You have been hired as a consultant to help Ford Motor Company return to its glory days when either Henry Ford or Alan Mulally ran the company. In doing so, you must produce a short report to Jim Hackett, Ford's CEO, that conveys your observations of Ford's current situation (situational analysis) and a proposal of strategic actions Ford should take to be the model automotive company of the 21^st century. Thus, your task is to answer the following questions based solely on the information provided in the case:

• Perform an analysis of Ford's external and internal environments. As you do this, please make sure you organize your response by classifying external trends as opportunities and threats and by classifying Ford's internal environment as strengths and weaknesses. Because of the length of the report, select the most salient issues in your eyes. In addition, you must include at least three functional areas/value chain activities in your analysis of Ford’s internal environment (e.g., operations, marketing, and finance), and you must include issues regarding Ford’s financial situation.
• Based on the external challenges (threats), positive external trends (opportunities), Ford’s limitations (weaknesses), and Ford’s strong suits (strengths) identified in point #1, please provide four strategic suggestions for Ford’s executives to implement. In other words, combine the opportunities/threats you identified with Ford's strengths/weaknesses to suggest what decisions CEO Hackett needs to make. In your response, make sure you include both strategic actions related to business-level strategy (how to compete) and corporate-level strategy (where to compete). Provide a strong rationale for your choices.

Answer:

Segments of General Environment

Global elements

It is viable to say that the adjustments withinside the international surroundings profoundly have an effect on the functioning of Ford Motor Company. In precise, the company remains motivated via way of means of the extreme opposition which may be defined via way of means of the relative openness of the American car marketplace and the elimination of exchange barriers. It have to be cited that the governments of various international locations try to limit import quotas and permit car-producers to begin operation in numerous international locations. At present, Ford faces extreme of of entirety placed up via way of means of groups together with Toyota, BMW, Honda, Mazda, Volkswagen, and lots of different producers.

This precise element remains an vital a part of the outside surroundings as it minimizes the marketplace percentage of this employer. In turn, the car enterprise turns into lots extra aggressive. This is the primary fashion that have to be left out via way of means of the senior control of Ford Motor Company when you consider that they want to modify the adjustments in outside surroundings.

Nevertheless, it's miles vital to say that the worldwide surroundings also can provide many possibilities to Ford Motor Company. It have to be cited that there are numerous rising markets such China, India, or Russia, and that they may be a supply of sales for the organization (Ijoui, Emmerick, & Ceyp, 2009, p. 178).

It have to be cited that that during those regions, there's a enormous growth withinside the shopping energy of many folks that now have extra possibilities for purchasing the goods of American, European, or Asian car-producers (Ijoui et al., 2009, p. 178). Therefore, Ford Motor Company can growth its profitability. In turn, this fashion contributes to the improvement and increase of the car enterprise. One can argue that the effect of those elements will now no longer decrease withinside the future. More likely, it turns into even stronger.

Economic elements

One have to additionally communicate approximately the position of the financial elements and their effect at the overall performance of Ford Motor Company. It have to be cited that the economies of superior international locations have these days started to get over the recession which emerged in 2007. Therefore, the call for for the goods of Ford Motor Company has a tendency to growth. Other groups that paintings on this vicinity also can advantage from this fashion. Thus, it is easy to inform that the whole enterprise can obtain increase.

Yet, this aim may be attained if producers can provide modern merchandise with out growing the fee significantly. In precise, they want to be aware of one of these criterion as gasoline intake when you consider that that is one of the principal worries for plenty customers who may be touchy approximately the costs of products and services.

Nikhil MANIT: Forces of Competition

It is likewise vital to say numerous forces of opposition influencing the paintings of this organization. Much interest have to be paid to the bargaining energy of customers who may be seemed as one of the maximum influential stakeholders of the Ford Motor Company. At present, they've get right of entry to to the goods synthetic via way of means of numerous groups. For instance, it is easy to point out the automobiles of such producers as Toyota, BMW, Mazda, Chrysler, and lots of others. Therefore, Ford can't dictate its phrases to the customers. Additionally, clients do now no longer need to pay any switching charges in the event that they do now no longer need purchase the goods of a sure organization. This bargaining energy of purchaser is specially vital on the time, while the popularity of Ford Motor Company is broken via way of means of a first-rate range of product recollects (Bunkley, 2013).

Moreover, these days, customers have extra possibilities for studying approximately the services of various groups. These are a number of the info that may be singled out. In turn, it's miles viable to mention that the control of Ford Motor Company has diagnosed the significance of those elements. In precise, the advertising techniques of this employer have developed considerably. For example, this organization emphasizes the concept that they try to contain clients withinside the layout or their automobiles (Yi, 2014, p. 98). For instance, those stakeholders are recommended to explicit their expectancies for the brand new fashions of Ford Motor Company (Yi, 2014, p. 98). This is one of the procedures taken via way of means of this company so that you can reply to viable demanding situations.

Additionally, it's miles crucial to talk approximately the depth of opposition. One can argue that Ford can't without difficulty differentiate its merchandise in phrases of fee or fine. In precise, the competition of the organization are green enough, and they're capable of lessen the charges of producing automobiles. Moreover, those groups are inclined and capable of undertake modern technology. This argument is specially vital to one of these organization as Toyota, General Motors, Chrysler, Mazda, and lots of different businesses.

At present, the organization adopts the techniques that could permit it to lessen the operational expenses. Moreover, this employer implements innovational technology which might be extra green in phrases of gasoline intake. For instance, it is easy to communicate approximately the manufacturing of hybrid automobiles (Ford Motor Company, 2014, p. 3). Thus, it's miles viable to mention that the organization has in part addressed those demanding situations. Nevertheless, this method has been additionally followed via way of means of many massive groups representing the car enterprise. Therefore, it can't provide a aggressive area to the organization, as a minimum for a protracted term.

