* This Case Analysis will highlight the Ford Motor Company (FMC), one of the most documented corporations. Today, I will identify the firm's existing objectives and strategies, explain one strategy that the company might use to take advantage of an external opportunity, and one strategy that the company might use to address a potential threat. I will also construct a Competitive Profile Matrix, research one or two of its major competitors and at least six (6) success factors that you believe to be critical to success in this industry. Finally, I am going to construct an External Factor Evaluation Matrix.
Ford Motor Company is one of the world’s top corporations offering many global brands of automobiles. Ford saw sales decline to 23.4 percent a couple of years ago in sales and several other auto corporations filing bankruptcy while requesting a bailout from the government. Ford took advantage of the opportunity by cutting costs, trimming unprofitable models, and closing down vehicle assembly plants all while taking no assistance from the government. On the other hand there are situations that can threaten this household name.
European and Asian doubts about carmaker’s ability to take on Toyota and to produce automobiles that are as reliable as their European counterparts. Iraq launches boycott against anything “Made in the USA.” Automakers reliance on Obama Administration’s approval for ejection mitigation and the impact of using that technology in the European markets. These opportunities and threats I just mentioned Identify the firm's existing objectives and strategies.
Ford Motors has achieved its globalization strategy largely through horizontal integration via acquisitions and forward integration, their competitive strategy differs as per competitor/strategic group, their objective is to satisfy their global customer needs irrespective of the consumer segment. Their initial objective was to produce affordable cars for the mass market, until they started developing new markets and products for middle and upper class. Certain automakers sales in the European market are up almost giving Ford a much needed increase in profits. Keep in mind, Ford also sells Jaguar and Land Rover. Autos hopes this sell will reduce the financial strain on the company.
On the other hand, automakers collaboration with Volvo has produced a new twin turbo-charged “EcoBoost” engine and power train that will be put into production in manufacturer’s European markets. European and Asian doubts about carmaker’s ability to take on Toyota and to produce automobiles that are as reliable as their European counterparts. Iraq launched boycott against anything “Made in the USA.” Automakers reliance on Obama Administration’s approval for ejection mitigation and the impact of using that technology in the European markets. The above objectives and strategies merely translate to opportunities and threats. Construct a Competitive Profile Matrix.
Competitive Profile Matrix (CPM) Ford Motor Company Critical Success Factors Weight Rating Score Rating Score Rating Score Advertising.100 3 .300 3.300 4.400 Product Quality.200 4 .800 2.400 4.800 Price Competitiveness.200 3 .600 3.600 4.800 Management.150 4.600 2.300 4.600 Financial Position.100 4.400 2.200 3.300 Customer Loyalty.100 3.300 3.300 4.400 Global Expansion.100 1.100 1.100 3.300 Market Share .05 2.10 1.05 3.15 Total 1.00 3.20 2.25 3.75 Note: 1= Poor, 2=Below Average, 3=Above Average, 4=Superior Construct an External Factor Evaluation Matrix. External Factor Evaluation (EFE) Ford Motor Company Opportunity Weight Rating Weighted Score 1. US Steel Availability .0703.210 2. Federal Funding .0803.240 3. Decreased Bank Lending .0704.280 4. Federal Grants for Fuel Efficiency Innovation .1003.330 5. Brand Loyalty in Automobile Customers .1403.420 6. Foreign Investment .0402.140 7. New techniques of auto engineering.032.06 Threats Weight Rating Weighted Score 1. Industry Transition Towards Hybrid/Electric Cars .0701.070 2. Elevated Oil Prices .0602.180 3. Forced Layoffs and Specialized Workers .0501.050 4. Economic Recession .1203.360 5. Hybrid Costs: Initial and Warranties .0702.140 6. Environmental Laws .0602.120 7. Unsafe road system .041.04 Total Weight and Weighted Score 1.02.64
Ford’s strategy is an incorporated and synchronized set of assurances and actions Ford can use to gain a competitive advantage by exposing core competencies in unambiguous product markets. The pledge that Ford has obligated to its customers is called One Ford plan. They intend on using this to change their business now and into the future.
REFERENCES Ford (2010) Retrieved Apr. 24, 2012, from http://www.ford.com/about-ford/company- information/corporate-governance Fred A. David (2009) custom edition. Strategic Management: Concepts and Cases, Upper Saddle River, New Jersey, Prentice Hall Media Ford Latest News. Retrieved on Apr 25, 2012 from http://media.ford.com/