Unit 43 Business Strategy
Unit 43 Business Strategy
Unit 43 Business Strategy
Name: Assessor
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misleading statement.
Business Strategy
Ford Motors
Table of Contents
Introduction...................................................................................................................... 4
Part 1-LO1........................................................................................................................4
Analysis of Stakeholders..................................................................................................4
PESTLE........................................................................................................................... 5
SWOT.............................................................................................................................. 6
BCG Matrix.......................................................................................................................7
Strategic Positioning..................................................................................................... 7
M1- Critically Analyzing the Macro Environment to control and notify strategic
management results.........................................................................................................8
LO2.................................................................................................................................. 8
P2- Conducting an Internal Environment and Competences Valuation of a given
organization using suitable contexts................................................................................8
VRIO or VRIN Model........................................................................................................9
McKinsey’s 7s Model....................................................................................................... 9
Resource Based View....................................................................................................10
M2-Interpreting Evidence and data to measure strength and weaknesses of an
organization’s internal competences, erection and skill set...........................................11
LO3-P3- Determining suitable management tackles to analyses a given marketplace
sector for an organization and notify strategy................................................................11
Ansoff’s Matrix................................................................................................................13
M3- Justifying the use of a suitable strategic management instrument for a given market
segment, to notify strategy and planned objectives.......................................................13
Part 2-LO4......................................................................................................................14
Strategic Aims................................................................................................................ 14
P5- Applying a range of models, ideas or theories to understand and devise strategic
preparation for a given group.........................................................................................14
P6- Scheming a strategic administration plan, applying suitable strategies to recover
competitive advantage................................................................................................... 16
M4- Creating a strategic Management Design that has concrete and planned strategic
significances and Objects.............................................................................................. 17
Conclusion..................................................................................................................... 17
References.....................................................................................................................19
Introduction
This demonstrates the fact that a large number of companies, such as Ford Motors,
are greatly influenced by the characteristics of the macroenvironment. Taking
advantage of the macroenvironment will simplify handling a wide array of problems and
approaches. With the assistance of efficient management, plans may be developed
employing a variety of distinct frameworks in a variety of different ways. The Ford Motor
Company is now implementing a plan that has the potential to improve its overall
profitability due to its commercial endeavors. The project continues to be on track,
although these structures may appear threatening.
Part 1-LO1
Analysis of Stakeholders
A person with a personal interest in how a company or organization handles its
operations is referred to as a stakeholder in that context. As a consequence of the
various parties associated with the organization, consumers will have more
opportunities to participate in a diverse array of activities than they previously did. A
sizable shareholder group at Ford Motor Company is uninterested in the company's
operations. Within their respective domains, the government and any local
establishments are responsible for certifying the law is followed. As a result of this, Ford
Motor Company may incur significant losses (Satyanarayana and Bhaskar, 2021).
However, this may only sometimes be the situation, especially as it relates to the
authority and impact positions that some stakeholders inside the organization possess.
In this regard, the phrase "not always the case" is more accurate. Consumers, rivals,
and law enforcement can contact these proper authorities and interest groups. This
includes the right to ask questions and voice concerns. Those who have previously
made a purchase have more influence and are more inclined to make further purchases
than those still debating whether to buy. They have to build some form of impact on
these clients to enhance their business's likelihood of success. While they have less
said in the operation of the business, the company's workers and vendors have a more
significant personal investment in its success. These individuals and suppliers are
qualified but will not be granted any authority over the matter (Satyanarayana and
Bhaskar, 2021). Ford Motor Company will assess the success level based on the
findings of its stakeholder study.
PESTLE
Businesses in the UK are in an excellent position for development since the political
atmosphere is reliable throughout the nation. Ford strengthens its capacity to achieve
the positive influence of political parties on the automaker. Nonetheless, Ford Motor
Company may have several challenges due to Brexit, including the opportunity of
indefensible increases in industrial costs, produce price, and other associated
expenses. Brexit may impact several of these organizations despite receiving funding
from the UK government (SAXENA, 2022).
