Ford Motor Company
Ford Motor Company: A Business Analysis
Mary J. Richardson
MGT 521
January 30, 2012
Erick Espinosa
Developing sound strategic plans to address the changing business climate is crucial to organizations operating in today’s global environment. Throughout its history, Ford Motor Company has developed effective strategic plans to adapt the business to the changing economy while addressing the needs of their customers and employees. By analyzing the company’s strategic planning, along with its financial standing, an investor can make an informed investment decision. “Global strategy involves thinking in an integrated way about all aspects of a business- its suppliers, production sites, markets and competition. This approach considers all activity centres in the supply chain as one entity, not just looking at bits of it. It involves understanding and accommodating local variations and cultures, striving for open “world” standards and understanding international issues. All this needs to be part of the process and product design of the organization, not added as an afterthought when seeking entry into a new market. A good example of a global attitude is at Ford Motor Company. Their “global car” concept consists of a basic engineering design, accompanied by regional variations to suit local tastes. Final assembly of models is postponed where possible to react effectively to local demands.” (McAdam, McCormack, 2001). Ford has embodied vision and forward thinking when addressing the needs of a global economy. They have embraced innovative concepts and philosophies to better serve competition, many CEOs view innovation as critical to corporate success. Williams Ford Jr., chairman and CO of Ford Motor Co., recently announced that, “from this point onward, innovation will be the compass by which the company set its direction” and that Ford “will adopt innovation as its core business strategy going forward.” (Sawhney, Wolcott, Arroniz, 2006). Ford has set
Mary J. Richardson
MGT 521
January 30, 2012
Erick Espinosa
Developing sound strategic plans to address the changing business climate is crucial to organizations operating in today’s global environment. Throughout its history, Ford Motor Company has developed effective strategic plans to adapt the business to the changing economy while addressing the needs of their customers and employees. By analyzing the company’s strategic planning, along with its financial standing, an investor can make an informed investment decision. “Global strategy involves thinking in an integrated way about all aspects of a business- its suppliers, production sites, markets and competition. This approach considers all activity centres in the supply chain as one entity, not just looking at bits of it. It involves understanding and accommodating local variations and cultures, striving for open “world” standards and understanding international issues. All this needs to be part of the process and product design of the organization, not added as an afterthought when seeking entry into a new market. A good example of a global attitude is at Ford Motor Company. Their “global car” concept consists of a basic engineering design, accompanied by regional variations to suit local tastes. Final assembly of models is postponed where possible to react effectively to local demands.” (McAdam, McCormack, 2001). Ford has embodied vision and forward thinking when addressing the needs of a global economy. They have embraced innovative concepts and philosophies to better serve competition, many CEOs view innovation as critical to corporate success. Williams Ford Jr., chairman and CO of Ford Motor Co., recently announced that, “from this point onward, innovation will be the compass by which the company set its direction” and that Ford “will adopt innovation as its core business strategy going forward.” (Sawhney, Wolcott, Arroniz, 2006). Ford has set
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