Running Head: PROJECT 4
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Project 4 – Strategy Selection, Implementation, and Evaluation
May 17,2022
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Introduction
Ford is a reputed automobile business that operates in the global automobile
landscape. The strategic approach of the business entity plays an instrumental role in shaping
its ability to carry out its business operations in a sustainable and profitable manner. The
business focuses on its strategic approach since it enables it to gain a competitive edge over
its rivals in the automobile business landscape. In the report, a diverse range of strategies
has been designed for the Ford automobile business that will enable it to effectively carry
out its business while delivering value for the target market audience. Zhilkin has argued
that in the highly competitive and dynamic automobile industry, the role of strategy is
instrumental for the survival of a business (Zhilkin & Kiryukhina, 2021). Over the years, the
Ford automobile business has succeeded in working on its strengths and creating innovative
cars, trucks, and automobiles that focus on customer safety as well as robust functionality.
In the report, a pool of alternative strategies has been designed for Ford that can help
the business effectively carry on with its business journey in the evolving automobile
landscape. Each of the strategies has been critically evaluated, and the best strategy has been
identified using appropriate tools and concepts. Relevant implementation plans have been
formed, and measures that must be adopted after the implementation stage have been
identified so that the business can devise and manage effective strategic approaches to
sustain its competitive position in the automobile market.
Alternative strategies for Ford Motors
Strategic planning and development are essential for each and every organization,
regardless of the industry in which they operate. According to Hall, strategic planning serves
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as a management technique that enables businesses to set future goals and objectives for
achieving stable growth in the market landscape (Steiner, 2010). A number of strategies have
been devised for the Ford company based on diverse variables such as its core strengths,
weakness, and elements that exist in the external environment.
Strengthen the innovative capability –
One of the fundamental strategies that Ford must focus on in order to maintain its
competitive position in the ever-changing automobile landscape is working on its innovative
ecosystem and research and development function. Ford is behind its competitors, such as
Tesla and General Motors, when it comes to adopting innovation and advanced digital
technologies (Arroyo, 2019). In the digitalized era of the 21st century, it is necessary for the
automobile company to focus on this area and work on its technical capabilities and
competencies. By strengthening its ability to innovate, Ford will be able to leverage
emerging and new technologies and create value for its target market audience.
Integrate sustainability into its business processes –
An alternative strategy that Ford must consider while operating the automobile
landscape revolves around the integration of sustainability into its business processes. The
business is known to take several measures to minimize its environmental footprint while
carrying out its business operation. For example, Ford has adopted the global carbon
reduction strategy to address the climate change issue. It has also been focusing on reducing
its waste and increasing the efficiency of the available resources (Helping build a better
world, 2022, p. 38). There is an opportunity for Ford to integrate the sustainable component
at each level of the work process by adopting the triple bottom line approach. Such a
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strategic move will enable Ford to focus on diverse areas such as people, profits, and the
planet and have a sustainable existence in the automobile industry (Norman & MacDonald,
2004).
Expansion of business into emerging markets –
The in-depth evaluation of the Ford business has revealed that its presence in
emerging markets is limited as compared to its industry rivals. According to Arroyo (2019),
Ford is considered to be a major player in the automobile environment. However, it has
struggled to remain competitive (Arroyo, 2019). One of the chief reasons for this is the
limited presence of the brand in emerging economies. In order to gain a competitive edge,
Ford must focus on expansion strategies so that its reach can expand, positively influencing
its sales and profitability at the global level.
Focus on electrification and connectivity in its electric car product category –
In the 21st century, the concept of electric vehicles has surged to a significant extent.
A large number of business entities operating in the automobile landscape, such as Tesla,
Toyota, etc., have been working on their capabilities to create safe and efficient electric
vehicles for the customers. Even though Ford has started to focus on the electronic car
segment, there is an opportunity for the business to work on specific areas such as
electrification and connectivity so that its electric vehicles can stand out from the crowd. In
the evolving technological landscape, ford must continuously work on its technical
capabilities so that it can leverage digital technologies to lead a revolution in the electric car
segment (Helping build a better world, 2022, p. 44).
