Corporate Governance is the system by which organizations, particularly businees corporations, are directed and controlled by their owners. Ford has all types of regulations in regards to business practices, safety inspections, and general laws that need to be followed. Ford has a CCO named Nicholas Singh who makes sure that everything is the way it should be in reguards to the laws that Ford has to follow. Not just some of the laws, but all of the laws! Not only does he have to make sure the laws are followed, but he also has to come up with how to overcome the agency problem. Which means the separation of the ownership of the capital necessary to fund a business enterprise from the day to day operational management of the business.
One of the ways that companies make sure that the executives do what is right for the company as a whole instead of what is best for them is to make the executives own the company's shares. Many of the incentive compensations and bonus plans require a variety of things that executives get. Some of these things are restricted stock, stock options, bonuses, and the traditional salary. Typically the restricted stock is high, but the stock options take the cake. Most companies offer the executives a large chunk of stock options that are a major portion of their compensation. Bonuses are typically large as well but usually are still close to half of what they stock options are. Now these are in general terms. Ford has a pretty evenly spaced compensation package for thier executives. They are given many stock options however. Ford doesnt do anything too crazy. They stay within the legal limits and do what needs to be done to bring the best vehicles to all sorts of customers.
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.
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.
Sunday, July 3, 2011
Chapter 10 Mergers and Acquisitions.
Ford is constantly merging and acquiring plants, companies, and ideas every day. They are a mover and a shaker when it comes to merging and acquiring. Some of the most recent changes in Ford Motor Company are listed here..... http://investing.businessweek.com/research/stocks/transactions/transactions.asp?ticker=F:US
These changes are made constantly so that Ford will continue to grow and develop as a major power in the car industry. Without strategic placement of people, parts, and knowledge Ford wouldn't be worth what it is today! Ford has stood the test of time when it comes to the demands of the ever changing marketplace of cars and other vehicles. After doing such research into Ford and how they handle things... I am a Ford guy all the way! You could even say they have acquired me.... ha ha... ok that's lame.... but seriously Ford is a great company with great things still to come.
These changes are made constantly so that Ford will continue to grow and develop as a major power in the car industry. Without strategic placement of people, parts, and knowledge Ford wouldn't be worth what it is today! Ford has stood the test of time when it comes to the demands of the ever changing marketplace of cars and other vehicles. After doing such research into Ford and how they handle things... I am a Ford guy all the way! You could even say they have acquired me.... ha ha... ok that's lame.... but seriously Ford is a great company with great things still to come.
Chapter 9
Understanding Alliances and Cooperative Strategies...
Ford Motor over the years has done a good job of knowing when to hold em and when to fold em. Their alliances and strategies with those alliances have helped shaped them into what they are today. For example, most of the parts on the vehicles such as the door latches are third party produced. They found that it is in their best interest to allocate these responsibilities out to other parties so that they can focus on the whole of the product.. the car...
They have strategically placed their emphasis on what is most important and that is the end result of a safe reliable American made vehicle. Some of their strategies include obtaining various car manufacturers on many different continents around the world, buying rights to vehicles that others have produced, and maintaining good relationships with companies that help them produce the vehicles. One of the big things that recently happened was their decision to not take government handouts along with most of the other major car manufacturers. This has played a key role in people determining what car they will buy. I will buy a Ford over other manufacturers for that simple fact! I don't think that handouts are what this country needs.... that's not what we were built upon and for us to continue that is not what we as a nation need to suggest that people do.. it leads to laziness and entitlement.
Ok now that I am off of my soapbox... Ford has done a marvelous job of building and maintaining alliances and cooperative strategies.
Ford Motor over the years has done a good job of knowing when to hold em and when to fold em. Their alliances and strategies with those alliances have helped shaped them into what they are today. For example, most of the parts on the vehicles such as the door latches are third party produced. They found that it is in their best interest to allocate these responsibilities out to other parties so that they can focus on the whole of the product.. the car...
They have strategically placed their emphasis on what is most important and that is the end result of a safe reliable American made vehicle. Some of their strategies include obtaining various car manufacturers on many different continents around the world, buying rights to vehicles that others have produced, and maintaining good relationships with companies that help them produce the vehicles. One of the big things that recently happened was their decision to not take government handouts along with most of the other major car manufacturers. This has played a key role in people determining what car they will buy. I will buy a Ford over other manufacturers for that simple fact! I don't think that handouts are what this country needs.... that's not what we were built upon and for us to continue that is not what we as a nation need to suggest that people do.. it leads to laziness and entitlement.
Ok now that I am off of my soapbox... Ford has done a marvelous job of building and maintaining alliances and cooperative strategies.
Sunday, June 26, 2011
Ch 8 International Strategies
Over the years Ford has owned many manufacturers like Volvo, Land Rover, Mazda, Mercury, Lincoln, and Aston Martin. With the downturn in the economy over the last few years Ford chose to sell most of them. Mercury is no longer as of early 2011. Ford today owns only Ford Motor Company, and Lincoln. All of the other have been sold. From the early 1960's Ford has been all over the world. Some of their most common places are those of Europe and Asia. Most of the cars here are smaller commuter cars, not the large SUV's we have here in America. Close to 50% of sales of Ford Motor Company came from outside of the US. A very impressive number for anyone. One of their comparative advantages is that people know Ford makes a solid vehicle that will last. Anything American made over the last few decades has a solid report with consumers outside of our borders. Ford has major manufacturing plants all over Europe and Asia. In fact there are even a few in Australia.
