2 to 3 page paper about strategic management

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tfnznun

Business Finance

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we have to do a team project about ford motor company, my part includes problem statement, alternative solutions and recommendation.


my friend showed me his work and i will attach it here, you can look at it and maybe use his ideas but they have to be written in a different way because we had the same teacher,

you will have to include refereneces too. thank you

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PROBLEM STATEMENTS Intense competition Ford faces more intense competition from domestic competitors such as General Motors, but they face tougher competition from foreign competitors, such as Toyota and Honda. Japanese automakers have the highest profit margins. The biggest reason for the difference between Japanese and American manufacturers’ margins is the weak yen. The yen depreciated by 29.2% against the US dollar over the past two years (Kallstrom 2015). Economic Slowdown The U.S. has been facing economic slowdown in the auto manufacturing sector recently and Ford’s main manufacturing plants exist in United States. High gas prices and growing environmental concerns have caused a higher demand for smaller, fuel-efficient cars. Thus, lowering the demand for in-efficient gas guzzling vehicles, which have been a major seller for Ford. Stock prices for Ford motors have also seen a huge drop in recent years. This will really hinder Ford’s ability to raise capital when needed. High cost structure: Most manufacturing plants are in the U.S. where the wages and production costs are much higher than other domestic companies who have outsourced their production costs in other countries such as China and India. The average wage for manufacturing workers in the United States is considerably higher than China. Struggling Luxury Brand: Ford's luxury Lincoln brand has struggled for years. This is problematic for Ford because most U.S. auto-manufacturers depend on their luxury brands for bottom line profit. Ford has lacked behind its competitors, such as General Motor’s Cadillac for a while now. As of May 2015, Cadillac is out selling Lincoln by about 80%, with 2015 sales of 52,976 units against 29,612 units for Lincoln. Alternative Solutions Although, Ford is in the 4th quadrant of the grand strategy matrix (seen in the Appendix), Ford should use a combination of strategies to address some of their problems. Some of these strategies will be found in other quadrants of the grand strategy matrix. The strategies in the 4th quadrant alone were not feasible and not in the best interest of Ford. Alternative Solution #1 Ford should seek a concentric diversification strategy and a product development strategy. This means they should seek to increase sales by improving their current products and services. Since there is a higher demand for fuel-efficient vehicles, they should seek to improve and expand their fuel-efficient vehicles to increase their sales, which will help out their competitive position and offset the high costs structure. Although, Ford cannot really control economic slow times, these strategies can help take out some of the sting. They currently are investing in product development. Lincoln plans to spend $2.5 billion over the next five years on product development and add two addition luxury vehicles (Priddle 2015). Alternative Solution #2 Ford could also use a defensive strategy to combat the high cost structure, such as divestment. As Ford is in a slow growing market and facing intense competition, they should sell some of their manufacturing plants in the US and outsource some of their manufacturing processes to China or India where production costs are significantly lower. In addition, Ford should invest some of the cash from selling off plants to R&D to improve their manufacturing processes for the plants they do keep, to produce better fuel-efficient cars to meet customer’s demands, and to improve their struggling luxury line of Lincoln to compete better with GM’s Cadillac. Alternative Solution #3 The last suggestion would be for Ford to seek out market penetration in other parts of the world. Actually, Ford is already doing this. China is embracing the idea of foreign cars. Chinese consumers favor American brands because they have a reputation for safety, youth and international flair. Ford currently has a joint venture based in Chongqing, China and has nearly doubled its market share to 4.5% in the last couple of years (Bradsher 2014). Ford could use the international market to address most of the issues listed above. RECOMMENDATION OF ALT SOLUTION NEEDED- Select one of your alternative solutions as the best course of action for the company to follow at this point in time (or the time referenced in the case), and indicate the impact of the decision on the firm’s functional areas (Management, Marketing, Finance/Acct, Operations, R&D, Information Systems).
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Explanation & Answer

Attached.

Ford Company Strategic Management
Thesis Statement: to enhance the capacity of an organization realizing the primary goals and
objectives, it is imperative for an institution to adopt a strategic administration in the process of
running a company.
I.
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III.

Ford Motor Company Problem Statement
Ford Motor Company Alternative Solutions
Ford Company Recommendation


Running head: STRATEGIC MANAGEMENT

Ford Company Strategic Management
Student’s Name
Institutional Affiliation

1

STRATEGIC MANAGEMENT

2

Ford Company Strategic Management
Noteworthy, tactical administration entails the continuous planning, assessing, analyzing
as well as monitoring essential areas in an organization with the desire of meeting the enterprise
primary goals and objectives (Slack, 2015). As a result, strategic administration ensures that an
enterprise administration rolls out various tactics across the institution. Besides, in the process of
carrying out the analysis, monitoring and assessing various strategies in an organization, the
management is in a position of establishing the problems and needs in a company; thus,
providing alternative solutions as well as comprehensive recommendations. Over years, Ford
Motor Company have been utilizing a tactical management to in the wake of increased market
competition by other automobile makers. Therefore, to enhance the capacity of an organization
realizing the primary goals and objec...


Anonymous
Just what I needed…Fantastic!

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