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North West Company

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Ford Case Analysis
Questions
1. Discuss Bill Ford’s actions using the steps of the basic control process as a model. Did he follow this process? What did he do in each step? Did he leave out any important steps? What is left to do? 2. Can Ford’s turnaround plan be characterized as tactical or strategic controls, and why? How are the actions and decisions of lower-level managers likely to be influenced by the plan? 3. How does the amount of control used by Ford’s credit managers affect control and performance in other areas of the parent company? 4. Thinking in terms of focus of control and amount of control, what caused the problems at Ford in the first place? Is Ford’s management proceeding appropriately in their attempts to improve the situation? Why or why not?

1. Bill Ford basically utilized parts of the basic control process as a method by which to improve operations at Ford Motor Co., but hasn’t fully embraced each element to its fullest potential. The four elements of the control process are establishing standards, measuring performance, comparing performance against standards, and evaluating results. Ford established standards throughout the company’s operations to cut costs in order to address the losses Ford had been incurring. His top priority was to adjust his management team so that the company was run more vertically, from the top down. Fine-tuning production to raise quality levels is an example of Ford’s new standards. Ford did this by stopping production on four vehicle models in order to concentrate on simplifying the production process and improving quality. He standardized vehicle parts to minimize the amount of different parts ordered. Ford also set standards for vehicles to address environmental issues, like higher fuel economy. He also didn’t approve of a development plan created by managers working on a new Mustang…...

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