Between 1995-1999 have seen companies with fewer physical assets and much lower revenues and profits achieve market capitalization well in excess of Ford’s. (Dell and Cisco)
Different views on how the company should use emerging information technologies and ideas from new high-tech industries to redesign the supply chain process.
1. Vertical Integration
a. Changes from push to pull (exhibit 2)
2. More cautious because differences important and substantive
There are many differences between the auto industry and newer businesses like computer manufacturing (Dell).
1. Ford supplier network many more layers and more companies
a. Dell ...view middle of the document...
2. Looking for ways to take advantage of their scale of economy (size) and global pressure.
a. Movement towards industry consolidation
i. Ford acquired Sweden’s Volvo
ii. Rumors of other deals
b. 1995 – Ford 2000 – merged North America, Europe and International operations to a single global operation
i. Reengineering and globalizing corporation organizations/processes/products
1. ( dramatic cost reductions
2. ( intention to eliminate organization and process redundancies and realize huge economics of scale in manufacturing and purchasing
3. Ex. Order-To-Delivery; Ford Production System
State the Facts:
Ford produces revenue by the core business of deigning and manufacturing automobiles for sale to the consumer and by financial services subsidiaries.
Initiatives are already underway that were aimed at positioning the company favorability for success in integrating with the extended enterprise (suppliers and customers).
1. Decreasing the number of suppliers by using a 3-Teir system
a. Emphasis on long term relationship in exchange for continued decrease pricing
b. Ford assisted suppliers in improving their operations, Just-In-Time, Total Quality Management, and Statistical Process Control (LEAN)
Ford is second largest Industrial Corporation in the world. U.S. industry lead in profit per vehicle ($1,770) from Chrysler. Most improved...