Strategy Management of Ford Motor Company

F-UOB-12D
Midterm exam – Assignment 1
Ford Motor Company
Strategy and Innovation
Prepared by: Vu Truong Phuong Linh
Class: F-UOB-12D
ID:1905510097
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F-UOB-12D
October 30, 2021
I, Introduction
Ford Motors is one of the most famous car brands in the world. Known as a car brand
that has achieved many achievements, businesses always have to change and adapt at
many levels such as business model, strategy, capacity and operating system. Ford Motor
Company needs a complete business report for the long-term successful strategic plan of
the business. The advantage of strategic management is that it helps businesses see
clearly the direction and purpose as well as helps businesses adapt to the environment,
develop strengths in that time. The report is based on information obtained from
established the company until 2015 in the strategic management case study “Ford Motor
Company, 2015” to analyze internal and external information and data in order to come
up with a reasonable and accurate plan and strategy to guide the Ford Motor Company.
II, Abstract
Ford Motor Company (commonly known as Ford) is an American multinational
automobile manufacturer based in Dearborn, Michigan, United States. With an
initial capital of $28,000, Henry Ford and 12 other investors founded Ford on
June 16th, 1903. Ford is the second-largest automaker in the United States, behind
General Motors, but it is only the fifth-largest globally in terms of vehicle sales.
The company produces many different cars and trucks ranging from entry level to
luxury cars. Up to now, Ford owns stakes in several car manufacturers around the
world, including Aston Martin, Jiangling, Troller, and FPV. In the past, Ford has
owned portions of Jaguar, Land Rover, and Volvo. Ford and GM both had their
corporate bonds downgraded to junk status in 2005. A demanding United Auto
Workers (UAW) union, rising health-care costs, falling market share to foreign
products, and a lack of strategic planning all contributed to the company's demise.
In 2007, Ford and the United Auto Workers (UAW) reached an agreement on
retirement benefits and other costs. Unlike its competitor, General Motors, the
company was able to avoid a government takeover. Ford has rebounded in recent
years and continues to produce high-quality automobiles around the world,
including an increasing number of electric and hybrid vehicles. Mercury, which
had been around since1938, was phased out of Ford's lineup in 2011. In 2015,
Ford switched the body of its famous F-150 to aluminum from steel. The extra
cost was $395 per truck, but the reduced weight improved fuel economy.
Europe, Asia Pacific, South America, Africa, and the Middle East are Ford's
primary global markets.
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F-UOB-12D
Competition in the automobile manufacturing business is intense among Ford,
GM, Toyota, BMW, Honda, Volkswagen, Hyundai-Kia, Nissan, Mercedes, and
several other firms
III, Vision and Mission
3.1 Vision and Mission
Ford does not have a published vision statement, but does have a stated mission
statement, which is based on four key components and paraphrased as follows:
‘’One Ford: Align employee efforts toward a common definition of
success and optimize their collective strengths worldwide’’ (Ford Motor
Company, 2015).
‘’One team: Work together as one team to achieve automotive leadership,
which is measured by the satisfaction of our customers, employees, and
essential business partners, such as our dealers, investors, suppliers,
unions/councils, and communities’’ (Ford Motor Company, 2015).
‘’One plan: Aggressively restructure to operate profitably at the current
demand and changing model mix’’ (Ford Motor Company, 2015).
‘’One goal: Create an exciting and viable company delivering profitable
growth for all’’ (Ford Motor Company, 2015).
3.2 Proposed improvements to Ford's mission statement and vision
statement:
Vision: To make its vision statement more effective in guiding
management and human resources toward desired business goals, Ford
should provide more information about the strategic direction of the
automotive business.
Mission: The mission statement should be changed to the ways in which
products and services are created to meet customer needs further
understood and directed by all employees and different departments of the
company.
IV, SWOT
4.1 SWOT matrix
Strengths oStrong position in the US auto market
oStrong financial position
oGrowth in China
oTechnology development
oProduct variety
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