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  • Essay / Executive Summary of Ford Motor Company - 2126

    Executive SummaryFord Motor Company has been and till date is known as the king of innovations in the automobile industry. Their research and development department and innovation of interchangeable parts in moving assembly lines have resulted in extraordinary global expansion for them. This is an ancient legacy that has dominated and continues to do impressive work in the global automotive market. Some prestigious automobile brands also belong to Ford. Despite these good things, Ford Motor suffered a loss due to poor decisions made by management regarding its business strategy. The decision to centralize management led them to think narrowly, resulting in too much Americanization and a lack of understanding of the local market in the rest of the world. This caused them to lose the global market. This assignment focuses on internal analysis of Ford Motor by performing SWOT analysis and external analysis by performing Pestle analysis. The assignment also focuses on strategic performance analysis based on Porter's Diamond Model, BCG Matrix and Blue Ocean Strategy. The SWOT analysis showed that Ford Motor is strong in terms of heritage, global aspect, brand, innovation, etc. It has weakness in terms of market share, global competition and is affected by economic recession. Opportunities lie in small cars, fuel-efficient cars and production markets in India and China due to falling costs. Threats come from the high price of gasoline, raw materials, labor and competition from other companies. The Pestle analysis showed that Ford maintained a worker-friendly company capable of weathering the financial crisis during the recession. They focused on advertising. Also opt for a joint venture with Microsoft to bring new technologies into the car. They produce environmentally friendly cars. A...... middle of paper ......history of Ford Motor. At present, Ford can create another blue ocean by working hard on the fully electric vehicle as a new innovation. Conclusion: Thus, the discussion on internal and external analysis clearly defines where the competitive advantage of Ford Motors lies and where it is lacking. People who have sustainability as a top priority will look to Ford, but they are missing some of their strategies that management should consider and work on. We also learned that Ford is an innovative company from the start and also responds to local demands with the help of related and supporting industry. But on some issues, they made bad decisions that forced them to sell some of their brands to others. The good news is that they are doing hard work to maintain their performance regarding their flagship products and cash cows in order to stay in the competition..