Ford's Strategic Management Failures and Market Impact Analysis

This report provides a comprehensive analysis of Ford's strategic failures in the Australian market. It examines the impact of these failures on business growth and explores key strategic influences, including car sharing, driverless cars, and infotainment systems. The report delves into the challenges Ford faced, such as high manufacturing costs and a declining brand reputation. It highlights the need for effective strategic management initiatives to navigate the complex business environment. The report discusses various strategic approaches, including product development and human relations theory, and offers recommendations for Ford to regain its market position and improve its brand image. Furthermore, it explores Ford's attempts to adapt to market trends through car sharing and digitalization, and evaluates the company's progress in adopting driverless car technology. The report concludes by emphasizing the importance of customer relationship management, workforce optimization, and product development in ensuring Ford's long-term success in the competitive Australian market.

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Name of the student
Name of the university
Author note

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Executive summary
It has been identified that the strategic management is needed for business expansion as well as
getting the proper direction towards achieving the goals and objectives. In this study, the popular
car manufacturing company Ford has been discussed. The study aims to identify strategic failure
and its impact on the business growth in the context of Ford. In order to drive the organizations
towards success, effective strategic management initiatives have become necessary. Analyzing
the market trend, car sharing, driverless car and Infotainment system have become the major
influencer in the strategic implementation. Different strategic approaches product development,
Human relation theory has been highlighted in this study.

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Table of contents
Introduction...............................................................................................................................................4
Aim.............................................................................................................................................................4
Discussion...................................................................................................................................................4
Conclusion.................................................................................................................................................10
Recommendations.....................................................................................................................................11
Reference list and bibliography.................................................................................................................12

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Introduction
Current business scenario has become more complicated compared to the past few years.
In the complicated business environment, it has become necessary for adopting proper strategic
direction for sustaining in the market. It cannot be denied that the strategic management is
needed for business expansion as well as getting the proper direction towards achieving the goals
and objectives (Bettis, 2013). Some of the cases, due to lack of proper strategic implementation,
the huge financial loss has been faced by the organizations (Teece, Pisano & Shue, 2017).In this
study, the popular car manufacturing company Ford has been discussed. Although the company
has established it popular brand image in the world, but due to improper strategic
implementation, the major failure has been faced by the company in Australian market. Due to
high cost of manufacturing, company is about to move from the Australian market. In that
situation, it was become tough for Ford to introduce its products in lower ranges by maintaining
the same standard. By identifying the strategic failure of the company, the study will provide
measurable recommendations for managing the situation.
Aim
The aim of this study is to highlight the strategic failure and its impact on thee business
growth in the context of Ford. Analyzing the strategic influences and its implementation
strategies have been discussed in this study.
Discussion
Within last few years, the automobile industry has become the major contributor in the
world’s economy. With increasing opportunities in the market, the business challenges have been
increased (Priem & Butler, 2012). In order to drive the organizations towards success, effective

4STRATEGIC MANAGEMENT
strategic management initiatives have become necessary. Through the study, different strategic
influences have been highlighted, which has equal impact on both the national and international
market. Analyzing the correct growth in the automobile industry, it has been identified that with
technological innovation, the impact has been shown in the local, national and global market.
Local market
Car sharing reduced city traffic
Examining the rapid changing market trend in the car manufacturing industry, it has been
identified that car sharing trend has highly impacted on the local market (Hill, Jones & Schilling,
2014). The car sharing facility has become very popular in the Australian market. According to
the experts, through the car sharing process, emotional attachment has been increased. On the
other hand, if the impact of this initiative in the local market can be analyzed, it will be identified
that it has helped to manage the traffic congestion. The city terrific as well as the environment
has been reduced in the market. Analyzing the strategy of Ford, it has been identified that in
order to introduce a strong brand image and saving the airport parking cost, the company has
newly announced the facility of car sharing. Now the service is being provided in Sydney,
Brisbane and Melbourne. With the car sharing facility, the journey has become more comfortable
due to reducing rate of traffic congesting. It is also a cost effective strategy adopted by Ford,
which has impacted on the local market.
National market
Infotainment system
The national transport system in Australia has decided to connect every car digitally.
Within the year 2020. , the transport department in Australia has decided to digitally