Integrating engagement into its marketing approach –
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Another alternative strategy that has been designed for Ford revolves around its
marketing efforts. As Ford operates in a highly competitive and dynamic business landscape,
it is essential to maintain a solid, long-lasting, and trust-based relationship with the target
market audience. In spite of the fact that Ford has a good reputation in the automobile
market, the high number of recalls of its products have negatively affected its credibility and
goodwill (Ford Motor Company Provides Details on Three Safety Recalls in North America,
2021). In order to increase the level of trust between the brand and the target market
audience, Ford needs to focus on its integrated communication strategy. By using a diverse
range of communication tools, such as the official website, social media platforms, print ads,
etc., there is a possibility to strengthen the engagement with the potential and existing
customers and positively influence its credibility as an automobile manufacturer.
The five alternative strategies that have been devised for the Ford company can play
a key role and help the business to sustainably and profitably carry out its business
operations while maintaining its competitive position.
Cultural and organizational factors while analyzing the strategies
The strategies that have been devised for the Ford company have been analyzed by
taking into consideration a number of cultural and organizational factors. One of the
fundamental organizational factors that must be taken into consideration is the people factor
or the human resources. Kabeyi has argued that the human factors act as the backbone of
an organization and help it to achieve its business goals (El-Toukhy, 2021). In the case of
Ford, the human factors, i.e., the workforce, their competencies, skills, and technical
expertise can have a direct influence on the application and effectiveness of the identified
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strategies. For example, the robust technical skills of the organizational personnel can help
it strengthen its innovative capability and strengthen the R&D function.
Another key factor that needs to be considered for analyzing the strategies is the
innovative orientation of the organizational culture. Ford has a culture where innovation and
sustainable growth are promoted. These elements can work in favor of the organization and
help it to work on its electric vehicles (Helping build a better world, 2022). Another vital
organizational factor is the leadership at Ford. Jim Farley, the CEO of Ford, plays an
instrumental role within the organization in providing a direction for the organization to
move forward in the evolving automobile landscape. His contribution as a leader is critical
to drive Ford towards better and sustainable market performance. In order to effectively
implement the strategies in the company, the buy-in from the leadership team will be critical
so that Ford can gain a competitive edge in the market setting and offer value for the target
market audience. By considering these factors, it will be possible to comprehend how
effectively the identified strategies can be applied and executed at Ford. d d
Strategy prioritization
Before introducing the strategies in the context of the Ford business, it is necessary
to prioritize them and assign a rank as per their importance. In the intensely competitive
business landscape, the prioritization of strategies is crucial for the very survival and growth
of the business across diverse industries (Tohidi et al., 2020). The five strategies that have
been identified by Ford, including strengthening the innovative capability, integrating
sustainability into each business process, expansion into emerging markets, electrification
and connectivity in its electric cars and integrating engagement into its marketing approach
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has been prioritized. The most important strategy for Ford is working on innovation because
by working on this area, the automobile manufacturer will be able to adapt to the digitalized
landscape and offer something new and unique to the intended audience group. By focusing
on this strategic area, Ford will also be able to strengthen its capability in terms of its
electric vehicle segment. The next strategy that must be given high priority by Ford is
entering emerging markets. As the political landscape is undergoing a major change in the
21st century, Ford must expand its footprint in the global business domain in a balanced
manner. Instead of relying only on developed economies, it must focus on emerging
economies to broaden its customer base and increases its sales potential. Since Ford has
already adopted several measures to work in a sustainable manner, such as reduction of
emissions, shift towards a circular economy, and optimum water utilization, the strategy can
be given less priority (Kotler et al., 2012, p. 47).
Qualitative Strategic Planning Matrix (QSPM) for strategy selection
The Qualitative Strategic Planning Matrix is a strategic tool that helps a business to
evaluate alternative strategic options. The matrix has been designed to evaluate the strategic
options for Ford by taking into consideration its strengths, weaknesses, opportunities, and
threats. David has argued that the QAPM tool has high relevance in the strategic
management context since it enables firms to identify the future course of direction while
operating in the dynamic and evolving business landscape (Meredith et al., 2017).
