Essay about Ford Motor Management Accounting

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Case Study Report- Ford Motor

Introduction Ford Motor Company (Ford) is an American multinational corporation which produces cars and trucks. The automaker was founded by Henry Ford and incorporated on June 16, 1903. Ford is the second largest automaker in the U.S. and the fifth-largest in the world based on annual vehicle sales in 2010. Ford introduced methods for large-scale manufacturing of cars and large-scale management of an industrial workforce, using elaborately engineered manufacturing sequences typified by moving assembly lines. In the first part of report, we will analysis the financial issue of how Ford Motor Company deals with the largest slump in sales on 2008. This will be examined in the aspect of …show more content…
However, as Ford continued to outsource some of the manufacturing process like raw material production, assembling to lower labor cost region like India, it suffered from the risk of discontinuing operation due to labor strikes of the supplier plant. On the case of Haryana labor strike in India, without labor union for negotiation of the conflicts, workers of Rico Auto Corporation in India ( a leading global manufacturing and assemble of automotive components) went for strikes. Since the plants in Canada and USA require the raw materials produced in India for processing, the strikes forced the plant to stop the operation and eventually result in a lack of raw materials of Canada plant to operate. This indicates a net loss with fixed expense incurred in daily operation amount to $432508.
Performance Measurement - Return on Investment The next part focuses on the measurement of Ford’s performance in 2010. To evaluate the effectiveness of those strategies mentioned above, we analyze it from the change in sales revenue, operating expenses and operating assets from 2009 to 2010. The direction of those three items can provide sufficient information for us to estimate the performance of Ford.
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