ford motor company case study strategic management

How Ford Adapted To The Changing Automobile Market

Table of contents.

Over its 118 year history, the Ford Motor Company has led the way in innovative technologies and leading business practices. 

Important stats to know about The Ford Motor Company: 

• Controls 13.9% of the US automotive market share in 2022
• Revenue of $136.3B in 2022  
• Headquartered in Dearborn, Michigan
• Produces over 4 million vehicles each year
• Employs over 182,790 employees around the world
• Ranked #21 in the Fortune 500
• Market value of $54.51 Billion as of Feb, 2023

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The History of The Ford Motor Company

Henry ford’s vision.

The Ford Motor Company has a long history that was inspired by Henry Ford, an Irish immigrant to the United States. Ford realized that the world’s transportation needs were quickly changing at the turn of the 20th century. His first attempt to design and build an automobile was in 1896 when he created his first vehicle — the quadricycle. The vehicle had a simple design with a bench seat for two passengers, a four-horsepower engine, bicycle wheels, and a gearbox with two speeds (but no reverse). 

Henry Ford on his “quadricycle” 

In November of 1901, Henry Ford joined the Detroit Automobile Company, a car manufacturing company, but his time there was short-lived. He left the company the following year. This company went on to become the Cadillac Motor Company (which was later purchased by General Motors). 

The Ford Motor Company was founded in 1903 when Henry Ford used $28,000 of investor money (about $800,000 in today’s money) to open a manufacturing facility. One of the early investors was John and Horace Dodge who would go on to create their own car manufacturing company. Because investors feared that Ford would leave the company like he did the Detroit Automobile Company, a local banker, John S. Gray was chosen as the first president. 

Leadership under the Ford family

Henry Ford did eventually become president and controlling owner of the company in 1906. Ford was directly responsible for the early success of the company including the popular Model T and innovative assembly line processes. He held this position until 1919 when his son, Edsel Ford, took over as company president. 

Edsel Ford was an artist and led the company to change the design of cars from practicality to visually appealing. The newly designed Ford vehicles were a hit with consumers all over the world. Edsel Ford died in 1943 and Henry Ford took back over as president of the company since Edsel was his only son.

Two years later, Edsel’s son, Henry Ford II took over as president and served from 1945 to 1960. The company had grown exponentially prior to his leadership. Henry Ford II worked diligently to solve many problems that plagued the organization. The bookkeeping was a mess and work processes needed to be heavily refined. Henry Ford II took it upon himself to transform the company into the polished and disciplined brand that it is today. 

Going public on the New York Stock Exchange

After a long run as a private (and mostly family-owned company), the Ford Motor Company went public in 1956. Traded under the NYSE stock ticker “F”, the IPO (initial public offering) for Ford was the largest IPO in history at the time ( $657 million worth of stock sold - $28.5 billion in today’s dollars ). 

Early competition

In the early years, the Ford Motor Company had a lot of competition. In fact, in 1920, there were approximately 200 car manufacturers in the United States . The largest companies that Ford was up against included General Motors and Chrysler. General Motors had many brands that proved formidable competitors including Chevrolet, Buick, and Cadillac. While the competition remained fierce, many of the early car manufacturers went out of business. By 1940, only 17 car manufactures remained. 

Becoming an International Brand

The Ford Motor Company owes much of its success to its expansion into international markets. The company was quick to do this shortly after its inception. The first international manufacturing facility was opened in Walkerville (now Windsor), Ontario in 1904. This was built directly across the Detroit River from Ford’s other manufacturing facilities at the time. The Ford Motor Company of Canada was established as a separate company with its own shareholders with the mission to sell Ford vehicles in Canada and other parts of the British Empire.

By 1908, Ford opened its first sales office outside of North America in Paris, France. Shortly after, Ford opened assembly plants across Europe between the years 1917 and 1925 in Ireland, England, France, Denmark, Germany, and Austria. In 1924 and 1925, Ford expanded into South America (Argentina), Asia (Japan), Africa (South Africa), and Australia. 

In 1929, the Ford Motor Company was contracted to set up the Gorky Automobile Plant in Russia which produced the Model A and AA. This helped to further industrialize the country. 

