Ford Motor Case Study

5714 Words Sep 2nd, 2012 23 Pages
BLB 20058 – M – MSTRA- L

MANAGING STRATEGY ASSIGNMENT

FARUK SULEIMAN
TP025329

WORD COUNT: 3694 WORDS

UCMF1103MBAIT
SCHOOL OF POSTGRADUATE

TECHNOLOGY PARK MALAYSIA
ASIA PACIFIC INSTITUTE OF INFORMATION TECHNOLOGY
UNIVERSITY OF STAFFORDSHIRE

SHARMILA A/P K. N. SETHUMADHAVAN
EXECUTIVE SUMMARY

Strategy is well explained as the effective use of well laid out plans to achieve success. It is no less of spectacle to attribute strategy to individual achievement, achievement from a company, a country or at the very least a non – financial institute to achieve strategic success.
Ford Motor Company has in recent times lost its market share to emerging Asian companies such as Honda, Toyota, Hyundai and Nissan. As a new
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Given that most companies at a maturity level face corporate level strategy issues, the author thinks Ford’s CEO Allan Mulally has proven to be a competent leader given the circumstances. The uniqueness of the strategic issues at Ford are based on the market conditions. 1. Financial 2. Sales 3. Product line 4. Competition
Given how inter-related these issues are, the author decides to focus on the main underlying issues as highlighted in the case study; that is financial and competition issues. Sales and narrow product line are more on a business level as opposed to financial and competition which are more corporate in this context.

Figure 1: Illustration of Ford strategic issues (sourced from Suleiman) 1. Financial
Weak balanced sheet poses a huge financial problem to Ford as it brushes with near insolvency in 2008 which could have seen the company file for bankruptcy. Drop in revenue means the company has a small profitability and has to collateralize its asset to stay liquidated.
This is an issue for Ford because of the size of the company and the nature of its operations depends largely to close-fit financing. As it deals with thousands of suppliers with massive overhead expenditure, Ford relies heavily on efficiencies to maintain a sustainable margin to keep its investors as well

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