Low total capital prices and consistent attention rate levels, the economic temperature
in the UK is continually improving. The economy is expected to remain stable, providing
a favorable environment for companies to grow over time. Customers of Ford Motors
may now choose from an expanded selection of high-quality retailers. The Gross
domestic product of the UK is also on the upswing, which is revealing of the robust
health of the British budget. Because of this, many people are considering financial
funds in the United Kingdom. Concerns have been raised regarding the rising cost of
essentials like sustenance and energy (Máté and Péter, 2022).
Social
Consumers' reactions, happiness levels among customers, and other societal elements
might all be considered. If Ford implements any of these changes, the company's
culture may shift, leading to higher employee morale and closer bonds among
employees. Customers are satisfied with Ford Motors' service, and the company is
reaping the benefits of increased productivity facilitated by these innovations. As a
result, interest in Ford Motor Company merchandise among consumers has increased
(Morritt, 2022).
Technology
Technology contributed to Ford Motor Company's prosperity, fueled by other reasons.
The consequences of speedy technical progress are preliminary to be seen in the UK
business communal. The use of modern expertise might boost the efficiency and
efficacy of the operation in this case. Ford Motors is well-known in the car business for
being an early adopter of cutting-edge technologies. For some reason, Ford Motors
can't keep up with all of the current technological developments, which is a problem (de
Sousa and Castañeda-Ayarza, 2022).
Legal
The ability to keep tabs on a company's activities requires a specific set of laws to be in
place. So, Ford Motor Company will majorly affect the legal outcomes and conditions.
Ford Motor Company is informing its SOPs to growth employee production and conform
to the Indenture and Product Value Act. This would allow them to meet their legal
errands. The health of the economy as a whole would affect Ford Motor Company's
existing profit margins. There are a lot of environmental laws that Ford Motors must
follow. This has an impact on their ability to do business (de Sousa and Castañeda-
Ayarza, 2022).
Environment
Building an environmentally friendly infrastructure and passing environmentally friendly
laws should be at the top of the list for the United Kingdom. Government and non-
government organizations have dedicated to employed with Ford Motors to maintain the
environment's health. Ford's generous contribution reflects the company's dedication to
environmental protection. Ford Motor Company's obligation to ecological stewardship
has assisted the business expand its facility. How successful Ford Motors becomes in
this market is right related to the state of the economy (Kar et al., 2023).
SWOT
Strength
One of the many compensations that Ford Motors can supply is the high excellence of
its goods, but this is far from the only one. Every item manufactured by Ford Motors
meets an extremely high level and is fashioned by highly skilled specialists. Since the
workforce at Ford Automobiles is included of persons who enjoy a significant amount of
skill, the company can conduct its day-to-day processes in a successful and efficient
way. The fact that Ford Motor Company has more than 50 applications pending in its
name is evidence of the large manufacturing and operational competence that the
company has. The Ford Motor business will have to demonstrate the entire breadth and
depth of its performance capabilities using this strategy (Kreutzer, 2023).
Weaknesses
Since the company faces many challenges, including more consistency in its
manufacturing facilities, Ford Motors must make significant adjustments regularly. The
fact that they only have a manufacturing facility means they are under substantial
financial strain due to the epidemic. This is also true for their flaws, such as having a
staff devoid of purpose and drives in light of the pandemic. There needs to be a higher
rate of retaining employees at Ford Motor Company, which harms the overall
functioning of the firm and the bottom line. The limited selection of products that Ford
Motor provides may make it challenging for customers in the UK to differentiate
between the many options that the firm has on the market (Krishnan and Poorani,
2022).
Opportunities
The Ford Motor Company formerly had access to various options, including creating
new products, acquisitions and mergers, and many other possibilities. They could
construct their very own manufacturing facilities with its assistance, which would open
up a vast array of opportunities. While Ford Motors can provide the market with a wide
variety of innovative goods, the company is now finding it challenging to stay up with its
rivals in the automotive industry. If Ford Motors decides to implement this plan, the
company's operational expenditures may decrease (van Hoek, 2022).
