Showing posts with label Ford. Show all posts
Showing posts with label Ford. Show all posts

Monday, March 04, 2013

Ford's new outlook towards India

Ford India President & MD Michael Boneham has worked tremendously hard on his India basics since appointment. In an exclusive interaction with sanchit verma, Boneham talks about Ford's new outlook towards India

B&E: How is Ford applying its One Ford strategy; do tell me about the brief given to you about the strategy while coming to India?
MB: The brief was all about ensuring that the products we are going to deliver to the Indian market are sourced through the global market platform, global product engineering, global development strategy that also meets local needs. And some of the local needs we see with Ford Figo are to provide outstanding value for money, great fuel economy, great technology available to differentiate the product from the competition. You must be seen in the 70% market in India because if you are not, you are not a major player in India. We utilized the resources of the Ford global team; the one team which we have had, to deliver an outstanding launch of Figo and put together a strategy that we use in the global platform as we move Ford. We are not going to have legacy brands any longer for India. We will have the V-car platform, C-car platform and we are going to utiize them across the globe, utilize the economies of scale to get the costs down so that we can price it efficiently and use outstanding engine technology to give outstanding class leading fuel economy. In India, that is a tremendous selling point and if you don't have fuel economy, you are not in the race. If we look at the Ford global strategy, it fitted beautifully with India's strategy plan. The better India plan!

B&E: With major players like Maruti, Tata already having a major share in market, what are Ford’s plans to become a major player?
MB: Firstly, we are going to be 'in' the segment. Secondly, we will be delivering outstanding value for money. This is not something which happens overnight. It is something which grows when customers start to accept your products in this segment in which we have just got in. So you have to ensure that you have great value for money. Cost of ownership is a positive story where we needed to work and we have done a lot of work. Cost of ownership for Ford Figo is very light as compared to big players. We have worked very hard on component cost, part cost when there is replacement, we have worked very hard on what we call the ‘child part’ strategy in which you can buy one small part rather than buying the whole assembly. For instance, you can buy the skin of the door panel if you meet with an unfortunate accident and someone winches your door away. You can just change the skin without changing the whole door. It’s the 1st in the Indian market and no else does that. Unfortunately, accidents are a reality of life in Indian roads, so that was an unbelievable level of creative thinking. So we worked hard on that body strategy to ensure what could we do so that the vehicles were in the great quality range while retaining low cost of ownership.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

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Monday, December 03, 2012

In Defence of Capitalism

 Many of you might think I have gone bonkers for defending Capitalism at a time when financial cataclysm is creating mayhem across the world. After all, America symbolised Capitalism and it does appear as if Uncle Sam is being destroyed by Capitalism. You could say that it is de facto 'nationalisation' – the ultimate symbol of socialism – that is saving America from financial destruction and ruin. There is no doubt that without the Federal Reserve and the Treasury Department – both arms of the US government – the American economy would have collapsed by now. The titans of Capitalism – General Motors, Ford, AIG, Citi... – have gone to the American government with a begging bowl, pleading to be saved from the very beasts of Capitalism that they used to flaunt so proudly till recently. For all practical purposes, America has turned decisively socialist. Similar things are happening in Europe, Japan and other so called citadels of Capitalism. With all this as the factual backdrop, how can I claim that Capitalism is still the best option for economic growth, poverty reduction and overall prosperity? How can I make such a seemingly foolhardy statement when even drum beaters of Capitalism like Alan Greenspan are suffering from a spasmodic bout of Mea Culpa?

The answer is simple. In the rush to denounce 'Capitalism' and its wild excesses that have created this crisis, there is fundamental confusion over all important terms like Capitalism, Market, State and Regulation. What we have seen in America over the last two decades or so is not Capitalism in the classical sense; you could call it Crony Capitalism or 'Financialism'. American capitalism was triumphant when General Motors, General Electric, General Mills, to name just a few, were the standard bearers. America manufactured the best products, provided the best services and hence ruled the world economy. But then, it turned into 'financialism' where Wall Street rocket scientists kept creating bubbles and hoodwinking the world.

They were joined in the farce by credit rating agencies. And they deliberately fostered a lie that ''markets'' are always perfect and that the State and Regulation are relics of an old era. The problem was that vast swathes of the world bought this hideous lie. Regulation in America had become a joke over the last two decades, with the State and regulators brazenly siding with the fat cats. If regulation is absent or biased, then Capitalism loses its core essence. Imagine a game of cricket between India and Australia where Andrew Symonds is the Umpire. Something similar happened in America. And we are all paying the price. But please, do not denounce Capitalism and the market as the twin evils. They are far from perfect; but they still deliver the best results and will continue to deliver the best results as long as the players in the game of Capitalism are supervised by an unbiased referee who blows the whistle when there is a foul.


Source : IIPM Editorial, 2012.An Initiative of IIPM, Malay Chaudhuri

For More IIPM Info, Visit below mentioned IIPM articles.

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