Report on Ford Motor Company Automaker company

Introduction of Ford Motor Company Automaker company

The essay is based on the analysis of strategies implemented in Ford Company and to take overview that how ford is working in the market. In commercial world, organizations needs to be competent in strategies to meet the requirement of the current era so that it could be manageable for the companies to compete with the competitors. Besides this, these strategies are also helpful in making development within a specific time period. The paper is also based on the discussion about internal resources of Ford Company which create value for the demand and get customer satisfaction through these strategies. Strategies may be of corporate level and business level, both are enough competent to sustain in the market with competitive advantage. Following are the questions about the strategies of Ford Company which describe the effect of these strategies:

Q1. Critically analyze and discuss the key forces in general and industry environment that affect Ford’s choice of strategies.

Ford motor company is a multinational American based company which is engaged in automaker that has working from Detroit which is founded in 1903. The company deals with automobile and commercial vehicles under the brand, which produces most advance and luxury cars with the name of this brand. As concerned with the strategies enforce in the Ford there must be knowledgeable about the strategy. Strategy means all the ideas and discussions which makes a firm to be a successful unit in the market with these strategies. In general way, there are certain strategic management tools that are enforced in the company according to the leadership style being enforced in the company. To meet the advance challenges of the competitive market there should be leader who must have qualities such as proactive in work, anticipating and can change the strategies according to the time requirement. The work of the organization needs to be alert towards his opportunities, which shows the abilities of the leaders who have the thinking capacity in the work of company. The basic purpose of the leader is having vision, mission and strategic purpose of the leadership (M. E. Bayou & De Korvin, 2008).   

In the general environment the strategies adopted by Ford or any other organization are related to the PEST analysis of the organization, which is necessary to analyze in the strategies of any business. PEST analysis is explained as:

Political- refers to the term that analyzes the situation of country in which Ford is being worked. It deals with the policies of the government which could affect the performance of the company such as:

Tax rates and policies of import and export

Safety standards

Plans to control pollution

Discouragement to fully automating operations

Eco-friendly vehicles to save the environment

Economic- means to a situation in which the ford is conducting business could influence the GDP of the country. It includes weak economy, volatile financial market, and liquidity of the market in which it is being worked to generate the revenue.

Social- effects of the business are related to issues such as pollution, oil prices and changes in customer’s habit of buying new and modern vehicles.

Technological- environment related to the terms which refer to the methodology of the production. It expresses the technology which is being used in the production, such as the intelligence system, fuel-efficient models and electro car, etc.

The industry environment is based on the five force model which follow the business strategies of Ford automobile. It is explained as below:

Rivalry of Ford Motor Company Automaker company

Ford is currently facing tough challenges in the market, which is compulsory to face and survive in the market. The element rivalry is required to implement the strategy which is needed to innovate the products, which means that firm is dealing with the issues which make it strong in the market to get a competitive advantage in the market.

Threats of new entrants of Ford Motor Company Automaker company

Ford company realize that the impact of new entrants in the market could have resulted in the high cost of business work and business development. Companies working like Ford are committed to the work in a way that the cost becomes the barrier of the new entrants in the market. It is strongly comparable that the strategies are making difficult for new companies to enter the market.

Threats of substitutes of Ford Motor Company Automaker company

With the passage of the time, Ford Company face that alternatives to the product which could be resolved in the following external forces which might be against the policies of the Ford. There are several alternatives that could be used by the public such as bicycles and transportation in specific areas.

Bargaining power of supplier of Ford Motor Company Automaker company

Suppliers have an influence on the production of Ford which direct influence the overall supply of the products in the market. The supplier bargaining is poor as it deals with limited resources of the supply of the material.

Bargaining power of the buyer of Ford Motor Company Automaker company

The customers are the main stakeholder which influence the business of any industry. Customers are facing switching the cost of the product which is more than the market which can significantly impact the total revenue of the company.