Threats
Since a shop should expand with its customers and clients, major adjustments will
inevitably be obligatory. As a result, Ford Motors will have to exercise a important total
of work to adapt to the new situation. Alterations in society and the economy could have
a deleterious effect on them. Due to the high competition in the UK market, Ford Motor
will have fewer opportunities to expand its presence there. The price of the finished
product may be affected by fluctuations in the market during the production process
(Bremser et al., 2022).
BCG Matrix
The marketing and economic cash cow that is Ford Motors has been around for a long
time. They cannot expand their market presence owing to the existing conditions in the
market; therefore; as a result, they hold a more significant portion of the revenue source
area to themselves. The ability of Ford Motor Company to increase its market share and
generate positive cash flow will significantly impact the company's long-term success in
the automotive industry. These circumstances have had a direct bearing on Ford Motor
Company, which now has a share of the market of more than 23% and has been
directly influenced by these situations. Since there are already so many other industries
operating in the same subdivision, the expansion may take place. The Ford Corporation
will be better equipped to adapt to the shifting requirements of the external environment
if it implements this plan. The Ford Motor Company's several business divisions all
follow the same guiding strategic concepts (Czinkota et al., 2021).
Strategic Positioning
Ford Motor Corporation trusted deeply on a method, its business tactic procedure to
progress tactics that would assist it in accomplishing its goals. To meet the challenges
posed by new competitors, Ford Motors has developed a method of product
development to offer new cars in these markets. Ford Motor Company, ever since its
founding, has provided consumers with a never-ending supply of ground-breaking new
goods. They may be capable of getting an edge over their rivals by delivering these
unique features. Because of its strategic stance, the Ford Motor Company will also have
access to a wide range of innovative tactics (Kirca et al., 2020).
M1- Critically Analyzing the Macro Environment to control and notify strategic
management results
It is essential to reflect the macro environment, whether one is engaged in decision-
making or using management best practices. Several perspectives, including
geopolitical, economic, and social views, are considered throughout the process of
evaluating the macroeconomic projection. For instance, increasing the number of
parties related to customers will growth the number of options surrounding a more
comprehensive range of benefits. This means the company must prioritize decisions
that provide the most significant potential boost to customer satisfaction. Ford Motor
Company may now investigate and address the positive effects of influential parties on
the company. Major parties will be given multiple opportunities to have input during this
process. Now more than ever, consumers can get their hands on Ford Motors products,
and they may do it via a wide variety of channels and at competitive prices. As a result,
the economy will begin to show indications of recovery (Jelassi et al., 2020). Despite
this, the Ford Motor Firm consistently scores high marks from its customers, which
contributes to its bottom line. This means that to thrive, the company's decisions must
be oriented towards meeting the needs expressed by its clientele. Ford Motors has
earned a stellar reputation as an industry leader in technical innovation and widespread
use because of its commitment to producing reliable and stylish vehicles. Ford Motor
Company has worked closely with several government and non-government agencies
to establish and maintain safe workplaces for its employees. The present
macroeconomic climate might influence the strategy's implementation decisions (Jelassi
et al., 2020).
McKinsey’s 7s Model
The 7s framework helps you pinpoint all the factors that might boost performance. To do
this, we follow a seven-step procedure. As an outcome, material and irrelevant
resources are distinct entities. One of the frequent rewards of linking these assets is
that they produce wealth that can be shared. The first three steps include developing an
approach, agenda, and structure. Firms like Ford Motors successfully implement their
business strategy thanks to the management structure in place.
Thus, Ford Motor Company's existing organizational structure is vital to the operation of
the commercial as a whole. But these constructions need to be linked to the networks,
and the networks need to be related to the systems. They are enthusiastic about
disseminating the company's core beliefs, and their methods align closely with the firm's
management and strategic planning practices. Ford Motors even has a wide variety of
intangible resources at this location. People, skills, and refined aesthetic taste are all
examples of easily lost resources. Ford Motors relies heavily on the talents and skills of
its employees to successfully navigate the company's strategy and other challenges.
