Ford Motor Company: Business Analysis and Recommended Strategies

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Introduction 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. External Environmental Analysis One of the best ways to analyze the external environment is through a five forces analysis, developed by Michael Porter (QuickMBA, 2010). This analysis gauges the desirability of an industry by examining the five forces that drive profitability. These are the bargaining power of buyers, the bargaining power of suppliers, the threat of substitutes, the threat of new entrants and the intensity of rivalry among firms in the industry. In the automobile industry, suppliers have moderate bargaining power. Parts suppliers are to an extent price takers, as they rely on the volume from their major customers among the Big Three and the major foreign buyers. However, labour has proven to

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