Ford vs Detroit Electric Car Case Study Example | Topics and Well Written Essays - 1000 words

Ford vs Detroit Electric Car - Case Study Example While Detroit Electric Company capitalizes on its technological innovations as its core competitive advantage in the market, the development of an electric car by Ford still remains near, yet so far a realization. Since 1966, according to Flint the Forbes magazine editor, Ford has been stressing on the plan to develop a viable electric car in 5 to 10 years. By 2009, Ford believed that this dream could be realized by 2010, but it still remains a plan. The failure to meet these plans has been dampened by the advanced innovations and technology In Detroit Electric, who announced laid down plans to start large sale manufacturing and selling of electric cars in the first quarter of 2010, with these sales expected to hit 270,000 vehicles by 2012. The lithium battery technology is the latest development towards realization of this goal (Brown, 2012). Q1. The organization structure used in Detroit Electric cars is the decentralized organizational structure that leads to differentiation in pr oducts and specialization. Rather than produce their vehicles, Detroit Electronics outsource their vehicles from specialized manufactures; their work being to impart the finished vehicles with finishes that identify the company (LaMonica, 2009). Detroit has therefore assumed the structure of a virtual corporation where engines are manufactured and fitted by Proton in Malaysia, while the company just modifies the cars to distinguish the style and to offer an identity to these vehicles. Outsourcing to specialized manufactures, and settling on finishing and aesthetic work ensures specialization, and the company does not have to meet the cost required in producing these vehicles. Q2. The differing organization structure is to blame for Ford’s inability to produce an electric vehicle, when Detroit Electric has been able to make true its dream of an electric vehicle within four years of its founding. Contract manufacturing in Detroit ensures the company does not have to mind about the required technological facilities to meet this goal, as these costs are passed on to the contractor, Proton in this case (Lamonica, 2009). Instead of concentrating in designing and making the facilities to produce these vehicles, Detroit Electric has to concentrate on enhanced research and development strategies to improve its technological advancement in vehicle manufacturing. This is portrayed by the launching of lithium battery, and the rapid response to produce these electric cars. On the other hand, Ford has to set aside massive budgets to modify and advance their plants before launching any electric car manufacturing program. For example, Ford has set aside $ 450 million in Michigan as part of the company’s aggressive plan in advancing an electric vehicle program (Media Ford, 2011). Ford has been delaying these plans due to economic crisis and stiff competition, which has eaten into the company’s profitability. The company felt stinging effects as in the 2008 global economic meltdown. This has been well observed in the case of the SUV models that marked about 55% of total sales before the crisis. These sales declined sharply resulting to decreased profitability (Richard & Henry, 2003). Specialization has been the strength behind Detroit Electric success. Q. 3 Cooperation of international companies is largely affected by economic dynamics in the market. For example, the Euro crisis may

Summary of Chapter 7 & 8 Essay Example | Topics and Well Written Essays - 750 words

Summary of Chapter 7 & 8 - Essay Example During the late 19th century, the government used to force people to work in its coffee plantations, which accounted for a significant portion of its exports. Most of the reforms that have been established over the years have fallen due to dictatorship and frequent unrests. The CIA has been involved repeatedly in the violence experienced in Guatemala and in determining its leaders by overthrowing others. Some leaders have also resigned after the armed forces failed to protect them. In spite of an improvement in economic performance during the second phase of the 20th century, levels of unemployment continued to increase and poverty persisted due to unequal wealth distribution. In the urge to control the population, civilian murders increased to approximately 300 people per month. At the same time, the government perpetrated terrorism acts both towards the civilians and the opposition. Peace talks did not bear fruits for a long period as the government continued to victimize the citizens and the rebels. Whenever the US was involved in armed conflicts in the nation, it was blamed for the most violations of human rights. Several elections in the 19th and 20th centuries led to violence and presidents being overthrown following rigging allegations. Even after the end of the civil war, violence worsened especially in 2004 when an estimated 2,000 civilians, mostly women, were killed. The other crime forms exhibited in 2013 included corruption, drug trafficking, impunity, and extra judicial killings. Contemporary Guatemala has continued to experience persistent poverty and economic problems. The state of political landscape appears to be improving starting with p rosecution of presidents due to corruption. Rios Montt, a former head, was prosecuted and is presently serving 80 year sentence for genocide and crimes against humanity. However, organized crime persists in addition to trafficking of drugs. Guatemala remains a