an accomplishment that sets Ford apart from its U.S. competitors. This report concludes that Ford possesses adequate resources and abilities to reach these new goals. A cost-benefit analysis then weighs potential losses against gains that may arise from this plan. The proposed course of action is high-risk is cost-intensive, however the potential benefits of increased income outweigh the expenditures Ford stands to lose while pursuing this goal and the equally high-risk option of failing to act on this pressing challenge and opportunity. Finally, the report outlines a preliminary budget, timeline, and a step-by-step course of action. Overall, the proposed plan is intended to cost Ford little in terms of net expenditure, and should be completed in its entirely by the year 2015. Position The Ford Motor Company is one of the largest automotive manufactures in the world (OICA). Founded in 1903 by Henry Ford, Ford Motor Company is currently one of Americas Big Three auto manufacturers, along with Chrysler and General Motors (Datamonitor 13). As of 2009, Fords net worth in assets was $222.977 billion (Ford 67). Fords market capitalization in 2006 was reported at just over $13 billion (Kiley), and the companys total equity as of 2009 stands at negative $17.311 billion (Ford 67). Debt notwithstanding, Ford stands apart from Chrysler and GM as the only Big Three manufacturer to not seek bankruptcy or government bailout since the onset of the current financial recession. Ford has incorporated Lincoln Mercury, Volvo, Aston Martin and one-third of Mazda into its brand roster. Fords Mission Statement is titled the One Ford Mission. It is divided into three parts One Team, One Plan, One Goal and is included in this reports Appendix on page 17. Ford strives to be one of the leading automotive manufacturers in the world, and to sustain this position for generations to come. Furthermore, Ford strives to provide its consumers with an affordable, ethical, and quality product. There are a number of key stakeholders that rely on the Ford brand, including financial investors, consumers, and large companies and government organizations that depend on Ford to maintain reliable fleets of vehicles (Datamonitor 14). Challenges to Ford While the Ford Motor Companys influence on the automotive industry is undeniable, a wide variety of challenges are preventing Ford from capitalizing on the opportunities presented by todays shifting economic and social landscapes. Three of these challenges will be outlined in the following section. They are listed in order of priority. Fords current automobile models are not as energy efficient, environmentally friendly, and sustainable as they could be. William Clay Ford Jr. echoes the sentiments of Ford Motor Companys Mission Statement in a recent interview: For us, sustainability is not just about the environment if you dont have a sustainable business model, none of the rest matters (Bonini and Kaas). Ford prides itself as a company built both on innovation as well as ethical responsibility. Yet Ford trails significantly behind Toyota in terms of hybrid technology and GM in terms of larger-class hybrid vehicles (Carr-Ruffino and Acheson 21). With no hybrid or alternative energy models of its own in several vehicle classes, Ford has much ground to cover in becoming a leader in environmental sustainability. Global economic markets are performing far worse than Ford had expected in prior planning. This poor planning has resulted in a $34.3 billion debt that strains Fords already tight budget (Ford 28). Compounding these problems, consumer confidence is, in turn, exasperatingly low (Datamonitor 9) with most consumers unwilling to make large purchases until markets improve. While government incentives such as the so-called cash-for-clunkers legislation and tax-credits for hybrid vehicle owners have helped American auto manufacturers weather unusually low sales figures, these fixes are temporary (U.S. Department of Energy). Fords market share in developing foreign markets is lower than desired. While Ford posted a 1.1% gain in domestic market shares this year (16.1% up from 15.0% at the close of 2008), the company remains fourth in total global sales behind Toyota, GM, and Volkswagen (OICA) and possesses only 2.0% of all automotive sales in the companys South Asia Africa sector, which includes the rapidly emerging markets of China and India (Ford 19). While Ford ultimately must address all of these challenges to remain competitive and fulfill its Mission Statement, the remainder of this report will focus on how Ford can create more energy efficient, environmentally friendly, and sustainable automobiles. In so doing, Ford stands to develop consumer acquisitions and brand loyalty by addressing rapidly changing needs of consumers and other