Ford Motor Company - Ford Motor Company CASE ASSIGNMENT...

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Ford Motor Company CASE ASSIGNMENT Faced with an overwhelmingly complex situation, Alan Mulally has been brought in as Ford Motor Company's new president and CEO. As diverse global dynamics confront the company and competitive pressures continue to build, he has the challenging task of improving Ford's brand image and returning the company to profitability. Mulally has invited your consulting firm to advise his management team on restoring the company's reputation and viability. Assigned to the project, you have been asked to evaluate Ford's situation and prepare a report with the following content: 1. Define and discuss Ford's business-level strategy. a. How can the company's value-chain activities be better linked to create value for the company? b. How can Ford successfully position itself in terms of the five forces of competition? c. In what ways can the company effectively manage customer relationships to increase strategic competitiveness? d. What conditions and tools can facilitate Ford's efforts to produce differentiated products at relatively low costs? 2. Outline a rough competitor analysis. What can be learned about expected competitor behavior by using the model of competitive rivalry to understand Ford's situation? 3. What role will strategic leadership play in helping Mulally and the organization meet its strategic objectives? Be prepared to discuss your analysis and findings with your consulting team to formulate recommendations for Mulally. 118
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Ford Motor Company STRATEGIC ACTIONS: STRATEGY FORMULATION 1. Define and discuss Ford's business-level strategy. Ford's business-level strategy is a differentiation strategy , in which the company tries to produce vehicles and services (at an acceptable cost) that customers perceive to be different in ways that are important to them. For the differentiation strategy to be successful, Ford needs a thorough understanding of what its customers value, the relative importance they attach to the satisfaction of different needs, and features that justify premium prices. Continuous success can be achieved by consistently upgrading differentiated features or creating new features (through innovation) that are valued by customers without incurring significant cost increases. Differentiation requires a constantly changing product line and is more successful when the company is able to offer a portfolio of products that complement each other, which enriches the experience for customers and satisfies a variety of consumer needs. And when differentiated products truly satisfy customers’ unique needs, the company is able to charge premium prices. For customers to be willing to pay a premium price, however, Ford's products must truly be perceived as unique in some way. The ability to sell goods or services at prices that substantially exceed the cost of creating the differentiated features will allow Ford to outperform its rivals and earn above-average returns. Differentiation can be achieved in a variety of ways: unusual features, responsive
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This note was uploaded on 01/06/2012 for the course MGT 4027 taught by Professor Stein during the Winter '11 term at Southeaster Oklahoma State University.

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Ford Motor Company - Ford Motor Company CASE ASSIGNMENT...

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