ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Restructuring of Ford Motor Company in Recent Years Seems to Have Been Successful Business Strategy

Updated on November 28, 2014

In 1903, Henry Ford introduced the Ford Model T. Ford quickly became very successful, much due to the second industrial revolution that took place in the late 19th and early 20th centuries. In recent years, Ford experienced loss of revenues and decided to eliminate jobs. According to Chew, “Excess capacity can arise in at least four ways, the most obvious of which occurs when market demand falls below the level required to yield returns that will support the currently installed production capacity. This demand-reduction scenario is most familiarly associated with recession episodes in the business cycle.” (Chew, 2005)

The Ford Motor Company employs thousands of workers at its various plants throughout the United States. When Ford realized it's continuing loss of revenues, the board members made the decision to eliminate jobs and to create new products that were expected to be more desirable to its consumers. The executives based the decisions on what they felt was best long-term for the company as a whole and for the remaining employees. The employees who are still employed by the company may have increased long-term job security as a result of the re-structuring. Moving forward by creating new models demonstrates maturity, professionalism and willingness to make sacrifices for the betterment of the company. These are characteristics of a learning organization.

While the decisions made by Ford may have helped ensure the survival of the company, it has adversely affected thousands of employees who no longer have a job as a result of these decisions. This is not very flattering to the reputation of the company.

Ford also made the decision to create new products that were expected to be more desirable to its consumers. This is exemplary of organizational innovation. Buyers are always looking for the latest technology and design. Many long-term consumers are affected because some of their favorite models may be lost in the company’s efforts to keep up with its competitors. This may have an adverse effect on consumer relations.

1903 Ford Model A

The company faced and may continue to face a great deal of legal risk in its termination of employees. Many of these employees had been with Ford for decades. The decision was best for the company long-term and for the remaining employees because they have increased job security as a result of the re-structuring.

Globalization of the market also contributed to Ford’s losses because, American businesses have become globalized, but competitors have too. Toyota is largely popular within the United States with the Camry and Corolla being two of the most popular models available.

While other auto companies received government bailouts, Ford implemented these changes and held their own. As a result their stocks have slowly increased. This would indicate the business strategies implemented were successful.

It remains critical that Ford develop good long-term relationships with consumers. In the automobile industry, consumers often purchase vehicles from a particular manufacturer because they have a preference to do so. This preference is often developed as a result of the relationship they had with the company over the years. Individual dealerships represent the company as a whole, so while employees at dealerships may not be direct Ford employees, their commitment to the vision of the company affects the relationship that consumers have with Ford. The willingness of the employees to adjust to the changing needs of the company also create a picture of cohesiveness to the consumer. The recent and upcoming changes the company is facing are not going to be easy, but they are necessary for the long-term survival of the company.

Do you own a Ford?

See results


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)