The Global Enterprise Process Model assists managers with visualizing how to improve efficiency and cost reduction (McElroy 1997, 105).
During implementation of Ford 2000, not all managers were supportive of the reorganization efforts. One source, who works closely with suppliers, expressed the following concern, "We are reducing the number of suppliers and dealing with only those companies who have a global reach. But are we overlooking some of the smaller companies who are more creative, who can react quicker, and are willing to take on a lot of reengineering necessary to get the job done?" (Sawyer 1994, 28) Additionally, the Ford 2000 initiative raised concerns regarding the global implications of cost reductions requested by former CEO Jac Nasser, known as "Jac the Knife." (McElroy 1997, 99).
After introducing the Ford 2000 initiative, Ford experienced falling profit margins. In 1996, Ford reported losses of $291 and $642 million in Europe and South American regions respectively (McElroy 1997. 97). Unfortunately, over the past year Ford has experienced similar financial woes. The current struggles result from a declining interest in Ford models, the devastating Firestone recall and the downturn in the global economy. Alex Taylor III, author of What's Behind Ford Fall?, suggests that.
European operations are barely profitable, and the company is losing money in Latin America (Taylor 2001).
Moreover, for the past 21 years Ford has been a market leader in Britain, yet now that region is a liability. Ford is experiencing financial difficulties in Britain because the U.K. government refuses to join Europe's single currency, the euro, and the due to the strong position of the British pound (Mackenzie 2000). In 2000, roughly 28% of Ford Europe's costs came from Britain, compared with about 12% for GM. Nick Scheele, former CEO of Ford Europe stated, "That means they [GM] have a cost advantage relative to us of $1.
