Analysis Of Ford 's New Strategy

similar to that of share buyback, the number of new shares outstanding will reduce; thus,

From the last two decades auto industry is growing more competitive. Competition from the foreign automakers like Toyota and Honda is also high. In

Ford Motor Company has been and till the date is known as the king of innovations in the automobile industry. Their research & development department and innovation of interchangeable parts in moving assembly lines resulted in extraordinary global extension for them. They are an old heritage who ruled and still doing impressive jobs in the global automobile market. Some prestigious motor brands are also owned by Ford.

Organizations that strive to be a leader in an industry must look beyond their domestic boundaries and expand into international markets. The Ford Motor Company remains the second largest automotive manufacturer in the United States and fifth largest automotive manufacturer in the world with Toyota leading the way. This essay will address the Ford Motor Company’s strategic approach to compete internationally and identify which resources and capabilities make it attractive to compete internationally. Additionally, the Ford Motor Company’s diversification strategy options will be described. Lastly, we will identify how chosen diversification strategy options would lead to a strategic fit for the Ford

General Motors, the “mother company” has faced many troubles in the past, and surfaced. A research by the National Research Council in the United States has revealed in 1992 that there had many impacts and future impacts in the automotive industry, indeed; it would affect the jobs and the internal economy. However, General Motors understood the threat potential that this and established strategic plans to revert the trend. Furthermore, whether General Motor Company was able to change the trend, and it saw the internal and external factors, prepared a strategic plan, Holden being the first brand in Australia, with at least just the 10 % of the population compared with the USA, the way to get a plan looks easier. In addition, it is easier to see a trend in countries with low population and good policymakers. In 2008 General Motors faced again the limit to bankruptcy. A fierce plan to develop and a new business association with FIAT made that GM avoid the dissolution. Even do all Europe have had a similar crisis( Boudette & Choudhury,

In April 2000, Ford Motor Co. announced a shareholder Value Enhancement Plan (VEP) to significantly recapitalize the firm's ownership structure. Ford had accumulated $23 billion in cash reserves and under the VEP would return as much as $10 billion of this cash to shareholders. In exchange for each share currently held, the plan would give stockholders one new share plus the choice of receiving $20 in either cash or additional new Ford common shares. Shareholders electing to receive cash would be taxed on these distributions at capital gain rates. Among other things, the plan provided a means for the Ford family to obtain liquidity without having to dilute their 40% voting interest (even though they own

Ideas introduced in the article assist in understanding Ford’s current situation. Ford reported sharp falls in U.S. auto sales in May 2008. Sales of its most profitable pickups and SUVs suffered the most (“US Auto Sales Slide”). Some of the main

The automotive industry designs, develops, manufactures, markets and sells motor vehicles, and is one of the world’s most important economic divisions by profits. This analysis focuses on the industry, specifically, manufacturers of automobiles. There are five competitors in the StratSim environment: Firm A, B, C, D, and E. Industry sales in the most recent year were 4.3 million units, with expected growth in the next year. Within this industry, there are seven-vehicle classes: Economy, Family, Luxury, Sports, Minivan, Truck, and Utility. There are two new classes with potential – if properly marketed.

Ford has had to face various challenges and current goals are to obtain the market share from its competitors and build the vehicles consumers are demanding. By meeting these needs, the company can redefine itself. With consumers trying to decrease their debt and an increasing number of competitors showcasing fuel-efficient vehicles, Ford needs to create affordable high quality and fuel efficient vehicles to remain competitive. An internal analysis of Ford Motor Company will evaluate its resources and capabilities. This analysis can aid in determining Ford’s cost position, competency, and competitiveness in the current marketplace.

This recession hits home with the automobile industry. During this current recession GM is facing the possibility of bankruptcy, but is hoping to be helped out by the government. History

With more and more countries taking part in the international trade, the world’s market is expanding in a rapid pace. How to make use of the enlarging market and remain competitive become urgent for those participants. Market diversification is a good way to take full advantage of the resource and improve the efficiency by enlarging the business scope. In addition, it can also ease the pressure of competition and reduce the cost. The report mainly discuss that Australian Holden may enter Chinese market and chooses Shanghai as the target market. The report firstly analyzes the Australian and Chinese market and briefly

One of the most notable outcomes of the competition between Ford and General Motors has been their control of the global automobiles industry. Both companies enjoy have many clients within the United States of America and other parts of the world. This would not have been the case had the two companies not been in direct competition with each other. Whenever Ford introduces a new model in the market, General Motors is always quick to do the same (Ford 14). Similarly, the development of a new model by the latter company serves as a lead for Ford Motor Company to introduce a new brand. This neck-to-neck tussle for the American and global market for automobiles has positively affected the exceptional success of both companies. In most cases, companies tend to view competition with a perception that is more or less negative.

United States Securities and Exchange Commission, (2012).Ford motor company 10-k . Retrieved from Ford Motor Company website: http://phx.corporate-ir.net/phoenix.zhtml?c=87772&p=irol-SECText

Ford in 2011 is on the rebound, having recovered from the darkest hours in the late 2000s. The company for the company is that many of its competitors are also rebounding, and there are significant long-run changes in the automobile industry. Ford needs to determine a strategy that will take the company through the next decade, and improve the company's competitive position. The company has four of the top fifteen best-selling cars in America, but also needs to set strategy globally, as many of the best automobile growth markets are overseas. Another strategic consideration is that CEO Alan Mulally remains in the process of changing the organizational culture at Ford, which had become stagnant and unresponsive to the changes in the industry environment.

With the ignorance of the market nichers such as Peugeot and Renault, Opel’s target competitor was Volkswagen. VW is prospering with each passing day and becomes a major player who can strive for the first with Toyota in the world market(Moon 2013). However, Opel along with the hole GM is not in a dominant position now. Although Holden is still a big player in the Australian market but can it survive with out subsidies from government? Moreover, Australian auto market is a intensive competitive market which has 66 brands of cars but only 23 millions of population(Dowling 2013). ‘The segments we need to be selling our volume into are so incredibly competitive now, and that’s what changed in a way that’s invalidated the entire business case. ’ Said by Opel Australia spokeswoman Michelle Lang. Regarding other European brands, Renault, with a 60-year history in Australia, only sales 3500 cars in 2011(Dowling 2013). Actually, in the past 10 years, Renault’s best annually sales number is 4656 in 2002 which only reached less than a quarter of its initial target of 20,000 sales(Dowling 2013). Peugeot, established in 1949, only one year younger than Holden, has averaged fewer than 7000 sales during 2003 to 2012(Dowling 2013). Acknowledged the data above, Opel’s 989 sales in the first half of 2013 which was 114 less than Porsche is , to some extend, reasonably(O’Brien 2013).