unit6_assignment-mba6024

Strategic Fit With the Industry Environment Assessment

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STRATEGIC FIT WITH THE INDUSTRY ENVIRONMENT ASSESSMENT

Executive Summary

Ford Motor Company uses a strategic structure that closely monitors the needs of the business on different conditions of the market. The company manufactures several products that are intended to target a variety of consumers in the market. However, the firm faces several competition from Toyota, General Motors and others. Either way, the company has started a One Ford slogan that pushes it through these economic crisis.

Competitive Analysis

The motor industry is characterized by a rapid increase in innovation. These innovations are all fuelled by the rapid increase in the changes of technology. First, the design of the vehicles were based on “horseless carriages” that the people were used to in those times (Polk & Co, n.d). However with the rapid technological changes, new and fashionable designs are being developed every day. Moreover, there is also the advancement of technologies such as lean production, ERP and others being utilized in the industry.

Every day, the needs of consumers change. Their tastes and preferences are highly versatile which means that Ford Company is always on its toes to try to come up with a new model that will be liked by the consumers. Therefore, they need to incorporate technology in the design of their automobiles according to the consumers’ preferences and tastes. Additionally, legal political factors are also evidenced in the motor industry. Motor industries is viewed as an important aspect in economy of a country. Thus the governments would not want to lose this industry. As a result, the governments have been known to pump cash in the industry to ensure that they keep running.

The most intense competitive forces affecting Ford Company is the high threat of substitutes. There are other substitute’s fuels that consumers could easily switch to which will leave Ford at a disadvantage. Secondly, consumers may also use alternative means and modes of transport and finally, customer loyalty has immense influence on consumers.

Strategic Position and Direction

Ford Company has garnered so much attention with its One Ford campaign. Moreover, with the government interferences, the company is doing so much better. However, their main issue is the uncertainties in the economic direction of the globe. The company uses differentiated strategy in order to target various consumers. The companies produces economy cars, sports cars, trucks and others (Ford Motor Company, 2015). The different variety of products the company offers its consumers gives them wider choices which attracts loyal customers.

The economic standards of countries keep changing as days go by. Therefore, I would recommend that the company changes its geographical scope. This will give them the opportunity to get supplies from countries with cheaper raw materials and sell their products to countries with disposable incomes.

Concerns and opportunities

If the company is able to advance and sell its One Ford policy to the world, then there is a high chance that the company will break even. Needless to say, the company has several opportunities that if they closely monitor they are going to do pretty well. First, the government provides subsidies to the company which enables it to get itself out of financial crisis. Second, the company has several loyal customers and there is anticipating several other new clients. If they are able to tap these opportunities, then they will be in a better position to remain relevant and continue expanding globally.

Nonetheless, over the last few years, there has been a continuous oil and fuel crisis in the world. This issue will result in several consumers finding other means as the prices are skyrocketing every awaking moment. In addition, the raw materials prices continue increasing steadily which means they will have a major crisis with the production of the cars. The company has not come up with a specific way to address this issue which could impact its strategic fit negatively.

Organizational Structure and Management Systems

Ford Motor Company seeks to structure its operations basing on the market conditions of the regions they operate from. The organizational structure and management system adopted by Ford enables it to maintain a clear and stable international direction. Therefore, if Ford utilized a diversified strategy they will be in a position to increase revenue which means utilization of resources which constitutes to growth. On the other hand if the company used a vertical integration strategy, the company will reduce its costs as they will manage their distribution effectively.

To sum it all, there are several changes affecting the market aspect of the company. The company is always coming up with ways and ideas of ensuring that they remain on top of their game. Some of these strategies incorporated include the One Ford policy, the organizational structure that ensures that the company learns what is trending and the effectiveness through which the company exploits different geographic locations. These strategic approaches ensure that the company maintains a strategic fit when dealing with the consumers and suppliers.

References

Ford Motor Company. (2015). Governance and management structures

R.L. Polk & Co. (n.d). Ford and the world automobile in 2012