1) After reading the article “Henry Ford and the model T” (please click here to download it), analyse the effectiveness and the efficiency of Ford Motor Company, before and after the year 1924. For instance, after 1924 was Ford Motor Company both effective and efficient? Or effective but not efficient or efficient but not effective? Why?
2) After watching the YouTube video “How it is made honey“, do you have the elements to evaluate the strategic effectiveness of the economic entity? Why?
3) After watching the YouTube video “How it is made chocolate”, do you have the elements to evaluate the strategic effectiveness of the economic entity? Why?
4) After watching the YouTube video “How it is made Pringles”, do you have the elements to evaluate the strategic effectiveness of the economic entity? Why?
1) Both before and after 1924 Ford Motor Company was effective and efficient; but it had an issue in the years 1924-1927. Henry Ford had been deaf to the market need, so he kept selling his model T even if "styling and excitement suddenly counted to the customer". After that, he developed the model A, that suited more the tastes of the market. So, in that years, Ford Motor Company was efficient but not effective, because it kept constructing cars but didn't meet needs and wants of the customers.
ReplyDelete2) The strategic effectiveness in the production of honey can be seen in the fact that from this kind of production not only honey is made but also the wax used for the creation of many other products (candles, furniture polish). So it satisfies more than one need.
3) The effectiveness is stated by the production of different flavors and formats of chocolate.
4) In this case, it is hinted by the display of many different brands on the chips tubes. If there are so many competitors, it means there is a market.
Ok but see the reply to Fabio Ballasina26 September 2014 13:26
Delete1)Henry Ford had before and after 1924 the same objective: build a car for the multitude.
ReplyDeleteUntil 1924, Ford was the only car producer able to reach this goal through an extremely high productivity (high efficiency).
The initial strategy to sacrifices profit in order to increase sales and satisfy the people´s need for an affordable transport worked out well.
Ford did the right thing (effectiveness) by doing things right (good employee managing, autonomy of production). After 1924, Ford has not been able anymore to answer the costumers needs as those latest changed. Not only price and value was important (what ford was able to offer), but also styling and excitement (now GM offered those ones).
Ford´s effectiveness stopped (also by miscalculating the competitors).
They had to restructure the whole company (reduce inputs such as buildings and labour in order to survive).
This was the only way to remain efficient. Later on, new Ford models will answer again the costumer needs (effectiveness reached again).
1) I do think that the honey producer company is operating in an effective way. They are able to answer to various costumers demands by transforming their resources in various products besides honey (candles, furniture polish, lipsticks). Moreover they are able to answer to un unexpected higher honey demand thanks to the ability to storage honey during surplus periods.
2) At the end of the “how is made chocolate” video we hear who their costumers are: the best chefs, confectioners and chocolates in the world. I guess that these costumers (as they are the best in the world) do have this one need: a high quality chocolate.
Now, the firm puts its accent on the work they are doing in reaching a high standard product by using only prime ingredients and the the various processes they need to achieve this goal. This shows that the form is operating in a effective way.
3)Even this firm shows to be effective. It appears clear in its first sentence: “a snake is made to be stackable” and that is what people need and want. People like things that are practice and intelligent made. That is their main objective. As the video explains well, their system is to insert as many cheeps as possible in their tube confections through an efficient process.
Great Fabio, especially for Ford!!!
DeleteIn order to evaluate the effectiveness we should know the revenues, i.e. the extent to which the three companies are able to sell their products...
As Professor said, Fabio Ballasina got the Ford case clearly.
DeleteTherefore, the honey producer is operating in an effective way, yes maybe. We can say though that it is extremely producing efficiently using the same "resources" they use to produce honey in order to offer other products (such as wax, candles, furniture polishes ecc.). As Federica Sacco said, this business entity satisfies not just one need. I.e. they have different categories of customers to satisfy using the same resources that maybe its competitors don't.
For the other two cases (for the first one too) I would agree with you if, as our Professor said, we knew the revenues. Knowing the revenues lets us know if a company is being effective, if it is satisfying the needs of its targets, and if it is reaching its goal. This means that from the revenues we could, in some important ways, measure the effectiveness of a firm. How? From the revenues we can see if the products of the firms we are considering are being bought by the customers.
1) the change of the company after 1924 decreased the good condition reached before. The new ideas the tried were not so bad, but not useful. After he reached a better state before the 1924.
ReplyDelete2) Using more Hives and using honey with other elements like cereals, should be useful for consumers.
3) Chocolate should be done with a less quality and a lower price, and with a new taste with other things
4) Putting more chips in the tube , and making new taste seems a good solution.
1)Henry Ford began his industrial revolution with a specific aim: create a car for the collective. His success in the years before 1924 was due to two important factors, do things right ( efficiency ) , and do the right thing ( effectiveness ). Ford in fact presented a car which was affordable to everyone, he preferred to decrease profits in order to increase sales . In essence he made the automobile a necessity rather than a luxury. He also managed his employees in a great way by giving them a satisfactory reward. In the years after 1924 as new competitor companies started to develop, his model T started to come to an end. He no longer answered the demands of customers to create a sophisticated car ( no effectiveness). As the end was to at hand, thanks to the help of his son, he started to produce a new model, the model A. Ford's new model was a "success from its launch in December 1927, and placed the company on sound footing again". ( efficiency and effectiveness ).
