A Closer Look at the Ford Company Ford Motor Company multinational cooperation that uses outsourcing to lower costs and boost productivity. Until the sass’s Ford had a supply chain that allowed them to control every aspect of the making and distributing of their automobiles. From the steel and rubber plants that make the parts, to building the vehicles, storage and shipping. Though this was a good way for the companies to promote local made in America vehicles it was not however time or cost effective.
As a result of competition from other automotive companies Ford made the drastic changes of outsourcing the making of parts and manufacturing to other countries to speed productivity and lower costs. The advantages to the local communities as a result of outsourcing is that there are Jobs added to the community. The local communities that may have been struggling were given the opportunities to work for a company that produces good quality parts and manufacturing vehicles more quickly. The negative effects that this may have on a community is that more people would want to work for the outsourced company which leaves more local Jobs open.
Also if the cost of living may increase because of the growth from the industry, which would ultimately make living harder in those countries for the people that do not work for the outsourced company. Global stratification affects the United States positively because it decreases the cost of manufacturing as well as the cost to pay the employees. This helps the companies to save more money than to keep the business in the United States. By outsourcing the company can save more money to pay the people higher p employees in the companies.
At the same time global stratification has a negative effect on the United States because it takes Jobs away from the local people. If more companies kept their businesses in the United States it would create more jobs for the people that live here instead of adding to the employment of other countries. The outsourcing of manufacturing Jobs may be contributing to the increasing unemployment rates that the United States is experiencing. The big winner in the companies that use outsourcing is the company that does the outsourcing, in this case it is the Ford Company.
Ford was able to decrease their production time from 45 to 60 days per vehicle to only 15 days with the outsourced jobs. Ford was able to keep more finished vehicles ready to be shipped to waiting customers. Ford was also able to decrease the costs of manufacturing to make a higher profit off each vehicle sold. Though the countries that are fortunate enough to be chosen to be a part of the outsourced company gains Jobs and an increase in their economy but they are still on the short end of the stick.