59-BMM 3103 rephrased

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Contents DIFFICULTIES FOR THE FORD .............................................................................................................. 4 NEEDS OF CONSUMERS ........................................................................................................................... 4 Sustainability ........................................................................................................................................... 5 A FEW DIFFICULTIES IN SUSTAINABILITY ........................................................................................ 6 FORD'S GENERAL RELIABILITY ........................................................................................................... 6 ANALYSIS OF FEASIBILITY .................................................................................................................... 7 CONTROVERSIES WITH COST ............................................................................................................... 8 HIGH COST AND LOWER PROFIT ......................................................................................................... 8 Public relations effort .............................................................................................................................. 8 Monetary benefits .................................................................................................................................... 9 CONCLUSION .............................................................................................................................................. 9 REFERENCES ............................................................................................................................................ 10 2

SUMMARY Ford Motor Company is dealing with numerous managerial and market-related issues. Here are the top three difficulties Ford is now dealing with. Ford's corporate strategy is the following is currently in financial trouble. The state of the global market is really poor and not what Ford had anticipated. The market share given in international markets falls short of Ford's projections. Who should put their attention on creating EVs and more ecologically friendly models? The development of the new model of the vehicle ought to take consumer satisfaction and lower costs into consideration. Ford would need to do management strategy study and allocate money to new technologies like hybrid and electric automobiles in order to complete this goal. The main objective of this focus is the hybrid automobiles because electric vehicles will take much longer to get established in the market. Using extra money will make this simple to do. Launching new public relations initiatives and spending reducing the production to make more money available. Ford has to form a new alliance with cutting-edge businesses to build hybrid and electric vehicles. The basis for picking the subject Ford is one of the major automakers in the world and is well known for its friendliness toward its customers. Henry Ford established the business in 1903, and it is now among the nation's largest automakers. While Ford vehicles are significantly more prevalent among buyers, Chrysler and General Motors are also significant participants. Despite having a $222.97 billion net worth, Ford is still in the red. Ford is currently on the verge of bankruptcy as a result of the financial crisis and is separated from other rival automakers like Chrysler and General Motors. Ford is not acting alone; it has also purchased a third of Mazda, Aston Martin, Volvo, and other brands. One plan, one team, and one goal make up the new strategy and mission statement that are being implemented. Ford aspires to be the consumer's first choice globally and to offer products that are inexpensive, of high quality, and last a long time. Ford has a large number of stakeholders, including parent businesses and consumer investors. Additional parties, such as consumer investors, other businesses, and the government, are also involved. 3

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DIFFICULTIES FOR THE FORD Ford is without a doubt one of the most significant businesses in the automotive sector, but Ford is having a difficult time adapting to rapid changes in the economy. The following sections will provide an overview of the difficulties that food is currently facing. Different Ford vehicles currently on the road are neither energy-efficient nor ecologically friendly because these factors were not taken into consideration during the manufacture of the vehicle. It is crucial to have a sustainable business plan, and if their vehicles are not sustainable, the company could suffer. Ford boasts about the technology and ingenuity employed in their vehicles, yet the advancement of their hybrid models lags behind Toyota and other manufacturers. Ford must go a long way to fulfil the emission limits because no work is being done to make hybrid technology more environmentally sustainable. Ford's technological capabilities lag those of General Motors. Ford had expectations for how the global economy would function, but the planning was inadequate and the actual outcome was much worse than expected. This sort of subpar performance has left Ford, which was already having financial difficulties, $34.3 billion in debt. Customers have been compelled by this type of conduct to put off purchases until the markets improve. The US government is attempting to increase the sale of hybrid vehicles by offering incentives and discounts to consumers, but the numbers on hybrid vehicle sales show that these kinds of tactics are failing. In international markets, Ford has a very small market cap. Ford had a gain in sales over the prior year, but it still lagged behind rivals like Volkswagen, General Motors, and Toyota in terms of sales. Ford only controls 2% of the market capitalization in countries like China, India, and South Africa. Ford must compete in ecologically friendly and sustainable cars despite its many issues if it is to fulfil its mission statement. Ford aspires to boost brand loyalty and achieve the highest levels of customer satisfaction. NEEDS OF CONSUMERS Fuel-efficient cars are the top consumer demand in the automotive sector. This is a result of both environmental concerns and rising gasoline expenses. People don't want to spend a lot of money on fuel, and governments are trying to encourage people to buy hybrid and fuel-efficient vehicles by offering incentives and discounts, therefore customers' demand is correlated with fuel 4

