Deck 20: Case Study Ford Motor Co.: One Ford; One Big Turnaround

Question 1

Ending the Mercury division and selling off its stakes in luxury cars helped Ford transition to being a greener company.

Answer 1

True

Question 2

Ford's new emphasis on small cars is a classic example of "greening."

Answer 2

False
Greenwashing is when a product or company attempts to give the impression of environmental
friendliness whether or not it is environmentally friendly.

Question 3

There are three major benefits when a firm contracts.When Ford divested itself of its unprofitable foreign luxury brands and Volvo,and discontinued its Mercury brand,which of the following was the most important benefit discussed in the case?

A) managers no longer waste resources on poorly performing brands
B) new product items have a greater chance of being successful
C) resources become concentrated on important Ford products
D) reposition Ford as a domestic carmaker only
E) all of the above

Answer 3

C
Divesting noncore brands allowed Ford to focus on recharging the Ford brand and making it great.

Question 4

When you purchase a new Ford F150 from the dealer with every option as well as a custom airbrushed painting of your horse farm,you have purchased a __________ product.

A) consumer
B) business
C) shopping
D) specialty
E) convenience

Question 5

Small cars are already making Ford a more profitable company.

Question 6

Selling off noncore brands is not always beneficial for a company heavily dependent on design and R&D staffs such as Ford.

Question 7

The Focus and Fiesta lines use a single platform for each worldwide market.How does that benefit these product lines?

A) advertising economies
B) package uniformity
C) equivalent quality
D) product line depth
E) standardized components

Question 8

Mercury was a long-time division of the Ford Motor Company.What kind of branding did Ford eliminate when it ended the Mercury product line?

A) noncore brand
B) Ford family branding
C) co-branding
D) the automotive equivalent of a captive brand
E) individual branding

Question 9

When Ford sold its stake in Volvo,Jaguar,.Aston Martin,and other brands,it __________.

A) reduced its product items
B) repositioned its product lines
C) contracted its product mix
D) engaged in a rebranding strategy
E) all of the above

Question 10

That Ford offers five Focus variants based on one platform,i.e.,four-door,hatchback,SUV,minivan,and commercial vehicle,is an example of __________.

A) standardized components
B) functional modification
C) product line depth
D) style modification
E) all of the above