ReplyDelete3) This economic entity has the aim to produce a high quality chocolate. In the video we can see how this is possibile through the use of good machinery which eliminates all extraneous materials in order to produce pure chocolate. During the process we also see how many times the liquid is stirred and how much attention is given to temperature, all important factors that contribute to a perfect and high quality product.
1) reading the article, it's clear the geniality of Henry Ford and his capacity to create the needs of the 20th century citizens. Before the year 1924 Henry Ford's fatory was absolutly perfect in efficiecy and effectiveness: its productive process was improved during the years, using a re-thinking taylor model for his products. Thanks to this, he succeded to sell Model T in high quantities and short times; he also centered the needs of his costumers: not-expensive cars for the moltitude. But, on the long term, this was also the failure of Ford's company: in-fact he saturated the market with his products (he had over to the 60 % of american car market), opening the gates to other companies(like general motors) that copied and improved his idea. We can say that, after the 1924, Ford company was to much efficient, but not effective, because of the change of costumers's view, that look to different products.
ReplyDeleteNicola Iezza
1- Henry Ford had to change the strategic effectivness of the firm in 2004 because the needs of custumers were changed, he had to adapt the structure of the organization (rigid) to the environment (variable) by changing the why and than the how of its production. The organizational efficiency has remained the same.
ReplyDelete2-3-4- We haven't sufficient element to evaluete the strategic effectiveness of the factories because we don't know anything about their incomes.
1. Henry Ford kept the same stance before and after the year 1924: build a car for people. He had to change to fit the situation and create efficient production over time.
ReplyDelete2,3, and 4: I do not know revenue, so I can not find element to evaluate the strategic effectiveness of the firms.
Henry Ford had one objective from the beginning till the end. To make cars that would be affordable for the population.
ReplyDeleteIn the beginning as the car industry was not as developed it had difficulties and we may say that it was efficient ( because it had some contracts with suppliers) however not effective.however later company became both effective and efficient, because of the right strategies implemented. the reson why Ford was successful is that it managed to satisfy changing wants and needs of the customers.
For the questions: 2, 3, 4 it is hard to determine effectiveness of economic entity because of insufficient information provided from the video. For example we have to have information about revenues, of these companies, whether it has competitive advantage or not over its competitors and etc.
1) ‘‘I believe Mr. Ford has the solution of the popular automobile’’ said the mining magnate Robert Guggenheim in 1909.
ReplyDeleteIndeed, with the coming of the new Model T, Henry Ford gave birth to a long period of gain earned by attaching a great importance to the operational efficiency and strategic effectiveness: the company purchased most of the major components (e.g. Ford imported a metallurgist and bankrolled a steel, so that in the next five years French luxury cars and Ford Model T would be the only cars in the world to utilize vanadium steel) and made an extensive study of materials ( operational efficiency), in order to create a simple, sturdy, and versatile car ( strategic effectiveness).
Only in the first year , over ten thousand Model T were sold; a new record for an automobile model which gave the demonstration of the Ford Company's strategic effectiveness.
Nevertheless, after 1924 the market began to shift and price and value ceased to be paramount factors ("Styling and excitement suddenly counted to the customer"- need change). Traders clamored for a new Ford that would strike the fancy of the more demanding and sophisticated consumers but Henry Ford didn't want to replace his beloved Model T (he wasn't able to meet the current needs anymore).
As a consequence, the company had to make changes in order to survive and later managed to rise up again by meeting the new needs of customers.
2,3,4) For what concerns the other three cases, we can say that the "How it is made chocolate"'s video shows a really good operational efficiency: expert chefs, prime ingredients and high heed of the chocolate's production processes allow the firm to operate with efficiency and achieve its purpose ( high quality chocolate).
Then, in the "How it is made honey" we can observe a strategic effectiveness due to the choice to offer costumers not only honey, but also wax used for the creation of others prodcuts and finally, about "How it is made Pringles" we can still talk about a strategic effectiveness due to the firm's purpose to meet customer's needs by offering stackable and pratical snaks.
Both period was effective and efficient , The most important thing of ford are changed the mind of people ,he wanted changed is made the car a necessity ,not just a strument for rich people. Its like strategies of steve jobs he wanted give the personal computer to everyone not just for a part of popolation. Than we can see the results of this kind of strategies ,its very useful for increase the activity of brand .
ReplyDeleteHe want to make everyone to know his goods.These periods are effective and efficient.even if nobody will buy this car, but everyone will remember this brand.and then Ford can use more and more activities to provide the visibility of his product.
ReplyDeletethey will buy the car when people realized the importance of Ford's car.
When Henry Ford began his business he was either effective and efficient until 1924. Effective because he was able to satisfy needs of a bunch of people, using a good corporate strategy, understanding what people wanted and doing the right things in the right timing. His main purpose was build a car for the multitude and let go down the car's prices to allow buying his cars to everyone. Instead in the early 1920 Ford Company began to have some shrinkage of effectiveness. it could not more meet people's need or maybe less than before. the Company didn't meet more the customer's interest and some issue started to raise. Ford was lacking effectiveness and efficiency and it had to change its organization in order to survive. It was obligated to reduce inputs like buildings and labour to reach a new efficiency.
ReplyDeleteAs regards chocolate and honey businesses i can't valuate their effectiveness just because i don't know if they have profits or losses. through the videos we can see just the industrial processes without know if they are good on an accounting basis.
as for pringles probably we can see that it is an effective business with effective managers because it is a famous business and we fairly know how effective are his managers meeting the profit proof.