Executive Summary

Ford Motor Company Analysis Part 2

Michael Dedes

Janice Edwards

Sergio Goodman

May 30, 2018

Grand Canyon University

Management 660

Summary and Outline

A well written strategic plan will lead the way forward for a business, and will also uncover ways to improve performance so that the full potential of the company is realized (The Alternative Board, n.d.). This consulting team has taken an in-depth review of the business practices of Ford Motor Company so that we are better positioned to recommend modifications that will transform the company into an unquestionable leader in the automobile industry.

Ford’s roots may be traced back to 1896, making it the oldest of the three American automobile manufacturers. The company established a strong mission statement and remains true in aligning its goals and objectives to fulfill its mission. We found that the strengths of the company include:

1. Its solid pickup truck line, the Ford F-Series

2. Its positive reputation with a loyal customer base

3. Concerning volume, Ford holds a strong second in the automobile industry in China

4. Ford has the most robust diversified streams of revenue ahead of its rivals.

While it is clear that Ford Motor Company has solidified itself as a reliable and viable competitor in the automobile industry, there is still reason to believe that it may be in jeopardy of losing its competitive edge due to its recent declining sales in the Americas (StrategicManagementInsight.com, 2018). Our results revealed that Ford should focus its efforts and energy on expanding its brand and securing a stronger position in the market. This may be accomplished by growing its sales to include identifying up and coming car manufacturers to either acquire or with which to form a merger. Such an undertaking should lead to a meaningful partnership that is not disruptive and continues in the way of new technology that is innovative and creative in the automobile industry (Burnworth, 2017).

When two companies join together to become one, that is consider a merger. The newly formed company will then experience an increased market share, which helps the company gain economies of scale and become more profitable (Economics.help, n.d.). More specifically, by identifying a potential competitor, such as the Tesla Company, with which to merge allows Ford the opportunity for product expansion.

A merger, coupled with product expansion, will be handled with care by adequately investigating and researching to devise a plan resulting in minimal risk to the company. We must be mindful that the elements that are essential for mergers and product expansion to be successful should include human resources, physical resources, and intangible resources to fund the process (Hartman, 2018). Involving experienced and knowledgeable human resources is crucial when much is at stake, and when the company desires for research and investigations to be handled correctly.

We must not overlook the obstacles to completing the merger process, as most companies will want the autonomy to do its own thing. However, Ford is fiscally stable, which will make achieving its goals less obstinate. Ford’s advancements in technology, without giving away its trade secrets, requires a comprehensive legal negotiation and documentation to make sure represented company is getting appropriately compensated for its technology, facilities, capital, and market reach (Burnworth, 2017).

References

Burnworth, B., (2017, Nov 24). Tesla and ford need each other. Seeking Alpha Pro. Retrieved from: https://seekingalpha.com/article/4127458-tesla-ford-need.