Preview

Ford Motor Company Written Case Analysis

Best Essays
Open Document
Open Document
2371 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Ford Motor Company Written Case Analysis
TABLE OF CONTENTS

1. INTRODUCTION 2
2. Case Question 2-8
2.1
Define and discuss Ford's business-level strategy. How can the company's value-chain activities be better linked to create value for the company?
2.2
How can Ford successfully position itself in terms of the five forces of competition?
2.3
In what ways can the company effectively manage customer relationships to increase strategic competitiveness?
2.4
What conditions and tools can facilitate Ford's efforts to produce differentiated products at relatively low costs? Outline a rough competitor analysis. What can be learned about expected competitor behaviour by using the model of competitive rivalry to understand Ford's situation?
2.5
What role will strategic leadership play in helping Mulally and the organisation meet its strategic objectives?

6. CONCLUSION 8
8. REFERENCE LIST 9-10
1. Introduction
Henry Ford was the founder of Ford Motor automaker started on 1903. Ford Motor Company is an international automotive industry leader established in Dearbon, Michigan. The company consists of eight automotive brands which include Ford, Lincoln, Mercury, Mazda, Volvo, Jaguar, Land Rover and Aston Martin. Alan Mulally has been appointed as Ford Motor Company’s CEO. Mulally is already faced with a devastatingly complex circumstance. He has challenging the task of enhancing Ford’s brand image and returning the company to probability due to diverse global dynamics brazen out the company and competitive pressures to build. I have been invited by Mulally to provide advice to his management team on improving the company’s reputation and capability. I have been assigned to the project and asked to assess Ford’s circumstance to present my suggested course of action for Ford.
2.1 Ford business level strategy is cost leadership as the company strategy is to manufacture, develop, design and service cars and trucks globally that meets customers’ satisfaction. A



References: * Andress, J., Horton, D., Kleven, C., McCullar, M., Stevens, H., & Chapman, R., Case 10, Ford Motor Company, Strategic Management, 2010 Custom Edition, 123-138. * Bernard, J. (2003). “Cost leadership strategy”, Ecole Hôtelière de Lausanne, Switzerland. * Bowman,R.,(2004), “Aftermarket Is No Longer an Afterthought”, Supply Chain Brain. * Fallah,A.,(2009), “Ford Fiesta Econetic – Australia Most Fuel Efficient Car”, Car Advice. * Gold, A. (2010),” Our Ten Favorite Fuel-Efficient Cars” About.com Guide. * Highfill, M., Baki, M., Copus, S., Green, M., Smith, J., & Whineland, M.,(2004), “Automotive Industry Analysis – GM, DiamlerChrysler, Toyota, Ford, Honda”, Academic Mind. * Hitt, M, Ireland, R, & Hoskisson, R. (2009).” Strategic management: competitiveness and globalization, concepts and cases”, Mason, Oh: Cengage Learning. * Kiechel,W.,(1981), “The Decline of The Experience Curve”, Fortune, pg * Nasr, M. (2010). “Strategic Management Case Analysis”, MMU University.

You May Also Find These Documents Helpful

  • Powerful Essays

    F150

    • 2530 Words
    • 11 Pages

    In this section we discuss the actors close to the Ford Company that affect its ability to serve its customers. We have already discussed the company in the previous paragraph, but let’s look key player of the management group; William Clay Ford, Jr who is the Executive Chairman and Chairman of the Board has the overall responsibility to defining and setting the company objective and goal which is express in the Fords mission state “ONE Ford” which place the important of working together as one team. Next there is Joseph Bakaj is the Vice President of Ford Product Program and Product Development in which research and development (R & D) falls under. Research and development is responsible for accelerating the development of new vehicles (trucks for this paper) that customers will purchase. The second item is the suppliers, in many cases these are Fords partners, Cisco and Microsoft does not provide automotive parts but they supply software which runs the hand free and telecommunication…

    • 2530 Words
    • 11 Pages
    Powerful Essays
  • Best Essays

    Buss499Assignment5

    • 2940 Words
    • 12 Pages

    Hitt, M. A., Ireland, R. D. & Hoskisson, R. E. (2010). Strategic Management: Competitiveness and Globalization, Concepts. Mason, OH: Cengage Learning.…

