Consider and explain entry strategies and organizational structures utilized by Ford Motor and Volkswagen, when referring to the “Internet Exercise: Organizing for Effectiveness” on page 339 in the textbook. Complete this assignment by answering the following questions:
1) What type of arrangement(s) do you see the two firms using in coordinating their worldwide operations?
2) Which of the two companies has the more modern arrangement?
3) Do you think this increases that firm’s efficiency, or does it hamper the company’s efforts to contain costs and be more competitive? Why?
Write a one to two page paper summarizing your findings. The written summary should be double-spaced using 12-point Times New Roman font. You will need to cite your sources of information (at least three) at the end of your paper. Though the paper need not be in APA format, the citations at the end do. One of those three citations may be from the Luthans and Doh textbook, and one citation may come from an online website.
Here is the reading from the textbook:
Every MNC tries to drive down costs by getting its goods and services to the market in the most efficient way. Good examples include auto firms such as Ford Motor and Volkswagen, which have worldwide opera- tions. In recent years Ford has been expanding into Europe and VW has begun setting up operations in Latin America. By building cars closer to the market, these companies hope to reduce their costs and be more responsive to local needs. At the same time this strategy requires a great deal of organization and coordination.
Visit the websites of both firms and examine the scope of their operations. The Web address for Ford Motor is www.ford.com, and for Volkswagen it is www.vw.com. Then, based on your findings, answer these questions: What type of organizational arrangement(s) do you see the two firms using in coordinating their worldwide operations? Which of the two companies has the more modern arrangement? Do you think this increases that firm’s efficiency, or does it hamper the company’s efforts to contain costs and be more competitive? Why?