Managing Innovation in Business

This article discusses the importance of managing innovation in business, with a focus on Ford Mustang. It provides an overview of the automotive industry, Ford's innovation history, and its existing capabilities. The impact of PESTEL and Michael Porter's Five Forces on Ford is also assessed. Additionally, the article explores the strengths, weaknesses, opportunities, and threats faced by Ford, along with its strategic capabilities. Finally, it discusses the state of the automotive industry in 2020 and beyond.

Managing innovation in
business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................3
BOOK AND JOURNALS .........................................................................................................3

INTRODUCTION
Auto-mobile industry can considered to be one of the most technologically active industry across
the globe that focuses heavily upon the implementation of new innovational measures time to
time in order uplift the standard of infrastructure and technology in the same. Ford is a well
known name in automotive industry and has secured a good position for itself in the respective4
industry as well (Jiang, Ye and Lin,2021). The report highlights upon the detailed analyses of
innovational advancement in Ford Mustang. It also encompasses the assessment about Ford's
existing performance as well as the potential capabilities in terms of leading in the market
through innovation. The report also involves an overview about the current automotive industry
and the future outlook or expectations associated with the same.
MAIN BODY
Brief overview about the industry
The automotive industry can be characterised as an industry that involves the design,
development, manufacturing and introduction of vehicles and other related products and
services. The automotive industry is extremely successful and the organisation involved in the
same also relies on heavy capital and infrastructure in order to build quality products for target
customers ( Dudkowski, 2021). It can be termed as a very popular and renowned industry which
comprises of massive organisations such as Audi, BMW, Rolls Royce, Mercedes, Porsche, Ford
etc.
Overview about the chosen organisation
Ford Motor Company is one of the leading names in the automotive industry and has emerges as
a successful enterprise due to its continuous drive for implementing innovation in its each and
every offering. Ford is an organisation that deals in a variety of business operations such as
standard vehicles, luxury cars, trucks and trolleys etc. The business operations of the respective
organisation can be classified into three major segments i.e.
 Automatise :- The respective segments involves the development and manufacturing of
the vehicles as well as the parts associated with the same.
 Mobility :- The concerned element comprises of the establishment of independent
vehicles developed by Ford as well as the services provided in relation with the same.

 Ford Credit :- Last but not the least can be termed as Ford Credit which involves the
financial as well as leasing services associated with the procurement of vehicle services.
Past innovation history in Ford Motor sport Company
Ford is an automotive organisation that has an exhilarating history of innovation. The first
launch of the brand Ford took place in the year 1908 named Model T. After the first launch. The
company stated working upon introducing something more advance and reliable for the customer
and in order to do the same, it launched Model A in 1913 which was a huge success within
American and almost every person in that era had shots for the respective car. Post that,
Assembly line was introduced in the year 1917 which was developed through the incorporation
of various creative measures and was termed as one of a kind ( Trad, 2021). In the year 1925,
motor planes were launched By Ford which was a very big step for the company in that era but
with the appropriate determination and will, the company stood out as one of the strongest
organisation to achieve its goals of introducing air-planes with powerful engines and
sustainability. One of the biggest innovation of the company names as Ford Mustang was
introduced in 1964 which opened the door for luxury travelling for the clients at that period of
time. The year 2004 was also an important innovational period for the company as it announced
the GT cars as its premium cars which helped to uplift the stature of the company to a next level.
The introduction of the 3rd generation cars in 2014 can also considered to be one of the important
steps taken by the firm towards innovation.
Assess the impact of PESTEL
Pestle analysis helps the firm in obtaining the relevant insights about the implications of the
external forces on the current business functioning of the firm. When ford mustang was
launched , the political environment as well as the economic conditions were quite different from
what they seem today (Better, 2021). Hence, it can be said that the external implication has led to
severe impact on the sale of the respective product in the market. It can be said that its is much
easier to invest in the products today then it was few years back. The opportunity for growth and
expansion has increased and the buying behaviours of the customers can also be identified and
realigned through marketing tactics and promotional activities.
Assess the impact MICHAEL PORTER’S FIVE FORCES
Like any other organisation, Ford has also been impacted by the pestle as the ongoing changes in
the external domain of the market environment has direct effects on the business operations as