Workforce management and retaining authority over the company go together. Due to
their interdependence, Ford Motors may benefit from all of them (Tracey and Blood,
2012).
It proves how performing a particular movement might raise the significance of the
action to a client. For Ford Motor Business to be positive through its existence, it must
achieve two goals effectively. Prime and supplementary actions are the two categories
of potential things to do that may be found under the topic of anticipated things to do.
The organization is divided into various divisions, each responsible for its own domestic
processes, including customer support and inventory management. To accomplish this
goal, it is necessary to carry out the steps and activities mentioned in the following
paragraphs.
As a result, Ford Motors will be left with a few choices available to it moving forward
about the management of its firm. The execution of essential activities is made likely by
subsidiary supportive processes such as the supply of tackle, the administration of
capitals, service, or the procurement of social resources. Ford Motor Company would
be successful in achieving the requisite organizational recital margin as a direct
consequence of the labors (Czinkota et al., 2021).
The manufacturing procedure at the corporation has entree to a large pool of potential
dealers. Consumers can now pick among them based on various factors, including how
much cash they are organized to pay. Providers have far less power in the bargaining
procedure. Since it has an extensive pool of vendors, Ford Motors is in the exclusive
position of being able to select any possible consequence.
Threats of New Entrants
As a result, Ford is an auto manufacturing corporation, and its decisions are heavily
impacted by various factors, including, but not limited to, the amount of cash spent. Due
to this market's high entry barrier, only a few trades can afford to contest inside it. As a
direct importance, businesses must do thorough research before flouting into new
marketplaces.
Threats of Substitutions
It has come to light that there are other options outside those that the Ford Motor
Company now markets and sells inside the UK. As a consequence of this, the likelihood
of its being replaced is increasing, which is concerning considering the tight competition
that exists between iOS and Microsoft. In addition, it is possible to use each of them
simultaneously in various settings to accomplish the same objective.
Threats of Competitors
Since it is a participant in this industry, Ford Motor Company has been competing
against a significant number of other producers. As a result, new contestants like
Samsung or Nokia, between others, will turn into an actual cause for worry. Regarding
the quality of their goods, they could be marginally inferior to the select few companies
they compete with. It is now possible for Ford Motor Company to control and monitor
their position in the competitive market (Steer et al., 2019).
Balanced Scorecard
Balanced scorecard plan is mainly helpful and profitable in circumstances with intense
external rivalry and other contests. The attainment of areas set by Ford Motor Company
depends on four primary situations, each of which has to be occupied into explanation
throughout the decision-making process. From a financial point of view, several aspects
are measured, such as growing and the occasions it presents, profit margins, the
amount of cash flow, and other elements. The execution of this program at Ford Motor
Company comprises several essential components, including the opportunity for skill
development and career advancement, as well as knowledge management as one of
those components. Expanding the options already available for a company's internal
learning and growth would benefit in many different ways. The firm's parent corporation,
Ford Motors, has a say in the company's internal and external business activities
(Gunduz and Al-Naimi, 2022).
Ansoff’s Matrix
The expansion vector matrix may be affected by various variables, including market and
commodity conditions. Finding a replacement in an already established market is more
common than exploring untapped ones. Both finished products and those still in the
R&D phase must undergo stringent safety tests before being sold to the public. Ford
Motor Company can maintain its current market position and continue producing its
popular products. They have several applications, but one of their main goals is to
ensure that new information may be added to an ongoing conversation. One of Ford
Motors' top aims must be expanding its product line and overall market share. As a
market develops, the environment in which it is regulated will change. Ford Motor will be
able to explain the product's goods better, but also the present status of the market, as
a direct result of this (Gozali et al., 2022).
