Management of Ford Motors - Essay Example

? Management: Ford Motors Management: Ford Motors The current economic global situation continues to transform the very essenceof how business is conducted. Companies must now recognize the different hurdles they have to face, and be able to poise themselves to confront any challenges and threats that may hinder them from achieving set goals and objectives. The best way of achieving this is through sound management and strategic leadership. This may be a simple answer to the problem but its implementation may take years to perfect and integrate into the organizational culture. The ford company is one that has stood the test of time and has continually produced results that illustrate the power of effective management and precise leadership. It has over the years appointed capable and qualified leaders who have allowed the company to rise from previous pitfalls and mistakes and poised for brighter economic future. These two are just some of the cornerstones that the company has maintained since its inception. Other notable strategies applied over the years include strengthening of the Ford brand and financial services that have remained synonymous with the company to date. These four attributes have aided the company to survive damaging financial downturns like the one experienced between 2007 and 2008. It is amongst the few large companies that did not receive a bailout. This is also compared to its close rivals such as the General Motors during the recent recession. These four attributes will be discussed in relation to Ford Company with greater emphasis being laid on their effect on the overall management of the company to date. Management can be defined as the act or manner in which a certain skill is applied to execute ability in handling, directing or controlling the events taking place within an organization. As such, the company has had an able team of managers that has seen it rise from its two brands in the 1910s to the fifth largest automaker in the world with different trademarks under its name. It has also ventured into other activities that have raised its profile amongst its peers (Brinkley, 2003). Whether in Europe or North America, Ford has steered its business to greater heights through solid management that has seen it withstand storms in its line of production and ensure its profitability all through (Studer, 2002). The management criterion has been quite helpful in ensuring the continued customer satisfaction, significant improvement in their customer relations and a great leap in their global market presence. The leadership team has done an excellent job in lifting Ford Company to its current glory. Leadership is a fundamental aspect in every organization and Ford is not an exception. Leadership has everything to do with aptitude, attitude, skills and the ability to inspire the behaviors of other people within the organization. It is also crucial to understand that leadership is a group activity that revolves around a common task and based on social influence. The current system of leadership attributed to the Ford Company is the democratic style of leadership. The key thing about leadership is that it must recognize the different means of achieving its goals through challenges that threaten to push the company to oblivion (Bender, Slade and Thorpe, 2009). The leadership cycle has seen many inventions and suggestions that have uplifted the company’s image and instituted as one of the most sought-after brands in the western world. Leaders have steered the company to high innovative standards, and areas such as human resources while strengthening the upper management and closing the gap (Brinkley, 2003). The democratic style of leadership has allowed majority of workers to feel in touch with the products they produce; hence creating a loyal workforce which is also committed to maintaining Ford’s market leadership position. These attributes allow the company a chance to use the dedicated workforce and the experience to come up with products that suit their clientele in the long run. Through the strong leadership, the company has been able to create a strong brand that seeks to preserve the traditions and values of the people (Studer, 2002). Strong brands are advantageous to companies that are globally recognized. They reduce marketing costs since the need for intensive advertising is limited. Thus, the brand is a sell-out in itself. It helps to lay out the foundation for future extensions worldwide; hence easy market penetration. It helps to increase international business as the company has an easier outreach to like-minded companies as well as international media through its numerous points of sale and distribution hubs. Ford has been able to create car brands that people are willing to own. In 2008, it was voted as one of the best companies that produced cars in Europe in accordance to people’s tastes (Bender, Slade and Thorpe, 2009). It is also noted for its consumer-friendly prices. This latter aspect has made Ford to be the number one selling American-based manufacturers. It has embraced quality as a higher priority in its production, and this has seen its sales rise steadily over the years. It has a wide array of products that include (as of 2009) Focus, Mustang, Edge, Flex, E Series, Super Duty, Ranger, F Series and Escape amongst others. The brand has also embarked on eco-friendly cars in a bid to reduce emissions of greenhouse gases (Bender, Slade and Thorpe, 2009). Further, after the 2007-2008 recession, at least 33% of respondents in a survey carried out in the US said they were more willing to consider buying a Ford since Ford did not take the bailout money. Further, its brand even got stronger with more than 63% of respondents having a positive perception of the company (Kiley, 2009). Such are the benefits of applying good leadership and stringent management skills in creating a strong brand. Another cornerstone in the management of Ford Company is the financial service that was introduced to help increase the number of people that buy their products. The financial services department in the company has a range of automotive financing products to and through automotive dealers globally (Studer, 2002). This credit section consists of financing its vehicles and supporting dealers to ensure that they are up and running at all times. The Ford Credit, as it is known, earns its revenue from payments made under retail installment sales and lease contracts, interest supplements, and payments made under wholesale and other loan programs available to the dealers (Bender, Slade and Thorpe, 2009). It has a portfolio of finance receivables and leases that are classified as either consumer or non-consumer. The consumer financial receivables and leases are given to consumers and businesses for personal use as well as commercial use. They include financial products like retail installment-sale contracts for used and new cars, and any leases to retail customers and daily rental car companies. With such milestones, the ford company has been an industrial giant in the US and the entire global auto market. Management, leadership, brand strategy and financial services are able to push the company to greater heights; hence increased future presence in the global arena. References Bender, R. D., Slade, B., & Thorpe, J. (2009). Strategic report for Ford Motor Company. New York, NY: Oasis Consulting. Brinkley, D. G. (2003). Wheels for the world: Henry Ford, his company, and a century of progress. Boston, MA: McGraw Hill. Kiley, D. (May 1, 2009). Ford Image Goes Way Up For Not Taking Taxpayer Money. Businessweek.com http://www.businessweek.com/the_thread/brandnewday/archives/2009/05/ford_image _goes_way_up_for_not_taking_taxpayer_money.html Studer, N. (2002). Ford and the global strategies of multinationals: The North American auto industry. New York, NY: Routledge. Read More