Strategy 1
Strategy 2
Strategy 3
Strategy 4
Strategy 5
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Key Internal
Factors -
Strengths
W
(%)
R
WS
(%)
W
(%)
R
WS
(%)
W
(%)
R
WS
(%)
W
(%)
R
WS
(%)
W
(%)
R
WS
(%)
Well-known
brand
20
2
40
15
2
30
20
2
40
20
2
40
15
1
15
Wide product
range
20
4
80
25
3
75
20
3
60
15
3
45
20
3
60
Vast supply
chain network
10
3
30
15
2
30
10
3
30
15
3
45
20
2
40
Key Internal
Factors -
Weaknesses
Gaps in
research and
development
leading to
product recalls
20
2
40
20
2
40
25
2
50
20
2
40
20
1
20
Slow pace of
innovation
15
2
30
15
1
15
15
2
30
20
2
40
15
1
15
Restricted
presence in
emerging
markets
15
1
15
10
1
10
10
1
10
10
1
10
10
1
10
Total
100
235
100
200
100
220
100
220
100
160
Key External
Factors -
Opportunities
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Adapting new
digital
technologies
30
2
60
20
2
40
20
2
40
15
2
30
15
2
30
Entering new
and less
explored
markets
15
4
60
15
2
30
20
3
60
25
2
50
20
1
20
Upgrading
automobile
designs and
business
processes
10
3
30
15
2
30
15
2
30
15
1
15
15
2
30
Key External
Factors -
Threats
Tough
competition
from well-
known players
20
4
80
20
2
40
20
2
40
15
1
15
25
3
75
Rise in the
cost of raw
materials
15
2
30
15
2
30
15
3
45
15
1
15
15
3
45
Need to adhere
to changing
and new
regulations and
laws across the
globe
10
1
10
15
1
15
10
2
20
15
1
15
10
2
20
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Total
100
275
100
185
235
140
220
The tool has helped to identify the chief areas that the business must focus upon to
sustain its competitive position in the automobile industry. For example, Ford must focus on
entering new and less explored markets, and the available opportunities would work in its
factor. Another example is the need to focus on innovation so that the existing gaps in
research and development can be addressed and the sluggishness of innovative speed can be
addressed.
Recommendation of best two strategies and long-term objectives for Ford
The best two strategies that have been identified for the Ford company include
upgrading the innovative capability of the firm and expanding into emerging markets. The
first strategy involves innovation because there exist several innovation opportunities in the
prevailing automobile industry (Ili et al., 2010). By strengthening its innovative
infrastructure, Ford will be able to offer high-quality automobile offerings in the market.
Similarly, by entering the emerging markets that are not yet completely explored, Ford will
be able to reach out to a wider audience and expand its brand awareness and profitability
potential.
The long-term objectives that Ford must focus upon while operating in the evolving
automobile landscape include building a robust IT infrastructure that can support innovation
and creative ideas, offering training to the staff to increase their technical expertise, and
integrating flexibility into the organizational culture that can promote creativeness and
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inquisitiveness. By focusing on the two identified strategies and long-term objectives, Ford
will be able to create value for itself as well as its target market audience.
Identification of strategy using goals, objectives, strategy, and tactics
The two strategies have been identified by focusing on elements such as goals,
objectives, strategy, and tactics.
Strategy Recommendation 1 - Strengthen the innovative capability
Goals
To improve the ability of Ford to innovate and adapt to the
digitalized automobile landscape
Objectives
To strengthen the existing IT infrastructure
To integrate new technologies into its automobiles
Strategy
To focus on the technical skills of the staff
To promote creative thinking within the organization d
Tactics
Creation of cutting-edge automobiles
Strategy Recommendation 2 - Expansion of business into emerging markets
Goals
To increase the presence of Ford in the global setting,
especially in emerging nations
Objectives
To target audience from emerging countries
To strengthen the brand name and brand presence
Strategy
To focus on expanding production facilities in emerging
markets
To focus on the promotion of business in less explored markets
Tactics
Expanding brand reach in emerging economies
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Recommendation of procedures for strategy implementation
For implementing the identified strategies, Ford must follow a systematic and
methodical approach. In the initial stage, the company must set realistic goals that would
guide it to progress in the desired path. Then the roles of appropriate organizational
personnel must be determined. Their buy-in is critical to implementing the strategy in place.
After determining the roles, the work must be assigned so that there would be no ambiguity
while working on the new strategies. Then the execution and monitoring of the strategy
implementation process must be conducted. This step is critical since it can help to identify
whether there exists any deviance or not.
Some of the key aspects that must be taken into consideration while following the
relevant procedures relating to strategy implementation include transparent communication
among the key stakeholders such as the research and development team, human resource
personnel, etc. Effective communication within the organization can play an instrumental
role in obtaining the buy-in of the leaders and employees and positively impact the
effectiveness of the strategic implementation process (Bucata & Rizescu, 2017).