One can argue that those forces will play an vital position withinside the future. Therefore, Ford Motor Company have to consciousness at the discount of producing charges. At present, Ford can't differentiate its merchandise in phrases pricing, and it's miles one of the motives why the marketplace percentage of the organization has been eroded. Moreover, the control have to focus on the development of its inner operations, mainly fine control. In this way, they are able to lessen the range of recollects which tarnish the popularity of the organization and cause giant losses. Moreover, this method can beef up the aggressive function of Ford Motor Company. These are the primary tips that may be provided to the control of this company.

External Threat and Opportunities

Overall, there are numerous threats that the control have to consider. For instance, one have to consciousness on forex fluctuations when you consider that those fluctuations can have an effect on the sales that a organization can derive from its foreign places operations (Securities and Exchange Commission, 2012, p. 76). Moreover, this element can have an effect on the fee of producing. Furthermore, the control have to be aware of the extreme opposition as it forces the organization to lessen the fee of its merchandise.

It have to be stated that the principal opponents of Ford have comparable assets and technological understanding. Therefore, those groups can emulate the techniques followed via way of means of Ford. This is one of the principal threats that may be identified.

Nikhil MANIT: There are numerous vital possibilities which might be to be had to Ford Motor Company. In precise, one have to communicate approximately the recuperation of the American car enterprise. To a few extent, this phenomenon may be defined via way of means of the developing shopping energy of American citizens. Additionally, one have to consciousness at the significance of rising markets together with India, China, Latin America, or Russia (Ijoui et al., 2009). By exploiting those possibilities, Ford Motor Company can growth its purchaser base and derive greater sales. These are a number of the primary factors that may be made.

The maximum critical risk is associated with the fee strain which may be defined the opposition of different car-producers. This trouble may be addressed via way of means of growing the effectiveness of inner operations. They want to limit the charges of manufacturing so that you can limit the effect of these forces. This method is likewise vital for exploiting the possibilities withinside the rising markets together with India or China due to the fact in those international locations, clients are commonly extra fee-touchy. These are a number of the primary factors that have to now no longer be left out.

Strengths and Weaknesses

There are numerous strengths which might be vital for the sustainability of Ford Motor Company. In precise, one have to point out that Ford produces a whole lot of automobiles and this employer occupies main positions in numerous segments of the marketplace. Additionally, the organization has understanding and possibilities for introducing modern technology. These are the primary info that may be followed. In turn, the primary weaknesses of this organization are associated with fine control. In order to exemplify this argument, it is easy to discuss with the common product recollects (Bunkley, 2013). The failure to deal with this problem can create enormous demanding situations for the organization because it adversely impacts its popularity. Moreover, it effects giant losses for the organization.

On the whole, the organization can undertake numerous techniques so that you can limit the poor effect of the outside surroundings. This employer have to lay pressure at the manufacturing of power-green automobiles. They want to pay attention on the ones marketplace segments wherein Ford occupies main positions. This method can permit the organization to reinforce its function withinside the marketplace. In turn, the organization have to consciousness at the advent of the fine manage programs. In this way, the organization can grow to be extra resilient. Moreover, it will likely be capable of lessen the chance of complaints originating from product defects. Finally, this step is vital for strengthening the clients’ self assurance withinside the new merchandise in addition to their loyalty to the organization.

Resources, Capabilities, and Core Competencies

There are numerous vital abilities that Ford Motor Company possesses. First, this employer has essential economic assets to enforce numerous R&D projects. Therefore, this employer can manufacture modern merchandise. This problem is specially vital these days on the time while extra clients vicinity emphasis on one of these criterion as power performance. Another functionality that have to now no longer be left out is the emblem call of Ford Motor Company. Even in spite of numerous the scandals associated with product recollects, this employer continues to be related to such values as performance and fine. This argument is specially applicable if one speaks approximately rising markets. Nevertheless, this competency may be precious if the organization gets rid of the chance of product defects; in any other case the emblem of Ford may also subsequently lose its cost. This is one of the factors that have to now no longer be left out.

Additionally, it is easy to point out that the organization may be defined because the financial system of scale. In different words, this employer can higher face up to fee opposition which may be staged via way of means of such groups as General Motors or Toyota. Furthermore, the organization has enjoy withinside the advent of modern technology together with hybrid engines. On the whole, it's miles viable to mention that Ford Motor Company has enough assets for withstanding the opposition. In turn, this employer have to provide the automobiles that could meet the wishes of customers with numerous earnings levels. In this way, the company might be capable of derive sales from a whole lot of sources.

Value chain

The cost chain of Ford Motor Company includes numerous vital parts. One of the maximum vital factors is product making plans and layout. At this precise, the organization introduces the idea of a brand new vehicle. In turn, the control have to be aware of the manufacturing of power-green automobiles that could attraction to a first-rate range of customers. This method is vital on the time, while extra customers grow to be very worried approximately the fee of gasoline (Securities and Exchange Commission, 2012, p. 17). The understanding of this organization and its economic assets are essential for introducing modern merchandise. Nevertheless, this method may be efficiently supplied that a organization reduces the fee of producing and improves its fine manage techniques. In this way, the organization can growth the attraction in their merchandise and make customers extra unswerving to the organization. This is one of the first steps that the organization have to take.

Additionally, this employer can create greater cost via way of means of stressing its emblem call. They want to put pressure at the concept that Ford Motor Company has served client marketplace for extra than a century. This method may be vital for attracting clients in rising markets together with China or India. These are principal guidelines that may be made.