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    Ford Presentation - 22 Mar 2010

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    Ikram Nabi
    Ford implemented the Ford 2000 strategy in Europe to address challenges from increased competition. The strategy aimed to make Ford the leading auto company through global coordination, improved efficiency, and delivering greater value to customers. Key elements included streamlining product development, using virtual simulation in manufacturing, reducing vehicle delivery times to 15 days, and enhancing after-sales customer service. However, the centralized strategy failed as it did not adapt to the changing European market with new competitors and an integrated economy allowing easier cross-border comparisons.

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    Ford Presentation - 22 Mar 2010

    Uploaded by

    Ikram Nabi
    249 views14 pages
    Ford implemented the Ford 2000 strategy in Europe to address challenges from increased competition. The strategy aimed to make Ford the leading auto company through global coordination, improved efficiency, and delivering greater value to customers. Key elements included streamlining product development, using virtual simulation in manufacturing, reducing vehicle delivery times to 15 days, and enhancing after-sales customer service. However, the centralized strategy failed as it did not adapt to the changing European market with new competitors and an integrated economy allowing easier cross-border comparisons.

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    Ford implemented the Ford 2000 strategy in Europe to address challenges from increased competition. The strategy aimed to make Ford the leading auto company through global coordination, improved efficiency, and delivering greater value to customers. Key elements included streamlining product development, using virtual simulation in manufacturing, reducing vehicle delivery times to 15 days, and enhancing after-sales customer service. However, the centralized strategy failed as it did not adapt to the changing European market with new competitors and an integrated economy allowing easier cross-border comparisons.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    249 views14 pages

    Ford Presentation - 22 Mar 2010

    Uploaded by

    Ikram Nabi
    Ford implemented the Ford 2000 strategy in Europe to address challenges from increased competition. The strategy aimed to make Ford the leading auto company through global coordination, improved efficiency, and delivering greater value to customers. Key elements included streamlining product development, using virtual simulation in manufacturing, reducing vehicle delivery times to 15 days, and enhancing after-sales customer service. However, the centralized strategy failed as it did not adapt to the changing European market with new competitors and an integrated economy allowing easier cross-border comparisons.

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    Download as PPT, PDF, TXT or read online from Scribd
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    You are on page 1of 14

    Ford Motor Company

    Ford’s European Organization Changes Strategy

    Group V:
    Sherin Khan
    Ikram Nabi
    Arslan Ahmed
    1
    Saleem
    Presentation Sequence

    1. Introduction
    2. Rational for Ford 2000 Strategy
    3. Ford 2000 Strategy
    4. Ford 2000 Strategic Plan
    a. Product Development
    b. Manufacturing:
    c. Vehicle Ordering and
    Distribution
    d. After Sale Services
    5. Failure of Ford 2000 Strategy
    2
    Ford Motor Company

    • Founded in 1903
    • Over 370,000 employees worldwide
    • Manufacturing and Sales operations in more than 30
    countries
    • HQ in the USA
    • Ford used a coordination strategy to achieve economy of
    scale and reduce the cost of engineering
    • Ford designed cars that were suitable for most European
    countries
    • 8th top selling company across Europe
    • In 1996 the company earned revenue of $ 147 bn
    • Company was assessed to be a successful organization in its
    history
    3
    Ford Motor Company

    • By this time more competition like Japanese,


    Malaysian and Korean car producers gained
    market share.
    • Ford created a strategic plan to face those
    challenges and to deliver the Ford vision “ To be
    the world’s leading automobile company in 21st
    century”.

    4
    Ford 2000 Strategy

    Reorganizing of Ford Motor Company with more


    global approach to doing business and driving major
    efficiency improvements in reducing cost to deliver
    greater value, quality and choice to the customer

    5
    Ford 2000 Strategy

    Strategic Plan

    • Provide innovative solutions to competitor’s

    challenges

    • Boost Ford’s global competitiveness.

    • Sustain their continuous growth.

    6
    Ford 2000 Strategy

    Product Development:
    • Ford 2000 set out a good plan by coordinate and
    streamline this system.
    • Company reduced the investment cost for every
    project and by cutting down on the time it take to
    deliver their product to the market place.
    • They also reduce the number of vehicle platform
    chassis from 32 to 16.
    7
    Ford 2000 Strategy : Strategic Plan

    • In order to achieve these aims Ford set out the


    quality, cost and speed of their processes, so that
    they could deliver better value to their customers

    – Product Development.

    – Manufacturing.

    – Vehicle ordering and distribution.

    – After – Sales – Services


    8
    Ford 2000 Strategy : Strategic Plan

    Manufacturing
    • Improving vehicle quality by aiming
    – Zero defect
    – Reduce the time of manufacturing process.
    • Ford was the first automotive company in the world
    to introduce “virtual factories”.
    • Computer simulations were use in vehicle design
    and for final assembly process.
    9
    Ford 2000 Strategy : Strategic Plan

    Vehicle Ordering and Distribution


    • At the customer end of supply chain, the reliability
    of supplies is judged by their ability to deliver the
    right product at right time and price that customer is
    willing to pay.
    • The ultimate aim is to reduce this response rate for
    6 weeks to 15 days.

    10
    Ford 2000 Strategy : Strategic Plan

    After – Sale – Service


    • The quality of a company’s customer service plays a

    crucial role in our decision to buy a car,

    • after sale services is more customer driven.

    • This was one of the objectives of Ford 2000

    strategy.

    11
    Failure of Ford 2000 Strategy

    • Ford was loosing market share to competitors in

    Europe. Centralized strategy was implemented

    • Out of Five, Four manufacturing units were in North

    America and one in Europe (Responsible for small

    and midsize vehicles), European manufacturing unit

    was partially independent and was mostly following

    the strategy of the units in North America).

    12
    Failure of Ford 2000 Strategy

    • The 21st century brought new changes for Ford,

    where restriction on Japanese cars were reduced or

    eliminated.

    • Introduction of European currency enable customer

    to compare price across borders for best deals.

    • Global car industry plagued by overcapacity

    resulting in fierce competition

    13
    Thank You

    14

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