Ford Motor Company- Corporate Identity to Remain Competitive in Car Industry - Literature review Example

Ford Motor Company Company Selection and Analysis Ford Motor Company Ford Motor Company is a multinational motor company,whose headquarters are at Michigan USA. The American company is one of the world’s most competitive automakers. The company was started in the year 1903 by Henry Ford and has ever since spread and grown across world automobile markets. The company’s success and challenges can be described through the SWOT analysis approach. It is through this analysis that the company’s mission, vision, direction and strategic plans can be analyzed effectively. The success of the company and its performance in the market can be also be analyzed in line with its organizational culture and structure. Strengths Ford has a very strong position statement, which makes it very competitive in the motor vehicle industry and market. Its position statement is demonstrated by its business values, mission and vision. The company’s mission is to become the top provider of automobile services and products within the global market (Tepper 52). On the basis of this mission Ford current and strategic plans are geared towards the production of the highest quality motor vehicles, which are designed to meet the unique preferences and needs of its buyers. In order to achieve its mission, Ford has aligned its business and management strategies with an effective organizational culture. Through innovation and teamwork, the company’s production team is able to build strong or tough automobiles, which characterize the Ford Brand. The company’s organizational culture is based on the business values of its founder, Henry Ford. It is as a result of this that the company has been able to achieve excellent communication processes with its customers. Good relationships with the market have been made possible through the appropriate leadership and management styles of the company’s executive team. This would be attributed to the company’s ability to win the loyalty of the consumers as its ideal vision. Ford’s highly skilled, innovative and creative workforce is attributed to its success within the global motor vehicle market. The human resource management practices and organizational culture of the company encourages collaboration and communication among employees and managers (Datamonitor 3). Effective recruitment strategies within the human resource department have allowed the company to attract highly skilled and experienced employees. Additionally, the company’s employees are effectively motivated through god working environments, competitive compensation, benefits and bonuses. This has reduced employee turnover and prevented loss of skilled staff to business rivals such as Toyota and General Motors. Ford’s marketing strategy is also argued to be one of its main strengths and business advantages in the motor vehicle market. The company has employed an integrated marketing strategy through which it is able to communicate effectively to the market and enhance the image of the Ford brand. Through effective marketing and branding, Ford is reported to have the highest level of consumer perception on motor vehicle brands. Through strategic marketing planning, the company’s managers are able to demonstrate the brand’s string outlook to the market. Increased investment in market research has also allowed the company to determine changes in the market, such as consumer preferences, and therefore employed the most effective approaches in attracting new customers (Marketwatch 15). Weaknesses Ford’s market share has been affected by the increase in the prices of gas. For instance, the trucks segment of the company’s market has reduced significantly. This is attributed to the fact that consumers are no longer interested in large motor vehicles because of their high rate of consuming gas (Datamonitor 7). Ford has not implemented an effective strategy to manage the product life cycle of its motor vehicles. It is as a result of this that it is argued that some of Ford’s products may not last long within the motor vehicle market. For instance the transition of the company’s production to the cross over phase from the SUV is reported to have strategic implications on the company’s performance (Marketwatch 17). Ford was adversely affected by the global economic crisis or recession. Additionally, market analysts demonstrate that Ford has not tapped the developing and emerging economies completely (Datamonitor 4). This has affected its competitiveness within these markets. In 2012, Ford’s losses within the European market went over $1.5 billion. This demonstrates that the company strategies need to be reviewed so that they can be aligned with the changes in the business, social cultural and economic environments. Ford is also facing challenges within the first line management level. This is attributed to its highly structured management structure. The company’s organizational structure is illustrated on Appendix I. In order to overcome these challenges, the company needs to spend more on motivation and training employees within the first line management level to promote productivity and performance. The company has experienced significant loss of profits, which are related to the management of inventory (Tepper 52). Lack of effectiveness in operations management and monitoring of inventory often leads to losses associated with logistical and storage expenses (Nedelea 11). New product recalls have also affected the company’s competitiveness in a negative manner. This is associated with lack of effective strategic product development plan within the company. Such recalls have caused losses to the company and negative perception on the quality of its new products. Opportunities The decreasing interest rates within the financial industry are an attractive business strategy for Ford Motor Company. The company would be able to utilize this opportunity by giving its customers incentives so that they can be encouraged to buy its motor vehicles. In its strategic market planning, Ford should target specialty groups as one of its market segments. These are emerging markets or groups, which represent the opportunities which the company can utilize to widen its share in the market and grow profits. The company has an opportunity of integrating its