Ford Motor Company
Apply: Strategic Plan Research
In this course, you will be analyzing an existing strategic plan based on the information you have learned throughout the coursework in your MBA program.
Research and select a sample strategic plan in an industry with which you are familiar or interested (FORD)
Be sure it includes the various components of a typical strategic plan. Reference Figure 1.1 “Identifying a Company’s Strategy—What to Look For” in Ch. 1 of your text.
Identify in 350 to 525 words what the plan does well, in addition to areas for improvement.
Discuss whether the plan:
o Clearly states where the organization is going and how it will get there
o Evaluates the organization’s external and internal environments
o Includes a people plan and addresses achievement of a diverse workforce
o Includes corporate social responsibility and environmental sustainability
Submit the plan and its citation to your faculty member for approval. This will be used in Weeks 4, 5 and 6 of the courses.
ANSWER
Ford Motor Company
Ford Motors is an American automotive firm that was developed in 1903 by Henry Ford. Initially, Ford was developed with 11 other associates but was later retrieved as a family company. The company focuses on trucks, cars, tractors, among other automobile accessories. The company has established itself in different markets globally and employed more than 400,000 individuals in different countries. Ford Motors has grown to be one of the well-known automotive brands globally.
Strategic Plan
Ford Motors is focusing on designing vehicles for a smart world and becoming the most trusted mobility firm. The future sustainability strategies and targets have aimed at driving human progress by offering accessibility and mobility to all and a commitment to sustainable renewable energy (Verbaan, 2018). Ideally, Ford is aiming at bringing the pleasure of automobile to as many people as possible. To achieve this, Ford has pursued a cost leadership strategy that seeks to create value for its consumers through delivering cars at lower costs.
External and Internal Environments
Ford has a strong strategic management team that ensures that the strategies and management aspects of the company are performed accordingly. Ford’s internal environment entails the company’s general operations, the management team, outbound and inbound logistics, sales and marketing, technology, support staff, and the firm’s infrastructure. Ford has two varying sections of inbound logistics; one that transports from local suppliers and one that transports from the U.S to the global markets (Micinski, 2017). Ford Motors has a strong brand image, unique global supply chain and efficient innovation processes. However, the company has encountered challenges matching its production capabilities and sales volume to the top automakers such as Toyota.
Ford company is situated in the U.S, and thus, most political issues in the country influence the company’s general sales. Additionally, the company is operating in more than 60 countries that have different political systems. The company has greatly focused on various ways of dealing with political issues. Some of the major political issues include tax policies, trade policies and stability of the government. Economic factors such as rate of inflation, cost of labour, fiscal policies, interest rates, and inflation rate have greatly affected Ford’s operation. The company has greatly addressed the social, cultural dimensions in the different countries. Technology has been easily adapted in the company through research and innovation processes that have enabled the building of an innovative company.
People Strategy
At Ford Motor Company, employees play a big role in the company’s success since they are the driving force. Ford focuses on improving the engagement and satisfaction of employees as essential components of the people strategy (Caron, 2021). Ford has a talent management process that fosters a safe and flexible working environment in which people are valued and respected for their positions in the company. Ford is committed to a diverse workforce since it offers equal opportunity to qualified applicants without regard to their religion, colour, national origin, disability and sexual orientation.
Corporate Social Responsibility and Environmental Sustainability
Ford Motors corporate social responsibility is intended to respond to the desires and needs of the stakeholders. Ford’s corporate social responsibility addresses programs and initiatives focused on employees, investors, customers and communities. The social corporate responsibility efforts entail product revolution for safety, fuel economy, quality, Ford smart mobility, sustainable workforce, learning and development, community services and supplier sustainability training. In addition, Ford has integrated environmental sustainability goals such as reducing CO2 emissions and energy consumption in the manufacturing operations (Caron, 2021). Ford’s broader approach is to lower the environmental effects of its vehicles through a long-term strategy of lowering emissions and increasing fuel efficiency.
Areas of Improvement
Ford needs to focus on its production capabilities to match with other major automakers globally. In addition, there is a need to maximize on the new opportunities for self-driving technology, electrification and mobility solutions (Arroyo, 2019). Production capabilities are the foundation for developing innovation and investment through different forms of improvement and modification. To effectively achieve the company’s vision, Ford needs to focus on leading the way, strategic partners and an inclusive working environment.
References
Arroyo, D. (2019). Ford and the New Auto Industry.
Caron, N. (2021). How Ford Is Working Towards a More Sustainable Future.
Micinski, N. R. (2017). The changing role of the Ford Foundation in international development, 1951–2001. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 28(3), 1301-1325.
Verbaan, R. (2018). The Transformation of Ford Motor Company: A strategy to improve urban mobility with autonomous vehicles.
