Business-Level and Corporate-Level Strategies - Coursework Example

Business-Level and Corporate-Level Strategies Introduction Strategic management, as demanded by organizations in the contemporary era to maintain competitive fit, is a complex, multidimensional and wide-spread concept. In general, the types of strategies considered and implemented by organizations are categorized into two divisions, i.e. the business level strategies and the corporate level strategies. To be mentioned in this context, this classification intents to reside in accordance with the two major and most common objectives taken by organizations in the modern day context for preserving their competitive positioning and for making optimum utilization of their resources. Although the two objectives and correspondingly, the two strategic levels indicate different ideologies and intents of modern organizations, these are interlinked and in often instances depend on each other to become effective as desired. Undoubtedly, these strategic levels have become an integral part to the modern management philosophy, which motivates organizations to enjoy a degree of control on their competitive positioning as well as future potentials for sustenance and growth (Hoskisson et. al., 2012). In this paper, Ford Motor Company has been selected as the organization to elaborate on the stated features of business level strategies and the corporate level strategies used by the company. To be noted in this regards, Ford is one of the largest manufacturers in the global automobile industry and can be a good example to explain business level strategies and corporate level strategies owing to its active participation in the global competition. Business Level Strategies With the application of a few innovative business level strategies, Ford has today gained a remarkable position in the global automotive industry. Contextually, with its business level strategies, the company has emphasized better utilization of its strengths to take competitive advantages over its prime rivals. It was with this intention that Ford concentrated on the application of green technologies. It has also remained focused in preserving transparency of its business operations and performance information in the field of manufacturing so as to build a strong stakeholders portfolio. Ford has been praised by many theorists, market critics and authoritative bodies for its advance-thinking approach to sustain as a responsible company with sufficient sensitivity towards the environment and genuine manufacturing (Ford, 2013). Innovation has also remained a key feature in the business level strategies adopted by Ford in its recent endeavors. For instance, from 2008 to 2013, the company introduced 60 advanced and upgraded engines, transaxles as well as transmissions, which has helped it develop fuel efficient designs, adding to its brand identity and subsequently, enriching its competitive position globally. Ford continues to improved fuel economy in fresh and new vehicles such as Ford Focus, Mustang, Lincoln MKZ and Fusion car vehicles, which have further helped its customers and other stakeholders to differentiate the brand from other similar brands available in the global market (Ford, 2011). Thus, it can be asserted that the focus of Ford in developing and implementing its business level strategies has been emphasizing three key factors, i.e. sustainability through green technologies, differentiation through innovation and strong relationship building with the internal and external stakeholders. Corporate Level Strategies From a general perspective, corporate level strategies intend to secure the resource utilization and maximization objectives of the company. Correspondingly, to launch high-tech product plans, sustainability efforts, and remain profitable, Ford has been focused on utilizing its financial resources extensively to utilize its resources in the most efficient way. It is in this context that the company has been emphasized towards revitalizing its liquidity positioning by reducing its debts and increasing its fund allocating capacity to a substantial extent. This particular fact certainly indicates the degree of improvement Ford has been able to accomplish with the virtues of its corporate level strategy of financial planning and forecasting (Ford, 2013). In its corporate level strategies, Ford has also implemented an all-inclusive operational model to consistently review the business environment, to identify opportunities and risks present in the environment, and to assess its applied strategies and plans on a consistent manner. This process has evidently helped Ford to identify areas of plan that require foremost attention and pursue chances to improve the plan making better use of its resources. Employee involvement also acquires a major part in the corporate level strategies applied by the company wherein every individual can value their input in terms of their knowledge and ideas resulting in the overall betterment of the plan. Data and facts are also taken for perfect decisions in consideration with high teamwork performance. They follow the process every week, month and quarter for continuous improvement. Since past few years, through this process, the organization has believed that it shows sharp business image and can quickly respond regarding uncertain issues and conditions, which they have maintained in the competitive market and business environment (Ford, 2013). Management teams check both business units and skill teams with due emphasis to regular communication among the organizational members. They analyze every business metrics, research development and marketing to generate emission standards. With such significance provided to regular communication among organizational members, Ford has been able to enhance its strategic objectives along with internal strengths resulting in the overall betterment of its competitive positioning. This also allows the organization