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Fordpart2.docxFORD MOTOR CORPORATION’S STRATEGIC PLANNING PROCESSES 5
Ford Motor Corporation’s Strategic Planning Processes
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Ford Motor Corporation’s Strategic Planning Processes
Today, various business or commercially oriented enterprises face sky-high competition in different economic sectors and industries. Consequently, there is a need for all organizations to institute appropriate strategic business measures to counter competitors’ moves to become more profitable and sustainable (Lee & Tan, 2019). In other words, commercially oriented enterprises such as Ford Motor Company frequently experience multiple internal alongside external business challenges worth addressing through engaging appropriate tactical or strategic business decisions, hence, the need for strategic planning processes. Specifically, the Ford Motor Company, a renowned and envied multinational in the automotive industry, employs various strategic planning processes to counter stiff completion, as clearly highlighted hereunder.
A Brief Summary of Ford Motor Company’s Strategy
Like other organizations in the competitive automotive industry, a strategic business decision for Ford Motor Company is a prerequisite for enhanced growth, development, and prosperity (Di et al., 2019). The primary business strategy for heightened growth and development is market segmentation, penetration, and subsequent retention for improved profitability and sustainability. The intensive market strategy encompasses selling more products and services to present clients to ensure business growth and eventual expansion. It successfully focuses on enhancing the dealership numbers alongside increasing the sales volumes in its newly penetrated market segments. For this to occur successfully, it systematically fuses increased dealership numbers, sales volumes, production and price reduction, product branding, and differentiation strategy to boost market share, leadership, and sales volumes remarkably.
It successfully engages product differentiation as a reliable business development strategy by conducting market-led research activities to tailor or blend all its products and services to meet the diverse needs of its broader clientele base. In line with this, the giant multinational presently has a relatively more comprehensive product and service portfolio that matches its client’s requirements effectively. For example, it designs, produces, markets, and sells various motor vehicles alongside services to current and prospective clients such as Ford trucks, cars, utility vehicles, and Lincoln luxury vehicles, among others (Vlados & Chatzinikolaou, 2019). It does all these in line with its corporate culture of low-cost production and sale of its products and services to counter sky-high market competition in the price and quality sensitive markets.
While doing all these, the giant multinational remains focused on the prevailing internal and external business environments to thrive. It motivates staff and keeps abreast with the ecological concerns of the neighborhood. Thus, it values corporate social responsibility, CSR and embeds the same in its corporate culture alongside diversity and inclusivity (Vlados & Chatzinikolaou, 2019). Moreover, it respects and complies with almost all the legal provisions in the different global market segments served to foster harmonious working relations with all primary stakeholders for beneficial outcomes.
The Business Strategy for Toyota Motor Corporation, TMC
Ford Motor Company has numerous competitors in the automobile industry, of which Toyota Motor Corporation falls among the top. Like Ford Motor Corporation, it also has a robust business growth and development strategy, which it implements to enhance its global market presence and dominance in its various market segments. It also has a prudent marketing strategy of intensive market targeting, penetration, and retention for improved sales volumes, profitability, and sustainability (Lee & Tan, 2019). To achieve this noble business strategy, which enables it to withstand market competition, the reputable multinational in the automotive industry dwells extensively on market research and segmentation to ensure that it blends all its products to suit all the market tastes and preferences.
In line with Toyota Motor Corporation’s market growth and development, strategies are the internal alongside external market environments that considerably influence most of its business activities. For example, for this giant multinational firm to penetrate and retain a sizable market segment regionally and globally, employees, especially the leadership, make an immense contribution, thus creating an internal business environment. Because of their self-motivation usually delivers exceptional services to customers following previously gathered market-led intelligence, hence, client satisfaction and loyalty. Similarly, they apply modern technological advancements in the design and production processes to ensure high quality, efficiency, and efficacy (Toma & Naruo, 2017). Similarly, the Toyota Motor Corporation equally remains sensitive to various issues concerning its neighborhood or environmental sustainability. In other words, it considers the welfare and wellbeing of the neighboring community alongside the ecology; hence, it values and cherishes all matters about corporate social responsibility, CSR.
Critical Assessment of Ford Motor Company and Toyota Motor Corporation’s Strategies
The two renowned and envied global giants in the automotive industry have various strategic or tactical methods to help them withstand the fierce market competition. Their business or market-led strategies tend to share specific similarities alongside contrasts. The first similarity typically relates to market targeting, penetration, and client retention, the noble business-associated strategies. Both the multinationals consider new market penetration alongside the retention of the same as a prudent business strategy that aids in expanding clientele base for improved sales volumes, profitability, growth, and development (Di et al., 2019). Similarly, both the reputable and envied giant organizations in the automotive industry share a commonality regarding product differentiation as a prudent marketing strategy. They both focus primarily on market-led research and intelligence gathering to design, produce, market, and eventually sell unique and broader product range in line with each market segment’s tastes and preferences.
Moreover, the prevailing external market factors tend to influence them in the same way. For example, the dominant political, environmental, social, and technological factors that typically prove beyond their control despite falling within their management ability tend to influence their economic activities (Vlados & Chatzinikolaou, 2019). The production, distribution, marketing, and selling processes tend to affect their operational activities fundamentally in an almost similar way. Consequently, they apply different strategic or tactical business decisions or strategies to manage the multiple emerging challenges.
In conclusion, commercially oriented business institutions currently experience sky-high market competition in different industries. Therefore, this calls for the institution of appropriate tactical business decisions to endure the emerging rivalry. Specifically, business-oriented companies such as Ford Motor Company frequently undergo multiple internal alongside external business challenges worth managing by engaging appropriate strategic business decisions, thus, requiring strategic planning processes. Notably, the Ford Motor Company, a globally reputable and envied multinational in the automotive industry, employs various strategic planning processes to counter stiff completion, as clearly highlighted above.
References
Di Minin, A., Ferrigno, G., & Zordan, A. (2019, July). Technological Discontinuities and Dominant Designs: The Case of Ford, 1896-1914. In Academy of Management Proceedings (Vol. 2019, No. 1, p. 14659). Briarcliff Manor, NY 10510: Academy of Management.
Jin, W., Zhang, H. Q., Liu, S. S., & Zhang, H. B. (2019). Technological innovation, environmental regulation, and green total factor efficiency of industrial water resources. Journal of Cleaner Production, 211, 61-69.
Lee, J. W., & Tan, W. N. (2019). Global Corporate Citizenship: Cross-cultural Comparison of Best Practices in the Global Automotive Industry. The Journal of Asian Finance, Economics, and Business, 6(1), 261-271
Toma, S. G., & Naruo, S. (2017). Total quality management and business excellence: the best practices at Toyota Motor Corporation. Amfiteatru Economic Journal, 19(45), 566-580.
Vlados, C., & Chatzinikolaou, D. (2019). Methodological redirections for an evolutionary approach to the external business environment. J. Mgmt. & Sustainability, 9, 25.
