Q1
Ford is one of the most successful automobile companies
internationally. It has main effective keys that it relies on in its industry
environment which helped it become at high competitiveness globally.
The company's owners and leaders have enough skills and experiences
that make them able to manage the business effectively as the HR managers are
highly qualified to recruit effective employees who have the qualifications
needed for achieving the organization's goals. An example is Allan Mulally who
is the company's chief executive officer who was assigned in 2006 based on the
leadership skills he masters and his method in applying the company's culture
to maintain the competitive advantage of the company on the global level. Alan
Mulally tried to make the company earn higher profits and be more successful
through innovative vision called: "ONE Ford." That is based on
coordinating between the different departments and sectors in the company. This
vision is based on supporting the organization's consistency and coordinating
between different divisions in Ford, this makes the HR department able to work
in a cooperatively team one team work according to one strategy that aims at
achieving one target. He was able to make a plan for using the knowledge of the
company about automation and present new innovative cars for the market. He
wished to combine all the company's asset in one unit for raising the business
level and as a result its revenues and profits and innovate new products for
satisfying customers and meeting their needs. He then made different
transformations and altering in the company's structure and procedures to
improve performance and cutting down jobs to provide new trends and processes.
This is made by encouraging the engineers and designers to innovate and provide
creative models for cars that can cope with the latest trends and attitudes of
customers so as to combine value with trends in addition to saving fuels and
presenting creative car designs. (Ally, 2019)
There are four main factors comprising the general environment
which are the political, social, technological and economics. The Political
factor depends on the laws and legal situations in different markets the
company is dealing with and how far the company can deal with laws legally and
face challenges such as the differences in law between China and the USA as
there are policies for being eco-friendly and avoiding pollution. The social
factor depends on the different social fields that are dealing with the company
as the CEO affected them largely when he was assigned in the company, social
factor refers also to the different needs of customers based on their social
levels that vary. Technological factor relates to the levels of technology the
company is following and updating to meet the current revolution in technology
and the challenges face the international market and different
electric-vehicles and Hybrid ones. The economic factor relates to the economic
flourishing or decline around the world, prices of oil, prices of metals and
other different materials that are used in manufacturing cars. (Ford,2016).
There were challenges in 2009 in companies of cars such as Chrysler and General Motors as they were filed as being insolvency but the Ford company faced the government and had a loan debt by it. There are companies such as Jaguar, Aston, Volvo and Aston Martin that were sold and couldn't face challenges. Sever competition was faced by Ford and this made it in need to make a balance between value and price to boost other rivals. Mercury was closed too. This made competition higher and more serious between cars companies such as Chrysler and General Motors. New entrants threat became lower as a result of the needed sum of capital for having car companies and this made competition stronger because it was among Ford and great companies. The threat of substitute is low too as a result of global market requirements such as the low request for large autos and the different variety of options presented in the market for customers. Rise in prices of gas made it necessary to have cars that are valuable in using oils and petrol which made the need for fuel-efficient cars rather than luxury cars. These reasons made the company focus on trying to satisfy the customers and provide them many benefits that they can make use of and be attracted to the cars the company innovated. This can be effective in facing the great changes in the market and penetrate it with its developed techniques.
Q2
Speaking about the field of auto industry, there are many resources
and different vital assets can help a lot in achieving the organization general
goal in which they can play a vital role that help the organization to
stand among other organizations and companies in both the national and
international market in order to meet all needs of the market customers. This
helps in competiveness between different organizations. The logo of ford has
made a great vital reputation among other companies in the international market,
that is due to the great effort done over many years. When customers sea the
ford logo, they directly feel respect and trust all over the world. presumably
that the initiative aptitudes of the officials has powerful influence in
achievement of the organization, for example, arrangement of CEO like Alan
Mulally who has made a vital role for the organization to hold the main
situation in 2006 subsequent to revamping new culture of the organization . The
fundamental driver of Ford organization was to create tasks on a consistent
premise through numerous issues, for example, ; building up the connection
among PC system and assembling; the PC sequencing of cuts and things; improving
proposals for effective calculated conveyance; incessantly exploiting activities
that are made to create generation.
There is no doubt that engaging the representatives inside passage
organization is viewed as one of the most important vital manageable variables
that effect on the intensity of the organization in long haul. And to
accomplish high performing association, there was compelling organization
between organization, workers and associations. This made a great role that
leaded to strengthen The learning and information between all levels in the
organization . The organization rely upon viable projects of preparing and
improvements so as to build up the aptitude of the representatives. The
activities in the passage organization are worked in the portage in coordinated
and one group premise.
The CEO has evacuated the layers of organization. Rudiments of
strengthening incorporated with advancement in innovation have upheld the
convergence of proficient information through the firm, this leaded to take
care of numerous issues that confronted the organization and built up the profitability.
The new technique that has been given was one portage that try to littler and
progressively beneficial passage vehicle and make one group for one target.
