Allan R Mullaly, chief executor and president of the Ford Motor Corp has ideas to take the Ford Focus international. The executive from Boeing was brought aboard in 2006 to give a different perspective on a company in a faltering industry. Many were skeptical of his ability to lead an automotive company because he had no formal knowledge of the auto industry. Mullalay, however had plans to transform the company into a global competitor.
During a press conference for the 2010 auto show, Mullaly revealed plans to maker the Ford Focus the car that would reclaim the company’s status as an industry leader. Mr. Mullaly believes that the Focus is a “global car” due to its fuel efficiency, technology, safety features and its compact size. The features are believed to make the car more appealing to customers in Europe, Asia and the United States. The car has been streamlined to meet the needs and demands of consumers all over the world, sold under the Ford name.
This article relates to this week’s topic because it addresses global efficiency with product standardization and the recognition of national differences. Ford will manufacture the focus on one platform that can accommodate various body styles. This flexibility of the platform will enhance efficiency and help reduce costs. According to the global integration model in figure 3-1, the company can benefit from differentiating the product by recognizing disparity by country. This has the potential to increase revenues as well as lower costs through scale and scope of economies.
In conclusion, this article shows how Ford who has had declining sales over the past decade has restructured its global strategy in order to appeal to the market. Global efficiencies will allow the company to focus on a more centralized product line that will benefit multiple global sectors. The use of a standardized product that can be enhanced to benefit various consumers globally will allow the company to generate more revenue as the...