business administration Capstone

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Week 3 Assignment 1

Tyvesia Shingles

BUS499

Dr. Brian C. Grizzell

April 26, 2020

Week 3 Assignment 1

Ford motors is an American automobile company founded by Henry Ford in 1903. The corporation has its main headquarters in Dearborn, Michigan. Ford manufactures trucks, passenger cars, tractors, as well as automotive parts and equipment. The corporation makes automobiles under the names of Lincoln, Ford, Jaguar, Mercury, Land Rover, Aston Martin, and Volvo (refernceforbusiness.com). Since its establishment and incorporation, Ford has always been among the top-leading automotive companies in the world. The company is also among the most profitable companies in the world. This paper is, therefore, going to evaluate how globalization and technology have affected Ford Motors. The paper will also assess how Ford could earn above-average returns using industrial organization model and resource-based model. The paper will also evaluate how the vision and mission statement of the company impacts its success. Finally, the paper will assess how every category stakeholders affect the overall success of the company.

Globalization

Globalization has affected Ford Motors since its establishment to date. Ford Motors has invested heavily in car manufacturing in other countries. Currently, the company has manufacturing operations international, including in Canada, USA, Mexico, India, UK, Turkey, Germany, South Arica, Australia, Argentina, and Brazil. Within the past few years, the company has established global service operations, sales, and marketing office to obtain better attention to the global market.

Globalization has generated greater opportunities for Ford Motors. Expanding overseas has not only increased the company’s profits and revenues but also provided employment opportunities to host countries. Ford Company is now committed to reshaping its overseas operations. In North America, Ford is planning to refresh seventy-five per cent of its lineup, fortify the entity’s successful and efficient franchise, and renew and expand the varieties of SUVs (Mich, 2019). In Europe, the company is planning to redesign its operations in order to fortify its competitive edge and improve its profitability and returns. In China, Ford is planning to create a solid and firm foundation with the right product and the right leadership.

Technology

The ever-changing technology has affecting Ford Motors and the automotive industry at large. Technology changes have reshaped the way vehicles are maintained, operated, and manufactured. Hybrid, solar, and electric energy system are now starting to displace gas engines and the internal combustion engine as the future driving force.

Technology changes have impacted almost everything in Ford Motors and have resulted in huge changes in the company. The biggest change is that of autonomy. Ford Motors is now in the process of manufacturing self-driving cars. In 2018, Ford announced its plan to start manufacturing self-driving cars by next year (Holland, 2018). The company is planning to invest a sum of four billion into AV project through 2023. Ford is also testing out different ways it can use the vehicles to carry things and people.

Industrial Organization Model

I/O Model defines the influence external environment have on an entity’s strategic actions. According to the model, the industry in which an entity chooses to enter and compete has a strong impact on the performance of the company than the manager’s choices.

In order for Ford Motors to earn above-average returns, the company should first study its external environment to gain a competitive advantage and to determine its distinctive resources. The company should then identify an industry with a higher ability for above-average returns. It should then locate a strategy effective for implementation. Ford should then acquire or develop skills and assets essential for implementing the strategy, and lastly, use the company’s established strengths to execute the strategy.

Resource-Based Model

The resource-based model explains how an entity’s unique collection or bundle of internal capabilities and resources serves as a foundation for earning above-average returns. In order for Ford to earn above-average returns the company should first identify its unique internal resources and assess their weaknesses and strengths. Ford’s unique resources include its brand reputation, skilled workforce, and solid distribution network, just to name a few. Ford should then distinguish those capabilities that allow the entity to perform better than its rivals. The company should then determine and assess how the entity’s capabilities and resources can be utilized to gain competitive advantages. Ford Motors should then locate an attractive industry that will allow the company to earn above-average returns. Lastly, the company should formulate and implement strategies that allow them to effectively utilize their capabilities and resources to take advantages of external opportunities than their rivals.

Vision

Ford Motors vision Statement is “people working together as a lean, global enterprise to make people’s lives better through automotive and mobility leadership” (mission-statement.com). The above vision statement influences Ford Motors’ overall success to a large extent. The statement indicates clearly that the main purpose of the company is to bring people together. The statement also indicates that Ford Motors wants to have a substantial influence in the automobile industry. The vision statement has always directed the company in the right direction and has always helped the company to make the right decisions. And as of today, Ford Motors is among the top five largest automotive companies in the universe.

Mission

Ford motors mission statement is “One Team. One Plan. One Goal” (mission.statement.com). The statement clearly discloses how focused Ford Motors is when it comes to its overall goals. The above mission statement contributes a lot to Ford Motors success as it has given the company an underlying purpose and. Just like the vision statement, the mission statement has directed the company in the right direction and that’s why Ford Motors has progressively been performing remarkably both locally and internationally. And it is among the leading companies in the automobile industry.

Stakeholders

Ford Motors stakeholders are categorized into two: Internal and external stakeholders. Internal stakeholder includes employee and managers. External stakeholders include customers, suppliers, and investors. Ford Motors’ employees influence the overall success of the company to a large extent. The company’s employees are the driving force behind the creation of great vehicles (ford.com). Their skills and ideas have contributed a lot to the production of innovative products. Ford Motors’ managers also influence the overall success of the company. Ford Motors has a great management team. The management has always enabled the company to realize its vision and mission. Ford Motors’ customers also influence the overall success of the company. Ford has a huge number of customers all over the world. The company has even launched multiple programs intended to widen customer satisfaction and the experience consumers have with the company after their purchase. Ford Motors’ suppliers also influence the company’s overall success. The suppliers have been showing a higher level of excellence in all their undertakings. Ford’s main suppliers include NHK Spring, Flex-N-Gate Seeburn, and Valeo Electric and Electric Systems, just to name a few.

Sources

1. https://mission-statement.com/ford/

2. https://corporate.ford.com/careers/profiles.html

3. https://www.referenceforbusiness.com/history2/69/Ford-Motor-Company.html

4. Mich, D. (2019). Ford Details Commitment to Global Redesign—Reshaping Overseas Operations and Strengthening North America. Retrieved from: https://media.ford.com/content/fordmedia/fna/us/en/news/2019/01/16/ford-details-commitment-to-global-redesign.html

5. Holland, F. (2018). Here’s is how Ford’s Autonomous Vehicles will shake up ride Hailing and Delivery Services. CNBC. Retrieved from: https://www.cnbc.com/2018/11/15/ford-plans-a-ride-sharing-service-with-its-self-driving-cars-by-2021.html