Ford and Toyota: Who Has the Advantage? Essay

1337 Words 6 Pages
The companies I selected were Ford Motor Company and its top competitor Toyota Motor Corporation. I selected these companies due to the fact that I’m in the process of purchasing a car. I wanted to view the companies’ background to see if they were advancing with technology as well as safety. I selected these companies also to see which has had the most recalls. Background of Companies
Ford Motor Company is the largest automotive manufactures in the world. Ford became an official business on June 16, 1903 it was founded by Henry Ford. It is located in Dearborn, Michigan; it also operates throughout the United States and Europe. The company’s website is http://www.ford.com. Ford employs over 175,000 people. Since 1903, Ford has
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Operations and Supply Strategy
Operation and supply strategy is setting policies and plans for using the resources of a firm and must be incorporated with a company’s strategy. Operation and supply chain strategy is a planning process that coordinates goals with the organization. Ford developed a low cost strategy targeted at reducing cost of production. “Henry Ford used JIT concepts as he streamlined his moving assembly lines to make automobiles.” (Jacobs, 2011) The company adopted a one line process where cars are developed in one process. Toyota is involved in the development of product and service for intelligent transportation. Both Toyota and Ford use the JIT (Just in Time) method for operations. The companies use JIT to manufacture and deliver the necessary parts for production. Toyota also uses a method called Jidoka, through which the company can stop the work immediately when a problem arises. This is done to prevent production of defective cars. “Ford made its expertise available to assist suppliers in improving their operations through a range of techniques…” (Austin, 2001)
Competitive Dimensions
In many businesses, competitive advantage is gaining an advantage over your competitors. The automobile industry is very competitive because of the demand of consumers and vehicle

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