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Strategic Management for Competitive Advantage: Doc

   

Added on  2021-01-02

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Strategic Management for CompetitiveAdvantage: Part C

TABLE OF CONTENTS1. Introduction..................................................................................................................................12. Corporate Social Responsibility (CSR) & Sustainable development..........................................13. Triple bottom line (TBL).............................................................................................................24. CSR of Ford Motors....................................................................................................................35. Financial performance and future expectations...........................................................................36. Conclusion...................................................................................................................................87. References....................................................................................................................................98. Appendix....................................................................................................................................11

1. IntroductionThe following report will be critically evaluating performance of company withconsideration of triple bottom line and responsible decision making for sustainability of FordMotor. The report will also included the financial performance and future expectations of FordMotors in respect to CSR policies. The current report highlights sustainability and CSR withfinancial performance of Ford Motor which is a leading international automotive company. Forthis CSR is that policy which is followed by company in way of controlling and directing the 4pillars of firm which is leadership, accountability, stakeholder management, assurance andtransparency. It is very much important for firm to have sustainable development so that both itscustomer and society into which it is working could be satisfied (Clark, Feiner and Viehs, 2015).Corporate social responsibility of business is their responsibility towards regulating companyaccording to environmental issues faced by company2. Corporate Social Responsibility (CSR) & Sustainable developmentCorporate Governance is that system of rules, practice and process within which firm willbe directed and controlled towards betterment. This is the balancing of interest of thestakeholders of company like that of customer, supplier, government and community as whole.The role of corporate governance will be that of directing and controlling the working andfunctioning of company and be able to provide leadership. There are primarily 4 pillars ofcorporate governance which Ford Motor should be following like that of leadership,accountability, stakeholder management, assurance and transparency as well. Ford MotorsCompany is one of the largest automotive manufacturer and selling company which is based onDearborn, Mich. The company is selling automotive to about 6 continents of world with 159000employees and 70 plants all over world. The company is very much indulge into regularcommunication with their stakeholders so that their demands and interest could be included. Allof the stakeholder of Ford will be impacting business of company with their activities. As per the view of Epstein, (2018) Ford Motor is having loss the conservative periodswhich means that they are not performing well into market. But in year 2017 it was having morerevenues than that of 2016 that is 145.7 and 141.5 respectively for 2017 and 2016. The operatingmargin for company was 5% in 2017 and 6.7% in 2016 while operating cash flow was $3.9 in2017 and $6.4 in 2016. According to Grewatsch and Kleindienst, (2017) it is included that if the1

current liabilities of company are higher than its current assets then it could create problem inway of creating short term obligation. Ford Motor is also having decreased number of debts and obligation which could be duewithin the coming one year and is into the normal operating cycleFord Motor as per view ofMartínez‐Ferrero and Frías‐Aceituno, (2015) is not incurring loss within all its cars segmentincluding that of city, medium, large and luxury as well. Ford was the bestselling brand in US forconsecutive 8th year and their F-series franchise was marked to its 41st year as America’sbestselling pickup. The company is also having very good history of operating under sound andhealthy corporate governance practices. As it is having dedicated team of professionals workingas per need and demand of all their stakeholders so that long term value could be created. Onethe other hand they are also having positive impact on world in terms of sustainability withremaining successful in terms of business (Epstein, 2018). Ford’s dedication to sustainability hasnever been stronger as further strengthen their automotive business and accelerate a strategicshift to capitalize on emerging opportunities.3. Triple bottom line (TBL)From all books of accounts of Ford Motor like that of cash flow, Profit and loss andBalance sheet it could be concluded that company is incurring huge amount of loss. It is verymuch important and essential that Ford Motor is using corporate governance, sustainabilityreport and CSR. All these will be very much helpful for Ford Motor which would allow them tolook forward for the coming year’s loss turning on to profits. It is said by Grewatsch andKleindienst, (2017) that company should be having specified rules and regulations which will behelpful for them in future increment of profits. Figure 1: Triple bottom line2

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