corporate social responsibility with organizational culture. This will allow the company to be viewed as an advocate of environmental conservation and a green society. The company can go green in its marketing solutions and contribute to environmental conservation endeavors. It is through adherence to corporate social responsibility obligation and business ethics that a company is able to enhance the image of its brand within the market (Nedelea 14). This leads to an enhanced perception within the market and a growth in market share. Product differentiation is another attractive opportunity which Ford should incorporate into its strategic plans. Through product differentiation, the company will present diverse models of its motor vehicles. In return, it will meet the unique preferences of its diverse market segments. Social networks are increasingly being used by companies as one of the most effective online marketing strategies (Nedelea 13). Therefore social networks represent the marketing opportunities that Ford can utilize to reach the millions of potential customers within online communities. Online payments are other opportunities though which the company can provide convenient modes of payment for its customers. Other business opportunities that the company can utilize include acquisitions and mergers. This will allow the company to access vast resources and grow its production capacity. A restructured organizational structure is an opportunity that the company can utilize to eliminate challenges within the front line management level. Threats Economic crises represent the major threats which face the profitability or performance of Ford within the motor vehicle market. This is due to the reality that the recession renders people unable to afford cars. Possible crashes in stock market pose threats to Ford Motor Company. A crash in the stock market discourages people from investing in large public corporations, such as Ford. A decrease of the public trust on the motor vehicle industry also presents business threats to the performance of the company. Technological trends or changes may pose threats related to the competitiveness of the company’s motor vehicles in the market. In order to overcome this threat, the company should implement innovation as its main business strategy and organization culture. It is through this that the company will be able to produce motor vehicle products which are aligned with the needs of the modern consumer. An increase in market rivalry within the motor vehicle rivalry and possible changes in political or legal landscapes in the company’s international markets may also threaten its performance and growth. Article Selection and Analysis Summary of the Article Zorkociova, Lenka, and Maria (3) present research findings on the role of corporate identity in a company’s competitiveness within the motor vehicle industry. The article is titled: "Corporate Identity as a Strategic Tool for Companies to Remain Competitiveness in Car Industry during Current Financial and Economic Crisis.” The authors analyze corporate identity as the most important tool in strategic management, which can allow companies within the car industry to become more competitive and profitable. The authors base their research business strategy theories. In doing so, they highlight the functions, roles and benefits of corporate identity in the success of a motor vehicle company. The research was motivated by the realization that the car industry contributes significantly towards a country’s GDP. The researchers use practical examples and business theory to demonstrate that corporate identity gas contributed significantly towards the ability of companies to survive economic crises. The authors also indicate the future implications of the concept of corporate identity on the success or performance of companies within the car industry and market. The Issue Being Addressed in the Article The authors address the issue of economic crisis and how companies can employ corporate identity as the most appropriate tool for remaining competitive and successful in the production and retail activities. In addressing this issue, the authors point out that corporate identity represents the personality or image of a company. This personality is based on the culture of an organization and its business values. The researchers demonstrate that a positive corporate identity will allow a company to overcome inevitable challenges within the business environment, such as recession, and maintain its production, human resource management and retail activities. According to the findings of the researchers, organizations must include corporate identity in their business and management strategies. For example, marketing communication, planning and the design of business objectives or procedures, should be aligned with the need for enhancing the image of a company within the market. A positive corporate identity is justified by the authors because it allows a brand to become more popular in the market and therefore more competitive. The aims of a company, its values and beliefs are described within the paradigm of corporate identity. The values of a company define its engagement with the market and relationships with the customers. A positive image wins the loyalty of consumers, which makes the company to survive a highly competitive economic landscape. Significance of the Issue Since economic crises are significant business threats and risks that face companies within the car industry, it is important to determine how companies can survive through a positive organizational identity. This issue is also important because it affects the process of strategic planning within motor vehicle companies. Managers are mandated to design effective strategic plans, which would allow their companies to overcome business challenges during hard economic times. The marketing strategy, environmental strategy and human resource strategies significantly influence a company’s corporate image. This demonstrates the how the concept of corporate identity affects the managerial roles of a company. For instance, the decision making process and planning within a motor vehicle company are determined by the company’s ability to maintain a positive image in the market and remain competitive, regardless of the prevailing hard economic conditions. The