    • 2940 Words
    • 12 Pages
    Best Essays
  • Better Essays

    mkt Case study

    • 1714 Words
    • 5 Pages

    During the year 2006, Ford Motor Company suffered its biggest operating loss to date at the cost of $12.6 billion. A year later in 2007, things didn’t improve much as Ford posted a $2.7 billion loss. This corresponded with increasing deterioration in market share, with the majority of these losses being captured by other competitors. Ford had seemingly fallen down a slippery slope, and found itself in a hole it was struggling to surface from. This was all gearing up to the three-year recession that hit the U.S. and Global economies extremely hard. Ford’s competitors, General Motors and Chrysler, found themselves also struggling to get a foothold suffering such losses that both companies had to ask the government for massive bailouts while also filing for bankruptcy. Ford was apparently heading for the same disastrous bailout, but then Alan Mullaly stepped in as the new CEO and implemented a series of crucial strategic maneuvers. These strategic maneuvers that he coined as “One Ford,” aided them in getting a foothold out of the hole in which they dug for themselves by losses in market share. One such important strategic maneuver utilized by Ford was the reorganizing of its product line. It did so by standardizing components and making a stable of products that is more clearly defined for each market segment (Senna, 2013).…

    • 1714 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Cited: 1. Hitt, M., Ireland, R., & Hoskisson, R. (2011). Strategic Management: Competitiveness & Globalization (10th ed). Mason, OH: South Western, Cengage Learning.…

    • 6870 Words
    • 21 Pages
    Powerful Essays
  • Good Essays

    Strategic Management according to Jasper and Crossan (2012) is the “essential process for coping with external change” (p. 838). Strategic Management is the linking of strategic thinking and analysis to organizational action. Strategies are initiatives taken by leaders on behalf of an organization involving the use of resources to improve their performance and external environment. Three elements are involved in strategic management, the first is to knowing where the organization is strategically through a strategic analysis, a strategic choice is the understanding of what guides strategic decisions. The last one is strategy implementation referring to the translation of the strategies into action plans. Strategic Management “ties the organization with a shared sense of purpose, improves financial performance, improves overall coordination within the organization, and encourages innovation” (Swayne, Duncan, & Ginter, 2008, p. 20).…

    • 879 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Mgt 521 Final Analysis Paper

    • 2903 Words
    • 12 Pages

    The final part of the business analysis will cover the strategic initiatives of Ford Motor Company (Ford), their reaction to the economic trends, company strategies for adapting to changing markets, and tactics to achieve strategic goals. It will also review the operations of their human resources department in helping to achieve business goals as well as give rationale whether or not to invest in Ford. Some of the best practices of Ford are centered on their manufacturing techniques, technology, and environmental awareness. Ford manufactures cost effective, fuel efficient, and environmental…

    • 2903 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    Ford vs. Gm

    • 4858 Words
    • 20 Pages

    Dornbach-Bender, Rhett, Bill Slade & Joe Thorpe. “Strategic Report for Ford Motor Company.” Oasis Consulting. 20 April 2009. Web. 11 April 2012. http://economics-files.pomona.edu/jlikens/SeniorSeminars/oasis/reports/F.pdf…

    • 4858 Words
    • 20 Pages
    Powerful Essays
  • Satisfactory Essays

    Ford has strived to meet the demands of the world for the perfect vehicle to fit their needs. Ford has proven that they are truly innovative leaders. Ford Motor Company has fought their way up through the automobile industry from the great depression to the almost collapse of the automobile industry. Henry Ford and Ford Motor Company have played a vital role in history and America’s economy. They have managed to build a company based on value, customers, and tradition that is still going strong. Ford has made their supply chain a critical aspect of their company by promoting long-term relationships with their suppliers and seek alignment with them on sustainability-related issues such as human rights, working conditions and environmental responsibility.…

    • 333 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Strategic Management Asos

    • 2609 Words
    • 11 Pages

    Hitt, M. A., Ireland R. D. & Hoskisson R. E. (1999) Strategic Management: Competitiveness and Globalization. 3rd ed. International Thompson Publishing…

