Logistics and Value Chain Analysis-Ford Motor Company

4828 words 20 pages
Executive Summary
The Ford Automotive Company is an American Multinational Enterprise (MNE) based in Dearborn, Michigan, Detroit. The second largest automaker in the U.S. operates out of three regions, Europe, Latin America and Asia Pacific with 78 globally located plants and approximately 213,000 employees.
As a multinational enterprise the company’s activities have a significant impact on the environmental, social and economic systems. The central objective of the report aims to identify how these activities are organized in the major stages of the value chain. In addition, the report will identify other key areas with regards to the importance of the concepts to an international business, the context, segmentation, international
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As a consequence, Logistics and Value Chain concepts are important for the variety of value-generating activities a company performs and the methods adapted in determining a profitable margin and competitive advantage over rivals.

International business must therefore incorporate all parts of the value chain structure in each geographical area for efficacy. The approach is intended to create global synergies throughout the value chain.

5. Context of the Organisation
In the past each of Ford’s large overseas operations had its own product development, manufacturing, suppliers and various management structures.
Currently the Company has a number of broad sustainability challenges that set the context of their value chain. These activities impact on environmental, social and economic systems in a multinational context.

6. Competitive Industry
Ford has always been a market leader in competitiveness and innovation as evidence by improving technology for mass production through, the moving assembly line in 1913 and the V8 Engine block in 1932. Ford’s efficiency has led to more affordable vehicles resulting in a competitive edge over its competitors.
Ford’s principal competitors are: Chrysler, General Motors Corporation and Toyota Motor Corporation. The company lost competitive advantage in the late 1980s as a result of


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