efficiency. The US economy is heavily dependent on fossil fuels, and as the world as a whole is concerned about using fewer fossil fuels, the US is moving away from its reliance on fossil fuels in order to remain competitive and continue in business. Ford needs to develop a future plan. The globe is currently going toward electric vehicles (EV), which are better for the environment and help cut down on carbon emissions from gasoline-powered vehicles. This will have a significant impact on the auto industry as rivals will start to think about producing high-quality, feature-rich electric vehicles. Ford will group electric vehicles into various categories, such as those designed for people who only use their vehicles for special occasions. He might purchase a compact vehicle with a limited driving range. A person who commutes to work every day would choose a vehicle that doesn't require charging every time they go out. Ford manufactures vehicles with good EV ranges, and the third category is performance EVs, which are exclusively designed for drivers who enjoy driving fast vehicles. Sustainability Ford needs to produce more models that are compatible in order to boost its reputation as a sustainable brand. The cost of a new model shouldn't go up, it should be remembered. Due to technological improvements, automobiles frequently cause numerous hassles and maintenance problems. Ford needs to design a strategy that spares customers from unnecessary uncertainty. Better hybrid vehicles should be developed rather than those that are dependent on a certain type of fuel to meet emissions standards by default. Ford should have created a model that people were more accustomed to, and since it will be challenging for customers to obtain new gasoline for particular sorts of vehicles, hybrid automobiles are the greatest options because they are already well-liked by consumers. Ford needs to focus on how to program and allocate resources to keep ahead of the competition if this plan is to be successful. Ford's hybrid program will need to be accelerated, which will cost a lot of money. Ford is actively pursuing new technology and can provide advice to businesses and NGOs on how to lower the cost of the hybrid program. Passage ought to do what it specializes in, which is taking risks by testing new advancements, rather than different contenders who play extremely protected and foster the vehicles after a long course of thought and asset serious techniques. This is the main way forward to remain in front of the opposition. The idea driving the post's development was impressively disparate from that 5

of other car firms, which expected to deliver the best and most innovatively refined vehicles conceivable. A FEW DIFFICULTIES IN SUSTAINABILITY Ford intends to produce more ecologically friendly cars in order to uphold its goal standard and address environmental concerns. However, everything must be done while adhering to the organization's ethical standards. It is unethical for Ford to develop the company's technology capabilities without keeping the workforce informed. Because they cannot adapt to the new era of the company, employers are vulnerable to losing their jobs as a result of certain technological improvements in the workplace. In order to prevent employees from losing their jobs while working for Ford, the corporation must train them appropriately, adapt them to new technology, and provide them with property training. Removing jobs from a country where the unemployment rate is 9.7%, which is already very high. Ford doesn't want to harm its reputation in the marketplace or in the eyes of the customer by disobeying its mission and environmental commitments. However, the company's plan to build a sustainable environment for its new cars does not entail eliminating jobs. Old and extremely devoted Ford employees that have been with the company for a long time. In order to safeguard jobs, Ford must develop a more sustainable environment. Additionally, it is not an economically viable alternative to train new hires and integrate them into the organization. FORD'S GENERAL RELIABILITY Ford's dependability is abhorrent, and the company is not well-known for being among the most dependable and successful in the world. Do you work on numerous wrecked cars and make frequent repairs for a business that is renowned for its lack of liability? The business is known as mend or repair daily dude because of its dependability. In Ford cars, the transmission is perhaps of the most well-known issue that should be fixed and is much of the time stalled. This sort of fix is exceptionally costly, along these lines shoppers can't do it much of the time. The Ford F1 50 Raptor is one of the ten least solid vehicles of 2021, as per late reports. Portage requirements to increment fabricating pace to contend. They should inside recruit new staff from different offices into the innovative work division to rapidly develop the best vehicle 6

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to produce more and better vehicles. Portage has designated $8 billion for mixture innovative work, which is more than some other area of the car business, to finish this objective. With the help of this funding, they will be able to increase production of the vehicles and shorten the time it takes for customers to receive their cars from the company by hiring additional personnel for their workplace and factories. Numerous stories have been published concerning broken Ford Raptors on the roadways. However, the Ford Raptor's most recent models appear to perform better than their predecessors. The Ford F1 Raptor's windscreen was one of the issues that stood out. Because the windshield was not securely bonded to the body, even a little collision may result in the wind shield coming off. Ford's extremely poor fuel economy is yet another issue. Oil is used very quickly by the Ford Raptor. Ford, however, refused to accept responsibility, blaming the high petrol consumption of their Raptor on poor fuel quality. But compared to the F150, the Ford F350 is regarded as being quite trustworthy. Ford makes some trustworthy automobiles, but overall, their lineup isn't that great. A two out of three reliability rating was given to the Ford Ranger. The majority of buyers purchased Fords due to their affordable prices, but they were astonished when they saw the repair invoices. The cost to repair a typical car is $600, but the cost to repair a food vehicle is $735. Ford needs to produce reliable vehicles despite the fact that their brand is not well renowned for it. Ford produced numerous models to entice customers when the US economy was growing, but as a result of the rising cost of repairs during the recession, people began to notice flaws in the automobiles. Ford produced numerous models to entice customers when the US economy was growing, but as a result of the rising cost of repairs during the recession, people began to notice flaws in the automobiles. ( Oigiagbe, O., George, O., & Owoyemi, O,2012). ANALYSIS OF FEASIBILITY Ford's best choice for improving the system capability of the business is to use hybrid automobiles. Ford's hybrids, however, lack modern technology, and hybrid cars need to be upgraded. Ford should concentrate on developing hybrid vehicles that are effective, reliable, and cost-effective for customers. The food company has made significant investments in the research and development division, where they are utilizing cutting-edge technologies to enhance their habit program. Ford has allocated $8 billion for hybrid research and development, which is more than any other automaker, in order to complete this goal. Ford was the first firm in the USA to 7

