Strategic Management Report: Ford Motor Company Analysis, UBMM3014

This report provides a comprehensive analysis of Ford Motor Company's strategic management. It begins with an introduction to strategic management and its application to Ford. The main body of the report examines Ford's business performance, including its market position and financial results. It ...Read More

Strategic Management
and Project

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Business Performance of Ford................................................................................................3
Analysis of internal business environment and external environment of Ford......................3
Analyse the competitive automobiles industry.......................................................................5
Strategies and objectives created, and implemented by Hackett............................................5
CONCLUSION................................................................................................................................6
REEFRENCES................................................................................................................................7

INTRODUCTION
Strategic management is the use of the capital within a company to actually achieve main
aims and objectives (Bempah, 2017). This simply means setting priorities, reevaluating the
business landscape, analyzing the data the internal structure, reviewing objectives and aimed at
ensuring management carries out plans around the enterprise. In this report, case study of ford is
discussed and different variables such as business performance, internal and external
environment analysis, competitive industry etc.
MAIN BODY
Business Performance of Ford
From 16th June 1903, the company markets cars including commercial vehicles below the
name Ford and also luxurious vehicles under the model Lincoln. Ford also holds Troller, a
Brazilian SUV maker, 8% interest in UK-based Aston Martin and a 32 % share in Jiangling
Automobiles. By 1914 ford techniques were recognised internationally as Fordism. In March
2008 Ford's former UK divisions Jaguar and Land Rover, obtained in 1989 and 2000, was
allocated to the Indian car manufacturer Tata Motors. From 1999 to 2010, Ford operated the
Swedish car manufacturer Volvo. In 2011, Ford sold the Mercury Company, under which luxury
cars were sold in United States, Canada, Mexico and the Middle East since 1938. Ford became
the 11th largest American-owned company throughout the Fortune 500 chart of 2018, owned on
worldwide sales of $156.7 billion in 2017.[11] In 2008, Ford manufactured 5,532 million
cars[12] and hired about 213,000 workers at about 90 factories a across world.
Analysis of internal business environment and external environment of Ford
SWOT analysis of Ford Motor:
Strengths
Global Reputation: Ford is a very well-known car manufacturer and is still recognised on foreign
markets as a result of its publicity and advertisement achievements.
Diverse Choices: Ford lends the diverse products and vehicle styles to all sorts of demographic
customer groups. They take better care of every customer desires and wishes.
Weaknesses
Product recall: About 830,000 Ford and Lincoln cars were recalled to repair defective side-door
latches. In May 2015 Company also recalled cars due to Takata airbags protection defects.

Heavy reliance on U.S. Markets: Ford relies strongly on the U.S. and North American markets.
Their earnings and sales are reduced thus they must move to emerging market.
Opportunities
Eco-friendly cars: As Ford is still seeking to be environmentally innovative; they have a
wonderful opportunity to manufacture cars and vehicles which are fuel-efficient (Loke,
Birkenmaier and Hageman, 2017).
Self-driving vehicle: Ford spent $1 trillion in Artificial Intelligence firm like Argo AI in 2017 to
build the self-driving platform. This will increase the interest of customer and they will to have a
driver less cars.
Threats
Growing costs of raw materials: The increasing prices of aluminium and steel coil manufactured
goods will have a significant effect on the company's expense and profitability margin.
High competition: Ford's competing firms including Toyota, Tesla and Tata are now facing cut-
throat rivalry. Ford continues to fail to retain its creative role in the market.
External analysis of Ford Motor
Political
Governing funding for technical advancement, Expanded bilateral trade negotiations by
the political ruling parties and expanded policy investment projects in developed countries help
Ford Motor to grow business.
Economic
Ford has the potential to expand on the grounds of the US economy's which is sluggish
yet significant main market for the growth of business. In high-potential developed countries, in
which the organization still has minimal presence, Ford still has a chance to expand.
Social
Rising market for hybrid and electrical vehicles, balanced mind set towards customer support
and most importantly rising wealth gap among customer will enables Ford to increase the
customer base and enhance profit.
Technology
Growing use of mobile devices which ease driving for customer, Growing use of
electronic delivery platforms, Small network of filling stations reduce the time wastage of
customer and they more really over Ford Motor (Xie, So and Wang, 2017).

Environment
Climate change seems to be an external factor which creates the conditions for Ford to
expand across products to help conserve the environment. Low-carbon trend, declining oil
supplies give Ford a chance to produce electric cars.
Legal
Environmental security standard, growing environmental standards and increasing
international intellectual property laws help in doing business for Ford motor in legal manner.
Analyse the competitive automobiles industry
In recent time there have been number of advance and new strategies are implemented by
Ford Motor competitors. Such as:
 The launch of the all-electric T3 from Tesla-an upper mid-market platform.
 Modern technology by German industrial companies Daimler-Benz and BMW in the
hybrid and driverless cars.
 General Motors' $500 million stake in Uber and Cruise Computerization acquisition.
 Nissan's intention to increase its investments at the all-electric Leaf platform, growing its
scope to rival Tesla on a fully charged battery (Xie, So and Wang, 2017).
 Chevy Bolt also rendered GM an authorized distributor in the production of driverless
cars, planning to launch robotic taxes in 2019.
Strategies and objectives created, and implemented by Hackett
The Ford Motor Company was founded upon the premise that human development is guided
by freedom of movement. It's a conviction that our enthusiasm for making better cars and trucks
has always been fuelled and today it fuels our dedication to being the most respected
transportation organization in the world, building intelligent vehicles for an intelligent
environment that makes us travel faster, more easily and more openly (Xie, So and Wang, 2017).
Hackett was proud of this statement: Intelligent cars in an intelligent environment. To Ford
Motor Company, start talking about that. It is this coupling which is anchoring our approach.
This new strategy would be built around five key principles:
 Ford will plan for transformation by being prepared
 Company will be in the car market and transporting both people and products
 All types of cars will be intelligent and attached at just a single request of customer.
 Such smart cars will flourish in a global communication operating environment.

 Company will grow and focus on potential business possibilities within this mobility
interface.
CONCLUSION
In the end of report, it is concluded that, strategic management is a systematic process in
controlling the policies and standards of company to reach the desired target and make a leading
position in highly competitive environment. With the analysis of internal and external
environment overall business Strength, weakness, threat and opportunities are determined.

REEFRENCES
Books and Journals
Bempah, B. S. O., 2017. Determinants of sound budgeting and financial management practices at
the decentralised level of public administration. OECD Journal on Budgeting, 16(2),
pp.109-128.
Loke, V., Birkenmaier, J. and Hageman, S. A., 2017. Financial capability and asset building in
the curricula: Student perceptions. Journal of Social Work Education, 53(1),.pp.84-98.
Xie, K. L., So, K. K. F. and Wang, W., 2017. Joint effects of management responses and online
reviews on hotel financial performance: A data-analytics approach. International Journal
of Hospitality Management, 62.pp.101-110.