Alan Mulally joined Ford and reshape the strategies of the organization, which influences the market condition of Ford. There were difficulties faced by the management when he left the company and Ford faced most experienced high-ranked employees left the company. Ford appointed an outsider to run the business. As soon as Mulally became the CEO of the company, some of Ford’s most experienced high-ranked employees left the company. They cut down their costs by closing 14 plants and by cutting down 30,000-plus jobs. They planned to enhance the plant utilization and production levels and focus on smaller and more fuel-efficient vehicles (S. Oussama).

Q2. What internal resources and assets and capabilities do Ford have that may give it a competitive advantage? Explain how Ford gives value to its customers. Identify the problems which are facing in this respect.

Internal resources in any organization affect the performance of the company. The internal resources of the Ford Company are

Value Chain Analysis

Resources Based View

Value Chain Analysis of Ford Motor Company Automaker company

In value chain management of the Ford is based on the firm infrastructure, which is built by the general management, planning, financing and quality management of the company. The value chain department is linked with the system, which could create the issue in supplying the standard of the production. This could be assisted in the company if the company is using advanced technology in the production (H. M. Wee & Wu, 2009).

Resource-based analysis of Ford Motor Company Automaker company

There may be tangible and intangible resources in the operations of a company that could be used in the competitive advantage of the company. Tangible resources are the resources that take place in manufacturing segments around the world, which facilitate the machinery and equipment in plant of the production.

There are three different strategies that are used to achieve competitive advantage in the market. The first one is the overall cost leadership in creating low cost to relative, which is managing the relationship to complete the entire chain of value management. The second one is differentiation of the strategies, which are implied on the management to pay premium to the employees so that they could be motivated. A focus strategy needed to implement in the product and services which should be served to the customers with relevant to product line and targeted graphics of the market. The advantages related to the strategies are obtained like product differentiation and cost leadership in the production of automobile.

To get a competitive advantage, ford had to deal with the capacity to connect with the automobile companies, which attain a competitive advantage in different strategies in the competitive advantage of the company. The cost leadership and product differentiation avail the competitive advantage of the automobile industry. They were building smaller cars rather than big cars. Ford’s most successful vehicles are the F-Series pickup trucks. Ford concentrated on making vehicles that were more fuel-efficient, like the hybrid.  They also launched the Focus Electric vehicle in North America (M. May, 1982).

Ford is serving some customers within the automobile industry with the impact of end-user in the commercial business. Ford is providing value to its customers in different following ways:

Brand name- as the company is counted in most efficient and recognizable names in the market, which competes the other competitors in the market with efficient resource and products. Ford is serving to its customer with a brand name which is recognized worldwide.  

Quality product- ford is serving customers and the commercial operator units with quality products that are considered reliable by the customers and consumers. The customers are happy with the service of efficient vehicles to use in the market.

International sales- The Company is operating a wide network of dealerships of the cars on global level, including America and Europe.

Expertise and experience- as the industry is oldest unit in automobile industry; therefore, it can attract customers with more reliable way to choose by customers.

There are many problems which are facing by Ford as it is a widely working business in Europe. Following are some challenges which are faced by the ford:

Increasing gas prices

Sluggish sales

The bottom line of production

Tire quality problem

Location of the business

Q3. Discuss the ford business-level strategy and corporate-level strategy. What are the advantages and disadvantages generated from such strategies? Suggest how Ford may improve and sustain its competitive position.

Ford Motor Company is a unique and demanding vehicle brand in the motor industry. It proved that after starting the sale of products, Ford proved that it is an efficient entity to serve the customers among its competitors since it not only made sales but also increased their production levels.  Ford’s competitive strategy gives priority to the manufacturing of affordable vehicles for the people use, which most of its competitor’s lack. In current days of business, as the company has covered the travel of first century and now in its second century, it has targets to meet most of its consumer demands using a competitive approach by focusing on vehicle brands. Their corporate strategy majorly entails horizontal integration with the acquisition with a portfolio comprising of Lincoln, Ford, Jaguar, Mazda, Volvo, Mercury, and Land Rover.

