Ford Motor Company's Transformation Essay

733 words - 3 pages


When Ford Motor Company saw rapidly changing technologies dramatically impacting how the world did business it also recognized that for the organization to remain competitive incorporating these technologies would be critical. The emergence of e-commerce presented an opportunity to improve company structure for information sharing and process changes that could also enhance relationships with suppliers, dealers and customers. This technology would, in the president's words, " allow us to integrate the diverse processes that make up a complex business in a way that was very difficult to do before." The real challenge would be if and how Ford could effectively implement the change to transform how it did business both inside and outside the organization.

The Problem

The idea of moving to a more efficient e-commerce lacked a fully developed implementation plan and did not identify ways to overcome the barriers associated with making the system fully utilized. The plan would mean not only implementing the technology itself, but also having the organization's seven automotive brands and four divisions that spanned 200 countries with 400,000 employees use it to conduct business. There was limited consideration for coordinating communication, generating internal support, and accounting for cultural and functional variances. Beyond internal factors, Ford needed to consider how to make e-commerce work with suppliers, dealers and customers to build the stronger relationships it envisioned.

Course Concepts

The Ford Motor Company transformation incorporates several course concepts. The analysis and recommendations will focus on three key managerial competencies: strategic action, communication, and planning and administration; contingency planning; alliance strategy; technological interdependence; and the changing environment relative to strategic and environmental factors.

Analysis and Recommendations

The significance that technology played in the new global economy brought Ford to recognize strategic and environmental factors that could keep the organization successful into the next century. The goal was to create technological interdependence between divisions, functions and employees to force process integration that was previously limited. Such limitations not only affected internal processes, but also made the company less responsive to suppliers, dealers and customers in a more demanding and competitive economy. The strategic decision to better connect all facets of the company through technology...

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