Ford Case Strategic Case Study: Ford Motors Case Study

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Ford Case

Strategic Case Study: Ford Motors

Company Overview

Ford Motors is one of the oldest and largest auto manufacturers in the world, and despite being enormously hard-hit by the economic downturn of the recent past the company has returned to profitability and has been successful in redefining its strategy and realigning its resources to achieve its strategic ends (Ford, 2012; Hoover, 2012; Reuters, 2012). With internationally-based sourcing, manufacturing, distribution, and sales operations, the company is also quite large in terms of geographic spread, which comes with advantages and disadvantages (Ford, 2012; Reuters, 2012). The following pages present a brief overview of the company's current strategy in the light of the recent near-collapse of the company and its climb to profitability, and also gives a summary of a strategy the company could possibly pursue to further solidify its position and increase profitability.

Existing Objectives and Strategies

Many companies underwent serious changes in both their perspectives and their strategies and operations as a result of the economic crisis precipitated by the collapse of the U.S. financial sector, but the U.S. auto industry was one of the hardest hit (Hoovers, 2012). The U.S. auto industry had already suffered relative to Japanese and other foreign competition, yet the availability of capital led to a culture of simply being big -- in cars and in company strategy (Ford, 2012; Hoovers, 2012). The current era has seen a dramatic shift in that strategy, as demonstrated by certain of Ford's recent actions and overall outlook.

Whereas multiple brands and more diverse car lines used to define the company and much of the U.S. auto industry, Ford has recently been demonstrating a desire both to slim down in terms of its branding an manufacturing attempts, and to become more vertically integrated in order to facilitate lean manufacturing and distribution principles (Ford, 2012; Reuters, 2012).

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The Mercury brand, for decades a part of Ford's more diversified strategy, was discontinued in 2010; in that same year ford sold the Volvo brand that it had acquired in the mid 1990s to a Chinese auto manufacturer (Ford, 2012; Hoovers, 2012). These actions and other efforts to strengthen a central brand image and to save costs by focusing and streamlining operations demonstrate a significant change in strategy and objectives, with cost savings and a strong marketing and brand position taking precedent over the variety of offerings the company has for consumers (Ford, 2012; Hoovers, 2012).

Also important to acknowledge is the focus on vertical integration other actions and trends in the company demonstrate. While divesting itself of brands and operations it sees as disconnected from the core business, Ford has moved to acquire certain manufacturing companies and facilities that it depends on as a means of controlling costs and quality while spurring innovation (Ford, 2012; Hoovers, 2012; Reuters, 2012). Its credit department is also highly successful, and represents an added revenue stream from retail sales that provides a great deal of profitability and security to the company (Ford, 2012; Reuters, 2012). All of this denotes a company dedicated to the idea of profitability from core business through tighter control.

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