The multipoint competition is a part of Ford's international strategy. They do a great job of overcoming various local vehicle manufacturers in various places around the globe. The use of the CAGE framework really comes into play with Ford Motor. Culture of where they are is important because some countries are use to smaller more fuel efficient vehicles while others like the US and Dubai are more luxury based. Administration is well placed with specific manufacturing plants and managing facilities around the world. Geographic comes into play because they are almost everywhere in the world. Economic is important because in order to provide a good product you must show how the product is worth the money spent. And in times of economic tightness, value is a major factor.
I know this is wikipedia, but it has a ton of good info!!
http://en.wikipedia.org/wiki/Ford_Motor_Company
The multipoint competition is a part of Ford's international strategy. They do a great job of overcoming various local vehicle manufacturers in various places around the globe. The use of the CAGE framework really comes into play with Ford Motor. Culture of where they are is important because some countries are use to smaller more fuel efficient vehicles while others like the US and Dubai are more luxury based. Administration is well placed with specific manufacturing plants and managing facilities around the world. Geographic comes into play because they are almost everywhere in the world. Economic is important because in order to provide a good product you must show how the product is worth the money spent. And in times of economic tightness, value is a major factor.
I know this is wikipedia, but it has a ton of good info!!
http://en.wikipedia.org/wiki/Ford_Motor_Company
Ch 7 Corporate Strategy
Over the last few years Ford has introduced new products that have revolutionized the marketplace. The way they introduce the products and market them is no secret.They unveil the new products on a large stage like the Detroit Automotive Show and the Green Festival. As most of the automakers have been doing in recent years Ford has unveiled its own "Green" line of vehicles. One thing that Ford did recently was provide grants to smaller developing companies to help them develop less emissions and alternative fuel vehicles.
In chapter 7 one of the main points of the chapter is diversification. As I have mentioned earlier in this blog, Ford has done an amazing job to make a vehicle that is suitable for everyone. From the hardworking rancher to the quick fuel efficient commuter in a foreign country. Most of their diversification is related diversification where they use very similar platforms (if not the same ones) to build their vehicles.
Some of their stable contexts include that of the F-Series Trucks. They have been the best selling truck for more than 50 years, and they don't plan on giving that spot up. They know that they can rely on that main staple to keep them going. The dynamic contexts that are involved with Ford's corporate strategies are the constant need for better fuel economy and consumption. They are constantly trying to overcome any obstacles that stand in their way in order to make a better, more fuel efficient vehicle.
http://corporate.ford.com/news-center/news/press-releases/press-releases-detail/pr-ford-and-green-festival-give-34543
In chapter 7 one of the main points of the chapter is diversification. As I have mentioned earlier in this blog, Ford has done an amazing job to make a vehicle that is suitable for everyone. From the hardworking rancher to the quick fuel efficient commuter in a foreign country. Most of their diversification is related diversification where they use very similar platforms (if not the same ones) to build their vehicles.
Some of their stable contexts include that of the F-Series Trucks. They have been the best selling truck for more than 50 years, and they don't plan on giving that spot up. They know that they can rely on that main staple to keep them going. The dynamic contexts that are involved with Ford's corporate strategies are the constant need for better fuel economy and consumption. They are constantly trying to overcome any obstacles that stand in their way in order to make a better, more fuel efficient vehicle.
http://corporate.ford.com/news-center/news/press-releases/press-releases-detail/pr-ford-and-green-festival-give-34543
Friday, June 24, 2011
Ch 6 Dynamic Contexts
Ford is a leader in one of the most competitive markets in recent history. The competitive interaction that they face day to day is constantly changing. The different phases of competitive interaction are; phase 1 discovery and competitive new action. 2. Customer reaction. 3. Competitor reaction. 4. Evaluation of action and reaction effectiveness.
Before Ford introduces a new product or design they must first take a competitive action. In the case of the Ford sync they were the first ones to fully integrate a hard drive into a car that can recall music and contacts by the sound of your voice as well as enter directions to the gps. The customer reaction was great. The competitor reactions were basically, they have to do this as well. The evaluation is still taking place because we don’t see every car made with this new technology. Then again with a good company like Microsoft behind them not too many other car manufacturers have the expertise in providing such a service.
The speed of change over the last few years has dramatically increased. It wasn't too long ago that the SUV market was flourishing. Then came the demand for more economically conscious vehicles so the crossover vehicles showed up. Now it seems to be changing again into 50+ mpg vehicles. (Though Ford is doing well in these markets with its research and development, it is still the leader in Trucks. That market has been trimmed back a bit with the emphasis on fuel economy as well.)
With the economy being the way it has been the last few years, Ford has had to downsize a bit. They had to do quite a bit of it in 2009 since they didn’t take any government handouts. Here is quick video about it.... http://www.cbsnews.com/video/watch/?id=4134028n Check It Out!!
Before Ford introduces a new product or design they must first take a competitive action. In the case of the Ford sync they were the first ones to fully integrate a hard drive into a car that can recall music and contacts by the sound of your voice as well as enter directions to the gps. The customer reaction was great. The competitor reactions were basically, they have to do this as well. The evaluation is still taking place because we don’t see every car made with this new technology. Then again with a good company like Microsoft behind them not too many other car manufacturers have the expertise in providing such a service.
The speed of change over the last few years has dramatically increased. It wasn't too long ago that the SUV market was flourishing. Then came the demand for more economically conscious vehicles so the crossover vehicles showed up. Now it seems to be changing again into 50+ mpg vehicles. (Though Ford is doing well in these markets with its research and development, it is still the leader in Trucks. That market has been trimmed back a bit with the emphasis on fuel economy as well.)
With the economy being the way it has been the last few years, Ford has had to downsize a bit. They had to do quite a bit of it in 2009 since they didn’t take any government handouts. Here is quick video about it.... http://www.cbsnews.com/video/watch/?id=4134028n Check It Out!!
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