well as the sales and profitability of the firm in the target market. The penetration in the market
is not an easy task but ford has been able do it very graciously and has been able to enter as well
as conquer new market over the years while giving tough competition to its rivals as well.
The Organisations Existing Innovation Performance and Capabilities (800)
Latest innovation activities
 The latest innovation in Ford Mustang has accelerated the the growth of the company to a
next level. The 2018 addition of the car provides its customer with a five drive modes
which can utilised by the same while experiencing the car.
 The powerful engines in Mustang has also captivated the eyes of the customers as they
are one of the essential attributes why people are driven towards investing in the
respective offering of Ford Motor Company.
 In the latest addition of Mustang, the drivers have a choice to alter the mode of how and
at what degree the engine moves in order to adjust it to the need as well as requirement of
the individual ( Bhatti, Santoro, Khan and Rizzato, 2021). The respective feature has
enhanced the modification as well as personalisation in Ford Mustang. The introduction of the new racing mode is quite impressive as compared to the previous
ones introduced by the concerned firm.
Assess the organisation’s existing innovation capabilities.
Ford is company that has been known for its innovational accomplishment from the day of its
commencement. The all new Ford Mustang has been termed by the industry experts as one of the
top class car in the years to come. The team of Ford Mustang has delivered the best results from
the start and its has the capabilities and skills set to achieve better in the coming years as
well( Lee and Trimi, 2021). The capitalisation of the latest and upgraded technology and the
ability of the company to convert interesting ideas in to the working reality is one of the biggest
assets for the company. The optimisation of the former assets can enhance and alleviate the
overall innovational dimension of the firm to a larger extent all together.
SWOT Analysis to assess your chosen organisation’s strengths and capabilities
Strengths
 One of the biggest strengths of the
company is its global popularity which
helps the same to capture the attention
Weakness
 The company is majorly dependent on
the American Market and its can be
termed as a drawback for the same. The

of the global audience.
 The adaptability of the firm to the
changing market scenarios and trends
also helps the same to maintain its
credibility as well as authenticity after
so many years in the business.
company needs to get a hold of the
other markets as well in order to
improve its position in the upcoming
years as well.
 The company has experienced
productivity concerns and issues due to
its unsystematic geographical
segregation of operations.
Opportunities
 Enhanced focus upon the Eco Friendly
vehicles can help the company to lead
better innovations in the future.
 Ford's more emphasis over the
optimisation of the digital marketing
tools and mechanism can help to reach
larger audience and to lead better sales
from the same.
Threats
 The existing competition as ell as
rivalry can impose major thereat on
Ford. The company needs to watch out
for Toyota, Tata etc.
 The company needs to also oblige to
the regulatory standards set by the
governmental authorities and comply to
the same. A mild miss at the end of the
company can lead to legal intervention
and can hamper the goodwill and image
of the company in the media and public
eye as well.
Resources -
 Physical resources – Physical resources assists the ford company in facilitation of the
production and manufacturing of its products and offering. Physical resources such as
Steel, Aluminium, Metals, Rubbers, auto-mobile parts, etc.
 Financial resources – Financial resources are responsible for maintaining adequate cash
flow wit hi the firm in order to lead the operations of the same in a smooth manner.
Financial resources capitalised by Ford can be termed as banks, financial intermediaries,
creditors, debtors, investment of capital, loans etc.

 Human resources – The human resources are the most important and prominent resource
for a company as their efforts lead to the accomplishment of the target set by the firm.
Fords optimises on the competent and qualified workforce. The employees hired by the
firm are extremely knowledgeable and skilled in their field of work and know
whereabouts of what they are doing and planning to do in the future.
 Intellectual capital - It can be characterised as a form of intangible source. Ford is an
organisation that has a variety of intangible sources ( de Abreu Mancini and Silva, 2021).
The most essential of them all can be termed as the legacy as well as reputation of the
company which has helped the firm to survive for such a long period of time in the
industry.
Strategic capabilities
 Value of Strategic Capabilities: Ford has numerous capabilities and scope in order to
create value for the customers. The brand images of the firm, its global reach, customer
retention and loyalty, skilled workforce as well as technological abilities can considered
to be value generating proposition for the concerned automotive organisation.
 Rare/Unique Strategic Capabilities: The brand loyalty of the customers, Human resource
applications of the staff members, powerful and competent supply chain of the firm can
be termed as few of the rare strategic capabilities of Ford Motor Company.
 Inimitable strategic capabilities: The respective strategic capabilities of Ford that are
extremely difficult to be imitated by any other firm can be characterised as its reputations
in the market as well as the trust of the customers. The technological advancements as
well as innovations of the firm are also very also difficult to be adapted by other
contemporary business firm competing with Ford in the respective industry.
 Complexity: Complexity is a part of given business enterprise, and its the utmost duty of
the firm to handle these complexities with patience and efficiency in order to ensue that
they do not create an adverse impact on the daily functioning of the firm ( Sund, K.J.,
Bogers and Sahramaa, 2021). Ford also needs to deal with a number of complexities
such as budgeting concerns, strategy implementations programs, risks and uncertainties
in the market conditions, unexpected change in legal policies and guidelines, the
emergence of latest technology which has the potential outdate the existing ones etc.