stakeholders. Consumer Needs Research is showing that more and more consumers do not want to own cars that are not fuel-efficient. This is due to financial as well as ethical considerations (Prickett 29). Rising gas prices are increasing the importance of fuel-efficiency for consumers (Bonini and Kaas) and governments are willing to offer incentives to consumers in exchange for their purchases of more fuel-efficient vehicles. As the U.S. economy is based largely on fossil fuel usage and as increasing scarcity is beginning to characterize fossil fuel sources worldwide there is social interest vested in increasing overall reliance on sustainable energy sources. To remain competitive, Ford must not only acknowledge this future, but embrace it. Domestic and global auto-manufacturers stand to gain a competitive edge if Ford does not act on this changing consumer need quickly. More and more hybrid models emerge every year, with GM leading the way in larger hybrid vehicle models (Carr-Ruffino and Acheson). Chinas government and domestic auto-manufacturers have made it clear that they intend to make China the next center of hybrid and light vehicle construction (Gallagher). The clock is ticking and Fords window of opportunity is closing. Sustainability at Ford Ford must work to create sustainable models in all vehicle classes. These models must compare to conventional counterparts in terms of ticket price. On top of this, Ford must ensure that public infrastructure can adequately support these innovations so that consumers are not burdened with new operating complications, costs, or maintenance issues. Potentially promising areas of development include hybrid vehicles, natural gas vehicles, and electric vehicles (Bonini and Kaas). Hybrid vehicles present the least complicated fix in terms of infrastructure and consumer familiarity compared to other alternative fuel types. And while all options must be explored, Fords first step is to focus on developing and expanding its hybrid program. Fords hybrid program is already well underway, and would require less allocation of resources to build upon in comparison with other areas of research and development. Revamping Fords hybrid program will require significant financial commitments. In markets that already leave little breathing room for addition expenditure, this report recommends that Ford funnel all research and development funds into innovating Fords hybrid program. Ford must also develop cooperative RD facilities with leading energy firms, government research groups, and NGOs to save on costs and consolidate resources and knowledge. In addition, Ford should continue scaling back production to meet the lower demands of recession markets (Canis and Platzer) and redirect most of these savings into an expanded RD program. By making these changes in tandem with a massive PR campaign, Ford stands to gain considerable market shares both domestically and abroad (Byron). And while this recommendation is high-risk, the history of the Ford Motor Company demonstrates that Ford functions best when setting itself apart from competitors and taking risks. The Ford Motor Company was build on big thinking and technological innovation (Wren and Greenwood 73), and it is through these methods that Ford will overcome the most pressing challenges of todays market. Benefits to Sustainability Ethical screen. The notion of a more environmentally friendly Ford Motor Company is not only ethically compatible with Fords Mission Statement, it reaffirms and builds upon it. At the same time, there are consequences to this course of action that contain further ethical considerations. Due to the proposed closing of several production and retail facilities, a number of Ford employees stand to lose their jobs. This move is extremely unwelcome in a nation with an unemployment rate already averaging 9.7% (Bureau of Labor Statistics). Ford stands to suffer from bad publicity and to potentially contradict the ethical commitments outlined in its mission statement. This course of action, however, is necessitated by recession markets and does not represent the ultimate intentions of the Ford Motor Company. The strategy of creating a more sustainable Ford is intended to protect the job security of all Ford employees on a long-term basis (i.e. the creation of a more sustainable business model). It is the conclusion of this report, therefore, that this course of action complies with and upholds the ethical commitments outlined in Fords mission statement. Feasibility analysis. In terms of pure research, hybrid technology is fairly well understood and is already utilized by the Ford Motor Company. Focus must be placed on improving hybrid efficiency, performance, and reliability, as well as maintaining affordable costs to consumers. Furthermore, Fords RD facilities are top-notch and already working to develop Fords hybrid program. As of 2007, Ford had the second-largest research and development budget in the world at approximately $8 billion annually (Vijayenthiran). Additionally, Ford was the first auto-manufacturer to offer a U.S.