CASE 1 LESSON 1 ANSWERS

1. Given the evidence of Ford, is it still appropriate to talk about the goods and services
sectors being quite distinctive?
Answer :
Ford Cars are provide a goods and services highly distinctive in the sense that they can be
run as separate business entities. However, these entities can be owned and operated by
company, in this case, Ford. Customers do not buy cars on a regular basis in every 6
month or every 1 year. They send their cars for servicing on a regular basis in every 6
month or 10.000 km, depending on manufacturer’s recommendation. Goods and services
as in Ford’s case complement each other despite of being distinctive.
 Providing services
 Loan facility for the new customers
 Faciliting in different situation
 Produces car with better service quality

2. business is Ford in ? What business should it be in ?

Answer :
Ford is a multinational automaker. The moment a customer drives his / her car out of the
showroom, they expect a good after sales service from company that sells them the car.
Customers want to have a peace mind and no worried about the trouble they have to go
through with faulty cars. Cars should also be made affordable. This is achieved from
credit liberalization or better financing. Therefore, Ford should be in the service industry
of automobile servicing, financial services and insurance.
 Related to Car manufacturing company
 Has great supply of the car in European market
 Should provide continues services – repair and maintenance, mobile service
 Addressing high customer expectations
 3. Discuss the view that Ford should do what it is good at—designing cars—and leave
services to other companies.
Answer :
Ford has a history of designing good cars. They should give more emphasis by allocating
a good amount of investment in desigining better cars to suit customer’s needs and
expectation. A substantial budget allocation from the profit generated by the service
sector should be channeled back to R&D. leaving services to other companies may not be
a good option. Services business is needed by Ford as it provides direct feedbacks to
designers in understanding customers problems and requirement letter.
 Good at designing the cars
 Modification of the cars
 Addressing customer expectations
 Also need to give better service
 Tie-up with other financial as well as repair and maintenance companies
 Gain a success.

References :
http://www.pondiuni.edu.in/storage/dde/downloads/markiv_sm.pdf
https://www.slideshare.net/PdlSuzant/a-case-study-on-ford