Running Head: COMPREHENSIVE STRATEGY ASSESSMENT

COMPREHENSIVE STRATEGY ASSESSMENT

Mustafa Abdall
MBA6024
Organizational Strategy

Date:02/20/2015

COMPREHENSIVE STRATEGY ASSESSMENT

Abstract
The purpose of this paper is to review Ford Motor Company strategy and goals. Analyze
the strategic elements of Ford Competitive advantages by link them toward and integrated with
the current achievements. I will focus on organizational structure, systems, and culture. As I did
previously, I will create an Imaginary scene. I will be the Business Management Consultant who
will assess Ford's strategy. I should write a strategic fit report to Mrs. Terri Bell, the vice
president of strategy for Ford Motor Company.

COMPREHENSIVE STRATEGY ASSESSMENT

Dear Mrs Terri Bell. ,

Further to our discussion during our meeting, I was working to write a report evaluating the our
company Ford Motor strategy and my recommendations to develop current strategy to face the
global trends and challenges.
My role as Business Management Consultant will be to analyze the following points:
1. Analyze the strategic elements.
2. Ford Competitive Advantages.
3. Analyze Ford Suppliers, Competition, and Customers
4. Analyze the main three factors organizational structure, systems, and culture.
5. Recommendations
6. Summery

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Analyze The Strategic Elements. I will start with the traditional strategy analyzing tool
SWOT:
Strengths

Brand Loyalty

Glamorous reputation locally and internationally.

"Robust research and development capabilities"( Ford SWOT ,2014).

Weaknesses

"Frequent product recalls

Decline of unit sales in certain countries."( Ford SWOT ,2014)

Unable to keep in pace with Toyota technology and progress.

Conflict between the company GOALS and what we have in real life.

Opportunities

"New product launches

Increased focus on emerging markets

Recovery of automotive market in the US"( Ford SWOT ,2014)

Threats

"Intense competition and pricing pressure

Currency fluctuations and trade policy risks for the South American operations"( Ford
SWOT ,2014).

The Non American automakers invade to the market such Toyota and Hyundai.

"Fluctuating raw material prices. Volatile raw material prices may affect the companys
business and result of operations. The company uses various raw materials such as rolled
steel, aluminum, glass, plastic and other resin materials in manufacturing vehicles.

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According to the Bureau of Labor Statics, producer price indexes for core raw material
inputs such as rolled steel and primary aluminum increased by 95.80%, and 90.00%,
respectively, during the last decade"( ICD, 2013).
Ford Strategy based on three pillars:
Management. We are proud to have New leader Mr. Mark Fields and Mr. Don Butler.
Two Business Magicians and Geniuses Mr. Mark Fields and Mr. Don Butler. It is an amazing
combination. When "Management, Leadership, IT"( Wsj,2014)," Engineering, Marketing, and
Business Development "( Autonews,2014 ) Gens combine in two "Leaders' DNA"( Dyer,
Gregerson, & Christensen,2011) then the result is unbelievable. It is the American Brand Ford
coming back.
Employees. Still we need to develop the relationship between our employees and our
managements. This can be done by implementing Mr. Vineet Theory EFCS " Employee First,
Customer Second" (Vineet Nayar, 2010). Mr. Vineet Theory " EFCS is not about making
employees happy or comfortable. I dont even really care if employees are happy. I dont think
that employee satisfaction is something a company should strive for. Satisfaction is a passive
state, isnt it? Satisfaction doesnt produce change or improvement or innovation or much of
anything. As for employee engagement, that isnt much better than satisfaction. I would hope
that everybody, no matter what their job is, would be alert and paying some attention to what
they do, would be engaged."( As cited in Forbes, 2010).
Technology. We are stepping wisely and our plans leading us to retake our Automotive throne.
Ford Competitive Advantages. It is a combination of many elements:

Cost advantage. Ford Hybrid price "2015 Ford C-Max Hybrid $26,620"( Truecar,2015)

Differentiation advantage

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Affordable sport cars 2015 Ford Mustang "(Usnews.rankingsandreviews, 2015).

