Escolar Documentos
Profissional Documentos
Cultura Documentos
05/10/2015
To: Terri Bell, Vice President of Strategy
Executive Summary
This summary addresses the modifications to the strategic frame
based on an analysis of the fit of Fords strategy with its industry
environment. It also includes an analysis of Fords competition and strategic
position, identifies concerns and opportunities regarding suppliers,
customers and competitors. This analysis will enable Ford to evaluate its
structure and management systems and how they affect strategic
positioning. Such as how strategies are applied to product lines and market
segments.
Business Strategy
Fords business strategy is simple, its the One Ford vision that
consists of One Team, One Plan and One Goal. The goals and objectives
all relate to assuring a desired future state. The goals put forth by Fords CEO
are limited and clear. The goals provide a high-level focus for the entire
company, not individual pieces.
Fords business strategy validates the strategic frame because their
frames geographical strategy is that it competes globally and the vertical
build cash reserves of $15 billion (ultimately $23 billion) to allow the
company to weather the storm and make targeted investments in long-
term viability,
temporarily eliminate dividends to guarantee that all available cash is
sold,
downsize operations to production requirement levels to adjust
Below are Fords PEST factors and (Porter's 5-Forces Model). Both show
how factors and forces impact Ford and the automotive industry.
Political: Ford did not use government bailout money unlike Chrysler
and General Motors, instead theyve taken the position to weather the
economic downturns on their own. This can be used as an opportunity
because they can say, We didnt need a bailout, because we are
better positioned As a negative, this year is end of contract with the
UAW. This can result in possible strikes, plant closures and a slowdown
in production.
Economic: The economic downturn has made Ford become more
efficient and start using QOS (Quality Operating Systems) to develop,
measure and continuously improve processes. This is an opportunity to
eliminate defects and limit warranty spending. As a concern, oil prices
keep fluctuating, theres political unrest in the Middle East, worldwide
economic uncertainty and unemployment can be a huge problem for
I think the greatest treat is the outcome of the contract that will expire
in September, 2015. The impact is considerably high. The employee
compensation can become a strength or an issue depending on how it
impacts Fords workforce, suppliers, manufacturing facilities and
competition.
Higher wages mean less profits unless the higher costs are passed
onto consumers. Lower wages or a strike will impact the local economies
in each labor market. A strike could close suppliers doors and local
Ford
Ford
Ford
Ford
Ford
Credit
North America
South America
Europe
Asia Pacific/Africa
%
Profit
6.46
58.95
4.45
20.35
3.11
7
Ford PAG
6.68
America.
South America segment is engaged in the sale of Ford brand
vehicles and related service parts and accessories in South
America.
Europe segment is engaged in the sale of Ford brand vehicles
and related service parts and accessories in Europe, Turkey and
Russia.
Asia Pacific /Africa segment includes primarily the sale of Ford
brand vehicles and related service parts and accessories in the
Asia Pacific region and South Africa.
Product Innovation
8
Brand Image
Personalized Customer Involvement
Clever Advertising
Conclusion
Ford should always consider repositioning their resources and
capabilities (product scope, vertical scope, or geographical scope) in
anticipation of changes in industry structural factors or competitive forces.
Since no one can accurately predict the future, its best for Ford to continue
with their One Ford vision because it positions them best for future
challenges.
Also, by using QOS, within their organizational structure and
management system, Ford has continued to find ways to reduce costs by
outsourcing activities and or collaborating with suppliers and other
manufacturers.
References:
Eisenstein, P., (2011, May 6) With New Strategy, Ford Aims at the Top,
Referenced from: http://www.nbcnews.com/id/43391595/ns/businessthe_driver_seat/t/new-strategy-ford-aims-top/#.VU-tAflViko
Henderson, R., (2013, March 13) Lessons in Strategy from Ford Motor
Company. Referenced from:
http://www.alliance1.org/magazine/issue2-
2013/lessons-strategy-ford-motor-company
http://money.cnn.com/quote/profile/profile.html?symb=F
Grant, R. M., & Jordan, J. (2012). Foundations of strategy. West Sussex, UK:
Wiley & Sons.
http://corporate.ford.com/microsites/sustainability-report-2013-14/blueprintstrategy.html
Thompson, A., Peteraf, M., Gamble, J., Strictland, A. J., (2013) Crafting &
Executing Strategy: The Quest for Competitive Advantage: Concepts and
Cases Referenced from:
http://w3.salemstate.edu/~edesmarais/courses/470general/semesters/Archiv
ed%20semesters/Fall%202010/3.%20Evaluating%20a%20Company%27s
%20External%20Environment.pdf
10