issue is also significant because it affects the allocation of resources within a company. a company may increase its investment in employee training, market research and information technology, so that it would become strategically efficient and competitive in the market, especially during hard economic times (Nedelea 15). Lessons Drawn from the Article On the basis of the research findings of the author, a company is able to implement three types of corporate identity in order to enhance its image within the market. Monolithic corporate identity describes the approaches through which a company can be able to maintain a positive image in an international market (Zorkociova, Lenka, and Maria 5). Monolithic corporate identity is important because international companies face diverse social cultural and economic landscapes across their global markets, which make it challenging to maintain a positive image within local markets. Companies can also employ delegated or managed corporate identity so that they can have a unique identity, which is different from that of the parent corporation. Brand corporate identity is an important tool, which companies can utilize to build different identities of its specific products. For example, a motor vehicle company can employ brand corporate identity to build unique and positive images for each of its motor vehicle products. The article demonstrates the kind of services and products that a company offers its customers defines its corporate identity or image (Zorkociova, Lenka, and Maria 7). This presents lessons for motor vehicle companies, such as Ford, to focus on quality in the delivery of services and production, as one of its core corporate values. The authors of the article also demonstrate that the internal environment of the company influences how the external environment, such as the market views it. This is a lesson to motor vehicle companies to implement an attractive working culture, which is geared towards quality and efficiency in service delivery. The employees of the company are depicted as its ambassadors because they create positive awareness of its strengths and as a result enhance corporate identity. Effective communication is one of the main lessons that motor vehicle companies can learn from the description of corporate identity within the article. Effective communication with the market is describes as the prerequisite of a positive corporate identity and the competitiveness of a company within the car industry (Zorkociova, Lenka, and Maria 14). Ford’s Competitiveness The issue of corporate identity as presented within the research article implies how it impacts on the competitiveness of Ford Motor Company within its international markets. Managers within Ford play the central role in designing competitive strategies. Therefore if they do not align the design of these strategies with the goals of enhancing the company’s image, Ford may not be sufficiently competitive. The role of corporate identity in surviving economic crises depicts how such crises may affect the competitiveness of Ford within the motor vehicle industry. If Ford’s corporate identity is less desirable than its competitors, its survival and competiveness in a restrained economy may be challenged. The marketing communication processes within Ford are more likely to affect the manner in which it is viewed in the market. Through marketing communication, companies are able to enhance their corporate image. The ability of Ford in engaging in aggressive marketing communication processes may be limited by hard economic conditions. This means that the company may not be able to maintain a positive corporate identity through marketing communication endeavors. In line with the findings within the article, the competitiveness of Ford will be determined by its ability to maintain string relationships with the market. Strong relationships allow a company to win the loyalty of its consumers and making its products the first choice within its market segments (Nedelea 13). Recommended Changes In order to overcome the continuous loses, which have been experienced in the past few years, Ford should focus at enhancing its corporate identity within its international motor vehicle markets. This is attributed to the reality that most of these losses emanated from economic crises. The company would achieve this by investing more on brand image enhancing marketing communication programs. Additionally, the company would design its business strategies with a goal of ensuring that it is the most preferred motor vehicle manufacturer in the market. The company should also implement effective communication tools, such as online sites, to engage effectively with the market and therefore improve its image. Effective negative publicity management strategies should also be implemented within Ford, so that it can be able to enhance the damage of its corporate image, which emanated from its losses. This will allow it to win the loyalty of shareholders. Ford should make changes within its management structure. This involves the implementation of integrated communication systems and tools. This will promote effective communication and management processes within its internal environment. This will solve the problems that it faces within its front line management level, and ensure that employees are motivated to become innovative, productive and providers of high quality services. These changes will be reflected to the external environment through customer satisfaction of its services. In return, the company will enhance its corporate identity, which will allow it to overcome the negative economic challenges that it is currently experiencing. Works Cited Datamonitor. “Ford Motor Company." Ford Motor Company SWOT Analysis (2010): 1-11 Marketwatch. "Company Spotlight: Ford Motor Company." Marketwatch: Automotive 9.5 (2010): 15-21. Nedelea, Stefan. "Competitiveness, a Manner to Maintain Organizations on the Market." Internal Auditing & Risk Management 7.4 (2012): 11-16. Tepper, Taylor. "X-Ray: Ford Motor Co." Money 43.2 (2014): 52. Zorkociova, Otilia, Lenka, Simorova, and Maria, Sasikova. "Corporate Identity as a Strategic Tool for Companies to Remain Competitiveness in Car Industry during Current Financial and Economic Crisis." Journal of Applied Economics & Business Research 4.1 (2014): 3-22 Appendix Read More