Key takeaways

• The Ford Motor Company’s early success was a result of Henry Ford’s mission to improve the automobile by creating a more durable and accessible version for the Average consumer. 
• For 50 years, the Ford family led the company with each new CEO bringing fresh new ideas. This led to innovation that helped Ford outpace the competition. 
• Early expansion into international markets helped accelerate Ford into an international brand with access to consumers all over the world. 

Cultural and Industry Impacts of the Ford Motor Company

The ford assembly line and manufacturing methods.

One of the most impactful reasons for Ford’s early success was the way they manufactured their vehicles. In the early years, the Ford factory produced a handful of cars each day by assigning 2-3 men to work on a car at a time. The car was built from start to finish. This was the normal manufacturing process of other car companies at the time. 

By 1913, Henry Ford created a new approach to manufacturing by introducing the first moving automobile assembly line where cars would move down the assembly line. Workers would be assigned one or two steps that they would perform over and over. This helped workers become better at their assigned tasks. Cars were produced at a much faster pace. This reduced the production time from 12.5 hours for a Model T to just 1.5 hours. With decreased production times, this new method drove down the cost making cars even more accessible for the average American. 

The moving assembly line isn’t the only manufacturing innovation that the Ford Motor Company has developed. In 1986, the Ford Motor Company introduced automated assembly for some subassembly tasks using robots. This process was initially tested in Ford’s St Louis facility and was a major success. This type of manufacturing is now used at most Ford plants today. 

Shaping the American workforce

The Ford Motor Company has a long history of embracing industry-leading policies in relation to its workforce. Henry Ford understood that in order to remain competitive and producing cutting-edge technology, the company needed to employ the best and the brightest. The monotonous and strenuous work of the moving assembly line created new problems for Ford with an increase in high turnover. 

In 1914, Ford responded by making a move that shocked the public and landed him on the front page of newspapers all over the country. The Ford Motor Company instituted a $5 workday doubling the existing rate of pay of assembly line workers. In addition, Ford reduced the workday from nine to eight hours allowing for the plant to run three equal length shifts (prior to that, the facility only ran two shifts). 

The most significant impact of this change was that the average assembly line worker at Ford could afford to purchase an automobile for their own families. The increased mobility, wages, and leisure time inspired a movement across the country. Many other companies began to follow suit giving the Ford Motor Company credit for the creation of the American middle class.

After the World Wars, the Ford Motor Company made significant efforts to employ many of the veterans who had returned home with disabilities. This move made the Ford Motor Company one of the first to hire workers with physical disabilities. At the time, most companies only hired able-bodied workers. Instead, Ford took a different approach. They not only hired these workers but created work environments that were modified to accommodate those with special needs. 

In 1941, Ford signed a contract with the UAW-CIO (United Auto Workers-Congress of Industrial Organizations) labor union. This contract helped drive better pay, benefits, and working conditions for Ford employees. 

Ford’s impact on the airline industry

Henry Ford understood that the transportation industry wouldn’t just expand on the ground. He recognized that air travel would become commonplace in the modern world. In 1925, the Ford Motor Company created its own airplane design. Between 1925 and 1933, the company manufactured and sold nearly 200 Ford Tri-Motor airplanes (nicknamed the Tin Goose). This model of plane was used by early commercial airlines in the United States. 

To help encourage further development of the industry, the Ford Motor Company provided 35 of the plane’s patents royalty-free including its navigation system (the navigational radio beam). This allowed other companies in the space to further develop aviation technology. 

Supporting the United States during the World Wars

Automobile manufacturing plants were easy to convert into facilities to produce other types of vehicles. In 1918, Ford’s River Rouge Complex began producing anti-submarine patrol boats, cars, ambulances, trucks, tractors, tanks, and airplane engines that would be supplied to Allied troops. As the war came to an end, Ford moved production back to civilian vehicles. 

Unfortunately, peace only lasted a couple of decades. As tensions began to churn again in the early 1940s, the US government began ordering jeeps from the Ford Motor Company. The word “jeep” came from the acronym “GP” which stood for “General Purpose”. 

