Explore BrainMass

Ford Motors brief description domestically

1. Ford Motor Company is a worldwide conglomerate that sells cars internationally. For most of 2008, their foreign operations were very profitable and growing. In contrast, Ford's US operations were saddled with high labor costs, poor market penetration and were highly unprofitable.

How has Ford managed to do so well internationally and so poorly domestically? What are they doing to take their successful international business strategies and apply them to their domestic operations? Please use what you learned in this course to present an informed evaluation of Ford's situation. Note, this is the Ford brand not the Volvo brand which is owned by Ford. HINT: You can access Ford's annual report via their web site.

Solution Preview

Ford makes money by selling and financing motor vehicles on six continents. Ford acquired several foreign luxury auto brands during the 1990s, but as the company's financial position became more tenuous, most of these have been sold off in order to focus on the core brands of Ford, Lincoln, and Mercury. Although Ford is a large global enterprise, the company has until recently made little effort to capitalize on potential economies of scale achievable with its size, meaning that Ford produced completely distinct cars for Europe, the United States, and the developing ...