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Research and Analysis of Business Problems - Essay Example

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Ford Motor Company, one among the Detroit 3, has scripted the most successful turnaround story in the recent times by proving itself as the sole profitable automobile company. After a financial drought of around three years (2005-2008) wherein it had suffered a huge loss of $30…
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Research and Analysis of Business Problems
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Research and Analysis of Business Problems

Download file to see previous pages... , the superficial view is quite deceptive as the company is facing challenges in the forms of union problems, huge debts and environmental ripples like price rise, etc.
In this report I have presented an overview of the problems and tried to evaluate and analyze them. The prime problem at Ford is its debt. Concerned about the financials of the company, the management has decided to reduce the existing workforce in order to reduce the annual payroll budget and thus achieve some financial relief. This in turn has triggered employee unrest and has troubled the management-union relationship at Ford.
It has been suggested that the company should take to brainstorming sessions through joint management councils to sort out problems and adopt a collaborative approach to find the solutions. Collective bargaining should be patronized to appease the employees and white collar compensation should be reduced to gain their confidence. The company should divest and at the same time protect employee rights through regulatory contracts.
Ford Motor Company (Ford), headquartered in Dearborn, Michigan, is a global leader in the automotive industry. The company has manufacturing facilities and distribution network spread over six continents. Globally it has 90 plants a workforce of more than 200000 employees (Ford Motor Company-a, n.d., “Ford Global”). Currently the company follows General Motors (GM) and stands at second position in terms of sales volume (Freep-a, 2010, “January Auto Sales”).
The corporate goal of Ford, as reflected through its mission statement, is "to become the worlds leading Consumer Company for automotive products and services" (Samples-Help, 2006, “Ford Motor Company Mission Statement”). Ford has also encapsulated its organizational plans and goals in the form of “One Ford Mission” (Ford-a, n.d., “One Ford”). According to this composite statement, Ford wants to work as a goal oriented team which strives to attain automotive leadership ...Download file to see next pagesRead More
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