Ford Motor Company Business - Case Study Example

Vertical integration strategy is adopted by Ford and it provided them competency in the industry. Along with the success report, unresolved problems existed with the company. In the beginning of 1990s, Ford automotive-focused on the North American region made huge success whereas, at the same time, the business sector focused on the European Car market recorded greater losses and break even. Since the year 1999, the company showed greater developments through different operational strategies. In between 1999 and 2001, the newly appointed CEO of the company implemented consumer services sector as a part of the Ford Motor business.

It was affected by the challenges aroused from safety issues related to the rollover accidents of Ford Explorer Sport. The business relations of the company with the tire manufacturers Firestone was broken from these issues. Nearly 20 million defective tires were required to be returned to Firestone. Operating loss faced by the company after September 11, 2001, due to the requirements of sales incentives on the recalled tire on the ground of aging of the product. “Ford now encompasses many global brands, including Lincoln and Mercury of the US, Jaguar, and Land Rover of the UK, and Volvo of Sweden.

Ford also owns a one-third controlling interest in Mazda. Ford also recently purchased the Rover name to keep others from using it to capitalize on Land Rover.” (Ford Motor Company Production File Archive for Stock Certificate Design – 1951 2009).. The tax application seems to be the main default with the conversion of profitability in greater stock market return. Vertical integration strategy is adopted by Ford and it provided them competency in the industry. Along with the success report, unresolved problems were exists with the company.

In the beginning of 1990s, Ford automotive focused on the North American region made huge success whereas at the same time, the business sector focused on the European Car market recorded greater losses and break even. Since the year 1999, the company showed greater developments through different operational strategies. In between 1999 and 2001, the newly appointed CEO of the company, implemented consumer services sector as a part of the Ford Motor business. It was affected by the challenges aroused from safety issues related to the rollover accidents of Ford Explorer sport.

The business relations of the company with the tyre manufacturers Firestone was broken from these issues. Nearly 20 million defective tyres were required to be returned to Firestone. Operating loss faced by the company after September 11, 2001 due to the requirements of sales incentives on the recalled tyre on the ground of ageing of the product. "Ford now encompasses many global brands, including Lincoln and Mercury of the US, Jaguar, and Land Rover of the UK, and Volvo of Sweden. Ford also owns a one-third controlling interest in Mazda.

Ford also recently purchased the Rover name (which is no longer in use) to keep others from using it to capitalize on Land Rover." (Ford Motor Company Production File Archive for Stock Certificate Design - 1951 2009). In the year 1999 the company attained position among the world's ten largest corporations by revenue and one of the world's most profitable