MT460 - Ford Mustang: UK Market Expansion Strategy Report & Analysis

Verified

Added on  2022/08/13

|7
|1542
|14
Report
AI Summary
This report presents a strategic framework for Ford's expansion into the UK market with the 2020 Ford Mustang. It begins with an overview of Ford, its mission, vision, and value statements, followed by an analysis of the selected product line. The report identifies the current and the selected new market (the United Kingdom), explaining the rationale behind the choice. A multi-domestic strategy is recommended to maximize responsiveness to the local market. The report outlines capital requirements, market objectives, and references relevant sources like Ford.com and academic papers, providing a comprehensive analysis of the expansion strategy, including market analysis, financial health, and strategic recommendations for the automotive business entity.
Document Page
Running head: MANAGEMENT POLICY AND STRATEGY
MANAGEMENT POLICY AND STRATEGY
Name of the Student
Name of the University
Author Note
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
1MANAGEMENT POLICY AND STRATEGY
Introduction
The purpose of this paper will be to propose a strategic framework of the organization of
Ford who are looking to expand their marketing division in the region of the United Kingdom in
order to increase the competitive advantage of the of the overall business operations of the
selected automotive business entity. Innovative solutions will be provided which will help to
attract new people from the market place towards the new model of 2020 Ford Mustang, which
is going to be launched in the Britain market with the aim to expand the market of Ford along
with increasing the market share as well as the revenue earning for the company.
About the Organization
Ford Motor Company, which is usually known as Ford, is an automaker from America
and have their presence across the world. It was founded in the year of 1903, and the services
provided by the organization includes automotive finance, vehicle service and vehicle leasing.
The overall production output of the organization was 6 million vehicles as of the year 2018. The
general manager of the organization is planning to expand their marketing division in the British
market to launch the new model of 2020 Ford Mustang, which is a brand new model of this
automotive organization (Ford.com, 2020).
Mission, Vision and Value Statements
The management along with the owners of Ford refers the mission statement as the vision
statement of the organization. The statement states to make the lives of the normal people better
by making the mobility affordable as well as accessible in nature. This statement aims on the
people who are moving, which can be treated as the basic and normal function expected from the
automobiles along with the transportation industry. Though issues has been identified in the
Document Page
2MANAGEMENT POLICY AND STRATEGY
models that has been manufactured and sold by Ford, like airbag seat belts, swelling of lug nuts
and others, the management is continuously trying to improve them and help to make better the
moving life of the people. The advantage of the mission and the vision statement is that they
solely focuses on the people, who are the ultimate factors to provide the bread and butter for an
organization in order to operate in the global market place along with gaining competitive
advantage over its rival institutions. On the other hand, the major drawback of these statements is
that if any issues arises in the market place, Ford will start to lose the people or the customers to
their rivals as they are the one and only focused factor for this automotive organization, and it
can be stated in this context that automotive sector is one of the most competitive business
sectors among all other business sectors globally.
The value statement of this organization focuses on the people, who are considered as the
strength of the organization. People ore customers are the base or foundation of this automotive
company which provides corporate intelligence along with determining the vitality and
reputation of them in the global automotive market place. Apart from this, involvement of the
people who are working on this organization are also valued by the management of this
organization, and focus is also given on the teamwork, and these two are regarded as the core
human values in the organization of Ford. Serious issues has been identified within the
management of the organization like issues with the Union, weak guidance, weak earnings and
others, the owners along with the management of the organization are trying to upgrade their
work culture so that the ever-changing needs and requirements of the customers can be met
successfully and sustainable competitive advantage can be maintained in the market places
where the organization operates. As the value statement focuses on the people, it helps to
identify the ever-changing needs and wants of the people and deliver the model required by
Document Page
3MANAGEMENT POLICY AND STRATEGY
them, But if proper market research is done and issues arises after purchasing a particular model
of Ford, it will lead in decreasing the interest level of the customers of using the different models
of Ford and shift towards other automotive organizations will start and a deep fall in both the
market share and the revenue earning for the company will occur in the global market place
where Ford operates.
Selected Product Line
The selected model which is going to be launched in the Britain market is 2020 Ford
Mustang. It can be stated in this context that this model will be available in EcoBoost and
EcoBoost Premium at initial stages. There are mixed reviews of this model and the management
want to see the performance of this model in the market place of the United Kingdom. Issues like
impractical back seat and heavy and long doors along with access to mediocre cabin are the
negative feedback that has been received by the management from the people who are using this
model. The general manager is planning to upgrade the model by focusing on these issues and
launch it in the market place of Britain. A new and innovative EcoBoost Handling package
comprising of four cylinders are available in this new model, along with increased engine output
and FordPass Connect that are also available in the new models of 2020 Ford Mustang
(Ford.com, 2020).
Identification of Current Market Places
The model currently is sold only in the region of the United States, and this has prompted
the management of Ford to enter into a new market place, and this is the reason of selecting the
new market place of Britain by the general manager of marketing division of Ford.
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
4MANAGEMENT POLICY AND STRATEGY
Selected New Market Place
As discussed, the market which has been selected by the management of Ford is the
United Kingdom. This is one of the most lucrative market places in terms of automotive
industry, and it can be noted in this context that around 1.28 million cars were sold within the
first six months of the year of 2019, which saw an increase of 10% in comparison to 2013. Apart
from this, around 2.31 million cars were registered in 2019, though it saw a fall of 2.4% in
comparison to 2018. And it has been found by the research team of Ford that this trend will
continue in the year of 2020 as well. The lucrativeness has prompted the management of Ford to
enter this market. Though there is a fall in the overall, registration of cars, Ford, through the
strategic objectives, aims to serve the people and increase the overall registration of cars (Bailey
& De Propris, 2017).
Selected Strategy
A multi domestic strategy need to be implemented by the management of Ford to sale
2020 Ford Mustang in Britain market place. This will help to accomplish the maximum
responsiveness from the local market place by customising their market strategy as well as the
product offering towards this model. This will help to cope up the issues and challengers that are
faced in the automotive market place of Britain and overcoming them by following efficient
marketing strategies.
Requirements
The capital assets that will be required is to open a warehouse, where the new models
will be stored. At least 10 employees need to be hired to market and sale the model of 2020 Ford
Document Page
5MANAGEMENT POLICY AND STRATEGY
Mustang in the Britain market place. A total finance of US$ 500 million will be invested in the
identified market place (Mao & Jin, 2014).
Market Objectives
Specific – To increase the sale of the model of 2020 Ford Mustang in the Britain market place
Measurable – To measure the amount of sales on quarterly basis
Actionable – Recommended actions need to be taken to overcome the challenges
Relevant – Proper market research needs to be done before and after the launch of the selected
model
Time-bound – Sales targets need to be set on monthly basis
Document Page
6MANAGEMENT POLICY AND STRATEGY
References
2020 Ford® EcoSport Compact SUV | Available 4WD and AWD. (2020). Retrieved 12 February
2020, from https://www.ford.com/suvs-crossovers/ecosport/?gnav=header-all-vehicles
Bailey, D., & De Propris, L. (2017). Brexit and the UK automotive industry. National Institute
Economic Review, 242(1), R51-R59.
Ford – New Cars, Trucks, SUVs, Crossovers & Hybrids | Vehicles Built Just for You | Ford.com.
(2020). Retrieved 12 February 2020, from https://www.ford.com/
Mao, Z., & Jin, Y. (2014). Reverse Logistics in Automotive Indusrty: A multiple case study in
automotive industry.
chevron_up_icon
1 out of 7
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]