Strategy Report ( FORD) - Essay Example

Strategy Report: Ford Motor Company ID Number & Total Number of Words: 505 Overview of the Industry The global automobile industry is composed of different companies that sell different autombile brands like Aston Martin, BMW, McLaren Automotive, MG, MIRA, Ford, Honda, and Jaguar among others (SMMT, 2012, pp. 8 – 9). Therefore, prospective buyers can easily switch from one brand to another. This makes the bargaining power of buyers medium-high. Overview of the CompanyFounded by Henry Ford, Ford Motor Company introduced its first moving assembly line back in 1913 (Fonda, 2007).

Over the years, the company managed to continuously manufacture vehicles in both domestic and world market. As part of the company’s business success, Ford UK managed to increase its car sales from 7,542 last February 2011 up to 8,957 last February 2012 (Ford, 2012b).Why the Ford’s Strategy is InterrestingOne of the best strategies that made Ford become successful is its ability to expand its business through joint-venture programmes and acquisitions and close down the underperforming manufacturing plants.

As part of the company’s global expansion strategies, Ford has been continuously entering into joint-venture with different foreign companies to improve and expand its production facilities. In 2008, Ford decided to acquire Automobile Craiova in Romania as its majority stake owner. After acquiring Automobile Craiova, Ford was able to operating its new vehicle production plant to serve the engine needs of its Ford B-Max (Ford Media, 2012a). Likewise, the company is also using this particular production plant to produce low-capacity engines for cars (de, 2009).

Despite Ford’s continuous acquisition, the company is recently planning to close down its car plant in eastern Belgium (Associated Press, 2012). By doing so, the company can save a lot from its fixed operating cost.Strategic Issues and Possible Focus for ResearchIn response to the tight market competition in the world market of automobile products, Ford is being challenged to establish its production plant in another country. Through joint-venture and acquisition, the company was able to put up a new production plant within the earliest possible time.

Since Ford is planning to close down its car plant in eastern Belgium, the company is expected to face serious problems with its employees and subcontractors. Therefore, future research will focus on Ford can enter into a win-win negotiation with the affected stakeholders.Research Objective To determine how Ford can enter into a win-win negotiation with the affected stakeholders without causing too much destruction on its business flow.Research PlanTo investigate internal and external factors that can affect Ford’s strategy, a SWOT and PEST analysis will be conducted.

Basically, the proposed research plan will make use of phenomenological approach to research. Since the main problem associated with Ford’s strategy is people, this study will purposely conduct a research interview with a couple of HR managers.Useful sources of information (i.e. academic books and journals) will be gathered from online databases and the school library. To address the research objective, the student will conduct a literature review to examine how other companies were able to effectively manage people who are affected by a massive lay-off.

Events1Conduct Related Literature Review 2Complete the Research Proposal  3Read about how other companies are able to successfully manage a massive lay-offs  4Conduct PEST and SWOT analysis to examine the external forces that will affect Ford’s strategies5Start Writing the Literature Review6Conduct the actual research interview4Analyze & interpret the literature review   6Finalize the research with a study conclusion   123456789101112WeekAppendix I – Porter’s Five ForcesAppendix II – Semi-Structured Research Interview Questionnaire1.

Good morning. Have you ever managed internal conflict that arises out of a massive lay-off?2. If yes, how did you handle the people without causing them to retaliate against the company?3. Do you think that offering employees with early retirement plan could help the company come up with a win-win solution for the employees?4. What other HR strategies do you think could help the company manage this kind of situation?ReferencesAssociated Press. (2012, October 24). The New York Times. Ford Closes Belgian Plant in 2014; 9,500 Jobs Hit.

[Online] Available at: http://www.nytimes.com/aponline/2012/10/24/world/europe/ap-eu-belgium-ford-.html?_r=0 [Accessed 29 October 2012].de, A. (2009, March 16). HotNews. Ford to build low capacity car engines in Craiova, South Romania starting late 2010. [Online] Available at: http://english.hotnews.ro/stiri-business-5496775-ford-build-low-capacity-car-engines-craiova-south-romania-starting-late-2010.htm [Accessed 29 October 2012].Fonda, D. (2007, August 1). Time. Ford Motor Co. [Online] Available at: http://www.time.com/time/topics/article/0,8599,1648748,00.

html [Accessed 29 October 2012].Ford. (2012a). Ford in the Community. [Online] Available at: http://corporate.ford.com/our-company/community [Accessed 29 October 2012].Ford. (2012b, March 6). Ford UK sales surge ahead in 2012. [Online] Available at: http://www.ford.co.uk/experience-ford/AboutFord/News/CompanyNews/2012/Ford-UK-Sales-Surge [Accessed 29 October 2012].Ford Media. (2012a). Ford Starts Volume Vehicle Production in Romania; New Ford B-MAX First Off the Line at Craiova Plant. [Online] Available at: http://media.ford.com/news/fordstartsvolumevehicleproductioninromanianewfordb-maxfirstoffthelineatcraiovaplant.

htm [Accessed 29 October 2012].SMMT. (2012). The society of motor manufacturers and traders. Motor industry facts 2012. [Online] Available at: http://www.smmt.co.uk/wp-content/uploads/SMMT_FACTS_2012_WEBv.pdf [Accessed 29 October 2012].