Ford Motor Company

1840 Words8 Pages
1. Define and discuss Ford’s business- level strategy. Henry Ford began a family automobile business in 1903; this was during the industrial revolution. This business has become the most famous automobile brand in the world. Over the years the business structure had adapted to changes in leadership, markets trends and the economic conditions. The Ford family still controls the company through multiple voting shares, even though it owns a much lower proportion of the equity Ford’s business level is the integrated cost leadership/ differentiation strategy; this involves engaging in primary and support activities that allow the company to simultaneously pursue low cost and differentiation. This strategy is flexible and enables Ford to use technology to control the production of variety of products in moderate, flexible qualities and with a minimum manual interaction, whose goal is to eliminate cost verse product variety. Cost leadership is a strong strategy, but it can be undermined by the frequent changes in technology, the imitation of cost advantage and lost of focus on consumers. Ford’s differentiation strategy focuses on developing a unique product that consumers are willing to pay and the combination of these two strategies enables Ford to stay on its core competencies. 2. Explain how the company’s value-chain activities can be better linked to create value for the company. A chain value is a diagram that a company uses to decide its activities up into component parts such as its functions or management from top to bottom or vice versa. Example Research and development Supplies and inventory Management Production Marketing and Customer support management. ... ... middle of paper ... ...(Boudette, and Dolan, 2010). Ford is about to launch its smaller vehicles; less than two years ago Ford motor’s plant in Mexico was building big pick-up trucks. But it has retooled to produce Ford’s small Fiesta car, due to go on sale in America for the first time in June. (Simon, 2010).Mulally is the architect of Ford’s remarkable recovery in its fortunes. Works Cited Boudette, N.and Dolan, M (2010, May 4).Car sales climbed 20% in April. The Wall Street Journal, p.B1. Dyer, G. (2010, May 12).A Change in Gear. Financial Times, p.7 Hitt, M., Ireland, and Hoskisson, R. (2009).Strategic management: Competitive and Globalization, Concepts and Cases. In M.Staudt & Stranz (Ed). Reed, J. (2010, May 4).Carmakers pump up production after severe downturn.Finanacial Times, p.15. Simon, B. (2010, May 5). Smaller Vehicle takes giant Strides.Finanacial Times, p.16.

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