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communicate with the new cars, so that safety of the passengers can be maintained (Armstrong
& Taylor, 2014). In the current car manufacturing industry trend, the Infotainment system has
become popular its can be connected through phone. In the year 2018, large number of cars have
been interconnected through the app developing process, it has digitalized large numbers of cars.
Global market
Driverless cars
Technology has become a major influencing factor in the automobile industry. With the
rapid technological innovation, the car manufacturing organizations are now in big pressure for
introducing the innovation with sustainable benefits in the market. Analyzing the current market
trend, it has been identified that fully autonomous vehicles are being highly appreciated by the
people. The fully autonomous has reduced the rate of accident and the efficient traffic
management feature of the cars have helped to increase the comfort of the passengers (Elmes &
Barry, 2017). The driverless car has positively impacted in the global market. With the unique
feature of the driverless cars, it has driven the sales rate of large numbers of companies in the
global market. Therefore, it can be said that the driverless cars can play a major role to drive the
future of Autonomous industry.
Analyzing the strategic impact of the factors, it has been identified that Ford has faced
several failure in the Australian market. In that situation, the brand reputation of the company
has got hampered. In this situation the company has decided to introduce an effective plan car
sharing, so that the cost of fuel as well as traffic congestion can be reduced. Ford has decided the
partnership with Carhood, which is provides the car sharing service. It is true that it can be the
affordable for the company so sustain the Australian market (Boddewyn, 2015). However, it is

6STRATEGIC MANAGEMENT
also true that in order to implement the car sharing strategy in the local market, the company
needs to focus on adopting partnership strategy. After completion of the legal procedure, the
inner connection process will be started. Marketing initiatives will be required for informing the
target market regarding this facility.
Activities 1st to
3rd
month
4th to
10th
month
11th to
13th
month
14th to
17th
month
18th to
21st
month
22nd
to 23rd
month
24th
month
Potentiality of the
digitized cars will be
identified

Legal agreement with the
organizations will be
done for partnership

Streamlining decision-
making structures
 
Social media marketing
strategies

Planning for training and
development
  
Introducing the
regulations
  

7STRATEGIC MANAGEMENT
On the other hand, following the trend of infotainment system in the market, the
company has decided to digitize its cars, so that the security of the passengers can be provided.
In order to implement the strategy, Ford can contact with the car service providing aps. By
installing the digital tools, it can be connected with the customers. Using tablets, web and mobile
facilities in the digitalization process can be done. After completion of budgeting, the target
market needs to be it will be identified.
Action plan
Activities 1st to
3rd
month
4th to
10th
month
11th to
13th
month
14th to
17th
month
18th to
21st
month
22nd
to 23rd
month
24th
month
Potentiality of the
digitized cars will be
identified

Legal agreement with the
organizations will be
done

Streamlining decision-
making structures
 
Creating new business
models for marketing

Planning for training and
development
  

8STRATEGIC MANAGEMENT
Introducing the
regulations
  
In the market analysis, it has been identified that Ford has already adopted the strategy to
introduce the automated car in the market. However in case of driver less cars, the company
needs to focus on introducing its technological base. It cannot be denied that the company has
implemented various strategies in order to implement the plan of driver less cars in the market,
however, from the market analysis and slowly implementation strategy, it has been analyzed that
Ford is far away from the driver less car innovation. In this situation sustaining in the
competitive market can become the major challenges for the company. Previously Ford adopted
the Anti-Uber approach for introducing the self-driven cars in the market, however the strategy
has faced the failure (Theaustralian.com.au, 2018). In that case, in order to implement the
strategy, mapping data needs to be gathered. A vehicle engineer as well as safety driver is needed
for the autonomous vehicle. A feel terminal will be secured for the driverless car. In the initial
stage the cars will be introduced in the nearest districts from where the data can be easily
transferred through the sensors.
Action plan
Activities 1st to
3rd
month
4th to
10th
month
11th to
13th
month
14th to
17th
month
18th to
21st
month
22nd
to 23rd
month
24th
month
Selection of the topic 
Research on the current  

9STRATEGIC MANAGEMENT
situation
Determine the objectives 
Planning   
Budget allocation   
Mapping the data  
A vehicle engineer and
safety engineer will be
recruited

Securing the feel terminal  
Final test 
Importance of theoretical approaches have become necessary for strategic
implementation. Analyzing the car manufacturing company Ford in the Australian market, it has
been identified that the company is in the tough situation in Australian market. Due to increasing
manufacturing cost, Ford had stopped car manufacturing in the Australian market. In order to
reenter in the market, oligopolistic theory of competition can be maintained by the company
(Boddewyn, 2015). By following this strategy, observing the movement of the competitors in the
existing market, the company can be enter in the market. In this situation the company can focus
on manufacturing the same types of the products produced by the competitors. Due to continuous
marketing failure, the company has lost its reputation in the Australian market. Therefore, in
order to introduce the unique products like driverless cars in the market, Product development
theory can be applied. By following the Ansoff matrix, the company can introduce new product
in the existing market.