M3- Justifying the use of a suitable strategic management instrument for a given
market segment, to notify strategy and planned objectives
The strategy phase of the advertising planning approach is when the Ansoff Matrix
comes into play. It helps decide which overall strategy the firm should choose and
guides the selection of which marketing activity methods should be employed. On rare
occasions, a business may combine two marketing strategies to appeal to a broader
range of customers. To better understand the problems the market is now facing, an
Ansoff Matrix was developed. Ford Motor might improve the value of its product offering
with the use of this technology. When the problems customers face in the present
market are identified, action may be taken to resolve them. The Ford Motor Firm may be
using these issues to inspire upcoming models sold to the public. For Ford Motor
Company, plans based just on the Ansoff matrix are crucial because they enable the
company to stay focused on its long-term objectives, regardless of the state of the
market. They guarantee that management and staff are inspired and on the same page,
and they drive businesses to plan for the future (Gunduz and Al-Naimi, 2022).
Part 2-LO4
Strategic Aims
Ford Motors would need to ascertain and understand its planned goals. The goals are
bordered in the subsequent paragraphs
To increase sales in the marketplace
A customer-centric corporate approach that initiatives the market development.
To increase the operating influence of the association.
Customers still have various options, even though items manufactured by Ford Motor
Company are trendy. Consequently, buyers have a much tougher position to transfer
than sellers, which puts venders in a risky situation that strength put them at risk.
Alterations in customer preferences that are sudden and dramatic are harmful to the
revenue of Ford Motor Company. Ford Motors asserts that it has entree to a sizable
pool of prospective dealers for its manufacture process. This means consumers have a
wide choice of options, each with its price tag. This tendency directly impacts dealers'
bargaining strength, which has been dwindling recently. Ford Motors has access to
several vendors and options to choose from a wide variety of results. For this reason,
Ford Motors will soon have to settle several crucial issues. Boosting the number of
sales generated by the market will be necessary to achieve the goal. When a business
pays excellent attention to the needs of its current customers, it increases its odds of
expanding into related markets. The company's long-term objective is to expand its
everyday activities into other fields (Giménez, 2022).
Diversification
With the assistance of diversification, Ford Motors can increase the depth of the product
selection it provides to customers. Although it only has eight brands, Ford Motors can
increase the variety of items it offers for sale in this market. Suppose they can extend
their range of products via their many different diversification projects. In that case, they
will be in a better situation to satisfy the requirements and partialities of their clients.
Yet, as a result of this achievement, Ford Motors will have the prospect to expand the
variety of goods it provides to customers dramatically.
Vertical/Horizontal Integration
By traveling back in time, followed by traveling ahead in time, it is possible to merge
different industrial or resource facilities. As part of its strategy for vertical integration,
Ford Motors may choose to develop and build vehicles at its facilities. Yet, to achieve
horizontal integration, firms must engage in blends and attainments to form companies
with other companies with the similar goals.
Attention Strategy
The Ford Motor business can choose to concentrate its labors on a particular market
subdivision by effectively implementing a marketing strategy that targets that
marketplace subdivision. As a result, Ford Motor Company can achieve a viable edge
while instantaneously satisfying the necessities of a particular marketplace sector in an
efficient and timely manner. If Ford Motor Company can effectively navigate a specific
industry, it can accomplish much better than its competitors (Elmore, 2022).
Hybrid Strategy
The degree to which Ford Motor Company can concurrently implement several different
tactics will have a substantial bearing on whether or not the business is positive in
attaining its individualized areas. Using hybrid approaches will make it probable to put
into action a wide variety of profit-maximizing strategies, differentiated products,
modification, and monopoly assessing. This will be the case since hybrid approaches
are more adaptable. They must be more specific about their goals and consider the
industry's current status. As a direct consequence, several additional activities may be
directly related to the strategic purpose of Ford Motor Company (Elmore, 2022).
Conclusion
Using tactics that are created on macro situation modeling may help find solutions to a
wide variation of contests and problems. Although these organizations get subsidy from
the British government, the imminent Brexit will almost positively affect them. It is now
possible for Ford Motor Company to give these customers high-quality substances due
to the growth of their range of obtainable options and selections for making acquisitions.
They can gain a competitive edge over their rivals if they provide these unique features
for their customers. These choices have the potential to affect the context of the
organization.
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