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The second criterion would be the timeshare in which those costs are recouped. It is imperative to make that money back in the least amount of time possible, in case the need arises for a new plant to be built to meet future increased sales. (Week 4 Assignment-Ford Motor Company Case Study) The second option would be to move the company to produce only smaller cars. The first criterion for option two is that the truck and SUB product lines are not meeting an acceptable profit level. The second criterion would be if the Increased profitability of producing smaller cars exclusively offset the lost refits of the truck and SUB product lines? Week 4 Assignment-Ford Motor Company Case Study) The third option dramatically reduces the North American presence and focuses on International markets where Ford has been very successful. The first criterion for this option would be to make sure the current sales in the international market is sustainable. The second would be to ensure that reduced presence in North America does not result in Ford becoming a second tier auto manufacturer. (Week 4 Assignment-Ford Motor Company Case Study) The fourth option is to sell the entire Premium Automotive Group (PAGE) and let someone else figure out how to sell fewer vehicles and still make money.
The first criterion would be that all reasonable efforts have been exhausted to make the Premium Automotive Group profitable. The second criterion would be selling the group as a whole must be more profitable than selling each company separately. (Week 4 Assignment-Ford Motor Company Case Study) In light of the possibility that market conditions can and do change, discuss at least three examples of how the company should build-Len flexibility to back-up Its decision-making process.
An organization should keep options open and make small investments in many different plans simultaneously, so that when a plan is not successful, the investment can be decreased and the successful option’s investment will be increased. (Williams, 2010 Custom Edition) In addition to keeping its options open, the organization can maintain a cushion of resources that are available to address unmet needs or resolve crisis. Flexibility can also be maintained by pushing decision making authority to the lowest practical level of the organization.
By empowering as many employees as possible to take the necessary steps to reach its oils, the organization becomes more agile and able to react to a changing landscape. Discuss how an effective action plan can be created and how progress can be monitored. An action plan lists steps for accomplishing goals along with the people, resources and time period needed. (Williams, 2010 Custom Edition) There are two methods of tracking progress. The flirts is to set proximal or short term goals as well as Last goals, wince are long term or ten primary goals AT ten project.
Setting short term goals provides more motivation to employees than waiting to reach far off goals. The second method for monitoring progress is to gather and roved performance feedback which allows managers and employees to track their progress toward achievement and make adjustments if necessary in effort, direction, and strategies. Employees need to be challenged and have regular feedback to track their progress. By communicating your expectations through goal setting and performance feedback to employees, you give them the opportunity to strive for excellence.
List at least three steps that make-up a workable plan and explain why each is important. The steps that make a plan work are setting goals, developing commitment to those goals, developing effective action plans, tracking progress and maintaining flexibility. Setting clear goals is important because it guides the organization in its decision making and task management. Developing commitment to those goals is the process of obtaining support from top management as well as the staff of the organization.
The support of both of those groups is important so that the company will benefit from their commitment and they will have a clear understanding to guide their future decisions and actions. Developing effective action plans is important because it provides the specific steps that need to be taken, he personnel that will be involved as well as the resources that will be used in achieving the organization’s goals. The action plan is the road map that will guide the staff towards achieving the organization’s goals.
It’s important to track the progress of the organization in reaching its goals in order to identify successful efforts as well as failures that require changes in personnel and resources. One of the most important steps in planning is maintaining flexibility. An action plan must be flexible since because flexibility allows you to adjust the priorities, shift resources s well as reassign personnel in order to meet changes in goals. Discuss the option or combination of options you selected as the best course of action for Ford Motor Company and detail your reasons for selecting that option or combination of options.
In my Judgment the best course of action for Ford would be to sell the Premium Automotive Group, increase presence in international markets and close older plants. These three steps represent a long term investment in Ford’s viability. Due to its continuing to lose billions year after year, the Premium Automotive Group is only an pen drain of Ford’s resources and does nothing to contribute to Ford’s success. The selling of the group will make those dollars available for future reinvestment.
As the emerging economic powerhouses in the global economy, the identified markets constitute the future of Ford’s sales growth. To the extent possible, Ford should invest in increasing its presence in the international markets without significantly reducing its presence in North America which is still the second largest automotive sales market. (India May Become 3rd Largest Auto Market By 2020, 2011) Ford’s rent substantial cash reserves of over twenty billion dollars should be partially reinvested to modernize and streamline its production process.