Ford Strategic Management
Ford Strategic Management
Ford Strategic Management
STRATEGIC MANAGEMENT
FORD MOTOR COMPANY
STRATEGY FORMULATION
Thus, based on its current condition, Ford Motor Company needs to work on
growing its sales to achieve global leadership and fulfill its vision statement.
2
Fords mission statement - One Team. One Plan. One Goal.
One Team: People working together as a lean, global enterprise for automotive leadership, as
measured by: Customer, Employee, Dealer, Investor, Supplier, Union/Council, and Community
Satisfaction.
One Plan: Aggressively restructure to operate profitably at the current demand and changing
model mix; Accelerate development of new products our customers want and value; Finance
our plan and improve our balance sheet; Work together effectively as one team.
One Goal: An exciting viable Ford delivering profitable growth for all.
With the One Ford mission statement, the company now focuses on creating
consistency in product and service design and quality globally.
The mission statement emphasizes teamwork to achieve synergy at Ford.
The One Plan and One Goal components also indicate that the mission
statement focuses and unifies Fords global organizational efforts to improve
business performance and achieve the global leadership point in the companys
vision statement.
3
Fords weaknesses are based on the companys limitations compared to competitors.
Fords major weaknesses are as follows:
1. Limited global scope of production network - limitation of its network of production
facilities, especially when compared to Toyotas expansive global network. Also
closed down some of its production facilities in Europe in recent years, further
worsening this weakness.
2. Higher costs compared to competitors - compared to competitors like Toyota, Fords
costs and prices are relatively higher.
3. Slow innovation processes - innovation processes are relatively slower to respond to
new or emerging trends even though the company has increased its innovation
effectiveness.
4
Fords opportunities are linked to growth and expansion.
The following are Fords main opportunities:
The threats against Ford are based on competition and global oil prices.
The following are the threats against Ford:
1. Aggressive competitive rivalry - threat of competitors like General Motors and Toyota
2. New entry of high-tech firms - t hreat of technology firms like Google and Apple in their
efforts to make driverless cars that could compete against Fords products.
3. Fluctuating oil prices - threatens the sales performance of Ford products, the majority
of which have internal combustion engines.
5
LONG TERM OBJECTIVES
Ford Motor Company's financial goals include growing the number of vehicles sold
annually by 45 to 55 percent to a total of 9.4 million by 2020. The company is seeking to
increase its market share significantly in regions outside North America, including
Asia-Pacific, Africa, Europe and the Middle East.
Ford's objectives in the area of research and safety revolve around continued
investment in improved materials and technology. It is expanding its Palo Alto Research
and Innovation Center in California's Silicon Valley and further developing the Ford
Blueprint for Mobility, which focuses on in-car connectivity, automated driving
technology and improved vehicle safety. Additionally, the company is developing more
innovative materials like the high-strength, military-grade aluminum alloy used in its
2014-model F-150 truck.
In the area of sustainability, Ford's objectives include increasing the fuel-efficiency of its
entire fleet of vehicles and decreasing carbon dioxide emissions from its manufacturing
processes, with a target of 25 percent reduction between 2011 and 2016. It has set
numerous sustainability goals, which include increasing its use of recycled and
renewable materials in its vehicle interiors, decreasing the amount of volatile organic
compound emissions from vehicle painting, and reducing water use and manufacturing
waste.
ALTERNATIVE STRATEGIES