Discussion on who, what, and how to implement the strategy at diverse levels
While implementing the identified strategies for Ford at the corporate level, business-
unit level, and functional level, it is necessary to address questions relating to who, what,
and how. The table presented below captures how each of the strategies will be implemented
in Ford.
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Strategy 1 - Strengthen the innovative capability
Corporate level
Who – Leaders, including CEO Jim Farley, and the management
team
What – They will provide direction to the staff to work towards the
strategy
How – They will serve as change agents to implement the strategy
Business-unit
level
Who – IT team and Research and Development team
What – They will work on innovative ideas and creative thinking
How – They will leverage advanced technologies to strengthen Ford’s
digital innovative capabilities
Functional level
Who – Staff members of Ford
What – The staff will share new ideas and demonstrate their
efficiency
How – They will enhance their technical skills to add value to Ford
Strategy 2 - Expansion of business into emerging markets
Corporate level
Who – Leadership team
What – They will provide direction to staff by communicating the
need to expand in emerging markets
How – They will help in seeking buy-in of organizational staff
Business-unit
level
Who – Marketing and Sales team
What – They will work on promoting and influencing the sales of
the business
How – They will aid in improving brand presence
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Functional level
Who – All employees of diverse functions within Ford
What – They will focus on improving productivity at individual and
team levels and aid in its expansion in emerging markets
How – They will influence the quality and performance of Ford
Procedure for strategy review and evaluation
The procedure that must be followed for reviewing and evaluating the strategies of
Ford encompasses a series of stages. Firstly, the leaders must be involved in the review and
evaluation process to ensure that the strategies are creating value for the business or not. It
is necessary to identify key performance areas such as the rate of innovation, the
contribution of individual staff towards creative ideas, or new marketing measures in
emerging markets. While focusing on the performance indicators, emphasis must be laid on
both the qualitative and qualitative aspects such as percentage increase in innovative ideas,
consistency, appropriateness, etc. The actual performance must be compared with the
standards of performance to capture variance. Based on the identified variance, corrective
measures must be taken so that the strategies can be effectively deployed within Fords (Hieu
& Nwachukwu, 2019).
Evaluation measures
Some of the key evaluation measures that Ford must take into consideration while
reviewing the strategies are conducting a SWOT analysis, using the Internal Factor
Evaluation (EFE) Matrix, and performing Porter’s Five Force analysis. These methods will
help to identify key measures that can be evaluated, such as the degree of innovative ideas
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that have been generated, the market share that the business has captured in emerging
markets, and the market position of Ford as compared to its competitors (Hieu &
Nwachukwu, 2019). The competitive profile analysis can also be conducted to identify the
areas in which Ford could gain an edge over its rivals based on the newly identified
strategies. The performance measurement of individuals is critical to capturing the
effectiveness of the strategies. Some of the key evaluation measures that Ford must focus
upon include the involvement of staff in quality improvement and an increase in the
generation of innovative ideas.
Corrective Action Plan
A corrective action plan has been designed that can be used in case there is any
deviance in the strategy implementation process. It will play a cardinal role since it will
provide a series of instructions to achieve the intended strategic objective. The appropriate
plan has been presented below:
Elements of plan
Corporate level
Who – Leaders and management team at Ford
What – They will identify the reason for variance and take measures
When – They will take instant corrective measures by
communicating about the variance.
How -They will offer a fresh perspective relating to strategy and how
it must progress
Business-unit level
Who – The supervisors who work at diverse business-unit levels
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What - They will communicate with their subordinates about the
deviance
When – They will engage with the staff as soon as they are
intimated about the issue by the management team at Ford
How – The roles and responsibilities may have to be discussed
Functional level
Who – Each staff member working in diverse functions at Ford
What – They will work towards modified roles and responsibilities
When – They will immediately focus on their changed role
How – They can seek help in case they lack clarity about their role
in the strategic execution process.
d
Conclusion
The key strategies that have been identified for Ford business include strengthening its
innovative capability and expanding into emerging markets. The internal and external
variables of the business have been considered while framing these strategies. By working
on these specific areas, Ford will be able to sustain its competitive position and gain an
edge in the market setting. For the success of the strategy, its proper implementation and
evaluation are of paramount importance.
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