Furthermore, the company’s business-level strategies deal with aspects such as cost leadership strategy, which have great emphasis on running the functions at low costs. Therefore it is important issue to discuss Ford Motor Company’s business-level strategies, corporate level strategies and competitive strategies and know about the effectiveness of Ford’s competitive strategy in the operation of the business market. Business level strategies prevail in the market with the actions those business actions aimed at providing value to the customers in positive way. To get a competitive advantage, ford had to deal with the capacity to connect with the automobile companies which attain the competitive advantage in different strategies in competitive advantage of the company

In the business level and corporate level strategy the customers found the basic purpose of the business. There must be proper understanding of the customer’s requirement to get a competitive advantage in the market. A successful strategy always intimates about the revenue of the business. There may be benefits such as:

Cost leadership- business may find difficulties to sell out the products to get a competitive advantage. Therefore business-level strategy used to get combine the suppliers and buyers on a level that gives the economical view of the product and enhances the profit of the ford as it is increasing the production at low cost.

Differentiation- in entering the new market, it is difficult to attract the customers which could reduce the output level of the company, but in ford business there are different strategies that attract the customers. Ford is serving its customers with unique and different product which increase the revenue of the company.

As for prolonging advantages, there may also be some disadvantages which could be monitor in the business. Business level strategies are prevailing in the ford which is creating competition in the market to enforce the potential work in the market. Once if these strategies are applied, management avoids achieving a certain level of success in the business. The use of new technology in business may create the difference between the product and customer use to increase in cost of the technology.

To meet the advance challenges of the competitive market, there should be leader who must have qualities such as proactive in work, anticipating and can change the strategies according to the time requirement. The work of the organization needs to be alert towards his opportunities, which shows the abilities of the leaders who have the thinking capacity in the work of the company (D. P. Gravel & Newman, 2001).

Conclusion of Ford Motor Company Automaker company

All above discussion about the strategies of the Ford Company represents the current situation of the company and represents that how company is ruling in the market with these strategies. Pest analysis shows the current market performance of the company and internal resources shows that company owns a good position with customer satisfaction and people rely on ford product in coming years. There may be some problems to implement the strategies which could help to gain competitive advantage in the market. The company’s business-level strategies deal with aspects such as cost leadership strategy, which have great emphasis on running the functions at low costs. Therefore it is important issue to discuss Ford Motor Company’s business-level strategies, corporate level strategies and competitive strategies and know about the effectiveness of Ford’s competitive strategy in the operation of the business market. Business level strategies prevail in the market with the actions those business actions aimed at providing value to the customers in positive way. To get a competitive advantage, ford had to deal with the capacity to connect with the automobile companies which attain the competitive advantage in different strategies in competitive advantage of the company.

 REFERENCES of Ford Motor Company Automaker company

D. P. Gravel, & Newman, W. S. (2001). Flexible robotic assembly efforts at Ford Motor Company. In Proceeding of the 2001 IEEE International Symposium on Intelligent Control (ISIC'01)(Cat. No. 01CH37206) (, 173-182.

H. M. Wee, & Wu, S. (2009). Lean supply chain and its effect on product cost and quality: a case study on Ford Motor Company. Supply Chain Management: An International Journal, 14(5), 335-341.

M. E. Bayou, & De Korvin, A. (2008). . Measuring the leanness of manufacturing systems—a case study of Ford Motor Company and General Motors. Journal of Engineering and Technology Management, 25(4), 287-304.

M. May. (1982). The historical problem of the family wage: The Ford Motor Company and the five-dollar day. Feminist Studies, 8(2), 399-424.

S. Oussama. (n.d.). Strategic Analysis of EVs electrical energy storage using PEST analysis and Analytical Network Process for Technology Adoption. International Journal of Engineering and Applied Sciences, 5(2).