Mikeg Essays

3247 Words Mar 7th, 2015 13 Pages
Executive Summary:
Since the Ford Motor Company’s incorporation by Henry Ford in 1903, its strategic focus has remained on automobile design and manufacturing. Up until 1970, competition was from the two other manufacturers making up the Big Three Automakers; General Motors and Chrysler. However, starting in the 1970’s, foreign competition, mostly from Toyota and Honda, eventually lead to overcapacity within the industry. As more and more developing and industrial nations encouraged development into the automobile industry, overcapacity in the automobile markets reached an estimated 20 million vehicles.
In 1995, in an effort to reduce cost and increase efficiency, Ford developed a restructuring plan called Ford 2000 that was to focus
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Although there are several key differences between the companies, Dell’s direct business approach can be applied to every facet of Ford’s operation. Special care will need to be taken to address the unique dependency of our custom “tier- one” suppliers. A modification of the virtual integration system currently used by Dell could be applied to Ford’s dependent supplier base, while the management of lower tier suppliers of general or generic components would be more effectively suited by the standard procedures used by Dell. Through this model, Ford will use the emerging information technologies and internet as well as new ideas from high tech industries in order to interact and transact with their suppliers and end users. Furthermore, Ford can boost its sales by providing better customer service and by having faster communication between suppliers, manufacturers, and customers in the value chain.
This proposed system will have to run concurrently with the existing supply chain so that Ford will cover both market segments at the same time. Since Dell and Ford are two different types of industries, one is in computer manufacturing and the other is in auto industry, it does not seem right for Ford to implement exactly the same "virtual integration model" as Dell. In fact, if Ford implements the full direct business model alone and abolished its existing supply

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