FORD MOTOR COMPANY

Introduction

Among the world’s most renowned companies in production of vehicles is Ford Motor Company. The company has been in vehicle manufacture for about one century and within that time, gained high reputation. Due to changes and competition in the market, the company has been forced to make many decisions to ensure their survival. The paper seeks to weigh the options available to them and development of a way that ensures survival of the company.

The first option of closing some of the plants section of the organization would be a favorable decision. To start with, the organization is producing more than it can sell. A move to close some sections of the organizations would mean saving on some of the cost the organization is incurring notably storage cost. However much it might be expensive for the organization to buy out their workers, it may prove necessary for what is the point of having the workers working for something that is not going to translate to sale. Of consideration if such a solution is to be taken is how much the organization seeks to lose if it carries out the plan. Moreover, the specific plants to be closed should be determined and should only be the ones that are in places where the market is not good enough. The second action that is available to the organization is specializing in produce of only small cars. To say the least, that was the original mission statement of the organization. Such a move would ensure increased attention is focused on the small cars, which in turn increases their efficiency. For such a decision to be taken, it would be important to know the proportion of sales that come from the small cars. Such a move would be wise only if it is the biggest proportion. The consumer behavior would also form a part of the criteria of choosing the method. Their behavior on the changes would be important in coming up with the decision. Focusing on the strong markets is also a disposable solution. To engage in such a solution means that someone has to consider first the pros and cons that the markets have. Further, among that the elasticity of the various markets would also be considered. Finally, selling the whole group as a solution would call for some considerations to be put in place. For one, new management would mean changes that might affect the organization. Some workers will be laid off, thus their fate should be considered as well as the other available options like development of changes. The fact that the company is not doing well as desired does not mean it should be sold.

The decision making process need to be in such a way that it is flexible with the various conditions in existence in the market. An example of such an action is being in consideration of what the consumers have in mind. In short, decisions are to be made of what to produce on the market conditions and the consumer preference. Another way of ensuring flexibility in decision making processes is understanding the barriers that would make the organization not achieve what it seeks to achieve. Barriers vary with time and therefore, it is important to make sure that the decision makers incorporate them in their decision (Harris, 1998). Finally, carrying a research in the market and the results forming one of the bases of decision making is also an incorporation of the flexibility to the changes that occur in the market. Such is important as it makes sure that changes in the market are put in consideration.

One of the main factors that may lead to success of the organization is recognition of the mission statement of the company. In this case, the organization seeks to become profitable from the products that it is providing. By having a good mission statement as well as carrying out research on the market, an effective plan of action is likely to be derived. Progress of the action would be best measured with reference to the sales that will be realized within specific periods of the establishment of the plan. For example, the sales realized can be measured in quarterly or semiannual bases. However, it is also notable that there are other factors that are likely to lead to development of a workable plan of action. For one, there is need to have clarity of what the organization aims at, as earlier mentioned in this case is that profitability is the main factor. Therefore the plan should be specific in bringing success in profitability (Stocker, 2010). Commitment should also be present. This means that there is need to carry out the plans in question. Commitment runs from the management to the workers in the organization. Finally, the plan should be workable in nature. A workable plan is the one that is able to be put as a part of day to day activities, and fit in action.

For a plan to be workable, certain steps need to be followed. The plan needs to incorporate the right people in the organization. By ‘right’, it means that the opportunities available to the organization need to offer motivation to the people that are carrying them out. The next plan is making the plan realistic. Making the plan realistic ensures that the personnel involved in the plan are able to bring the desirable goals to be achieved to life. Finally, making the plan as routine is the final step. In this step, the focus of the people is of importance in ensuring that they engage in execution of the plan that is in place. It is also notable that it is at this step that both urgency and purpose is given a forefront (Harris, 1998).

The best option that Ford has in hand is ensuring that it closes the plants that the company feels that they do not have the market to absorb their products. The move may work well by integrating that with producing small cars, which was initially their mission statement. Closing the plants that produces big trucks ensures that the organization focuses on the betterment of their products. In turn, this may minimize a scenario where they produce more than the market is able to absorb. Other benefit that comes with such a move is creation of a scenario where specialization is brought to the table as well as ease in controlling of production.

References

Harris, R. ( 1998 , July 3). Decision Making Techniques. Retrieved June 6, 2011, from http://www.virtualsalt.com/crebook6.htm

Stocker, G. ( 2010, October 13). Back to the Basics: The key of improving performance. Retrieved June 6, 2011, from http://corporatedeathspiral.blogspot.com/