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Human Relations Theory has been introduced by Elton Mayo, where the human
relations Approach has been discussed. Human Relations Theory is an important strategic
management theory that can help to managing the human behavior in the workplace (Meyer,
Neck & Meeks, 2017). In this theory, the beliefs of people that facilitates the growth and
development in the workplace can be analyzed. In case of Ford, the company is recently
straggling with its brand reputation. On the other hand, internal conflicts in the workplace has
driven the overall productivity. By adopting the theory of human relation, it will become easier
for the company to sustain in the market.
Analyzing the strategic goals of the company, it can be said that the objectives of Ford are-
 To improve its brand image in the Australian market or sustaining
 To reduce the manufacturing cost for gaining more profit from the market
 To introduce unique products in the market for managing the current market trend
Conclusion
In the study, it can be concluded that if the company will be able to introduce the unique
products in the market, it will be easier for Ford to sustain in the Australian market. As the brand
image of the company is now in the tough situation in Australian market, in that case human
relation theory can help to improve the brand image of the company. On the other hand, it is true
that if the car sharing facility can be introduced by the company, it will help to make it cost
effective for the company.
Recommendations
In this study, it can be recommended that in order to sustain in the Australian completive
car manufacturing industry, customer relationship needs to be developed. In order to reduce the

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manufacturing cost, workforce optimizing process can be adopted by the company. By following
product development strategy, the company will be able to maintain its uniqueness in the market.
Following the current market trend the cost effective products can be launched by the company
for grabbing the customer attention. In order to sustain in the Australian market, it can also make
the partnership with the local car sharing facility providing organizations.
Reference list and bibliography
Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Barney, J. B. (2013). Is the resource-based “view” a useful perspective for strategic management
research? Yes. Academy of management review, 26(1), 41-56.
Bettis, R. A., Ethiraj, S., Gambardella, A., Helfat, C., & Mitchell, W. (2016). Creating repeatable
cumulative knowledge in strategic management: A call for a broad and deep conversation
among authors, referees, and editors. Strategic Management Journal, 37(2), 257-261.
Boddewyn, J. J. (2015). Political aspects of MNE theory. In The Eclectic Paradigm (pp. 85-110).
Palgrave Macmillan, London.
Doz, Y. L. (2017). Strategic management in multinational companies. In International
Business (pp. 229-248). Routledge.
Elmes, M., & Barry, D. (2017). Strategy retold: Toward a narrative view of strategic discourse.
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Ethiraj, S. K., Gambardella, A., & Helfat, C. E. (2017). Reviews of strategic management
research. Strategic Management Journal, 38(1), 3-3.

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Ethiraj, S. K., Gambardella, A., & Helfat, C. E. (2018). Theory in strategic
management. Strategic Management Journal, 39(6), 1529-1529.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an
integrated approach. Cengage Learning.
Hitt, M., & Duane Ireland, R. (2017). The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship, 45-63.
Meyer, G. D., Neck, H. M., & Meeks, M. D. (2017). The entrepreneurship‐strategic management
interface. Strategic entrepreneurship: Creating a new mindset, 17-44.
Michael, S., Storey, D., & Thomas, H. (2017). Discovery and coordination in strategic
management and entrepreneurship. Strategic entrepreneurship: Creating a new mindset,
45-65.
Priem, R. L., & Butler, J. E. (2012). Is the resource-based “view” a useful perspective for
strategic management research?. Academy of management review, 26(1), 22-40.
Reuters.com (2018). Retrieved from: https://www.reuters.com/article/us-australia-ford-
idUSBRE94M04520130523 [Accessed on 4th Dec, 2018]
Teece, D. J., Pisano, G., & Shuen, A. (2017). Dynamic capabilities and strategic
management. Strategic management journal, 18(7), 509-533.
Theaustralian.com.au (2018). Retrieved from:
https://www.theaustralian.com.au/news/inquirer/ford-australias-failure-from-lower-
tariffs-to-detroit-issues/news-story/7d614a01a7f1c4dc86125c5f9ac647e9?
nk=fd81f3f575c3edea91b22bfc72d341a0-1543899816[Accessed on 4th Dec, 2018]