Ford Motors Essay Sample
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Ford Motors Essay Sample
1. Define and discuss Ford’s business-level strategy.
Ford’s business-level strategy is to design, develop, manufacture, and service cars and trucks worldwide that meets and satisfies its customers’ needs. The company follows cost leadership business-level strategy. The “One Ford” plan is the foundation of the company’s actions to achieve its mission and vision. Ford is one team, with one plan and one goal. In terms of being one team, Ford is comprised of people working together as a lean, global enterprise for automotive leadership that is measured by customer, employee, dealer, investor, supplier, union/council, and community satisfaction. The one plan entails four key points.
The first point is to aggressively restructure to operate profitability at the current demand and changing model mix. Secondly, to accelerate development of new products Ford’s customers want and value. Thirdly, finance its plan and improve its balance sheet. The fourth point is to work together effectively as one team. Ford’s one goal is to be an exciting viable company delivering profitable growth for all. Ford’s vision is to provide sustainable transportation that is affordable in every sense of the word: socially, environmentally and economically. The company’s blueprint for sustainability and commitment to pursuing its business levels strategy allows Ford to deliver new products that are safe, quality, fuel efficient and a value that the customers and society need.
2. Explain how the company’s value-chain activities can be better linked to create value for the company.
Ford’s value-chain activities can be better linked to create value for the company by the internal control of the factors of production and
distribution. Another way the activities can be better linked is by the advancement of its technology through the years. Ford Motors has developed and built upon its structure over many years of steady growth.
The company’s growth is a reflection of recognizing and addressing the things that creates value and the impact sustainability challenges present. Ford has identified nine issues that occur during the major life-cycle stages of its value chain. These issues includes: product planning and design, logistics (transportation), raw material extraction, parts and components, assembly and painting, sales, use, service, and end of life. Ford addresses these issues in terms of its principle actors in the stage, environmental issues, social issues, and economic issues. Better linking value chain activities through internal control of the factors of production and distribution; along with the advancement of its technology further Ford’s value-chain activities can be better linked to create value. 3. Explain how Ford can successfully position itself in terms of the five forces of competition.
Ford can successfully position itself in the terms of the five forces of competition because by the buyer power force of competition, Ford sets their own price for which they sell their vehicles. Since Ford is in a monopsony market just like it’s competitors they can set their own price based on what their competitor’s prices. We know that the buyer power that Ford has is strong because they have a threat of backward integration since they purchase tires for their vehicles.
Another one of the five forces where Ford can successfully position itself is in the rivalry amongst competing firms. Ford can compete with its rivaling firms by lowering prices, extending warranties, increasing advertisement and enhancing quality.
The barriers to entry force protect the high profit levels of firms in the market and stop additional rivals from entering into the market. Usually when the profits increase in a market other companies try to enter into the market to take advantage of this for them.
Threat of substitutes exists when a product’s demand is affected by the price change of a substitute product. Ford Motors can successfully position themselves in the threat of substitutes by substituting hubcaps for factory-based rims and auto manufacturer tires for retread tires.
Finally, Ford Motors can position themselves with the bargaining power of consumers because Ford Motors value their customers and they would give them a fair negotiation price. The customers would also ask to switch the competing brands or substitutes. 4. Outline a rough competitor analysis.
|Key External Factors |Weight |Rating |Weighted Score | |Customer Focus |0.10 |3 |0.30 | |Safety |0.20 |4 |0.80 | |Consumer Spending |0.15 |4 |0.60 | |Excess Capacity |0.05 |1 |0.05 | |Total |0.50 | |1.75 |
5. Describe what can be learned about expected competitor behavior by using the model of competitive rivalry to understand Ford’s situation.
What can be learned about the expected competitor behavior by using the model of competitive rivalry is that Ford Motors is willing to compete with its rivaling firms by lowering prices so that the consumers can choose them over another company such as General Motors for their service. Ford Motors also, offers the addition of adding features to customers so consumers may choose them over a rivalry firm and those features may be adding spoilers, navigation or heated seats in the vehicle that the rivalry firm does not offer.
Providing services and extending warranties are another area where Ford’s competitor behavior is used because if rivalry firms offer a basic 100,000 mile warranty Ford Motors can insure that they continue to have the customer service for more than just the 100,000 mile warranty by providing them with a 2-year warranty on the vehicle. 6. Explain what role strategic leadership will play in helping Mulally and the organization meet its strategic objectives.
The role that strategic leadership will play in helping Mulally and the organization meet their strategic objectives are that it will show them the employees that have the skills, tools, and desire to have what it takes to work for Ford Motors. Those skills, tools, and desire are needed to implement change in the organization to help it continue to grow and improve over the years. Strategic leadership will point the employees in the right direction also with their ability to learn and adapt to the current changes and ensure that the strategy delivers what Mulally is looking for.
Data Source- Ford Motor Company
Data source- Value chain
http:// tutor2u.net/ ebusiness/ebusiness-strategy-business-models.html
Data source- Strategic management