 Culture and history : The cultural environment in Ford Motor Company focuses upon
giving the priority to the people and customers and the rest of the activities delivered by
the firm follows in accordance with the same. The company believes in following the
right kind of practices which hare ethically appropriate in order to run its operations. The
company also believes in creating value products and services for future. Ford Motor
Company is an organisation that is completely dedicated towards giving tough
competition in the market environment and showcase agility in operations executes by
the concerned business organisations in automotive vehicle industry.
The Industry in 2020 and Beyond
The year 2020 has been a really tough year for majority of the business firm all around the
world. The companies has been hit by the repercussions of the downfall in the economy due t the
prevailing condition of Corona Virus pandemic (Wilson and Sy, 2021). The automotive industry
can considered to be one of the largest industries in the world. The pandemic pandemic restricted
the functioning of the organisation working in the industry and their operations tool a hold as
well. This lead to decrease in the sales as well as profit generations for the companies. The
industry was not able to make good profits in the current year due to the fluctuating market
conditions as well as the guidelines set by the legal authorities in relation with running of
business organisation. Not only this, the management structure of the most of firms got disturbed
due to the movement of the employees to their native places during such uncertain period which
affected the predetermines goals of the firms engages in the concerned industry. Hence, it is not
difficult to say that Ford has also gone through its tough times during this year. The company's
growth as well as expansion strategies have suffered a well as its overall management and
execution of business operations has also faced various negative implications. However, the
respective year may have gone a bit dull for the automotive industry but its is expected that the
upcoming future holds a ray of sunshine for the industry. The industry is likely to face a boom in
the coming future due to the estimated rise in the economy (Van Looy, 2021). The upcoming
technology in the market will promote internet connectivity between more and more individuals
which will bone of the technological trends that may come across as game chargers in the
automotive industry. It will be was fir the vehicle to communicate with he other applications or
devices which will enhance the experience of the individuals driving the same. The introduction
of 3D Lidar technology may also alleviate the standard of operations in auto mobile industry and

it can become more technologically advance due to the implementation of such technology
within the respective industry. The electrified and autonomous features in the future may termed
as an addition to the specification in the cars and will help the enhance their structure to the
optimum level. These can also contribute in enhancing the performance exhibited by the vehicles
in the concerned automotive industry. It can be states that organisations indulged in the auto
mobile industry needs to be at their front foot and showcase their best work in order to capture
the interest of the target customers towards their products and services. The utilisation of
optimum and best technology as well as brainstorming of creative ideas and the amalgamation of
both can help the industry to invent something incredible that help in providing great assistance
to the customers in enriching their travel experience.
CONCLUSION
From the above discussion, it can be concluded that Ford Motor Sport has consistently grown
over the years to become a huge brand name that its is today. The success of the company lies in
its innovational capabilities such as introduction of stylish, comfortable and standard car i.e. Ford
Mustang into the market. The innovational capabilities in addition to the strategic objectives and
technological interventions has helped the firm to sustain over the years and many more to come.

REFERENCES
BOOK AND JOURNALS
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Schmidt, A.L., 2021. Managing in the face of disruption: how do companies manage business
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Lee, S.M. and Trimi, S., 2021. Convergence innovation in the digital age and in the COVID-19
pandemic crisis. Journal of Business Research, 123, pp.14-22.
Bhatti, S.H., Santoro, G., Khan, J. and Rizzato, F., 2021. Antecedents and consequences of
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