Degree of Globalisation of Ford Motor Company - 3667 Words

In this report i do an analysis of the degree of globalisation of the automotive industry with special interest in Ford motor company. This analysis begins with an introduction to the automotive industry then it covers industrialisation of the automotive industry, also globalisation of the automotive industry and lastly global integration of the automotive industry. Secondly we focus more on a case study of ford motor company which covers a brief background of Ford, then i consider the challenges of competing globally and end with product differentiation as an appropriate competitive strategy for the Ford Motor company. The Automotive Industry Global vehicle production has more than doubled since 1975, from 33 to nearly 73 million in†¦show more content†¦Japanese automakers have instituted innovative production methods by modifying the U.S. manufacturing model. They are also capable of adapting and utilizing technology to enhance production and increase product competition. Starkey,K. McKinlay, A(2007:75) argues that the rising competition and increasing global trade are the major factors in improving the global distribution system and has forced many auto-giants such as General Motors, Ford, Toyota, Honda, Volkswagen, and Daimler Chrysler, to shift their production bases in different developing countries which help them operate efficiently in a globally competitive marketplace. Globalisation of the automotive industry Firms globalize when they attempt to integrate key day-to-day functions on a global scale, such as component sourcing, vehicle development, new model introduction (the Big Three’s investments in Mexico are a good example). From a geographic point of view, the world automotive industry is in the midst of a profound transition. Since the mid-1980s, it has, like many other industries, been shifting from a series of discrete national industries to a more integrated global industry. Global integration embeds firms in larger regional and global-scale systems of production, consumption, innovation, sourcing, command and control. These global ties have been accompanied byShow MoreRelatedGlobalisation and Australian Automotive Industry3628 Words   |  15 PagesGlobalisation and World Today globalization is essentially a synonym for global business. Globalization is changing the world we live in at a very increasingly rapid pace (Rodrik., 1997). Changes in technology, communication, and transportation are opening up borders and markets at increasing rates. In any large city in any country, Japanese cars ply the streets, a mobile call can be enough to buy equities from a stock exchange half a world away, local businesses could not function without U.S.Read MoreThe Success Or The Failure Of British Business1315 Words   |  6 PagesMcLuhan,1962) in where business transactions, instantaneous movements of information and human migrations have pushed physical and conceptual boundaries away and thus contributed to the process of international integration. In 2004 Crafts defined globalisation as â€Å"a process of integration of goods and capital markets across the world in which barriers to international trade and foreign investment are reduced†. One way of tangibly measuring this phenomenon is through the types of investments made; particularlyRead MoreEuropean Business Sector : Automotive Industry3425 Words   |  14 Pagesquality 3. Degree of choice for consumers 4. Lower prices for purchasing vehicles B. Competitive members in the industry 1. Cartels 2. Abuse of dominance (monopoly on car parts) C. Percentage of market share of the members in the industry V. Main Objectives A. Encourage competition amongst the vital incumbents in the industry B. Adapt a simple and comprehensive set of single market regulations for the industry C. Endorse foreign investment in the industry and promoting globalisation of technicalRead MoreStudy2551 Words   |  11 Pages College Number(Bottom Left of College Card) | 100834533 | Year: | 1 | Course Code | MN2201K | Course Tutor: | Mr Ailson De Moraes  Dr Endrit Kromidha | Assignment No.: | Individual Assignment   | Degree Title: | Strategic Management | Question No. amp; Title: | 2.Using an extended example critically discuss the view that a ‘sector matrix’ gives a better strategic understanding of product markets than the concepts of ‘product’ or ‘commodity’ chains.    | This essay will analysis the sector matrixRead MoreInternational Case - Restructuring at Koreas Daewoo3171 Words   |  13 Pagesone in which decision making is not confined to a few top executives rather is throughout the organization, with managers at various levels making key operating decisions relating to their sphere of responsibility. Decentralization is a matter of degree, since all organizations are decentralized to some extent out of necessity. At one extreme, a strongly decentralized organization is one in which even the lowest-level managers and employees are empowered to make decisions. At the other extreme, inRead MoreFordism Essay2528 Words   |  11 PagesHas a new system of production and consumption replaced Fordism? Named after American industrialist Henry Ford, Fordism is essentially a modern socio-economic system designed on the bases of industrial mass production in the 20th century. There are many aspects of Fordism in terms of its social and economic organisation, such as the relation to production line techniques, the nature and pattern of consumption, and overall state regulation. This essay will firstly outline the three major characteristicsRead MoreFordism Essay2520 Words   |  11 PagesHas a new system of production and consumption replaced Fordism? Named after American industrialist Henry Ford, Fordism is essentially a modern socio-economic system designed on the bases of industrial mass production in the 20th century. There are many aspects of Fordism in terms of its social and economic organisation, such as the relation to production line techniques, the nature and pattern of consumption, and overall state regulation. This essay will firstly outline the three major characteristicsRead MoreAnalysis of Bmw8493 Words   |  34 Pagesautomobile industry creates a need for new action steps to stay ahead of competition (Hanson et al. 2005). The following report analyses the automobile operations of the BMW group in regard to its competitive position in the automobile market. Since the company comprises several brands, all positioned in the premium segment, corporate strategies are needed to successfully manage the whole group. As a result of a consolidated automobile industry, other corporate car manufacturers compete with the app arentRead MoreFinal Project on Mnc8557 Words   |  35 PagesMultinational Stage 15 Features 15 Lobbying 15 Patents 15 Government Power 15 Tax Competition: 16 Market Withdrawal: 16 Types 16 Horizontally Integrated Multinational Corporations 17 1 Joint Verture: 17 2-BRANCH: 17 3-FRANCHISE: 17 4-SUBSIDIARY COMPANIES: 18 5-MERGER 18 6-ACQUISITION: 19 Vertically Integrated Multinational Corporations 19 Diversified Multinational Corporations 19 Hierarchy of multinationals 19 Merits 21 Merits of Multinational Corporations: 21 General Merits 21 Benefit toRead MoreThe Automotive Cluster in Baden-Wà ¼rttemberg, Germany9150 Words   |  37 Pageschemical products worth â‚ ¬9 billion (8.7% of export) (Wirtschaftsministerium Baden-Wà ¼rttemberg, 2003a, p. 7). Other important sectors include electrical products, electronics and ICT. Automotive industry in Germany German manufacturers of motor vehicles and motor vehicle parts (NACE 34) account for 2,500 enterprises with a total workforce of 890,000, according to the 2001 Yearbook on International Auto Statistics produced by the Association of the Automotive Industry (Jà ¼rgens, 2002, p. 2). In 2002