Strategic Management In The Automobile Industry: A Case Study Of Ford

The assessment of this subject supports students in developing their skills and knowledge in the foundational management topics that include external environmental assessment, problem diagnosis, strategy development, and the consideration of cultural and ethical contexts. Effective strategic management is designed to proactively respond to changes in technology, external environment, and market tastes. A contemporary understanding of the dynamic forces shaping strategic choices is essential for the successful execution and delivery of strategy.

1. Over the duration of the course, you are to monitor news and online sources of opinion to identify three (3) separate strategic influences that together impact on the outcomes of an organisation of your choice. These influential factors may be local, national or international in nature, but they must represent a changing or evolving story. For example, advances in battery technology, stricter emission controls, and a general move towards sustainable energy has resulted in General Motors (and indeed almost all car manufacturers) actively marketing electric or hybrid models for release in coming years. Note this example is not to be used in your submission.

2. You are to discuss how the practice of strategy categorises these strategic influences, and identify the implications for the organisation in question.

3. Drawing upon your understanding of theories, models and frameworks discussed in class, you are to identify a strategic course of action to address these circumstances (by either capitalising on positive influences, or minimising the impact of negative influence) in a way that will result in long-term benefit to the organisation. This should include a statement of the firm’s revised goals as a result of this change in strategy.

Current business scenario has become more complicated compared to the past few years. In the complicated business environment, it has become necessary for adopting proper strategic direction for sustaining in the market. It cannot be denied that the strategic management is needed for business expansion as well as getting the proper direction towards achieving the goals and objectives (Bettis, 2013). Some of the cases, due to lack of proper strategic implementation, the huge financial loss has been faced by the organizations (Teece, Pisano & Shue, 2017).In this study, the popular car manufacturing company Ford has been discussed. Although the company has established it popular brand image in the world, but due to improper strategic implementation, the major failure has been faced by the company in Australian market. Due to high cost of manufacturing, company is about to move from the Australian market. In that situation, it was become tough for Ford to introduce its products in lower ranges by maintaining the same standard. By identifying the strategic failure of the company, the study will provide measurable recommendations for managing the situation.

The aim of this study is to highlight the strategic failure and its impact on thee business growth in the context of Ford. Analyzing the strategic influences and its implementation strategies have been discussed in this study.  

Within last few years, the automobile industry has become the major contributor in the world’s economy. With increasing opportunities in the market, the business challenges have been increased (Priem & Butler, 2012). In order to drive the organizations towards success, effective strategic management initiatives have become necessary. Through the study, different strategic influences have been highlighted, which has equal impact on both the national and international market. Analyzing the correct growth in the automobile industry, it has been identified that with technological innovation, the impact has been shown in the local, national and global market.

Examining the rapid changing market trend in the car manufacturing industry, it has been identified that car sharing trend has highly impacted on the local market (Hill, Jones & Schilling, 2014). The car sharing facility has become very popular in the Australian market. According to the experts, through the car sharing process, emotional attachment has been increased. On the other hand, if the impact of this initiative in the local market can be analyzed, it will be identified that it has helped to manage the traffic congestion. The city terrific as well as the environment has been reduced in the market. Analyzing the strategy of Ford, it has been identified that in order to introduce a strong brand image and saving the airport parking cost, the company has newly announced the facility of car sharing. Now the service is being provided in Sydney, Brisbane and Melbourne. With the car sharing facility, the journey has become more comfortable due to reducing rate of traffic congesting. It is also a cost effective strategy adopted by Ford, which has impacted on the local market.

The national transport system in Australia has decided to connect every car digitally. Within the year 2020. , the transport department in Australia has decided to digitally communicate with the new cars, so that safety of the passengers can be maintained (Armstrong & Taylor, 2014). In the current car manufacturing industry trend, the Infotainment system has become popular its can be connected through phone. In the year 2018, large number of cars have been interconnected through the app developing process, it has digitalized large numbers of cars.

Technology has become a major influencing factor in the automobile industry. With the rapid technological innovation, the car manufacturing organizations are now in big pressure for introducing the innovation with sustainable benefits in the market. Analyzing the current market trend, it has been identified that fully autonomous vehicles are being highly appreciated by the people. The fully autonomous has reduced the rate of accident and the efficient traffic management feature of the cars have helped to increase the comfort of the passengers (Elmes & Barry, 2017). The driverless car has positively impacted in the global market. With the unique feature of the driverless cars, it has driven the sales rate of large numbers of companies in the global market. Therefore, it can be said that the driverless cars can play a major role to drive the future of Autonomous industry.

