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Ford Motor Case Study

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Ford Motor Case Study
BLB 20058 – M – MSTRA- L

MANAGING STRATEGY ASSIGNMENT

FARUK SULEIMAN
TP025329

WORD COUNT: 3694 WORDS

UCMF1103MBAIT
SCHOOL OF POSTGRADUATE

TECHNOLOGY PARK MALAYSIA
ASIA PACIFIC INSTITUTE OF INFORMATION TECHNOLOGY
UNIVERSITY OF STAFFORDSHIRE

SHARMILA A/P K. N. SETHUMADHAVAN
EXECUTIVE SUMMARY

Strategy is well explained as the effective use of well laid out plans to achieve success. It is no less of spectacle to attribute strategy to individual achievement, achievement from a company, a country or at the very least a non – financial institute to achieve strategic success.
Ford Motor Company has in recent times lost its market share to emerging Asian companies such as Honda, Toyota, Hyundai and Nissan. As a new landscape of economic might surfaces, new car stereotypes are emerging. Finding a place in these segments is proving difficult for Ford Motors and hence need to change its strategies. Hyper-competition combined with tough economic times has pushed Ford to the edge of insolvency. This paper examines the issues that plague the company while using published models to make analysis on how and why the problems occur to better understand their potential impact on the company’s sustainable competitive advantage. Recommendations will seek to give strategic solutions to address the issues identified earlier. This research isn’t structured upon models to identify, analyze and solve issues but rather looks at the core of the problems within Ford Motors and provides models to analyze and solve the issues.

TABLE OF CONTENTS
Contents
INTRODUCTION 1 SECTION 1: STRATEGIC ISSUES AT FORD 2 Underlying Issues at Ford Motor 2 1. Financial 3 2. Competition 4 SECTION 2: STRATEGIC MODELS AND FRAMEWORK SUITABLE FOR ISSUES IDENTIFIED 6 2.1. Competitor Analysis 6 2.1.1 Porter’s 5 Forces Analysis 7 2.1.2 SWOT ANALYSIS 11 2.2 Financial Analysis 13 SECTION 3: RECOMMENDATIONS 18 3.1 Factory and Supply Chain Management 19 3.2



References: Altman G. David and Rego L. 2009 “Expanding opportunity at the base of the pyramid” Center for creative leadership, Grameen foundation Vol. 32/ Issue 2 Akan O Ansoff, H. Igor. “A Model for Diversification” Management Science. Vol. 4. No. 4. INFORMS. 1958. pp394-395. Bedell, Denise. Ford Counters Global Risk. Corporate Finance, London. Iss.197. 2001. pp1-2 Bernhardt, K Brown L. and Eisenhardt M. K. 1998. “Competing on the Edge: Strategy as Structured Chaos.” Boston: Harvard Business School Press. Carr C. and Collins D. 2011. “Should you have a global strategy?” MIT Sloan Management Review vol. 53 no.1 Chandler A Christensen M. C. and Overdorf M. 2000. “Meeting the Challenge of Disruptive Change.” Harvard Business Review 78(2 March-April):66-78. D’Aveni, A. R. 1994. “Hypercompetiton: Managing the Dynamics of Strategic Maneuvering.” New York: The Free Press. Ford Motor Company, 2009 Annual Report. Form 10K Grant M Hamel G. 2000. “Leading the revolution” Boston; Harvard Business School Press 2000 Hamel, G Kaplan S. R. and Norton P. D. 1996 “Linking the Balanced Scorecard to Strategy”. California Management Review. Vol. 39. No.1. reprinted by permission of Harvard Business School Press p.54 Khanna T., Song J Miller L. William and Morris L. 1999. “4th Generation R&D.” New York: John Wiley & Sons, Inc. Porter M. E. 2008. “The Five Competitive Forces that Shape Strategy” Harvard Business Review, January 2008. Porter M. E. 1990. “The competitive advantages of Nations.” Harvard Business Review Priddle A Pries, Ludger, 2001. “The dialectics of automobile assemblers and suppliers restructuring and globalization of the German “Big Three”.” Universitat Des Saarlangdes. Allemagne. Rayport, Jeffry F. and Sviokla, John J. “Exploiting the virtual value chain.” The Mckinsey Quarterly. No. 1. 1996. pp26-28. Rumelt, R. 2011. “The perils of bad strategy” McKinsey Quarterly Sankar T Slack, N. and Lewis M. 2008. “Operations Strategy; 2nd Edition” FT Prentice Hall, Harlowi Serrat O The New York Times, 2008 “Ford Motor Company” Business Day, nytimes.com, New York. [Online] Available from; http://topics.nytimes.com/top/news/business/companies/ford_motor_company/index.html [Accessed 14/12/2011] Vasilash, Gary S Figure 2: Fords “One Ford Annual Plan” (Ford Motor Company, 2009 annual report)

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