Fords Profitability - Essay Example

Ford’s Profitability Task: Ford’s Profitability In this case, Ford has to employ external auditors; they are supposed to advise the company on its current market position in terms of its ranks and its best course of action. They should let the market control the price while they control the cost by obtaining all the analysis of its operational costs, which make 89.1% of total sales (Hargie, 2009). This will help in preparation of the budget while allocating funds to the most important activities and avoiding some of the costs that are considered less important.

The company should engage the use of researchers. The research work will help in giving an explanation on why the company is making 24 billion in losses. A competitive advantage may be created in producing similar products to Toyotas’ models with lower costs. The output produced should be according to what the consumers need, and not according to what it is used to producing (Close, 2012).They can completely change the company strategies and structure on how it carries out its operational activities.

This can be achieved by changing the objectives, target and mission statements of the company. Introduction of process engineering skills, tight cost control and reports that are more frequent. The management should be able to give the company a new purpose and direction, by motivating the workers, and improving the culture of the organization (Canary, 2012).In extreme circumstances, the firm may also consider taking action on the management structure by considering the option of reducing on the number of employees both in the management level and in the operational levels.

This will act as a direct way of reducing on the production and operational costs.ReferencesHargie, O. H. (2009). Auditing organizational communication. London, LDN: Routledge.Close, A. G. I. (2012). Theory and research in social media, advertising and e-tail. Oxford, OX: Routledge Academic.Canary, D. J. (2012). Strategic conflict. New York, NY: Penguin Publishers.