Global Business Strategy Ford Motor Company

Question: Discuss about the Global Business Strategyfor Ford Motor Company. Answer: Introduction In the contemporary society, multinational enterprises have recognized the importance of strategic leveraging on their operations. Therefore, business organizations have adopted strategies and policies focusing on ensuring that the companies attain sustainability. According to Pilkington (2012), one area that organizations have been using to foster strategic leveraging is through ensuring an efficient value chain. The paper gives a critical analysis of the value chain of Ford Motor Company and how it has initiated sustainability efforts. The Companys Value Chain Ford Motor Company is a multinational business that has experienced a continuous growth all over the years. Ford Motor Company is the fifth largest motor vehicle manufacturer in the global market. The automotive company has managed to compete favorably against other vehicle manufacturing companies such as Nissan, Renault, Suzuki as well as Chrysler Automobiles. The value chain that has ensured the success of the company includes: Product Planning and Design The first phase in the value chain in the company is product planning and design. In this stage, the company makes critical decisions on how the production process will occur. The firm ensures that there are necessary resources such as skilled employees and technology that can be used to produce various models of motor vehicles. For example, in 2011, Ford designed new brands including Ford Fiesta and Ford Fusion. The nature of the market plays a critical role during the product planning and design phase (Kaplan Norton, 2015). The company does an efficient planning that can result in the improvement of its operations. During the planning process, the company analyses the nature the competitors products and market share before designing high-quality vehicle brands and models. Extraction of Raw materials The next critical stage in the value chain of the company deals with the extraction of raw materials. The company has developed an effective relationship with suppliers of raw materials. The company also outsources raw materials thus creating job opportunities for other individuals. The raw materials are important in the assembling of the vehicle body parts in the companys plant. In 2012, the company started addressing issues of conflict minerals that were the raw materials for the company. This stage plays a critical role in the manufacture of the various models of automotive machines. The company follows the regulations and federal laws that control the extraction and use of raw materials. Assembling of Vehicles Another crucial part of the value chain is the actual manufacturing of the vehicles. The vehicle assembling takes place in the various divisions and subsidiaries all over the world. Through innovation, Ford Motor Company has been producing advanced designs of motor vehicles. In 2014, the company produced 6.3 million vehicles for the global market. The firm has therefore managed to dominate the global market through the production of a higher quality motor vehicle brands as compared to its competitors such as Chrysler Automobiles, Nissan and Renault Motor Company. During the assembling of vehicles, the health and safety of the workers play a major role. Communication Channel One important method that Ford Motor Company has used to initiate strategic leveraging is through adopting an efficient communication channel. The firm values communication, and therefore it has embraced a different communication in which the stakeholders are involved in critical decision making in the company (Currah, Wrigley 2014). For example, since 2005, the company has adopted an online communication forum in which the customers interact with the company. Through effective communication, the company has managed to expand into the global market. Logistics and Transportation Ford has adopted a sophisticated transportation and distribution channels that focus on achieving sustainability in its operations. The manufactured vehicles reach the suppliers who in turn sell them to the consumers. The logistics and transportation have also created job opportunities for several people around the world. After the raw materials reach the plant, the manufacturing process occurs after which the vehicles are transported to the suppliers and then to the market. Sales and Marketing Another critical stage in the Ford Company value chain is the sales and marketing. The firm has adopted measures with the aim of ensuring effective sales in the global market (Turnbull et, al, 2011). For example, in 2013, the company sold 6.33 million vehicles. According to Ford, (2016), the increasing number of sales has made the firm to compete against developing automotive industries in the world. The firm is almost surpassing General Motors regarding both annual sales and revenue generation. Consumption of Ford Products The firm has adopted measure aimed at producing high-quality vehicles brands. The tastes and preferences of the consumers play a crucial role during the manufacturing process. Moreover, the fuel consumption of the Ford vehicles is also sustainable. The consumers, therefore, do not spend a lot of money purchasing the vehicles. The firm has also recognized the importance of producing environmentally friendly vehicles. The emission of carbon iv oxide has been regulated therefore ensuring environmental conservation. The vehicles are affordable and easy to use as compared to other automotive manufacturing companies such as Suzuki. End of Use Measures Ford Motor Company has implemented measures and policies that have guided the management of waste products. After the vehicle usage, the company helps in dismantling process as well as initiating the waste management programs. The vehicle models can easily be recycled and reused. The measure also helps in preventing environmental pollution. In the recent years, the company has been planning on ways in which it can develop vehicles using non-biodegradable raw materials (Pettinger, 2014). According to the 2014 sustainability report, ninety-five percent of Ford vehicles can undergo recycling. The environmental bodies such as the United Nations Environmental Program have recognized the policies of the company that aims to create an enabling environment. Evaluation of the Companys Value Chain Ford Motor Company has adopted a comprehensive value chain that has given it a higher competitive advantage than other automotive companies. The employees, shareholders, customers, investors and the managers are all involved in making crucial decisions regarding the value chain. The measure has helped in propelling the automotive company to success. The firm has also undertaken effective communication in which the customers interact with the company. The value chain, therefore, has led to the improvement of operations as well as the achievement of goals and objectives in the company. Recommendations on the Value Chain There are several measures that Ford Motor Company can undertake to improve the value chain. For instance, the company should tailor the products towards the current needs and preferences of the customers. Emphasis should be put on the planning and designing phase so as to ensure that the company produces market-oriented motor vehicles. Moreover, the company should enhance the distribution phase so as to facilitate the efficient movement of finished products to the market. Conclusion In summary, Ford Motor Company has adopted measures that have created an enabling environment for strategic leveraging of its operations. Through implementing a viable value chain, the multinational firm has managed to achieve sustainability (Hall, 2013). The company has therefore enhanced its global operations through thus becoming one of the largest sellers of high-quality vehicle brands. References Currah, A. and Wrigley, N.,( 2014). Networks of organizational learning and adaptation in retail TNCs. Global Networks, 4(1), pp.1-23. Ford (2016). Our Value Chain and its impact. Sustainability Reports2013/14 Retrieved from: https://corporate.ford.com/microsites/sustainability-report-2013-14/blueprint-value.html Gulati, R., Huffman, S. and Neilson, G., (2012). The barista principle: Global Enterprises and the rise of relational capital. Strategy and Business, pp.58-69. Hall, R., (2013). 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