TABLE OF CONTENTS
Define and discuss Ford's business-level strategy. How can the company's value-chain activities be better linked to create value for the company? 2.2
How can Ford successfully position itself in terms of the five forces of competition? 2.3
In what ways can the company effectively manage customer relationships to increase strategic competitiveness? 2.4
What conditions and tools can facilitate Ford's efforts to produce differentiated products at relatively low costs? Outline a rough competitor analysis. What can be learned about expected competitor behaviour by using the model of competitive rivalry to understand Ford's situation? 2.5
What role will strategic leadership play in helping Mulally and the organisation meet its strategic objectives?
8. REFERENCE LIST
Henry Ford was the founder of Ford Motor automaker started on 1903. Ford Motor Company is an international automotive industry leader established in Dearbon, Michigan. The company consists of eight automotive brands which include Ford, Lincoln, Mercury, Mazda, Volvo, Jaguar, Land Rover and Aston Martin. Alan Mulally has been appointed as Ford Motor Company’s CEO. Mulally is already faced with a devastatingly complex circumstance. He has challenging the task of enhancing Ford’s brand image and returning the company to probability due to diverse global dynamics brazen out the company and competitive pressures to build. I have been invited by Mulally to provide advice to his management team on improving the company’s reputation and capability. I have been assigned to the project and asked to assess Ford’s circumstance to present my suggested course of action for Ford. 2.1 Ford business level strategy is cost leadership as the company strategy is to manufacture, develop, design and service cars and trucks globally that meets customers’ satisfaction. A cost leader is producing at lowest cost but not necessarily lower prices (Gallagher,2004). This strategy is building a “fairly standardized product and under pricing everybody else” (Kiechel,1981). Sequentially to maintain competitive advantage, the strategy must be uncommon and costly to imitate(Berbard,2003). Mulally wants to decrease in operation cost, he mentioned that need to work smarter instead of using fewer resources than competitors use for future success (Hitt, Ireland, & Hoskisson, 2009). Ford also focuses on constant innovation to meet customer needs. Ford provides reasonable price and committed in fuel saving which lead to low carbon emission. The Ford is capable with start or stop technology that releases only 99 g/km of Co2 (Blue Oval,2010). Ford protects environment with the Carbon Disclosure Project Water Disclosure program by setting a goal reduce carbon emission by 30% and less water usage about 16%. Ford gathered the information from consumers to improve their goods and services and gain competitive advantage because customers are segmented based upon their needs. Thus, they have reinvented Ford Explorer. Explorer offers an optional 2.0-liter EcoBoost™ I-4 engine delivering V6 power with four-cylinder fuel efficiency (2011 Ford Explorer, 2010) according to customers’ want top SUVfuel economy. Therefore, Ford’s vision is to deliver products that value customers, safe, fuel saving quality. On the Ford’s value chain is design and planning which involves three parties such as Government,Ford,and Consumers. Ford is aware in social, economical and environmental accountability in mind when developing innovative product. They are environmentally reducing the carbon emissions of vehicle and conduct more recycling activities in use of materials. Ford also expands the connections and builds relationship with the communities. The company putting effort to adapt to diversity challenges and seek for opportunities to meet stakeholders and...
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