F-Series pickup automobiles have been structured by Ford's manufacturing plants
and this upheld the upper hand of the organization. The administration become
make extraordinary interests in developing possibilities, especially in zap,
self-ruling cars, just as transportation administrations.
Most likely that the patterns of the new CEO "Mulally" is one passage that managed truth of the organization in auto advertise as they went to be the preferable rather over the greater as they wanted to deliver littler and progressively gainful Ford and needed to convey the consistency in all areas of activities in the organization and making the HR cooperating as one group toward one target and one plan . they "coordinated and utilized" the organization's advantages in various territories on the planet . they got working benefit at a lower size. They made basic and procedural adjusting in the passage firm and they upgraded the official announcing associations , shutting a few manufacturing plants, lessen the employments in the organization , and empower the originators through each R&D with tremendous spending plan by 4.5billion so as to react to the adjustments in the preferences and patterns in advances in the automobiles market and this leaded to deliver inventive cars like F-Series and Focus Electric vehicle. They plant use has been expanded by the administration of the organization and creation levels additionally have been boosted in each assembling unit. (Ford,2016). Ford needs creation capacity in China and expanding its reality in these nations. The hard challenge in showcase where there are contenders that rely upon lean generation . there is failing to meet expectations regions and they haven't put resources into the future and this improve General Motors than portage in the last time frame .
Q3
Business competitiveness requires Ford to provide its clients with
value for its goods and activities relate to the products, the company tries to
find some certain features to be put in its products in order to meet the
individual market needs. The company follows its "One Ford Plan"
strategy that is its first business strategy applied by Mulally for confirming
the business consistency all over the different branches and divisions of the
company. The company tends to apply cooperation among its employees to work as
one team who work according to certain goals and one vision to reach
competitive advantage. This policy confirmed the company's brand against others
in the market and the company wanted to apply its cost leadership strategy in
order to reduce costs and raise value of the products to boost the market. The
company also has a specific well-defined automotive knowledge added to making
deep value of the company assets and different sources to meet the needs of
clients.
Making use of the resources of the company included using low cost
resources brought from abroad in addition to applying new technologies and
latest updates in the automotive field in order to present innovative ideas by
the company's engineers and designers to reach higher levels of strategy such
as empowering employees to be creative and provide the products with better
suggestions they can innovate. This also included developing the performance of
employees by training them and helping them do the right research to be used in
manufacturing the cars. The company tried to make its factories and plants
highly efficient to satisfy all stakeholders and raise profits at the same
time. This included focusing on eco-friendly cars and new vehicles that run on
electricity and other renewable sources of energy. (mainlandford, 2019)
There are two main dimensions the company's corporate strategy is formed of which are the diversification strategy and the vertical integration. Past strategies Ford used included horizontal integration, forward and vertical ones. The company's horizontal integration lead to different acquisitions as Jaguar, Mazda and Mercury. The company also uses retrenchment as a successful strategy for reducing jobs in the company and stopping the work of factories. Diversification is applied by focusing on the extension in different global markets such as China and others. (Buckman,2009).
These strategies have provided Ford with assistance and support that helped in making it reach competitive advantage and be successful in the market as cost leadership enabled Ford to be a market leader in spite of the challenges the company faced such as the financial ones and enlarging the company factories and labs.
Global industry should be a focus for Ford to be stressed on as for
example, the Chinese market is in need for being well entered in order to be
satisfied. Diversification in strategies is effective in making the company
able to choose and change from different strategies as being modernized is
another strategy the company should focus on to penetrate markets such as China
so future needs to be invested in by innovation and creativity.
References
1.
Ally,
M. (2019). ' A critique of Ford’s CEO Alan Mulally’s Approach to Decision
Making.' https://www.academia.edu/8284764/A_critique_of_Ford_s_CEO_Alan_Mulally_s_Approach_to_Decision_Making
2.
Buckman,
J.. (2009). Ford Finds Its Way. Quality Progress, 42(6), 14-15, ABI/INFORM
Global.
3.
Ford
. (2016). Ford Corporate, visited in 8-11-2019;
http://corporate.ford.com/company.html
4.
Mainlandford,
(2019). '
THE WAY FORWARD; FORD & ALAN MULALLY.' https://www.mainlandford.com/blog/the-way-forward/
5.
McKinsey, (2013). ' Leading in the 21st century: An interview with
Ford’s Alan Mulally.' https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/leading-in-the-21st-century-an-interview-with-fords-alan-mulally Accessed in 8-11-2019
6.
Williams, B. (2010). ' Creating and Maintaining
and Efficient "Buid Ford Tough" Learning Organization: The Evolution
of Organizational Success.' https://www.researchgate.net/publication/266200360_Creating_and_Maintaining_and_Efficient_Buid_Ford_Tough_Learning_Organization_The_Evolution_of_Organizational_Success
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