    • 2609 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    The Ford Motor Company, founded in 1903 by Henry Ford, is synonymous with American innovation and capitalism. With iconic branding and revolutionary manufacturing processes, Ford was the world’s No. 2 automaker for decades, second only to General Motors (“Ford Motor Company”, 2012). But the winds changed for the American automakers, the combinations of poor leadership, complacently, high manufacturing costs, poor customer satisfaction, labor disputes and ever stronger foreign competition from Toyota, Hyundai, Honda and others cost them valuable global market share and customer loyalty. By 2006 Ford did something that many thought was a desperate move by an ailing giant; they borrowed $23.6 billion. The loan became Ford’s lifeline when the global financial crisis of 2008 hit and the auto industry tanked with it. By 2009, Ford was the only American automaker that did not receive a government bailout, and by 2010 Ford’s US sales surpassed GM’s, a feat that hadn’t happened in over 50 years (“Ford Motor Company”, 2012). During this time of financial crisis, Ford has adopted a new strategy that it calls “ONE Ford” which has dramatically restructured the company’s mission and goals. By using the Balanced Scorecard approach Ford’s business unit leaders can translate the ONE Ford’s “lofty vision and strategy statements” into actionable “objectives and measures” at the local level (Kaplan…

    • 4099 Words
    • 17 Pages
    Powerful Essays
  • Powerful Essays

    Hca Case Study

    • 1686 Words
    • 7 Pages

    The business-level strategy is acombined and synchronized collection of the obligations and actions that are used by the firms to attain a competitive advantage. The firms try to consume core abilities in certain product markets. Under this strategy, the firms stipulate their choices on that how they plan to strive in individual product markets. It’s important that every firm should improve a business-level strategy to generate the differences between its own place and its competitors’ places. The bond between the customers and business-level strategies is very important because the customers are main cause of the strategy’s success. The bond that a firm develops with its customers creates the value and profitability. There are five business-level strategies that a firm shouldor can practice to create and support its chosen strategic position against competitors. These include the variation, the cost leadership, the focused cost leadership, focused differentiation, and the unified cost leadership/differentiation. In chapter 6, it argues these five strategies and side by side with the risks that are associated with each other. In chapter 6 they also argue corporate level strategies. The corporate-level strategy has emphases on the actions that a firm takes to attain a competitive advantage by choosing from and handling a collection of different businesses competing in different product markets. These strategies help the firms in choosing on new strategic positions that are likely to increase the value. The product diversification is avital type of the corporate-level strategy. The diversifications also can differfrom the low levels to the high levels. Well normally, the diversification strategy is used to raise the firm’s value by improving its whole performance. It is essential that the managers should attentive to their firm’s internal organization and to its external environment when making decisions regarding the most advantageous level of…

    • 1686 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    According to the text, business-level strategy is the plan of action that the strategic managers adopt to use a company’s resources and distinctive competence to gain a competitive advantage over its rivals in a market or industry. There are three main business-level strategies, namely; cost leadership strategy, differentiation strategy, and the focus strategy. In this paper, I will be looking at different automakers and the business strategies they use.…

    • 347 Words
    • 2 Pages
    Good Essays
  • Good Essays

    The automotive industry is considered to be an oligopoly. There are few large firms capturing the majority of the market share. There are significant entry barriers and there is potential for product differentiation and imperfect availability of information. Being an oligopoly makes it a highly competitive market with immense price competition and therefor weak profit margins. Having used the Porter's 5 forces model (see Table 1), two main driver of competition could be identified. The convergence of technology and design within the industry led to an increase in competition. The former distinctive differences and the variety of technologies that once distinguished different cars from different manufacturers were now gone due to the promotion of global models. All large car manufacturers were now offering a more similar product concerning technology and design. The second driver of competition was a broader competitor base that accompanied the capture of emerging markets. Even though the entry barriers in the global automobile industry are high due to huge capital requirements, economies of scale and technological know-how, there were still companies who managed to enter the market. Above all, this was possible due to cheap labor cost in those regions. Especially Toyota, that introduced the Lean production system that later became industry standard was very efficient in cost saving. Having a regional advantage of producing at low cost and therefor being able…

    • 1242 Words
    • 5 Pages
    Good Essays
  • Better Essays

    Hitt, Michael et al (2009); Strategic management: competitiveness and globalization : concepts & cases; Cengage Learning, ISBN…

    • 1842 Words
    • 8 Pages
    Better Essays
  • Better Essays

    Starting at the center of the model is the current industry, which includes General Motors and their typical competitors, such as, Ford, DaimlerChrystler, and the Japanese [Laudon & Laudon, 2005]. All of these traditional competitors are able to produce cars at a much cheaper cost than General Motors.…

    • 2635 Words
    • 11 Pages
    Better Essays

Related Topics