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The case under consideration is that of Ford as per sector matrix requirements, the company has managed to interact its demand aspects in relation to the supply and through these, they have shaped their business this explains why they fall in a good case to sector matrix. The demand and supply factors play a role as a primary objective in the management of the performance of the brand and the general business. It is through the same matrix that the policies around which the business depends have grown controlled and managed in a reasonable manner.
The matrix applicable to this company applies in both a horizontal and vertical way. Through these, the company has remained in a position to control their finances, their demand, supply rotating around labor supply, the raw materials supply, and even the supply to the market has remained controlled hence influencing the business and the company’s growth. The company dominates a value chain that with its Chandlerian model in industrial administration aspects. An integrated company has a high level of vertical integrity applicable in defining its brand to the market.
The sector matrix through the dynamics held internally has grown to have a positive impact on the general performance of the organization. Their targets of mass markets and standardized product dominance in quality make them a company to reckon with in the automotive industry. Through these, the demand for the company’s products and their supply remains on a positive scale weighing well for the owners of the company. The positive results it boosts of result from these making it a good example for the case on sector matrix.
Bad Case of Sector MatrixA bad example on the sector matrix is that of the Lehman Brothers. A company that was closed down due to the poor management of their supply and demand factors. The failure of the company was leveled on the financial crisis that the world faced during the great depressions and financial turmoil experienced in 2008. The poor preparation effects and the failure to detect and proactively plan from downtimes also mark the company’s failure. The demand factor was handled well by the company.
The challenges met that drew the company down included the supply effects. The failure to control and sustain the demand and the pressure exerted on the financial position of the company and the supply chain changes made the company close down.
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