Understanding Organisations Essay Example | Topics and Well Written Essays - 1250 words

Understanding Organisations - Essay Example Understanding Organisations The firm was founded in 1903 by Henry Ford and since then it has manufactured a large number of commercial cars. Ford also manufactures luxury cars but they are marketed under the brand Lincoln. The chief executive of the company has taken measures since 2008 to simplify the fleet of all Ford cars across the world (Vlasic, 2008). The company has also shaped several automotive components. Ford Australia is an Australian subsidiary company of the original corporation. This subsidiary was founded in Geelong, Victoria in the early 1925. In May 2013 Ford president Bob Graziano has announced to cease the manufacturing process of the company in Geelong (Reuters, 2013). The industry for automobiles is highly competitive in nature in the current economic era. The establish firm of Ford has undergone certain losses since the last six years. The president claimed that the company’s manufacturing cost in Australia is extremely high when compared to that of Asia and Europe (News Geelong, 2 013). Thus, in order to reduce its costs and losses the company has decided to cease its operating plants in Geelong by 2016, as its fabrication in Geelong is not economically viable in the long run (Lambreth, 2007). The decision of Ford to cease its manufacturing unit in Geelong Australia may be actually beneficial to the economy of the country according to modernistic view (Goodwin and Wright, 2007). It is believed by many economists that the domestic economy of Australia would evolve as a result of the decision taken by Ford. Newscastle was another city that experienced a similar situation in 1999, when the city lost the BHP Steelworks. After BHP steel ceased its business in Newscastle, the city shifted its competences towards medical research, education and innovation. Thus the decision of BHP Steelworks was a blessing for Newscastle in 1999. It is thus felt that the people for Geelong should be optimistic regarding their future despite of experiencing a closure of Fords manufacturing and loss of employment opportunities. It is believed by the modernistic thinkers that this incident would help Geelong to carve new ways for improvements of in segments of the economy like academics and medical research. Though it is true that the loss of Ford business would render many individuals jobless but still according to the modern optimistic view the growth of other industries would surely generate more employment opportunities in Australia (Raschella, 2013). Environmental Impact The decision of Ford to cease its manufacturing division in Geelong would surely create a stressful atmosphere in its working environment. The closure of the factory was reported to cease 510 job losses in Fords Geelong engine plant (News Geelong, 2013). The president of the Australian branch of the company along with its CEO Bob Graziano stated that it was necessary to end the production unit of the company in Australia because the company faced a loss of almost $141 million in the recent financial years. Such situation would surely create an uncanny environment in the existing workplaces of the company. The existing workers would fear to lose their jobs in this crisis, when the company is facing severe financial instability. The employees would surely resist to the decision of manufacturing cease, as they would not want their jobs to be lost. Internal