In today’s world, companies are part of a complex environment. At the latest with the change from seller to buyer market in the 70s, companies cannot see themselves apart from their surroundings. Technological, economic and social change directly influence companies. The company Ford is one of the best known American automobile manufacturer. They strongly depend on their environment as product specifications need to respond to governmental regulation, economic factors such as oil prices, customer demands or technology standards.
When fierce competition in the automobile market turned the market around during the 70s, Ford seemed to loose market share so quickly to Japanese firms, that the company even had to shut down plants. Ford was found in 1903 and has a long tradition of influencing the car industry. The assembly line is only one example where Ford was able to drop prices for an automobile from 850 to 260 Dollars in 1923 to bring cars to the masses. Though influential in the past, the company seemed to loose against Japanese car producers with only little historic background. A true success story seemed to end during the late 70s and early 80s when losses where at their peek. It is interesting to see, how this situation came across.
In the 90th, Ford was back and introduced superior quality cars. The turning of the company seems to be a hundred percent from completely classical to a more adaptive strategy making. This seems mysterious for such an old and traditional American company.
Table of Contents
1. Introduction
1.1. Background Information
1.2. Aim of the Paper
1.3. Delimitations
2. Analysis: Managing relationships
2.1. Past Problems with managing relationship
2.1.1. Lead In
2.1.2. Leadership
2.1.3. Organization
2.2. Professional relationship management
2.2.1. Lead in
2.2.2. Managing internal Relationships
2.2.3. Managing external Relationships
3. Recommendations
3.1. Lead in
3.2. Future problems
3.3. Future Recommendations
4. Conclusion
Objectives and Themes
The primary objective of this paper is to analyze the shift in relationship management strategies at Ford. It explores how the company moved from a period of mismanagement characterized by rigid, self-centered leadership to a professional, adaptive model that successfully integrated internal and external relationships to improve overall vehicle quality.
- The impact of classical strategy and leadership on organizational performance.
- Transformation of internal employee relations and organizational culture.
- Development of strategic long-term relationships with external suppliers and dealers.
- The challenges of maintaining quality and market competitiveness in global markets.
Excerpt from the Book
2.1.2. Leadership
Like in other US companies, Ford believed in a strong manager who makes all the decisions for the company. This is true also in accordance to the classical school, where one leaders must provide discipline and the ordinary work is done by employees. This let to less response to surroundings and self-centred operations.
Strategy making at Ford only concentrated on one leaders, where preferences of that person greatly influenced products. The Carnegie school applies the psychological realistic theory where, one leader can only consider some factors. Subjectivity in the interpretation of data leads to the satisfaction of the leader but not to the best solution for the company. As “Ford’s strategic decisions had a more personalized character because of Mr. Ford’s presence”, big cars were produced. The outside world with suppliers and dealers had no word on the company strategy and external relationships basically did not exist. This also shows by the fact that suppliers were changed quickly. When consumers suddenly demanded small cars in 1979, Ford had nothing to offer just because Mr. Ford preferred big cars. One can say that the company Ford did not make their strategy efficiently because Ford did not take its surroundings into account.
Leaders never considered employees as knowledge base and neglected internal relationships. At Ford, some employees wanted to add own ideas, but were not heart. People were supposed to work and not to think. This is also true in the classical strategy making where ideas should never come from the bottom line. Also, leaders at Ford only decided after profits and did not think of people as valuable asset.
Summary of Chapters
1. Introduction: Outlines the background of Ford as a traditional manufacturer and defines the paper's goal to investigate its transition in relationship management.
2. Analysis: Managing relationships: Examines historical failures in leadership and structure, contrasting them with modern professional management techniques for internal and external stakeholders.
3. Recommendations: Discusses remaining challenges regarding quality control and image, providing suggestions for a more systemic, localized market approach.
4. Conclusion: Summarizes that Ford's success is rooted in its strategic pivot toward relationship-based management, despite ongoing global competitive pressures.
Keywords
Ford, Relationship Management, Strategy, Leadership, Organizational Structure, Internal Marketing, Supplier Relationships, Customer Satisfaction, Taurus Project, Quality Control, Automotive Industry, Business Performance, Processual Argument, Core Competence, Market Adaptability.
Frequently Asked Questions
What is the core focus of this research paper?
The paper examines how Ford transformed its business strategy from a traditional, self-centered model to a responsive, relationship-oriented approach to overcome declining market shares and quality issues.
What are the central themes discussed in the analysis?
The central themes include the failures of classical leadership, the importance of internal employee engagement, and the necessity of building long-term, trust-based relationships with external suppliers and dealers.
What is the primary objective of this work?
The goal is to analyze Ford's historical mismanagement of internal and external relationships and demonstrate how shifting these dynamics led to improvements in product quality and market performance.
Which scientific approach or methodology is used?
The paper uses a business case analysis method, drawing on classical and processual management theories to evaluate organizational behavior and strategic decision-making.
What topics are covered in the main body?
The main body evaluates past leadership and organizational "chimneys" of power, the transition to empowering employees, and the cultivation of strategic partnerships with external entities.
Which keywords best describe this study?
Key terms include Relationship Management, Ford, Strategy, Leadership, and Quality Management.
How did Ford’s management of suppliers change over time?
Ford moved from transactional, short-term interactions to long-term, mutually beneficial partnerships, involving suppliers in the development process and providing support to ensure higher quality output.
Why does the author consider Ford’s past strategy inefficient?
The author argues that Ford's previous reliance on top-down, profit-only decision-making failed to consider market changes, employee insights, and the needs of the consumer, leading to lost competitiveness.
- Citation du texte
- Manja Ledderhos (Auteur), 2002, Ford and Relationships, Munich, GRIN Verlag, https://www.grin.com/document/11059
