1.0 INTORDUCTION
1.1 BACKGROUND
Ford has been in Auto industry for more than a century. During this period it has come across different situations and problems from time to time. In its early years, Ford was depended on different suppliers for various parts but soon it had the problem with the quality of equipments and compatibility of parts made by different manufacturers. Fords strategy was to produce their own parts but in 1950 this strategy became too expensive as it was costing more comparing to buying from suppliers. There wasn’t much completion till 1980. Prior to 1980s, Ford did not find much competition.
The competition became unreceptive when Japanese carmakers entered into the market with different approach to capture customers. They gained competitive advantage for bringing new technology into American car industry. After realising the situation Ford made an effort to compete in business by establishing keiretsu-type arrangements, forged links with rivals by owing 25% of Mazda, establishing strategic alliances to share technology and design. Different strategies were brought down by Ford in different situations but it didn’t pay off as well as expected and loss huge amount of money. One of the biggest costs the company made was on 2001 when they were facing safety issues with SUV’s tires which were believed to cause crash. Overall the company incurred a loss of 5.5 billion by 2001. Ford’s difficulties in developing ideas and classical approach of strategy have put them in great risk.
1.2 Aims
The purpose of this report is to conduct a detailed analysis of Ford’s strategic management and also to suggest some potential changes to strategies. Further based on the analysis of company it is required to deve ...