1. Discuss the importance and benefits of planning at Ford. 

2. Based on the four options that have been presented as potential steps for Ford, describe Ford’s primary goal.

3. The alternatives that have been developed by Ford were developed using the rational decision-making model, but there are limits to the model that may impact the success of the plan. Describe these limits3. The alternatives that have been developed by Ford were developed using the rational decision-making model, but there are limits to the model that may impact the success of the plan. Describe these limits

As you look out the window of the “Glass House” headquarters, you comment to yourself that it has not been a fun place to work these past few years. As you contemplate the future opportunities for the company, you are left with the thought that this company will look radically different in the next few years. An icon of North American manufacturing, Ford Motor Company has been one of the most prominent automobile producers in the world for almost 100 years. Founded by Henry Ford and 11 business associates in 1903, Ford Motor Company pioneered the moving assembly line, in which workers remained in place performing the same job on each automobile that came down the line. Henry Ford’s vision was the production of cars that were affordable to the masses. Today, Ford’s product lines include Ford, Lincoln, Mercury, Mazda, Aston Martin, Jaguar, Land Rover, and Volvo.

Despite the proliferation of nameplates, Ford Motor has been losing money for years, particularly in its North American operations. Ford produces more vehicles than it can sell and does so under very difficult personnel conditions that are part of the industry’s history. The United Auto Workers (UAW) represents most of the company’s production employees, and the contract terms over the years have been designed to provide significant long-term support to those employees. Generous conditions for retirement, benefits, and job protection, developed when the industry was doing well, now weigh down the company operations. Another issue that has you concerned is the Premium Automotive Group (PAG), which makes the company’s Aston Martin, Jaguar, Land Rover, and Volvo brands. Originally intended as the platform for the company to enter the luxury car market, this group has losses in the billions year after year. Although the company has substantial cash reserves—over $20 billion—operating losses are steadily diminishing the company’s financial safety net.