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Business and Supply Chain: Ford Motors Company


Ford Motor Firm is a well-known, global automobile design and manufacturing corporation altering its goal to focus on investor value and consumer response. Faced with increased worldwide competition, Ford has identified various aspects of operations that might be better implemented to meet the goals set out. There have been multiple options for different Ford activities that may directly modify the company’s principles, all with a tactical significance placed on supply chain processes. Maintaining existing practices and collaborations, normalization of their supply chain and sub-structure products to optimize the supply process has been vital (Helmold et al., 2022, p.231). Furthermore, the company keeps adjusting services to customers and service center belts to drive market sales.

It also adopts a mixture of virtual incorporation with significant suppliers to drive friendship-oriented supply ascertained by a forecast-based sales and production model, known as the Ford 2000 Process. The Ford 2000 Process was selected as the most efficient strategy to fulfill the Ford Motor Company’s business objectives after a thorough examination of the options given (Chai et al., 2021, p.5). Ford should be able to use its present market position and worldwide supply system to form profitable alliances with critical suppliers and consolidate a wasteful and redundant manufacturing strategy (Kumar et al., 2020, p.97). A powerful, internationally recognized brand will also influence customers’ perceptions of the value of Ford automobiles.

Ford has had a few different CEOs in the previous years, but the business remains committed to Henry Ford’s legacy of invention and inventiveness. Ford is now working on self-driving technologies, product lifecycle management, and electric cars such as the Mustang Mach-E and Ford F-150 Lightning (Taylor, 2019, p.23). Henry Ford established a heritage of inventions that transformed the globe, from collaborating with Thomas Edison to founding a global enterprise.

Research Objectives

  1. To identify factors that drive big automotive firms to success.
  2. To discuss how globalization has affected Ford Motors Company.

Literature Review

What Drives Big Automotive Firms to Success?

A firm’s public image is frequently a defining feature. Since automobile customers commit their safety and a significant amount of their wealth to a car manufacturer, the firm’s reputation plays an essential role in the purchasing decision (Haralayya, 2021, p.216). Marketing, word-of-mouth, and professional evaluations and judgments are all factors that influence an automobile company’s success. A solid delivery system is a more realistic success aspect for every automobile firm. Automobile manufacturers depend on licensed retailers to offer local displays since automobiles aren’t sold directly to users (Luthra et al., 2018, p.713). These retailers need to be informed and trustworthy to sell cars, which is critical for the carmaker. Dealerships, like automakers, rely on a favourable image that may be impacted by or impact the firm’s image.

Another critical aspect of success has a good cash flow. When a vehicle manufacturer offers rebates or reduces prices, it nearly always delivers more automobiles, but the profit margin isn’t necessarily healthy. Simultaneously, a carmaker must maintain expenses under management, including raw material prices and contracted equipment, which are subject to change (Agyemang et al., 2019, p.9). The regular negotiations between manufacturers and labour unions revolve around establishing a consistent economic flow. Automobile manufacturers must also verify that the automobiles they sell adhere to federal and state requirements (Prasad et al., 2020, p.329). Pollution, fuel economy, and security norms are just a few examples.

While producing automobiles that function slightly better in some areas may be less expensive, the price of a service bulletin or state-mandated maintenance is often substantially greater and harder to predict. The capacity to be adaptable is an elusive but crucial performance component in the automobile sector (. In reaction to variables such as the status of the economy, gasoline prices, and new automotive technology, American vehicle purchasers may modify their purchasing patterns swiftly (Alhamali, 2019, p.163). Carmakers must be aware of these changes and maintain a structure that allows them to swiftly react to establish new brands that fulfill consumers’ present and future wants.

Since automobiles are signifiers that portray the driver’s intended image to the world, public portrait and brand identification are critical for carmakers. Furthermore, since a car is such a significant personal commitment, many prospective consumers perform extensive research on possible automobiles (Ikumapayi et al., 2020, p.1535). As a result, a company’s positioning in a purchaser’s reference group is dependent on brand reputation (Bhatia &Kumar, 2020, p.11). Consumers generate such opinions based on several factors, including security, reliability, value, efficiency, and inventiveness.

How Has Globalization Affected Ford Motors?

Globalization affords automobile manufacturers the chance to lower operating costs and expand into new markets. To put it another way, contemporary businesses may create at one price and sell at a different location, conceivably at a premium cost. Globalization may be seen as a good element in the growth of the automobile sector to a large degree (Grannis, 2018, p.9). As one of its specimens, Ford Motor Company has profited since it now has entry into formerly unattainable markets. Moreover, the organization could locate new vehicle component suppliers that supply the most outstanding price-to-quality ratio (Weixelbaum, 2018, p.7). It’s important to remember that the quick movement of money is a distinctive characteristic of international marketplaces. Such an experience implies that businesses may do business as swiftly as possible without having to contend with bureaucracies, red tape, or other state intervention in the private industry (Gulliford, 2019, p.7). As a result, we may conclude that globalization improves companies’ performance, including Ford Motors.

