Ford Motor Company

Topics: Ford Motor Company, Strategic management, Henry Ford Pages: 4 (1182 words) Published: March 11, 2010
Henry Ford was the creator of Ford Motors that started on June 16, 1903. “Henry Ford was a farmer’s son whose manufacturing genius transformed life around the globe” (Ford Motor Company, 2010) Henry was born July 30, 1863 and was the oldest of six siblings. Although he was committed to his family farm, he was always interested in machinery and mechanics. Which later helped him develop Ford Motors? “When Ford Motors began it consisted of eleven business associates and $28,000 in capital.” (Ford Motor Company, 2010)

Define and discuss Ford's business-level strategy. We are going to now look at Ford’s business-level strategy: which is cost leadership strategy. Defined as: “A firm pursuing a cost-leadership strategy attempts to gain a competitive advantage primarily by reducing its economic costs below its competitors. If cost-leadership, numerous firms in an industry can implement strategies, or if no firms face a cost disadvantage in imitating a cost-leadership strategy, then being a cost leader does not generate a sustained competitive advantage for a firm. The ability of a valuable cost-leadership competitive strategy to generate a sustained competitive advantage depends on that strategy being rare and costly to imitate” (Bernard, 2003). Muallay is trying to decrease the cost of operation cost; he believes that “the key to its future success is not squeezing by with fewer resources than competitors use, but “working smarter with what it has” (Hitt, Ireland, & Hoskisson, 2009). Ford is trying to remain on of the biggest name brand in American cars without losing the value of its cars.

How can the company's value-chain activities be better linked to create value for the company?

Per Ford Motors website “Increasingly, we are bringing our understanding of a wide range of sustainability issues into the stages of our value chain. Environmentally, we are improving our manufacturing efficiency, cutting the emissions of our vehicles, designing vehicles with...
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