FORD engine COMPANY

Ford Motor Company

Abstract

The report discusses the ordering, customer demand and inventory data, buyer power and its impact in the supply chain. At the national grade, retailer power is seen to be of anxiety and the subject of inquiries by competition authorities. The retail concentration can be communally beneficial where it results in purchaser power that can be utilised to counter market power of manufactures. Contrarily, some observers contended that purchaser power may finally damage the provide chain because they believe there may be longer-term detrimental effects, such as compelling manufactures decrease buying into on new products and, in the method cause wholesaler charges to small retailer to rise.

Table of Contents

INTRODUCTION4

BODY: DISCUSSION AND ANALYSIS4

Similarities5

Differences5

Analysis and Suggestions6

Liquidity8

Working Capital8

Current Ratio & fast Ratio8

Recommendation10

CONCLUSION12

Ford Motor Company

Introduction

The Ford Motor Company finds itself in dynamic business environment where new technologies and practices offer potential to alter in significant way landscape in which it operates. Henry Ford was in his time an innovator in offering 'cars for masses'. He introduced to car industry methods and systems innovative in their day. Ford desires one time afresh to forge new routes to ensure future comparable advantage. (Hogarth 1999)

Body: Discussion and Analysis

Executives at Ford have been considering 'Direct Model' created by Dell Computer Corporation and finds that there is considerable appeal. Dell has been adept to pace up inventory velocity such that there is only eleven days of inventory on hand. This has led to an inventory revenue rate of thirty times per annum. This achievement, termed by Michael Dell 'Virtual Integration' has been achieved by blurring line between supplier, Dell and client, to extent that third party service staff are often thought, by clients, to be Dell's own staff. (Hingley 2001)

In order to see how congruent Dell model is to Fords' business we need to examine similarities and differences between two companies. This will permit us to gain some insight as to if virtual integration could work at Ford. (Hogarth 1999)

One of key strategies behind realignment has been growth. Ford has launched the variety of new initiatives throughout world, with joint ventures for assembly of vehicles in countries as diverse as China, India, Thailand and Vietnam. In China, Ford expects to begin production of light trucks with the company named Jiangling Motors in near future. In India, Mahindra Ford India Ltd. will begin manufacture and distribution of Ford products, beginning with Ford Escort, in mid-1996 and Fiesta in 1998. In Thailand, Ford has the joint venture to produce pick-up trucks and in Vietnam, Ford plans to build the vehicle assembly plant at Hanoi, together with partners Song Cong Diesel. In Poland, Plonsk plant has begun to build Escorts and Transits.

Joint ventures are establishing the presence for Ford all over globe. Ford is working with two companies in Korea, one to supply automotive air conditioning units and second as the new joint venture to produce electronic components later this year. In addition to 20% of Jiangling Motors, China, acquired by Ford in 1995, four further manufacturing joint ventures ...