Technology. Ford better than Toyota "The 2014 Ford Explorer offers a greater level of
technology than the 2014 Toyota Highlander."( Autotrader, n. d).

Brand Loyalty.

Reputation and History such as starting days with "Blue Ocean Strategy" (Kim &
Mauborgne, 2004)

Future planning. Our Ford driving on the right way developing Tech features and I am
sure within the next few years we will have our own APPLE. Ford Motor investing more
money developing Hi-Tech features in Ford cars is one of the right steps on the way to
achieve the total success. Ford successful corporate strategy is playing the role as IT,
Software, and Smart cars maker. Ford Motor investing more money developing Hi-Tech
features in Ford cars is one of the right steps on the way to achieve the total success. Ford
successful corporate strategy is playing the role as IT, Software, and Smart cars maker.
Mr. Butler said " Ford is going to make to its long-term strategy:
o Learn how to innovate like a software company
o Move to long-term relationships with customers
As straightforward as those goals may sound, pulling them off will involve deep cultural
changes at Ford and that's where Butler is using his considerable energy to drive
change."At a high level in terms of business, thinking and acting more like a software or
technology company is really what we need to be about,"(as cited in .techrepublic, 2014).
Ford Suppliers, Competition, and Customers. Three main powers. Power of supplier

suppose to support the power of buyers ( Customers) to stand facing the competitors.

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Competition. Ford faces serious competitors such as Toyota, BMW, and Kia. many
trends playing roles effecting this factor such as " Diversity of competitors and product
differentiation. "( Grant & Jordan, 2012). It is a Fierce War. Ford has many battlefronts.
Battlefront with Quality? Price with Toyota? Gas Saver with Toyota, Kia, and Hyundai ?
Price? Luxury?.

Suppliers. It is such as sensitive matter. Suppliers issues full of risks like the following
quotation telling us "T alks are taking place this morning amid fears hundreds of workers
at Ford's Geelong and Broadmeadows plants could be temporarily stood down because of
problems with a major supplier"(Abc.net, 2012) You imagine that one supplier may be
lead to shut down a huge business like Ford ? It is a scary scenario. Ford has new plans
regarding suppliers looking for quality, professionalism, and prices " Ford Plans to
Reduce Number of Suppliers by 40%.- Ford Motor Co."( Craig Trudell, 2013). Supplier
power is the Blood of the Business Circulatory.

Customers. Our Brand and Our History supporting us. Our improvement in quality and
technology helping us too. Still we are not recovered completely but I am confident and
optimistic that we will invade the market again.
Structure, Systems, and Culture. Grammatically, they are three terms but I believe that

they are three words with one meaning. which is the whole business. Company and its strategy. I
will go through more details via my next step.
Ford Throne. I am working to write Two in One. My Recommendations and Summery.
We have the required factors to achieve the total success. It is a matter of restructuring and
restarting our operation management system. We need to work on developing our quality, our
customer service, our technology, our prices, and our green products. These goals can be

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achieved if we will have Leadership, Creative employees and Innovation. These three seeds are
the seeds to ReBorn Ford the American Brand. The following steps and theories should be
brought to the real life:
Quality improvement is a priority. Prevention better than cure. Quality check points
should be accurate and strict. Developing our employees skills and our HR policies to
hire more skilled employees.
New Management. Organization Z. Professor William Ouchi Theory Z is the magical
solution. " According to Ouchi, the benefits of using Theory Z include reducing
employee turnover, increasing commitment, improving morale and job satisfaction, and
drastically increasing productivity. To realize these benefits, he argued that an
organization should have the following:
A Strong Company Philosophy and Culture: The company philosophy and culture needs
to be understood and embodied by all employees, and employees need to believe in the
work they're doing.
Long-Term Staff Development and Employment: The organization and management
team has measures and programs in place to develop employees. Employment is usually
long-term, and promotion is steady and measured. This leads to loyalty from team
members.
Consensus in Decisions: Employees are encouraged and expected to take part in
organizational decisions.
IV.

Generalist Employees: Because employees have a greater responsibility in

making decisions, and understand all aspects of the organization, they should be
"generalists." However, employees are still expected to have specialized career

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responsibilities.
V.

