Ford Motor Company manufactures and distributes vehicles around six continents making it one of the largest automotive manufacturer’s in the world. The company has a strong market position as a result of its product portfolio that gives Ford significant competitive advantage in the marketplace. However, Ford Motor continues to strive to become the world’s leading consumer company for automotive products and services (“Sustainability Report”, 2014). Achieving Goals
To achieve goals, Ford plans to implement both strategic and operational plans that coincide with the company’s mission and vision for the future. Its main purpose is to improve its products and services to meet customer needs, and to provide a reasonable return to its shareholders. Strategic Plan Ford Motor Company has a goal of becoming an efficient global enterprise by using its new technologies on its global platforms. This will allow the organization to generate growth across its products and efficiency savings (“Global Round-Up,” 2011).
Its focus is on sustainability and fuel efficient technologies. Ford recognized for its efficient use of natural resources, such as retooling its manufacturing facilities with energy-efficient equipment, and increasing the use of sustainable materials while eliminating undesirable materials and substances. Additionally, the company focuses on delivering sustainable alternative fuels options to improve fuel economy. These actions result in savings in the manufacturing process.
Aligning its capacity through demand is another strategic plan used to respond to the changes in the market place. An example is Ford’s front-wheel drive and all-wheel drive platforms. These platforms engineered to accept a range of gasoline, diesel, hybrid, plug-in hybrid or electric vehicle propulsion systems (“Global Round-Up,” 2011). That concept, combined with the company’s standardized flexible production facilities allows Ford to produce vehicles to meet customer preferences or changes across markets as they occur.
Operational Plan The economies of the different markets across the globe affect Ford Motor Company, especially the profits in the production of small cars in Europe. Its European operations have continued to report a loss because of the challenging economic conditions, and higher commodity and material costs. Ford has a strong engineering and research and development capability to aid in increasing profits. The efforts directed at improving the performance and the development of new products.
This strong research and development support and increase Ford’s service offerings, and enable it to drive future growth. Ford has also had frequent product recalls that have affected Ford’s quality image. Ford has recalled some of its most popular models due to manufacturing and design problems (“Sustainability Report”, 2014). This can negatively impact the consumer confidence in Ford and will damage the brand name and trust in its products. Ford has aggressively invested in its production facilities for a more lean, green, and flexible manufacturing facilities.
Such strategic investments will enhance the production facilities of Ford and help it to manufacture more efficient products for its customers. Planning Effects on Stakeholders Stakeholders have an interdependent role with Ford Motor Company and included in the company’s overall planning. The internal stakeholders include employees, unions, and shareholders. When Ford begins its planning process, the welfare of its employees is important as Ford faces workplace health and safety challenges.
The challenges include establishing expectations for employee safety worldwide. The majority of its manufacturing facilities have safety committees comprised of both union and management employees, which guide the development and implementation of safety programs in their operations (“Sustainability Report”, 2014). Ford also partners with unions helping to provide a productive and safe workplace. The stockholders also affect the planning process because Ford has an obligation to provide them a reasonable rate of return on their investment.
The external stakeholders include the customers, dealers, suppliers, and communities. Ford’s customers include small business, retail consumers, and large commercial fleets. The organization continues to expand its products and services by increasing the smaller and more fuel-efficient vehicles product lines. The dealers are the main employers that contribute to local economies, and are responsible for the sale of Ford’s product line. Suppliers are an integral part of Ford because their success is interdependent on each other.
Ford Motors is also expanding its sourcing in the lower-cost markets, as a way to serve local markets and the global supply chain. The organization impacts the communities by the employment provided and the taxes paid. Also, the environmental aspects and the safety performance of its operations are fundamental to the success of its business. Conclusion Ford Motor Company is one of the leading automobile manufacturer’s in the world, and it uses strategic and operational planning to achieve its goals.
Both internal and external stakeholders considered when making any decisions. In doing this, Ford Motors will continue to deliver fuel-efficient technology in a reliable product to become the leader in automotive products and services. References Global Round-Up. (2011, March). Market Watch, 10(53), 17-26. Hoovers First Research Sustainability Report. (2014). http://www. corporate. ford. com/microsuites/sustainability