Assignment 3 - Business Level & Corporate Level Strategies - Ford Motor Company

2068 Words Mar 2nd, 2016 9 Pages
Business-Level and Corporate-Level Strategies – Ford Motor Company
Strayer University
BUS499, 14 February 2016

Business-Level and Corporate-Level Strategies – Ford Motor Company
It all began in 1896 when Henry Ford built the Quadricycle that rode on four bicycle wheels, operated by a four-horsepower engine with only two forward gears and no reverse ability. Henry soon joined a group that founded the Detroit Automobile Company but left within one year and would soon incorporate the Ford Motor Company with 12 investors and 1,000 shares in 1903. The Ford Model A was the first car sold on July 23, 1903 (http://www.corporate.ford.com).
Ford Motor Company has endured many challenges during its 113 years in business. Altering business
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As a result, Ford Motors is trying to retain its brand name in the context of American cars without having to necessarily lose its value because of lower economic costs. In fact, this should be used to develop sustainable competitive advantage and enhance the profitability of the company (Drucker 2007).
I believe this plan is working for Ford Motors and is allowing them to keep focus on the One Ford Plan. Ford met and exceeded their financial metrics for 2014 except for their total company pre-tax profit which was not unexpected due to an unprecedented number of product launches and challenges associated with their South American and Russian areas but their cash flow is in the positive and they are ready to stay the course with their One Ford Plan which is to consolidate their Global Platform from 27 products to eight products (Henry, 2015). Currently Ford has stayed the course and is currently at nine platforms. Higher sales with fewer platforms equals scale which has created overall efficiency for Ford. 2. Corporate Level Strategy
The Corporate Level Strategy employed by Ford Motor is a bit challenging in that they are not diversified in the sense that they have acquired other different types of business’s in order to grow their business and diversify. They in fact do have Ford Credit that provides financing as well as risk management services to dealerships and
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