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U.S. Corporations Entering Foreign Markets

This is not a problem-oriented case but is more of a historical sketch of Ford's European, which actually got started in Europe in the early 1900s. The case also features the fact that it is physically impossible for one company to manufacture all the parts necessary for the modern car, let alone assemble them. So beginning in the 1920s, the tradition of auto assembly began. In this act, the assembler would order the parts from outside vendors, mark them up accordingly, and use those parts on the assembly line.

Another big trend is the concentration of the automobile industry, and how Ford is leading the industry in that direction. Concentration implies focus, and in this we see the trend of carmakers spinning off or getting rid of outdated attitudes and trends that do not work. This describes Ford Motor Company precisely.

In 1995, however, to generate better profits in Europe, and trying to force Europeans into buying American, began more of a focus on building cars in Europe that Europeans wanted, and that fit their driving styles. This began by merging its European and North American staffs so that there was better communication in all divisions of the company, and a production line emphasis on product lines rather than profit centers was begun.

This concentration allowed Ford to maintain competitive advantage by being responsive to different strategic requirements. Under the "new" Ford structure, the company outsources most of its component parts.

The problems in this case were implied by the quote from the annual report from 1994. "We can't allow human and financial resources to be wasted duplicating vehicle platforms, powertrains and other basic components that serve nearly identical customer needs in different markets."

Most of this move was in reaction to the consolidating trends in Europe thanks to the development of the common market. As the European Union drops trade barriers, European carmakers,...

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U.S. Corporations Entering Foreign Markets. (1969, December 31). In LotsofEssays.com. Retrieved 07:06, March 29, 2024, from https://www.lotsofessays.com/viewpaper/1694939.html