Strategic Management Assignment - Ford Motor
Added on 2020-10-04
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Strategic ManagementAssessment
Table of ContentsINTRODUCTION...........................................................................................................................3MAIN BODY...................................................................................................................................3Overview of company............................................................................................................3Strategic management perspectives: Outside-in perspective and inside-out perspective......3Models/theories used by Ford Motor Company in business..................................................5CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................11
INTRODUCTIONStrategic management is a part of management which comprise decisions to evaluatenumber of strategies and implement the best among them by which goals and activities can beattained. Its purpose is to gain competitive advantage and make higher profit as compared toother entities operating in the same industry (Alfes and et. al., 2013). There could be more thanone decision based on requirements of a firm and to improve its performance. In other words, itcan be defined as prediction of unforeseen contingencies. The company taken in this report isFord Motor whose headquarter situated at Dearborn, Michigan, United States. The reportcomprises an evaluation outside in and inside out perspective together with an analysis of modelsapplied in the entity. Along with this, long term goals and aims and various tables or graphsdepicting position of entity in the market. MAIN BODYOverview of companyFord Motor Company is an American auto-maker having its head office at Michigan US.It operates in international markets as well which makes it an multinational company. Thefounder was Henry Ford who incepted it on June 16, 1903. It deals in auto-mobiles andcommercial vehicles under the brand name of Ford and luxury cars are being sold under Lincolnbrand (Budhwar and Debrah, 2013). Strategic management perspectives: Outside-in perspective and inside-out perspectiveOutside-in perspective in strategic managementAccording to outside-in perspective, the focal point in customer value in every decisionmade in the corporation. Entities opt for this to create products that will provide high level ofsatisfaction and is considered as a way to become successful. In other words, needs of a buyer isthe ultimate foundation on which strategies are made for implementation to fulfil demands andcreate value in the marketplace (Chelladurai and Kerwin, 2017). Under this, a company thinkfrom the perspective of its customers including potential and then proceed with any action. Aclear distinction between what products are being produced and what actually the individualsneed should be understood. This helps in exploring new opportunities to increase the demand.Micheal Porter penned three main strategies which can be done under this, these are:
Five Forces for evaluating external factors of Ford company: It provides insights of theauto-mobile industry in which Ford Motor is operating.Generic strategies to be implemented at business level: Porter has given two differentelements which are directed towards cost leadership in carrying operations at global level(Huselid and Becker, 2011). Value chain for internal analysis of Ford Motor: It has been defined as a connectionbetween internal and external forces which help the firm to implement various strategies anddecisions. Ford Motor Company uses Porter's Five forces to assess various aspects pertaining tocompetition, suppliers, buyers, substitution and new entrants. This is done to get results aboutnumber of factors in industry. If the outcomes are in favour, this means industry is offeringopportunities to work on advance level for creating something innovative. Furthermore, Fordalways leave scope for adjustments in existing strategies according to pressure from variousexternal forces. Apart from this, low cost and differentiation which is concerned aboutconducting business activities at low cost and providing variety of products completely differentfrom competitors. It majorly focuses on competitive advantage with a view to create a stability inits activities so that cars can be manufactured according to customers' demands (López-Nicolásand Meroño-Cerdán, 2011).Inside-out perspective in strategic managementIt is completely opposite to outside-in perspective which means that a company focuseson its own capabilities, competencies and strengths. It was first introduced by Edith Penrose,who developed Resource-Based Value according to which available resources must be utilisedoptimally to achieve above-mentioned elements for future growth. Company may have problemsin adopting changes in business environment. There is no involvement of customers' perspectiveand it can be said that, shareholders are considered valuable than buyers because, they haveinvested their funds in the entity. Ford Motor Company uses this approach to make choices anddecisions which can add in the efficiency of internal systems and processes. It is useful ingaining from short term objectives. Along with this, financial leverage gets stronger bymitigating weaknesses in the business practices (Marvel, Davis and Sproul, 2016). It has been termed one of the high profit making company. The position it has reachedcurrently is due to its strategic management. It has successfully used these two perspective to
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