However, keep in mind that internationalization has given buyers the option of choosing from various automobile manufacturers, forcing them to enhance their performance criteria. One of such requirements is eco-friendliness since many individuals are worried about health issues associated with gas emissions, such as asthma and cardiovascular disorders (Webb, 2021, p.71). Furthermore, hydrocarbon emissions include components that interact with the exterior troposphere ozone layer (Nath & Dwivedi, 2021, p.376). When the stratosphere is degraded, UV rays are directed to the ground atmosphere. UV radiation in excessive amounts doses functions as a prognostic indicator for skin cancer in both people and animals (Webb, 2021, p.71). The automobile industry has played a significant role in diminishing the ozone layer, and several governments are implementing regulations to address this issue.

We may extrapolate from such considerations that the corporation that can cut gas emissions will ultimately get the confidence and support of both consumers and the state. It is reasonable to argue that Ford Motor Company and other members of the automobile sector have already been forced to make adjustments to their manufacturing processes (Ahmed, 2020, p.3). The problem is that lawmakers in the US and Europe have lately passed legislation requiring businesses to minimize carbon emissions (Enkhbayar, 2019, p.69). Illustratively, the EU emission regulations have been set. They apply to passenger cars, trucks, vans, and other vehicles. Automobile manufacturers that fail to achieve these requirements will not be permitted to sell their goods in the EU region.

As a result, it is not an exaggeration to suggest that an organization’s capacity to manage ecological threats is critical for its public perception and its economic security. Further, we should consider not only Ford but the whole sector. Due to its potential to cut CO2 emissions and improve fuel economy, the Ford Fusion hybrid has found a readymade marketplace in the US and Europe (Ahuja et al., 2019, p.117981). The business has already sold over 10 million Ford Fusions in the US. Such statistics demonstrate that environmentally friendly automobiles are getting more popular. Furthermore, they are likely to establish the primary mode of conveyance in the next generations.


There are several approaches for analyzing the literature that is accessible. This research aims to determine the link between different success variables. It builds correlations between components based on the views of specialists, which improves internal outcomes (Sabadka et al., 2019, p.1295). ISM approach, according to scholars, is utilized in India to identify impediments and influence industrial methods. After the supplier selection process, the ISM technique was applied to analyze the CSR concerns (Ikumapayi et al., 2020, p.1537). The ISM approach explains lean practices in the supply chain. It explores barriers to driving power and dependent power, which aids in increasing overall performance via the use of ISM methodology. As a result, the ISM approach is utilized to solve such an issue in industrial decision-making. Some scholars have employed the ISM technique in their research problems in recent years.

To better understand the methods in automotive manufacturing firms, researchers employed interpretive structural modelling. To complete the processes of ISM deployment, industrialist input was necessary, and sample data from various scales of industries. The complicated system in simplified system ISM methodology is favoured for applying practical experience and approach for step down (Paul, 2018, p.727). In addition, a multilayer model for CSFs will aid in understanding their interrelationships. As a result, the ISM technique is a better fit for this research.

The approach of face-to-face discussion was used to assess the significance of the significant roles identified via the literature research. As the research tool, a postal survey questionnaire was utilized. For questionnaire assessment and input, an initial pilot run was conducted with a sample of 20 targeted respondents. The relevance of sub-variables identified by the literature study was the subject of the questionnaire (Park 2018, p.49). The respondents’ perceptions determine the applicability of essential roles in sustainable lean manufacturing. Experts asked for a Likert scale evaluation of the SLM elements (Thakker & Rane, 2018, p.9). Experts were chosen for this study based on their qualifications, which included a minimum of a bachelor’s degree in industrial engineering or a related field, a minimum of 10 years of practical/academic experience in lean implementation, the most negligible classification of district manager and the ability to manage a team of more than ten people, and the industry in which they work must use lean tools and techniques for continuous improvement. Automobile manufacturers came to the United States to see what was going on.

New CSFs for SLM implementation were discovered during top management evaluations. Top management review and top management engagement were combined once the experts agreed. This research aids industrialists in maintaining a consistent process and product knowledge. Production managers, quality managers, Management Information System (MIS) officers, store managers, and plant managers were among the organizations the respondents looked for directly tied to process and product (Felser & Wynn, 2020, p.14). Many businesses are using lean strategies and tools in some form. A total of 80 highly successful specialists (with more than 21 years of expertise) were contacted out of 45 replies for the research. The pilot research revealed that responses ranging from 20 to 100 were adequate—selected reactions from professionals with extensive experience implementing lean in the workplace.

