Ford and GM Business Strategy

Ford and GM Business Strategy

In this ever competitive global economy, manufactures of all kinds are searching for opportunities to strategically reduce costs while systematically increasing revenues. Reducing labor was the gimmick of choice in the early 1990's. Layoffs, downsizing and corporate re-structuring were the buzz words used to say - reducing labor costs. Today, however, labor is at a premium and can not be cut further without beginning to affect output. The manufacturing lines are working with barebones efficiency, so to speak.
That being said, corporations like Ford Motor Company and General Motors had to find new ways to cut costs while still fulfilling quality demands ...

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away from the high priced labor in the United States and the cost of importing parts and components. In addition to manufacturing costs, emerging markets will be where the new cars will be sold in the future. "Rapid growth in vehicle ownership is expected in Asia, Latin America and Eastern Europe. (Vehicle Assembly: Industry Information - Trends Shaping the Industry)
"Ford Motor Company expects sourcing for parts and components from China to reach $1 billion by the middle of next year and it can rise to more than $10 billion by mid-decade, as part of its overall drive to cut costs." (Ford To Spend $1bn A Year In China) Ford has been gradually expanding its manufacturing facilities throughout Asia and mainland China. There efforts to attract new suppliers with ' just-in-time' delivery philosophies will pay great dividends over the course of the next decade. Ford has reported spending approximately $90 billion annually on purchasing. Of that sum, roughly two-thirds goes towards ...

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Added: 4/8/2016 03:33:44 AM
Category: Business
Type: Premium Paper
Words: 1196
Pages: 5

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