Concern for the Happiness and Well-Being of Workers: The organization shows

sincere concern for the health and happiness of its employees, and for their families. It
puts measures and programs in place to help foster this happiness and well-being.
VI.

Informal Control with Formalized Measures: Employees are empowered to

perform tasks the way they see fit, and management is quite "hands off." However, there
should be formalized measures in place to assess work quality and performance.
VII.

Individual Responsibility: The organization recognizes the contributions of

individuals, but always within the context of the team as a whole." (Elizabeth Eyre, n. d.).
At the end, Ford will be in the safe side if they will work on establishing the foundation
of any successful business! Management ( Theory Z), Customers, Leader, Innovation, and
Resources.I have a confidence not to worry about Ford Future as the company went in and out
from disaster to catastrophe then Stand up stronger than before as Bryce Hoffman said " I once
asked a Toyota executive if there was anything he admired about Ford Motor Company" Yes,"
he said after reflecting for a moment" Their ability to overcome adversity"( Bryce Hoffman,
2012).
References
Autonews.(2014). Ford names ex-GM exec Butler to lead global connected vehicle unit.
Retrieved from http://www.autonews.com/article/20140103/OEM02/140109979/fordnames-ex-gm-exec-butler-to-lead-global-connected-vehicle-unit
Autotrader.(n. d.). 2014 Toyota Highlander vs. 2014 Ford Explorer: Which Is Better?. Retrieved
from http://www.autotrader.com/research/article/car-reviews/224511/2014-toyotahighlander-vs-2014-ford-explorer-which-is-better.jsp

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Craig Trudell.(2013). Ford Plans to Reduce Number of Suppliers by 40%. Retrieved from
http://www.bloomberg.com/news/articles/2013-10-21/ford-wants-to-pare-number-ofsuppliers-by-40-executive-says
Dyer, J., Gregersen, H., & Christensen, C. (2011). The Innovator's DNA: Mastering the Five
Skills of Disruptive Innovators. Boston, MA: Harvard Business Review Press
Elizabeth Eyre.(n. d.). Theory Z. Merging Eastern and Western Management Styles. Retrieved
from http://www.mindtools.com/pages/article/theory-z.htm
Ford Motor Company SWOT Analysis. (2014). Ford Motor Company SWOT Analysis, 1-10.
Forbes. (2010). Why I Put My Employees Ahead Of My Customers Retrieved from
http://www.forbes.com/2010/06/18/employees-first-vineet-nayar-leadership-managinghcl.html
Grant, R., & Jordan, J. (2012). The Concept of Strategy. In Foundations of strategy. Hoboken,
N.J.: Wiley and Sons
Hoffman, Bryce (2012). American icon. Alan Mulally and the fight to save ford motor. New
York: Crown Business, an imprint of the Crown Publishing Group, a division of Random
House, Inc.
ICD.(2013).ICD Research - SWOT Analysis . Retrieved from
http://www.lexisnexis.com.library.capella.edu/lnacui2api/mungo/docEP.do?cmd=2E4E5
33B444F432D4944282331303237353253574F5423293B3D524320455130202E43462B
50444D434F502B3A3D535320234E4F444F43233B2E4655&docNo=1&risb=21_T2136
4573374&cmdfmt=prthex&twi=0&format=GNBFI
Kim, W. C., & Mauborgne, R. (2004). BLUE OCEAN STRATEGY. Harvard Business Review,
82(10), 76-84.

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Techrepublic/(2014). How Ford plans to win the future like a software company. Retrieved from
http://www.techrepublic.com/article/how-ford-plans-to-win-the-future-like-a-softwarecompany/
Truecar.(2015). New cars. Retrieved from https://www.truecar.com/#/search
Usnews.rankingsandreviews.(2015). Rankings: New Cars. Retrieved from
http://usnews.rankingsandreviews.com/cars-trucks/rankings/
Vineet Nayar. (2010). Employee first Customer second. Retrieved from
http://www.employeesfirstbook.com/
Wsj.(2014). Mark Fields. Retrieved from http://topics.wsj.com/person/F/mark-fields/399