Sector Matrix for Ford Motor Company Essay Example | Topics and Well Written Essays - 1500 words

Sector Matrix for Ford Motor Company - Essay Example Literature review and discussions will be centered on the Ford Motor Company which is, apart from being one of the Detroit Three (Sperling & Gordon, 2009, P. 55), also a significant player in the global automotive industry. The essay will also try to discuss the significance of the said tools at firm level as well as a sectoral level by taking into consideration the changes in organizational activities at the firm level and their impacts on the intermediate as well as the macro levels. Propounded by Michael E. Porter (1985), the Value Chain model is centered on organizational processes. Generally, the manufacturing facility is categorized into subsystems – each having its own inputs, throughputs, and outputs. The efficiency of activities aligned through value chain determines the cost of production and hence influences the profitability of the organization. The activities are grouped into primary activities and secondary/support activities (Needle, 2010, P. 275). The five main primary activities are inbound logistics, operations, outbound logistics, marketing and sales, and after-sales service, while the secondary activities comprise procurement, human resource management, technological development, and infrastructure. It has been observed that Ford Motor Company (Ford) being a foremost player in the global automobile industry, its business activities have extensive influence on almost all aspects of its environment. The figure appended above represents the interconnectivity of the main phases of Ford’s value chain. The management of Ford has recognized the fact that â€Å"these issues are interconnected at each stage and that positive and negative effects in one part of the chain can reverberate in the other parts† (Ford-website-a, n.d.), and hence, is trying to infuse the different phases with sustainability issues. Ford is aiming at improving its manufacturing efficiency and simultaneously reducing emissions. Moreover, the company is also using recycled materials and is trying to enhance the reusability of its vehicles as part of its environment-friendly operations.