-made hybrid vehicle (in the year 2000) (Carr-Ruffino and Acheson). Based on this information, it is entirely feasible that Ford can produce additional landmark models in the near future provided that adequate resources and proper strategies are applied towards revamping its current hybrid RD program. Cost-Benefit Analysis. There are a number of initial costs that Ford must account for in order to properly execute this course of action. Costs must be covered immediately and will rely on the success of several preliminary budget-saving steps. That said, the total price of developing hybrid models for all vehicle classes is intended to be accounted for through internal budget recoveries; reductions in production costs are meant to reduce the need for increased net spending. The potential benefits of these investments far outweigh initial costs, but are long-term and may not bring significant returns until the entirety of the plan is completed. And while this proposal is financially risky, the current problems facing the Ford Motor Company its potential inability to respond to the challenges and opportunities of a changing marketplace are dire enough that the competitiveness of the company itself is at risk. In this sense, these costs should not only be considered investments, but preventative measures. Costs: public relations campaign: $300 million annually includes costs due to advertising in print, television, radio, and internet media, partnerships with non-profit organizations, market research, and product promotions; revamped RD facilities: $700 million annually includes costs due to equipment, larger research/design staff, new/upgraded facilities, fair-use of patents and other legal expenses, materials, and partnerships with technology firms, government research groups, and NGOs. Total costs: approximately $1 billion annually for the next five years. Monetary benefits: A report from 2009 estimates that by 2015 the global hybrid vehicle market will have risen by 31.3% and be valued at around $67.7 billion (Global Markets Direct). In 2009 the U.S. market comprised 47.5% of all hybrid vehicles sold worldwide (or a predicted $32.16 billion annually in 2015, if the U.S. market share remains the same). Of these 2009 sales, Toyota has currently sequestered the highest market share of 72% percent (R.L Polk Co.). If Ford succeeds in obtaining the highest U.S. market share in prospected hybrid sales by 2015 and if this market share is roughly the same as Toyotas first-ranked share in 2009 Ford could earn up to $23.15 billion in hybrid vehicle sales in 2015 in the U.S. alone (72% of $32.16 billion). While this estimate is extremely rough and represents a very high performance in terms of Fords future hybrid sales, it illustrates the potential monetary benefits that may result from focusing on hybrid development over the next several year s. Other benefits: Financial and environmental sustainability should be considered tremendous benefits in their own right. It is through both that Ford ensures future competitiveness and remains true to its Mission Statement. Recommendations for Ford This report recommends the following steps to achieve success in its goal of creating a more sustainable Ford Motor Company. First, Ford must begin a PR campaign focused on educating consumers about the current status of the automotive industry and to raise awareness about the future Ford is helping to build. The campaign should focus both on consumers who, in general, already look favorably on hybrid vehicles, as well as those who may be skeptical about hybrid performance, cost, and feasibility on a larger scale. Ford must use this campaign to unveil to consumers its five-year plan to create a more sustainable Ford. This should begin immediately and be fully operational after a transition period of no more than four full quarters. Ford should continue this campaign until the Ford brand is synonymous with sustainability. A total of around $300 million per year (from an estimated $1 billion gleaned annually from facility closures) will be allocated towards the development and maintena nce of this new PR campaign. Market research teams will evaluate the success of this campaign twice per quarter. The PR campaign will be considered a success once the Ford brand is recognized above all global competitors as the leader in sustainability and hybrid vehicle production. Second, Ford must begin to significantly scale back production. This should be completed within the next four quarters. While the PR campaign should