to make complete utilization of its human resources, further enhancing its organizational capacity of resource allocation and utilization. Not only among employees in the internal business environment but Ford has also emphasized developing communication with customers and other stakeholders in its external business environment. It has been through such marketing efficiency that the company could address defects regarding cars dumped to showrooms and manufacturing levels at an early stage. They enlisted stakeholders to assist them to create exciting and challenging businesses as well. These constituencies play a critical role in the success of its business (Ford, 2013). Competitive Environment of Ford From the above information regarding the business and corporate strategies practiced by Ford, linkage can be evidently drawn between organizational performance and its effectiveness. To attain a competitive positioning, especially for Ford significant considerations have been taken into account in terms of creative and innovative development, customer satisfaction, financial competences and team-work environment, which altogether suffices the organizational need towards industrial advantages and optimum resource utilization. Due to competitive market, consistently new and advanced designs have been launched by Ford that has further helped differentiating the brand from its competitors. Customer satisfaction herewith relies on comfort, smartness, safety and speed. Successive financial planning also plays an important role for the profit growth of the company as could be observed from the above discussion. The effectiveness of the corporate level strategies and the business level strategies adopted by Ford can be better assessed through a comparative analysis with the strategies applied by its major rivals, such as the General Motors (GM) and Toyota Motor Corporation. Similar to Ford, GM has remained much focused on implementing effective innovation strategies towards maintaining customer satisfaction, brand identity and efficiency in its organizational functioning. A persistent safety technology procures GM vehicles such as adaptive cruise control, blind zone warning, and automated park assistance constructing blocks for automatic driving. However, GM’s deficiencies in its strategic planning and other dimensions of corporate level strategies have hindered its competitive position as compared to that of Ford, resulting in the poor performance of the former (Holweg, 2005). From this analysis, it can be inferred that corporate level strategies of Ford is better than one of its prime competitors, GM. Again, when concerning the same in the case of Toyota, it can be observed that while Toyota applies a stronger business model in its corporate level strategies to utilize its resources at the highest extent possible, it lacks in applying proper communication strategies to bind its stakeholders and involve them in its strategic performances. As a result, it lacks a competitive positioning in the global market, unlike the case of Ford (Evalueserve, Ltd., 2012; Dornbach-Bender & et. al., 2009). Based on this analysis and comparison it can be apparently elaborated that companies need to balance their corporate level strategies and business level strategies in order to gain a competitive position in the industry, as can be apparently observed with reference to Ford’s example. Slow-Cycle and Fast-Cycle Markets Competitive needs undoubtedly differ in slow-cycle and fast-cycle markets. Correspondingly, it is quite likely that the competitive positioning of Ford, with the virtues of its corporate level strategies and business level strategies would have been different in the market transition was a slow-cycle, rather than being a fast-cycle, which it currently is (Sapkauskiene & Leitoniene, 2010). It is in this regard that in a slow-cycle market, the competitive position of Toyota and GM could have been better, while Ford had to suffer the hurdles of rapid innovation owing to shortened life span of its products. This further indicates that Ford is adequately aware of the market structures and has been able to adopt suitable ideology to comply with the competitive demands of the market. Conclusion From the study conducted above, the significance of business level strategies and corporate level strategies become apparent. Balancing these strategic levels is not only important to ensure long-run sustainability of a company, but it is also essential to attain and preserve a leadership position for the organization. To be noted in this context, Ford has been successful in applying the same in its recent organizational operations that has evidently leveraged its competitive positioning in the global market. However, it is suggestible that the company should also emphasize complying with market structure changes, as it is the key to effectiveness of the company’s corporate level strategies and business level strategies. References Dornbach-Bender, R., Slade, B. & Thorpe, J. (2009). Strategic Report for Ford Motor Company. Retrieved from http://economics-files.pomona.edu/jlikens/seniorseminars/oasis/reports/F.pdf Evalueserve, Ltd., (2012). Platform Strategy will Shape Future of OEMs: Flexibility to Drive Growth. White Paper, pp. 1-13. Ford, (2013). Sustainability Report. Retrieved from http://corporate.ford.com/microsites/sustainability-report-2012-13/blueprint-strategy Ford, (2011). Sustainability Report. Retrieved from http://corporate.ford.com/microsites/sustainability-report-2010-11/issues-climate-performance-vehicle Holweg, M. (2005). The Evolution of Competition in the Automotive Industry. Judge Business School, pp. 13 - 34. Hoskisson, R., Hitt, M., Ireland, R. D. & Harrison, J. (2012). Competing for Advantage. South Western: Cengage Learning. Sapkauskiene, A. & Leitoniene, S. (2010). The Concept of Time-Based Competition in the Context of Management Theory. Inzinerine Ekonomika-Engineering Economics, 21(2), pp. 205 - 213. Read More