After several requests through email, a meeting with specialists was planned and a face-to-face questionnaire. The implementation process on the shop floor was studied in detail. Fifteen criteria were identified as necessary to the Indian sector and chosen for this research after a brainstorming session with industry professionals. These CSFs are subsequently combined in the manufacturing base for statistical analysis (Dhanabalan et al., p.57). Top management, employee, technology, machine, culture, legal regulation, government, strategy, and financial review were all considered in the CSF.

Closing Statement

There have been a variety of choices for distinct Ford actions that might directly alter the firm’s values, all with a tactical emphasis on supply chain procedures. Keeping the current practices and relationships, normalizing their supply chain, and sub-structuring items to improve the supply process have been critical. Additionally, the corporation adapts client services and service center belts to maintain market sales growth. According to the research, globalization has aided corporations in gaining market share in regions where they previously had none. Globalization techniques also assist businesses in generating additional income streams, which helps them enhance profitability. It also aids global companies in becoming more competitive by reacting to the requirements of customers in new areas that the company enters and providing value to shareholders.

Globalization enables businesses to compete more successfully by integrating information, knowledge, technique, and technology to provide a foundation for operational efficiency and growth. It also aids in the transformation of businesses by connecting cutting-edge technology with communities and businesses, enabling the production of new knowledge and discovery. Growth plans allow businesses to improve their performance, communication, employee motivation, competitiveness, market dynamics, and positioning themselves against their rivals.

Reference list

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Ahmed, M, 2020, A Study Conducted On Customer Relationship Management at Cauvery Ford Motors.

Ahuja, J, Panda, TK, Luthra, S, Kumar, A, Choudhary, S, & Garza-Reyes, JA, 2019, Do Human Critical Success Factors Matter in Adoption of Sustainable Manufacturing Practices? An Influential Mapping Analysis of Multi-Company Perspective, Journal of Cleaner Production239, p.117981.

Alhama, RM, 2019, Critical Success Factors for Green Supply Chain Management Practices: An Empirical Study on Data Collected from Food Processing Companies in Saudi Arabia. African Journal of Business Management13(5), pp.160-167.

Bhatia, MS, & Kumar, S, 2020, Critical Success Factors of Industry 4.0 in Automotive Manufacturing Industry, IEEE Transactions on Engineering Management.

Chai, Z, Nie, T, & Becker, J, 2021, The Centennial Automotive Industry and the Looming Transformation, In Autonomous Driving, Changes the Future (pp. 1-15), Springer, Singapore.

Dhanabalan, T, Subha, K, Shanthi, R, & Sathish, A, 2018, Factors Influencing Consumers’ Car Purchasing Decision in Indian Automobile Industry, International Journal of Mechanical Engineering and Technology9(10), pp.53-63.

Enkhbayar, A, 2018, Ford Motor Company’s Financial Analysis.

Felser, K, & Wynn, MG, 2020, March, Digitalization and IT Backsourcing: Towards A Transformational Model for the German Automobile Industry, In eKNOW 2020: The Twelfth International Conference on Information, Process, and Knowledge Management (pp. 7-16). IARIA.

Grannis, NO, 2018, Ford Service Technician Recruitment Marketing Plan.

Gulliford, T, 2019, Ford Motor Company & The Economic Crisis of 2008.

Haralayya, B, 2021, Effect of Branding on Consumer Buying Behaviour at Vijay Bharat Motors Pvt Ltd, Bidar, Iconic Research and Engineering Journals4(12), pp.207-222.

Helmold, M, Küçük Yılmaz, A, Dathe, T, & Flouris, TG, 2022, SCRM in the Automotive Industry: AutoSCRM, In Supply Chain Risk Management (pp. 221-254), Springer, Cham.

Ikumapayi, OM, Oyinbo, ST, Akinlabi, ET, & Madushele, N, 2020, Overview of Recent Advancement in Globalization and Outsourcing Initiatives in Manufacturing Systems, Materials Today: Proceedings26, pp.1532-1539.

Kumar, N, Mathiyazhagan, K, & Mathivathanan, D, 2020, Modelling the Interrelationship Between Factors for Adoption of Sustainable Lean Manufacturing: A Business Case from the Indian Automobile Industry, International Journal of Sustainable Engineering13(2), pp.93-107.

Luthra, S, Mangla, SK, Shankar, R, Prakash Garg, C, & Jakhar, S, 2018, Modelling Critical Success Factors for Sustainability Initiatives in Supply Chains in Indian Context Using Grey-DEMATEL, Production Planning & Control29(9), pp.705-728.

Nath, K, & Dwivedi, R, 2021, Aesthetic Exploration of Organizational Theatrics: A Case of Tata Motors’ Jaguar Land Rover Acquisition, Philosophy of Management20(3), pp.369-386.

Park, YE, 2018, The Endless Challenges of KIA Motors for Globalization: A Case Study on KIA in Saudi Arabia, The Journal of Industrial Distribution & Business9(9), pp.45-52.

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