How did Ford Motor Company Successfully Turn Around its Business Research Paper

How did Ford Motor Company Successfully Turn Around its Business During the Recent Recession - Research Paper Example In these circumstances companies have also resorted to price wars that have further eroded the profit margins of various organizations. The present study would analyze the case of Ford Motors and the business strategies that were adopted and implemented by the organization during the period of economic recession. According to a report, the recession in the year 2009 led to a decline in new registrations by about 24.8 percent in a month as compared to the same in the previous year. In addition to cars vehicles across all categories like trucks and vans also reported a dip by about 31.4 percent and 49.2 percent respectively. This has led to severe implications for car manufacturers as they started reported lower income. This led to job cuts and other cost control measures besides putting all expansion plans on a hold (IMI Research Department, â€Å"Summary†). Issues Ford Motors is US based automobile manufacturing organization, established in 1903 by Henry Ford the company is en gaged in the manufacture of cars, trucks, SUV’s and other vehicles. The company is preset across all the major markets of the world and headquartered in the USA. It stocks are listed and actively traded on the bourses of the New York Stock Exchange (Ford Motors Corporation, â€Å"Our Company†). The economic recession had a severe impact on the business prospects and profitability of the company. The effect of recession on the fortunes of the company can be analyzed from the fact that the company applied for a 9 billion bailout from the US government in the form of short term and working capital loans so as to ensure that the company was sustainable. However the company was better placed than any of its competitors as it was able to maintain grounds even without the bailout package (The New York Times, â€Å"Background†). Management Strategies The period of economic recession was among the worst periods seen by the company as it was the period that saw the lowest sales since ten years. The absence of credit facilities and price margin pressures led to considerable issues for the organization. However in spite of the issues Ford Motor Corporation was able to maintain sustainability even without a bailout package as was given out to the top competitors of the company namely General Motors, Chrysler that were on the verge of closure and bankruptcy. The company fared better than most of its competitors and also overtook Toyota Motors as the rank one automobile company in the US market in the year 2010. Behind this successful management of a stressful period lies a mix of effective strategies sided by a visionary leader and a good management that has successfully used the best financial, HR and marketing strategies to help make the company stronger even in the most turbulent periods in history (The New York Times, â€Å"Background†). One of the reasons for the successful turnaround of Ford Motors Corporation was the successful marketing s trategies being implemented by the organization. The company unveiled a product strategy that involved launching smaller cars and economic versions rather than focusing on premium products. In this regard the company chose to keep focus on the sub compact cars like Fiesta that was economical. This strategy played off during the times