Analyzing the strategic impact of the factors, it has been identified that Ford has faced several failure in the Australian market. In that situation, the brand reputation of the company has got hampered. In this situation the company has decided to introduce an effective plan car sharing, so that the cost of fuel as well as traffic congestion can be reduced. Ford has decided the partnership with Carhood, which is provides the car sharing service. It is true that it can be the affordable for the company so sustain the Australian market (Boddewyn, 2015). However, it is also true that in order to implement the car sharing strategy in the local market, the company needs to focus on adopting partnership strategy. After completion of the legal procedure, the inner connection process will be started. Marketing initiatives will be required for informing the target market regarding this facility.

On the other hand, following the trend of infotainment system in the market, the company has decided to digitize its cars, so that the security of the passengers can be provided. In order to implement the strategy, Ford can contact with the car service providing aps. By installing the digital tools, it can be connected with the customers. Using tablets, web and mobile facilities in the digitalization process can be done. After completion of budgeting, the target market needs to be it will be identified.

In the market analysis, it has been identified that Ford has already adopted the strategy to introduce the automated car in the market. However in case of driver less cars, the company needs to focus on introducing its technological base. It cannot be denied that the company has implemented various strategies in order to implement the plan of driver less cars in the market, however, from the market analysis and slowly implementation strategy, it has been analyzed that Ford is far away from the driver less car innovation. In this situation sustaining in the competitive market can become the major challenges for the company. Previously Ford adopted the Anti-Uber approach for introducing the self-driven cars in the market, however the strategy has faced the failure (Theaustralian.com.au, 2018). In that case, in order to implement the strategy, mapping data needs to be gathered. A vehicle engineer as well as safety driver is needed for the autonomous vehicle. A feel terminal will be secured for the driverless car. In the initial stage the cars will be introduced in the nearest districts from where the data can be easily transferred through the sensors.

Importance of theoretical approaches have become necessary for strategic implementation. Analyzing the car manufacturing company Ford in the Australian market, it has been identified that the company is in the tough situation in Australian market. Due to increasing manufacturing cost, Ford had stopped car manufacturing in the Australian market. In order to reenter in the market, oligopolistic theory of competition can be maintained by the company (Boddewyn, 2015). By following this strategy, observing the movement of the competitors in the existing market, the company can be enter in the market. In this situation the company can focus on manufacturing the same types of the products produced by the competitors. Due to continuous marketing failure, the company has lost its reputation in the Australian market. Therefore, in order to introduce the unique products like driverless cars in the market, Product development theory can be applied. By following the Ansoff matrix, the company can introduce new product in the existing market.

Human Relations Theory has been introduced by Elton Mayo, where the human relations Approach has been discussed. Human Relations Theory is an important strategic management theory that can help to managing the human behavior in the workplace (Meyer, Neck & Meeks, 2017). In this theory, the beliefs of people that facilitates the growth and development in the workplace can be analyzed. In case of Ford, the company is recently straggling with its brand reputation. On the other hand, internal conflicts in the workplace has driven the overall productivity. By adopting the theory of human relation, it will become easier for the company to sustain in the market.

Analyzing the strategic goals of the company, it can be said that the objectives of Ford are-

• To improve its brand image in the Australian market or sustaining
• To reduce the manufacturing cost for gaining more profit from the market
• To introduce unique products in the market for managing the current market trend

In the study, it can be concluded that if the company will be able to introduce the unique products in the market, it will be easier for Ford to sustain in the Australian market. As the brand image of the company is now in the tough situation in Australian market, in that case human relation theory can help to improve the brand image of the company. On the other hand, it is true that if the car sharing facility can be introduced by the company, it will help to make it cost effective for the company.  

In this study, it can be recommended that in order to sustain in the Australian completive car manufacturing industry, customer relationship needs to be developed. In order to reduce the manufacturing cost, workforce optimizing process can be adopted by the company. By following product development strategy, the company will be able to maintain its uniqueness in the market. Following the current market trend the cost effective products can be launched by the company for grabbing the customer attention. In order to sustain in the Australian market, it can also make the partnership with the local car sharing facility providing organizations.

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