Ford and a Sound Financial Management Efficiency - Coursework Example

Module-Issues in Contemporary Management, Topic-the Comparison of BMW and FORD in Terms of Management Styles, Organisational Structures and Working Conditions Name Tutor’s Name Course: Institution: Date: Table of Contents Table of Contents 1 References 9 BMW and FORD Introduction Ford is an Automobile Company with global Geographical coverage and headquartered at U.S (Johnson, 2005). In 2012, its profits hit $ 5,665 billion dollars. The current CEO is Mike R. Mulally and has 165,000 employees (Riesenbeck & Perrey, 2009). Its main Competitors include Chrysler Group LLC, Bayerische Motoren Werke AG, General Engines Company, Daimler AG, Tata Engines, Ltd., and Car Motor, Chevy Motor Organization, Nova AG among other automotive organizations. Ford Motor Business is part of the most prominent American automotive firms that even today efficiently produces and offers automobiles and automotive services. It is second in size US car maker. It is ranked fifth biggest automobile supplier in European countries and the globe, on reference to 2010 automobile sales (Riesenbeck & Perrey, 2009). On the other hand, BMW along with its subsidiaries and markets provides automobiles, such as motorbikes, engine and traveler cars, and light automobiles. The organization also provides automobile components and indoor and outdoor parts; and outfits and components for men, women, and kids online. In addition, it provides automobile financing and renting services. Further, BMW provides college graduate student, and insurance programs. The organization established in 1975, is located in Woodcliff Pond, New Shirt. BMW functions as an affiliate of Bayerische Motoren Werke Aktiengesellschaft. Management Styles Management styles narrow down to characteristic approaches to making decisions as well as relating to subordinates. Management styles fall under categories of two major contrasting styles, namely autocratic and permissive. Management styles can also include autocratic, democratic, and paternalistic. Ford has a sound financial management efficiency. Ford is the sole US car company, which did not require government assistance to get back its investment position. The company has a high beneficial edge as compared to opponents. It has the biggest assets rate. It affirms itself within a powerful market position in the industry. Ford is one of the biggest car makers in the US, with a large presence in the world’s automobile industry. The firm has major popularity in the car industry as well as powerful professional automobile performance that is the many successful automobiles (Riesenbeck & Perrey, 2009). The management takes up the ‘One Ford’ strategy. Ford focuses on the generation of single and complex collection of its designs. The car maker does not process, personalized automobiles in diverse areas. It focuses on the development of technological car innovation suiting different rules and preferences. It considerably reduces costs for Ford and pushes record productivity. Organizational Structures Organizational structure illustrates how elements of task allocation, supervision, and coordination have directions towards the organizational achievements. It includes the consideration as the viewing perspective in which individuals perceive the organization and immediate environment. BMW has a comprehensive organisational structure. High-value cars need premium components and experienced employees through utilizing the most experienced employees in generating its automobiles. BMW establishes its plants in environs such as the USA and Malaysia. Here, only the experienced vehicle assemblers are found. The structure stretches to accommodate the contracts of powerful product presence in Chinese suppliers. Over the last few years, BMW has seen the strong revenue development in Chinese suppliers, the biggest automobile industry on the globe. This year, BMW sold 326,444 automobiles there. BMW has a wide reputation for the product. The BMW product ranks third a very valuable automobile product in the world at $29 billion dollars. This year, Forbes lists BMW as a reliable firm across the globe. On the other hand, the ECOnetic efforts are of big advantage to Ford. The ECOnetic effort generates extremely fuel-efficient system through improving current system as compared to new multiple systems. The outcomes of the efforts are Ford Bamboula, the lowest giving car in European countries. The Ford Focus ECOnetic has improved fuel consumption rates. It has a important development in Chinese suppliers. Ford, although not as powerful in the Chinese suppliers has experienced the important development in the biggest automobile industry on the globe in the year 2012. It continued growing its revenue by an average 45%. Working Conditions Working conditions are the working environments as well as aspects of the employee’s employment terms and conditions. This includes matters like the work organization and work activities such as training, employability and skills; health, well-being and safety; and work-life balance working time. BMW avails supportive surroundings for working. The organization tries to create eco-friendly vehicles through ensuring more efficiency. The firm offers many models, while releasing CO2 at 140g/km. In making BMW vehicles, eco-friendly firm’s technicians create new forms for energy sources, like hydrogen. This way, workers produce top quality items (Kiley, 2004). BMW has much respect due to its technological innovation abilities, experienced workers and top quality items. BMW considers their vehicles less often and at lower numbers than most of its opponents do. The organization has an extensive corporate social liability. BMW is highly dedicated to protecting its surroundings, workers’ as well as the community well-being together with durability applications. The overall organization spends hefty amounts in health management of the workers, applications advertising work-life balance, durability for its suppliers and the generation of zero waste from its plants. On the other hand, Ford presented techniques for large-scale vehicle production and large-scale control of commercial workers through ornate use of production series as typified by the variations of set up lines. By 1914, these techniques were all over the globe with the title ‘Fordism’. Former UK subsidiaries of Ford such as Land Rover and Jaguar were sold to Tata Engines in 2008 (Johnson, 2005). The firm possessed Remedial car maker Volvo between 1999 