The introduction of ford sync has given it an edge to

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Unformatted text preview: ntroduction of Ford SYNC has given it an edge to sustain its failing image. The continuous improvements in the SYNC and the right marketing plans for its products has changed the view points of people which resulted full fledged profit of $2.7 billion after the duration of four years. Instead of bragging about the technological advancements in its products the company is engaged in the activities to tell the people how good the product is. MULALLY AND SMALL WORLD CARS Ford prioritizes the production of small cars in North America. It has shifted its focus (of 70%) from SUVs and trucks production to the production of small cars which makes 60% of its production portfolio and it further tries to launch more vehicles in the country by the year 2012. If the company found a way to earn decent revenue on the sale of these smart cars then they have very positive probability to come up again and earn profitability. Mulally's strategies has so far kept Ford ahead of General Motors and Chrysler in the war of survival. The company insisted that it has enough saving to get out of economic downfall and is not in anyway need of government borrowing unlike its competitors who accepted the government funding. The performance and financial autonomy of Ford depends on its new operational strategy installed by Mr. Mulally. It enjoys its status of financial freedom and the only Detroit survivor when compared to GM who has gone through various governmental obligations and the bankruptcy of Chrysler. Though it is still not performing so well in terms of money but the signs of recovery are very visible. Its market share for retails has gone up. It employed new agreements with the labor workers and brought its labor cost per hour to $55. GM and Chrysler are badly in need of cash where Ford has paid of 22% of its long term debt. The market share price increased nearly five fold since November 2009. Mr. Mulally¶s method has given a new direction to the company. He took loan against the company¶s assets after sensing the recession in year 2006. Borrowing cash meant that the company can say no to the government funding. Likewise, the company sold some of its brand names in order to get rid of the excessive expenses. Moreover, the company is selling small cars developed in Europe to the US market segments. The challenge before them was to make allpurpose, cross-cultural car that meets demand all around the world. Ford¶s first global called is called ³The Focus´ which is designed and engineered for the customers from all over the world. Focus is simple, fuel efficient and equipped with technology and safety features to appeal the consumers in all the markets. Focus is one of its other products on the way; it is the first one after the company¶s change of perspective from truck manufacturer to small, light and environment friendly cars. Ford has significant impact on the global operations of the company. The company is operating at three engineering units for the engineering of the ca...
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This document was uploaded on 03/17/2014.

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