Ford Motor Corporation Roles And Strategies

Ford Motor Company Roles and Strategies

The purpose of this paper is to advise the CEO of Ford Motor to help restore the company’s reputation and viability. The author will: (a) Define and discuss Ford’s business level strategy; (b) Explain how the company’s value-chain activities can be better linked to create value for the company; (c) Explain how Ford can successfully position itself in terms of the five forces of competition; (d) Outline a rough competitor analysis; (e) Describe what can be learned about expected competitor behavior by using the model of competitive rivalry to understand Ford’s situation; and (f) Explain what role strategic leadership will play in helping the CEO and the organization meet its strategic objective. The paper will conclude with a summary of the major points.

Business Level Strategy

Every business or organization should establish a secure business strategy to maintain and improve their business. Ford Motor Company hired Kenneth Leet to assist in developing a business strategic plan that would improve their business conditions. (Andres, Horton, Kleven, McCullar, Stevens, Chapman, 2006, p.133) In order to implement a new strategy, there were discussions about joining with other car manufacturers and sell the divisions that were not profitable, also whether or not Ford Motor Company would become less private and the less deferred plan would be bankruptcy. (Andres, et al. 2006, p.134)

Mulally, Ford’s CEO is determined to decrease influence of the finance department. (Andres, et al.2006, p.135). Another strategy directed by Mulally (2006) is ridding Ford of “needless complexity” (p.135). “Mulally’s focus is to unite the company with a single business purpose” (Andres, et al.2006, p.136).

“Ford will concentrate more on the worldwide market and customers, and work to better utilize its global assets and capabilities” (Andres, et al.2006, p136). The global organization will streamline operations while Ford is attempting to increase operational efficiency by investing $2 billion in the Rouge manufacturing plant in Dearborn, Michigan, 62 million into the Buffalo plant and $240 million over next four years at its Wayne Assembly Plant” (Andres, et al.2006, 136). Mr. Mulally organized a global product development team to help with the process.

Value Chain Activities

Ford’s value-chain activities can be better linked to create value for the company by taking in account such issues such as population growth, urbanization, and education with great importance. “These issues are attended to by the Ford Company in alignment with their efforts to maintain sustainable competitive advantage through preserving the good public image that their clients expect from them” (Strategic Analysis Ford Motor Company, 2009). Other ways Ford’s value-chain activities can be better linked to create value for the company is “marketing and sales which entails getting buyers to purchase the product which includes advertising and pricing” (Porter, 1999-2007, para.2). Also, service which will maintain and enhance the products value including customer support repairs services, etc.

Positioning in terms of the Five Forces of Competition

Ford can successfully position itself in terms of the fives forces of competition by using competitive moves such as changing prices-raising or lowering them. Following are the forces of competition where Ford can position itself: First is rivalry “a temporary advantage could be gained and improve differentiation which consists of improving features, implementing innovations in the manufacturing process and in the product itself” (porter, 1999-2007, para.5). Secondly, threat of substitution, for example, when the dealership informs customer of the need for new tires. With this I feel that the option for customers to have old tires retreaded as a substitute is omitted. “Today, new tires are not so expensive that car owners often consider retreading as oppose to purchasing new ones” (Porter, 1999-2007, para.7). Thirdly, Ford can successfully position itself in terms of buyer power if buyers “possess a credible backward integration threat” (Porter, 1999-2007, para.10). Also, buyers can threaten to buy producing, firm or rival. An example

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