Organizational Change-Ford Motors

Organizational Change-Ford Motors

Hello, and welcome to this organizational change presentation. We evaluate changes Ford Motors underwent in recent months by venturing into the ride-sharing business and partnering with established companies in the industry.

First, we’ll start by describing the history of the company and the changes undergone by the company. Next, we’ll classify the identified change into either an adaptive, innovative, or radically innovative change. We’ll then discuss if the transformation undergone by the company is reactive or proactive. Next, we’ll evaluate if the change has or will impact the company positively or negatively. Lastly, we’ll conclude the presentation by providing recommendations that can assist the company in the change process.

Ford is an American multinational automaker and the world’s fifth-largest auto seller. Ford Motors is one of the oldest automakers, founded in 1903, and since then, it has been manufacturing and selling different car models. Ford Motor Company was founded by Henry Ford in Michigan, and it managed to build Model A cars in 1903 and Model T in 1908 (Britannica, 2021). This automaker grew through acquisitions, buying several companies to expand its portfolio. It also ventured into the diversification of the car models, capturing a reasonable share of the market (Britannica, 2021). In recent months, Ford launched into the ride-sharing business by partnering with firms that are already established in ride-sharing, such as Lyft, to tap into this new business (Eisenstein, 2021). The company decided to team up with other partners so that it could learn the technicalities of ride-sharing from them. It was motivated by the fact that it had resources and the availability of technology.

Venturing into ride-sharing is an adaptive change since the company is trying to remain relevant. Ride-sharing is a recent and lucrative business sector where many firms are using Apps to reach customers who want a ride. Therefore, Ford is entering into this business to adapt to the changes that have been brought about by new technologies (Eisenstein, 2021). Focused firms strive to adapt to the changes that come with technology so that they can exploit the potential of the latest technologies and benefit from them. Automakers such as Ford ought to adapt to ride-sharing businesses to diversify their products so that they can have several revenue streams. Therefore, ride-sharing is a new and lucrative business sector that many firms would want to venture into (Eisenstein, 2021). Ford’s entry into ride-sharing will foster its competitiveness since the new business will be an additional product that translates to a new revenue stream. Moreover, the new company will make Ford not depend on the car-selling business.

Ford Motor’s move to venture into ride-sharing could be termed as a reactive action. The company decided to invest in ride-sharing as a reaction to the growing competition and the availability of opportunities. Several companies had invested in the business, and thus, Ford reacted to counter the competition by also investing in the industry so that it could remain relevant (Eisenstein, 2021). Two reasons motivated Ford to venture into the ride-sharing business: first, the company had resources. Companies manufacturing vehicles and the ride-sharing business require cars as essential assets. Secondly, Ford was motivated by the availability of partners who are experienced in the field of shareriding. By 2025, Ford has promised to invest 1,000 vehicles in riding sharing, which will operate in Miami, Austin, and other cities (Eisenstein, 2021). Reactive change can be one of the best ways to counter competition; Ford is reacting to the growing competition. This move will help it to become more adaptive and competitive.

As discussed, ride-sharing is a lucrative business; hence, venturing into this business sector will positively impact Ford in many ways. First, ride-sharing will expand its revenue streams since it is a new business venture in the company’s portfolio. Therefore, this new revenue stream will boost Ford’s income. Secondly, Ford will create more jobs by hiring drivers; investing 1,000 vehicles into the business means 1,000 people will get jobs, hence a positive impact (Intelligent Transport, 2022). The ride-sharing change will help the company build its competitive muscles in the business, which will positively impact its operations. The ride-sharing change will also stimulate innovation; trying new firms with new technologies will cultivate and motivate the culture of innovation in the company. Once it tastes the goodness of investing in a different industry, it will try to invest in other various sections.

To best adapt to the change and realize its full potential, the Ford Motor Company should ensure that it works collaboratively with partners to learn from on various aspects of the ride-sharing business to boost its effectiveness and revenues. Ford should continue embracing new technology because technology will help it overcome many business challenges and exploit new opportunities that could bring in more revenues. Ford should train the drivers on safety and maintenance issues to counter competition; ride-sharing businesses are becoming popular and competitive. It is only innovative and effective operators that will survive in this industry. Therefore, Ford should devise many ways to attract more customers to achieve competitiveness. Ford Company should seek more partnerships with other firms in the same industry to build synergy and become more effective in this new business.

Britannica. (2021). Ford Motor Company is an American corporation. Retrieved from https://www.britannica.com/topic/Ford-Motor-Company

Eisensetein, P. (2021). Ford Teams With Lyft, Argo AI For Self-Driving Ride-Shares This Year. Retrieved from https://www.forbes.com/wheels/news/ford-lyft-autonomous-vehicle-fleet/

Intelligent Transport. (2022). Lyft and its partners have launched an autonomous ride-share service in Miami. Retrieved from https://www.intelligenttransport.com/transport-news/131819/lyft-partners-autonomous-rideshare-service-miami/

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Describe the company’s history and identify the change.
Select the type of change – adaptive, innovative – or radically innovative, and explain your rationale for your selection.
Describe if the change is reactive or proactive.
Ex: Reactive type of change – BP’s reactive approach to the April 2010 explosion led to the loss of 11 lives and is the largest oil spill in US waters.
Ex: Proactive – Walt Disney is investing $1 billion in wearable technology – wristbands that interact with scanners throughout the theme park, which it hopes will revolutionize the way visitors spend money at Walt Disney World.
Explain how the change has or will impact the company (positively, negatively, or both).
Conclusion – provide any recommendations or ideas that can help the company overcome the change.
Requirements
Your presentation should be approximately five slides. Have about 4–6 bullets per slide, and be sure to include a reference slide to show your research. At a minimum, you need to have two scholarly sources. Include graphics or animations to enhance your presentation.