provide hybrid automobiles in the year 2000, however Ford was unable to compete in the market and keep producing higher-quality cars. Using data from the research and development department, a projection regarding the production of new Road hybrid vehicles can be generated while keeping in mind the company's past success. Giving the hybrid program the right resources could result in new models that would be beneficial to the business. CONTROVERSIES WITH COST Ford must develop an effective strategy to carry out their hybrid program because the corporation is already having trouble turning a profit and wants to lessen the loss. Ford needs to understand how to invest resources given that hybrid vehicles are more expensive and require more parts than simple automobiles and that they are currently experiencing a profit recession. Ford will gain much more from its investment in hybrid vehicles than it initially spent. Ford already supports the hybrid vehicle program, thus the resources they are investing in their new lineup of vehicles should not be seen as investments; rather, they should be seen as preventive actions ( Acharya , V.V., Schaefer, S. and Zhang, Y., 2015). HIGH COST AND LOWER PROFIT Public relations effort Ford annually spent $300 million on advertising in print, television, radio, and online publications. The company also partnered with nonprofit organizations for market research and marketing of the product research and development center. A well-executed commercial can enhance the company's reputation worldwide. The word Ford ought to spring to mind whenever someone discusses sustainability. The corporation spends $700 million yearly on new patents, materials, staff upgrades, and other things; they need to lower this cost. Monetary benefits The market for half breed vehicles is assessed to be valued at $67.7 billion overall and has developed by 31.3 percent throughout recent years. Toyota sold by far most of the vehicles in this classification. Toyota has procured 72% of the offers that are involved cross breed cars. Ford 8

needs to perform better than Toyota in the US market. Ford can easily earn $23.15 billion in hybrid sales if its market share rises. Despite the imprecision of these projections, growth seems more likely. These forecasts demonstrate that they offer the potential for favorable future hybrid development. The American people are fiercely patriotic, and they will always support domestic businesses instead of foreign ones like Toyota. Ford needs to work a little harder than usual to seek down new customers, but American consumers are already eagerly awaiting the results. CONCLUSION First, Ford needs to educate its clients about the current state of the food industry and offer advice on how they may support the business through this and remain devoted. Regardless of the way that clients are now attracted to half and half vehicles, the food ought to teach new clients about the practicality and maintainability of mixture vehicles to guarantee the outcome of their crossover program and the offer of the vehicles. Ford must also display its five-year hybrid initiative to customers. Ford should continue this promotion until all people are aware that the corporation is committed to sustainability and is a sustainable business. The food should give the PR office $300 million to make a forceful notice for a PR mission to support the organization's standing. The Ford brand is supposed to develop its business in the event that it is seen by contenders as a supportable undertaking. Portage necessities to increment producing pace to contend. They should inside enlist new faculty from different divisions into the innovative work office to rapidly develop the best vehicle to produce more and better vehicles. The research and development department will receive $50 million each quarter in the next quarter. Ford needs to improve their design process if they want to produce attractive vehicles. Customers always appreciate these kinds of vehicles. But introducing new designs can also raise the price of the car, so striking the right balance is necessary to produce the most attractive and dependable cars. Ford Develop partnerships with the highly technologically advanced businesses and maintain contact with them. Compared to any other country in the world, the United States has the most businesses leading the way in technology. Consequently, should establish collaborations with this business and utilize their expertise to produce the greatest car possible. Ford should establish 9

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positive working relationships with the top energy engineering companies operating in the US, such as General Electric, Lockheed Martin, and others. There are other government agencies there as well, including the US Environmental Protection Agency and the EPA's national vehicle and fuel emission laboratory, from which Ford can seek assistance. Ford must progressively introduce new models since it cannot discontinue all of the gas-powered cars at once. To appeal to every customer, Ford should create a new profile of vehicles that includes both affordable and costly models. REFERENCES Ginn, D., & Zairi, M. (2005). Best practice QFD application: an internal/external benchmarking approach based on Ford Motors' experience. International Journal of Quality & Reliability Management . Bayou, M. E., & De Korvin, A. (2008). Measuring the leanness of manufacturing systems—a case study of Ford Motor Company and General Motors. Journal of Engineering and Technology Management , 25 (4), 287-304. Tedlow RS. The struggle for dominance in the automobile market: The early years of Ford and General Motors. Business and Economic History. 1988 Jan 1:49-62. Oigiagbe, O., George, O., & Owoyemi, O. (2012). Theorising the failure of technological innovation diffusion in the Nigerian automobile industry: The case of Ford Motors Nigeria. American Journal of Business and Management , 1 (4), 223-229. Acharya, V.V., Schaefer, S. and Zhang, Y., 2015. Liquidity risk and correlation risk: A clinical study of the General Motors and Ford Downgrade of May 2005. The Quarterly Journal of Finance , 5 (02), p.1550006. Sarguna, E.J.S., 2011. Ford Motors’(India) Specific Strategies Using Information Systems. WINBIS‐2011 , pp.471-486. 10

59-BMM 3103 rephrased

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