Ford: Recent Decision Organization: Ford Motor Company Essay

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Ford: Recent Decision Organization: Ford Motor Company

Nature: Global Automaker and owner of additional subsidiaries

Time Period: First and Second Quarters, 2011

Inputs Used: Global search features using ProQuest, Questia, Google Documents, The New York Times, Ford Motor Company website

Despite economic trials, Ford Motor Company has come out of some of the most difficult economic times for automakers in better shape than many other auto makers in 2011. In fact in April, 2011, Ford reported its largest first-quarter profits since 1998, particularly because of a shift to smaller, more fuel-efficient cars. This is a welcome shift and change in reporting since its decision to borrow almost $24 billion in 2006, which helped Ford move more quickly than GM or Chrysler to bring out new lines of more fuel-efficient cars, and even more important, a cash cushion when the entire automobile industry ran into problems in 2008. In addition, Ford sold off its luxury brands (Jaguar and Land Rover) and its...

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The strategy is an accelerated growth plan that is focused more on growing the business in Asia, and amping up in countries that Ford has seen a diminishing market share over the past few years. Mulally noted: "We're clearly transitioning into a growth mode after going through a horrific recession and industry collapse. We are now positioned to serve customers where the market is growing" (Vlasic, 2011).
There are several impacts to this decision. While Ford was able to weather its difficult times without Federal money, it did need to borrow significantly and sell off some brands so that it could concentrate on more fuel-efficient, smaller…

Sources Used in Documents:

REFERENCES

Ford Earnings. (June 7, 2011). The New York Times. Cited in:

http://topics.nytimes.com/top/news/business/companies/ford_motor_company/index.html

Vlasic, B. (June 7, 2011). Ford Strategy Will Call for Stepping up Expansion,

Especially in Asia. The New York Times. Cited in:
http://www.nytimes.com/2011/06/07/business/07ford.html?_r=1&scp=2&sq=ford%20&st=cse


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