North West Company Essay example

1476 Words Feb 9th, 2013 6 Pages
Ford Case Analysis
Questions
1. Discuss Bill Ford’s actions using the steps of the basic control process as a model. Did he follow this process? What did he do in each step? Did he leave out any important steps? What is left to do?
2. Can Ford’s turnaround plan be characterized as tactical or strategic controls, and why? How are the actions and decisions of lower-level managers likely to be influenced by the plan?
3. How does the amount of control used by Ford’s credit managers affect control and performance in other areas of the parent company?
4. Thinking in terms of focus of control and amount of control, what caused the problems at Ford in the first place? Is Ford’s management proceeding appropriately in their attempts
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It is somewhat easy to measure performance if specific and concrete standards have been set for how a business operates. For example, by Ford cutting vehicle models to increase quality helped to lower the number of warranty claims and vehicle recalls. The measurement was simple because it is an assessment of a tangible number value. Ford also used “inside efficiency teams” to measure company aspects to see where to cut costs, and found that most personnel read their news online, giving Ford the go-ahead to stop newspaper and magazine subscriptions that the company paid for.
The next step in the model is comparing performance against preset standards, which is easy to do if performances results are measured efficiently. Ford gained higher marks in customer surveys because of their concentration on higher quality. The company also cut costs by $240 from the production of each vehicle because of their standards to standardize parts and arrange better deals with suppliers. Overall, the standards set to cut costs have enabled Ford to operate at $6 billion less so far. However, certain aspects of their standards for efficient production were not fully effective. For example, Ford’s requirement of a prompt production schedule for a Jaguar model ended up not being enough time for the managers of their luxury car division, which resulted in the division falling…

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