and 2010. This year, the firm has stopped the Mercury brand, through which it promoted the high-class vehicles in the United States. In 2010, Ford was the fifth biggest car maker across the European countries. The firm is the eighth-ranked American-based company, depending on international earnings of $118.3 billion dollars during 2009. In 2008, the firm created 5.432 million vehicles employing close to 223,000 workers at various vegetation features globally (McKern, 2003). Issues in Companies One of the issues at BMW is the heavy price framework. Generating high quality vehicles and choosing experienced outcomes of the employees in price for the business. The firm price framework is greater than of its biggest opponents such as Chevy, GM and Nova. It has a poor product profile. BMW Group produces and offers three major brands: Rolls-Royce, MINI and BMW. Even though these products trigger well in the performance sections, they are unable to address market needs. This way, BMW presents more producers to the main profile while meeting the needs of the consumers (Kiley, 2004). It offers its products at price. BMW produces luxury vehicles that require best high quality materials, experienced employees and a great product image. All this outcomes at a greater car expenses considered as too expensive in comparison to other car expenses. BMW has few products and ideal partnerships. Close to 90%, BMW growth is organic while only 10% comes from products. In absence of these products, the entire organization discovers the hardships in developing with unique technological innovation capabilities. Thus, in case the firm develops significantly, it needs to gain even more producers through entering into strategic and ideal relationships. In comparison, Ford has a bad ecological record. Ford belittled for inadequate initiatives to decrease environment contamination. Ford is ranked seventh in the worst air polluter category especially on its production plants. Evidently, the US Environmental Protection Agency connects the firm to many sites of toxic waste (Forster, 2005). It also has a heavy price framework. Although ‘One Ford’ effort led to significant price reduction, Ford maintains a comprehensive price framework, in comparison for the vehicles producers. Additionally, the expenses of Ford receive motivation from its nice worker settlement and retirement living programs. It has functions of the European countries that are unprofitable. Recommendations BMW can take advantage of the increasing energy costs. Increasing energy costs open up huge marketplaces for BMW multiple and hydrogen vehicles as customers move towards cheaper energy types. It can appreciate the beneficial mind-set to “green” automobiles. Currently, customers become conscious of the shortcomings (air pollution) resulting from vehicles using by diesel fuel. More of carbon dioxide pollutants accentuate green house effect and adversely affect the natural environment. Therefore, customers have a higher likelihood of buying new hydrogen powered vehicles releasing less carbon dioxide. The company can also increase its product profile (Cox, 2008). As a way of growing at better pay, the firm-BMW needs to increase its product profile. This involves meeting more needs as well as fulfilling fundamental consumer markets. BMW can present other designs, which are not included within its scope. BMW’s management can take up the new exhaust requirements. A new trend for tighter rules on automobile exhaust requirements would favourably affect BMW place in automobile market. The company generates one the environmental automobiles and has presented hydrogen energy sources that release zero CO2. New automobile exhaust rules translate into additional BMW investments while competitors would get huge amounts of cash to adhere to rules and lose a share of profits (McKern, 2003). Similarly, Ford can spend on the beneficial mind-set towards “green” automobiles. Cars that are energy ineffective and release huge amounts of carbon dioxide contaminate the atmosphere together with the adverse affected environments. More clients become conscious of the adverse impacts, hence buying “green” cars that discharge less carbon dioxide for fuel-efficiency. It can also tap into the opportunities created by the improving energy costs. The strong focus on Ford on the innovation of automobiles in fuel-efficient (Ford Bamboula as well as Ford Concentrate ECOnetic) has energy and multiple approaches paying off due to improving energy costs. A new trend for tighter rules on automobile exhaust requirements would favourably affect Ford place in the car market (Henry, 2008). Ford spends large amounts of money producing fuel-efficient approaches and gain success with its Bamboula and Concentrate ECOnetic designs. Ford embraces great experience through the creation of ideal alliances as well as relationships with other automobile organizations. With respect to current competitive pressure, many organizations have a higher likelihood of entering into relationships and driving research and development costs down. The access to new marketplaces will push up new environmental friendly skills (McKern, 2003). Conclusion The two companies need to restrict the number of cash burns amused and decrease the costs quickly. In doing this, the companies will have a better chance of enduring for surprise for future years in the vehicle company (Automotive News, 2003). The two companies need to apply techniques to deal with the issues at the risk boundaries of losses due to diminishment of the supply stores. They also need to improve their company thoughts in the performance and extend of variation of the inference from other intense opponents in the market. References Automotive News, 2003. Ford one hundred. New York: the University of Michigan. Cox, J. 2008. Sold on Radio: Advertisers in the Golden Age of Broadcasting. New York: McFarland. Forster, N. 2005. Maximum Performance: A Practical Guide to Leading and Managing People at Work. New York: Edward Elgar Publishing. Henry, A. 2008. Understanding Strategic Management. New York: Oxford University Press. Johnson, R. 2005. Six Men who Built the Modern Auto Industry. New York: MotorBooks International. Kiley, D. 2004. Driven: Inside BMW, the Most Admired Car Company in the World. New York: John Wiley & Sons. McKern, B. 2003. Managing the Global Network Corporation. New York: Routledge. Riesenbeck, H., Perrey, J. 2009. Power Brands: Measuring, Making, and Managing Brand Success. New York: John Wiley & Sons. Read More