Wednesday, July 6, 2011

Chapters 11 and 12

Organizational Structure, Systems, and Processes along with Considering New Ventures

Ford Motor has a good multidivisional structure. As with most major companies they have divisions of R&D, Advertising, Manufacturing, International Relations, and Corporate Responsibility.

Ford uses mostly a Multidivisional Structure to keep their company growning.
The reward system that Ford uses is the high pay high commitment.
Ford also uses the three C's of strategy communication:

Contacts-Ford's contacts are all over the world since they are one of the largest companies in the entire world.

Cultural Understanding- Ford's ability to cross the cultural divisions that most companies run into. Because Ford has been all over the world for decades they have a solid understanding of the cultures that they deal with.

Credibility- Because Ford does what they say they are going to do, their credibility is top notch. They are considered a hardworking honorable company who builds reliable and sustainable products.

The new ventures of chapter 12 is interesting to look at because Ford Motor Company is one of the most successful and longest lasting venture in modern history. Every aspect that the book talks about is interesting because Ford has essentially been there and done that. Ford has had to contract and expand with the changing market over time. Almost all of the companies that started when Ford started are no longer in business. It is interesting to see how Ford has made changed over time.

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