Ford Motor Company
Ford Motor Company is the automotive manufacturer and producer which is well-known because of its diverse variety of products including car, trucks and agriculture vehicles etc. The Company is listed in the New York stock exchange and its stocks are traded under the symbol of “(NYSE:F)”. Ford Company is involved in the production and selling of different vehicles such as Lincoln, Ford tractors and Volvo etc.
Decision Making Options
The financial statements of the company depict that, like all other automobile manufacturers, Ford Company also has to face the downward trend in sales from the mid of 1990s. The decline rate of company’s shares was 25% to 5.5% during the time period of FY 1995 and 2009.
To cope up with the challenge of this decline in automotive market, Ford has increased its operation in the Europe by creating, producing and selling the innovative and advanced vehicles. The reason behind this transformation of operational activities from the USA to Europe is the increasing production cost and obligatory USA legislations that were inversely affecting the Ford’s overall Production cost. Therefore, enhancing the operational competences, Ford has to modify its strategy by cutting the unnecessary jobs and shifting its focus to Europe. Now, Ford Company has unveiled its strategy to introduce some of its fuel-efficient brands in USA that are currently being sold in the Europe. Most of the Ford products are not only good in performance and competitiveness but also famous because of its innovative designs. This innovation and competitiveness provided the edge to Ford motors among other rival companies including the market giant, General Motors. Majority of the People prefer Ford because of the luxury, economy and innovation that made the Ford a market leader especially in the United States Economy ("Money," 2010).
Furthermore, Ford captured the big market share because of its continuous research and development attitude to improve the quality and product efficiency. These continuous development processes increased the performance and is being exceeded the market share against the world renowned rivals. Although there is lot of varieties that Ford offer, however, each and every product has its own unique feature and presentations.
For Company’s diversity in products and its style of managing things is also one of the major strengths of the company. Ford Motors believes in an efficient management team. The careful fit or integration among Ford’s primary and support activities allows it to keep costs down, focus on customers, keep employees happy and keep its work simple. This fit is instrumental to the development and use of the firm’s two main competitive advantage – organizational culture and customer service. The importance of fit between primary and support activities is not unique to Ford, in that fit among activities is a key to the sustainability of competitive advantage for all firms.
The mindset needed in the present global economy’s competitive landscape requires decision makers to define firm’s strategy in terms of a unique competitive position, rather than strictly in terms of operational effectiveness. Too much diversity in the workforce may also cause ambiguity and confusion. There is also a chance that majority group members may create obstacles for minority group member to take full participation. If such clashes cannot be handled and managed by the leaders then the organization may suffer ineffectiveness, less productivity and absenteeism of the employees. Ford Motors is a huge company having presence on almost every part of the world and having a diverse workforce. It can overcome its weaknesses by changing the mindset of the upper management and by adopting organizational change in the company. This change will help the company to formulate strategy to overcome its weaknesses and to utilize its strengths in a manner that it will be able to regain its previous profitable position in today’s challenging market.
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