begin immediately, it may take several months for Ford to assess which production and retail facilities are most extraneous. Qualified workers can be transferred to different positions at RD facilities and public relations departments (Ford will begin recruiting internally). This step will be considered successful once Ford has reduced its production costs by a goal of around $1 billion annually. Managers will monitor the progress of facility closures with goals set at reducing operating costs by about $250 million annually per quarter for the next four quarters. Third, Ford must immediately direct newly acquired funds towards revamping its RD program and focusing this program upon the development of hybrid technologies. This should be completed within the next four quarters and will utilize an additional $700 million annually (gleaned from the estimated $1 billion in reduced annual operating expenses). Achievement teams will assess the growth of Fords hybrid RD program twice per quarter, ensuring that a gain of at least $175 million in addition annual RD funds are available at the end of each quarter. Fourth, Ford must begin to develop relationships and partnerships with leading energy firms. By creating cooperative RD facilities where research tasks, budgets and innovations are shared Ford stands to make significant strides at lower costs and accelerated rates. By sequestering their cooperation early on, Ford stands to gain a competitive edge against competitors. Ford must gain cooperative relationships with the majority of leading energy and engineering firms such as General Electric and Lockheed Martin as well as non-government organizations and federal research groups like the EPAs National Vehicle and Fuel Emissions Laboratory (NVFEL) in Ann Arbor, Michigan (U.S. Environmental Protection Agency). Costs and evaluations will be incorporated into expanded RD departments. Fifth, Ford must unveil several new models of hybrid vehicles in all vehicle class types. This should be accomplished completely by 2015, followed by the eventual discontinuation or transformation of existing conventional-engine-models in years to follow. Hybrid models should cost no more than current conventional counterparts, and perform comparatively. Vehicle design budgets will be incorporated into expanded RD departments. The challenges facing the Ford Motor Company are great, but will be overcome through innovation and an increased dedication towards environmental and financial sustainability. Ford has repeatedly acted as a revolutionary force throughout history, and it is only through equally radical revolutions and innovations that Ford can help usher a new era in the global automotive industry.

Marketisation of Education Essay

Marketisation is the policy of introducing market forces of supply and demand into education. When the Conservatives came in to power the felt Labour failed to create meritocracy and restructured the system. The 1988 Education Reform Act began the creation of an education market by encouraging competiotion between schools and choice of parents. Before the Education Reform Act, the system was based on The Tripartite System where different types of students would attend one of three different types of schools: Grammar, Technical or Secondary Modern based on the result of their 11+ result. Eventually, it was clear to see that the triparite system didnt focus on equality, as the poorer working-class students would automatically fail the 11+ (restricting them from going to a Grammar school which was intended for the bright and academic) and therefore their chances of success in the future was minimal. Hence, the Education Reform Act was introduced in 1988 under the Tory government introducing a range of measurement; which Ball termed it as the Marketisation of education. This involved a number of changes, such as the introduction of league tables, forcing schools to publish their exam results. The introduction of SAT’s into year 2, year 6 and year 9 at school so formal progress at all schools could be made and monitored and the introduction of the National Curriculum so schools had to teach the same things at the same time. OFSTED was also created so that schools, teachers and pupils were monitored and meeting national standards. Formula funding is an example of a policy where its aimed at creating an education market rather than to tackle inequality. This is where a school receives the same amount of money for each pupil. This can affect a working-class child’s education because if other schools have a higher funding because they are more popular and have better exam results that child is unlikely to get a place at that school and then end up at a less-popular school which has lower exam results because of its lack of funding due to its lack of pupils.

