Strategic Management and Strategic Competitiveness of Ford Motor Company

Week 3 Assignment - Strategic Management and Strategic Competitiveness
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Week 3 Assignment – Strategic Management and Strategic Competitiveness
1 Assess how globalization and technology changes have impacted the corporation you researched.
The Ford Motor Company is one of the well-known automobiles companies across the world. The company is among the world’s leading car manufacturers, with branches in different parts of the world. In 2008 and 2010, For Motor company was recoding declining sales. Most of its competitors were declared bankrupt, but the company continued with its operations. Currently, Ford has been recording high amounts of profits, which has made it one of the largest car manufacturers in the world. The company has been highly affected by globalization, as indicated by its vast investment in different parts of the world. For instance, the company wones Brazilian’s SUV manufacturer, Troller. Given its well-known brand, Ford Motor company has had minimal challenges in maneuvering developed and developing countries. The world presents a ready market for its commercial and luxury cars, which has facilitated its expansion of operations.
Ford Motor Company has also benefited a lot from technology. Given the current technological advancements, people from different parts of the world use the internet to research information and purchase items. Ford has taken advantage of these technological advancements to offer people a sure friendly website where people can look for all the details, they need about its motor vehicles (Parreira, 2020). The company has also taken advantage of the technological advantages to offer consumers automobiles following the latest technology. For instance, they have electric cars, a technology that was recently introduced in the market. Ford’s ability to take advantage of technology has placed it in a better competitive edge in the industry. A substantial number of consumers are seeking to buy the current models of vehicles due to their higher levels of efficiency as compared to older models. These models are designed using a technology that helps save gas. If Ford company does not offer such automobiles, its market share will decline, thus affecting the business’ profitability. The strategic managers at Ford are highly focused on how technology would benefit the company. Therefore, technology has become a factor of consideration in every decision being made in the company.
2 Apply the industrial organization model and the resource-based model to determine how your corporation could earn above-average returns.
The industrial organization model would require Ford Motor company to focus on the external factors that could facilitate above-average returns. According to the industrial organization model, an industry that chooses to compete in the market has more influence on performance than management decisions. Diversification is one of the factors of this model that are used to measure an organization’s performance. When an organization decides to embrace diversity, it can venture into other markets. Ford is no longer manufacturing cars only but has also ventured into other markets such as financial services. Such diversification would able the company to make above-average returns. The only strategy is for the company to identify reliable markets, ready for their new products. Ford Motor Company has a diverse line of cars that are expected to meet the varying consumer needs. As the company continues to invest in new and better models of cars, it is expected that it will make above-average profits (Itsuki, 2021). The industry organization model pushes a company to identify an industry that it would thrive best in. Given that Fiord is one of the well-known brands in the market, the company will find it easy to thrive in the automobile industry through diversification. The key strategy is for the company to keep changing its products per the changing consumer needs. Such a strategy would increase its market share, and this means an increase in profits.
The resource-based model assumes that every organization has unique capabilities and resources that facilitate its productivity. The model considers every form to have a strategy, which in turn determines its return. In this case, Ford’s resources and capabilities are inputs that facilitate the manufacturing and selling of its products to consumers. Ford’s major input is its workers, and therefore, it can earn above-average returns by employing people with t...