The Most Popular College Essay Samples for Healthcare

The Most Popular College Essay Samples for Healthcare If you're beginning to feel frustrated or overwhelmed by your essay, take a rest and do something different. Sometimes you try to do your best and even then you're not able to score well in your home tasks. Demonstrated interest is a must in the modern competitive admissions scene to stick out from the remainder of the pack. You're attempting to show colleges your very best self, therefore it might appear counterintuitive to willingly acknowledge a time you struggled. In addition, there are simply no limits for downloads! Use outlines, word clouds or absolutely free association to assist you come up with material for every one of the different prompts. The Pain of College Essay Samples for Healthcare Utilise the assistance of our service and don't be concerned about how you complete the school. An excellent college essay isn't just persuasive, it's a piece which highlights the proper attitude to the college, the personal aspirations and the vision the student has once they get in the school. Every city has more than 1 college within it. Find a means to explain why this particular college within this particular city calls to you. The Benefits of College Essay Samples for Healthcare Writing should allow the writer to express his or herself in the very best way possible. Introduction Body paragraphs Conclusion It is essential that students utilize academic sources to better their credibility. It's possible to easily depend on us to find essay help as we have a tendency to assist and guide the students with the aid of our professional experts. Ask a favourite teacher to cover the essay on you, or locate a friend with strong editorial abilities. Many college applicants make the error of attempting to incorporate all their accomplishments and activities in their application essays. Most college authorities require that you compose an application essay before getting an admission. Some institut ions request an essay about a student's choice of a university or career. For example, say you really need the opportunity to learn from the world-famous Professor X. It's important the student has the ability to develop a thesis statement that's fitting with their targets. By doing that the student stays true to the very first paragraph in offering a very clear direction throughout the full essay. He should be in a position to share their values and dreams they hope to achieve once they get the chance to get into the college in the discussion. Excellent writing is about using concrete examples. The previous region of the paragraph functions as the transition in the next paragraph. Writing quality essays is the principal role of our services. When doing this, you'll obtain an unbelievable knowledge in writing. EssayEdge is the major application essay editing service on earth. As a consequence, spending money to deal with your essays might be challenging. For instance, you may choose to incorporate a heading with the name and address of the indiv idual who will be receiving your letter. Allow it to sit for a couple days untouched. One of the crucial aspects about a college essay is, it ought to be grammatically coherent. Before you even begin writing the content of your college essay, there are a few essay writing basic guide that you always need to remember. All you have to do is specify if you want your essay to be delivered. The way you begin your essay is essential to the reception your essay will receive, so this step should take up lots of your essay writing process. Possessing good essay examples provides the reader an in-depth and on-the-court idea about what a well structured and coherent essay appears like. Two new essay options are added, and a number of the previous questions are revised. There's not any reason to rush your essay. Bridget's essay is quite strong, but there continue to be a couple little things that could be made better.

Confederation and Constitution - 1416 Words

Articles of Confederation vs. Constitution http://www.123helpme.com/search.asp?text=American+History http://www.archives.gov/exhibits/charters/constitution_history.html There were many differences between the Articles of Confederation and the Constitution. At the end of the American Revolution the free states needed some sort of control that would generate to a unified country. Issues arose such as: How should power be divided between local and national governments? How should laws be made, and by whom? Who should be authorized to govern those laws? How could the government be designed to protect the unalienable individual rights? Their first attempt at solving this issue was the Articles of Confederation, which was a failure for†¦show more content†¦Usually they were states rights advocates, backcountry farmers, poor farmers, the ill-educated and illiterate, debtors, and paper-money advocates. In general, the poorer classes of society. Most of the Antifederalists thought that the Constitution required a bill of righ ts. State governments already had bills of rights but the antifederalists were afraid that they might be overridden by the Constitution. On the opposing side, there were the Federalists. Federalists were supporters of the Constitution that desired a strong central government. Federalists felt that the Articles of Confederation were weak and ineffective. They felt that National government would protect the rights of the people. While their inexperienced ideas at creating a new republican government were practiced, the articles proved to be very weak. George Washington called for a convention in late May 1787; in order speak about the nation’s political and economical problems and revise the Articles. Delegates from eleven out of the thirteen states attended this convention. They decided on a government consisting of three branches: legislative (Congress), executive (the President), and judicial (Supreme Court). These branches were under the checks-and-balances in order to maintain balance in powers and to prevent tyranny in the country. Delegates believed this separation of powers into three different branches would ensure that theShow MoreRelatedConfederation and Constitution1594 Words   |  7 PagesConfederation and Constitution United States History Professor: 9/30/12 The Articles of Confederation were a great start to shaping and unifying our country, but it was just that, a â€Å"start†. It needed to take the country as a whole into consideration in order for it to hold this unity in place. The Articles of Confederation led to the Constitution of the United States. Although similar in some aspects, very different in others. 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