By 1942, Ford once again halted civilian production of automobiles to support the war effort of World War II. The Ford Motor Company worked with Charles Lindberg, the infamous trans-Atlantic pilot, on the construction of more than 8,000 B-24 Liberator bombers.

In 1944, Rose Will Monroe was working as a rivet gun operator at Ford’s Willow Run facility. She was chosen to serve as the icon to promote the sale of bonds to support the war effort. Her fictional character “Rosie the Riveter” was featured on the iconic “We Can Do It!” posters all across the country. The campaign was a success and is noted as one of the most iconic images from the era.

• Ford’s creation of the first moving automobile assembly line sped up production allowing the Ford Motor Company to produce significantly more vehicles at a lower cost than their competitors. 
• The Ford Motor Company gained a competitive advantage by increasing wages, reducing hours, and improving working conditions. This helped them secure the best talent and improved employee morale and productivity. 
• The Ford Motor Company helped stimulate growth in industries that would purchase Ford products by investing in the development of new technologies. For example, Ford provided free patents to early airlines in hopes they would purchase Ford-built planes.
• Ford produced hundreds of vehicles to support the United States during World War I and II. The government contracts were not only profitable, but Ford became recognized for their support. The war also helped expose the global market to Ford-manufactured vehicles. 

Evolution of Popular Ford Models

The Ford Motor Company has had many major successes in its development of popular, cutting-edge vehicles over its nearly 120-year history. Some of these models have consistently held records for their high sales numbers and groundbreaking innovations. 

• Model T (1908) - The Model T was one of the most successful models released by Ford and demonstrated his vision to make automobile transportation accessible to the average person. Prior to the Model T, most automobiles were considered luxury items. The design was intended to drive down costs. Between 1908 and 1927, Ford sold over 15 million Model T’s. The other challenge that the Model T solved was its durability and easy maintenance. Most other automobiles at the time couldn’t handle the many miles of rough, unpaved roadways. The Model T solved for this using vanadium steel alloy for some of its parts so they would be more durable. 

• Model A (1927) - Ford continued to sell the Model T successfully for 18 years. However, other car manufactures soon caught on to Ford’s manufacturing process and started gaining market share. This pressure from other car manufacturers forced the Ford Motor Company to rethink their design of the Model T. This led to the creation of the Model A. Henry Ford assigned his son, Edsel, to take charge of developing the sleek new design. The Model A was equipped with innovative features like a Safety Glass windshield, industry-standard driver controls, and a fuel gauge. The Model A was produced around the world in plants in Argentina, Canada, Denmark, France, Germany, Italy, Japan, and the United Kingdom. Despite the economic challenges of the Great Depression, Ford sold 5 million Model A’s before it was discontinued in 1931. 

• F-Series Pickup Trucks (1948) - During World War II, the Ford Motor Company created a variety of military trucks. Ford recognized that these vehicles which were used to haul supplies to troops all over Europe had a civilian application as well. So in 1948, the company unveiled a new line of trucks. Earlier truck models were simply built on car platforms. This new line would be built on a chassis that was specially designed for heavy hauling. The original line came in eight sizes and weight ratings from the F-1 (0.5-ton capacity) up to the F-8 (3-ton capacity). This gave consumers the option to pick the right truck for their needs. The F-series naming was updated in 1953 to F-100, F-250, and F-350. These trucks remain extremely popular today. Over the last 40 years, the F-series has remained the best-selling vehicle in the United States. 
• Thunderbird (1954) - The Ford Thunderbird was introduced as a direct response to the Chevrolet Corvette. The car featured a sleek design that was very popular, but instead of focusing on power and speed like the Corvette and other European sports cars, they focused on driver comfort. This strategy paid off. Ford sold nearly 25x the number of Thunderbirds than Chevy sold Corvettes. (16,155 Thunderbirds compared to only 674 Corvettes).

• Mustang (1964) - In the 1960s, Ford Vice President, Lee Iacocca, wanted to create a new model targeted at younger drivers who wanted a sporty look but didn’t want to spend a fortune. Developed on a shoestring budget, the Ford Mustang was introduced in 1964 and quickly became an American cultural icon and was featured in movies and songs. Within a few short years, the Mustang became one of the fastest-selling vehicles in history and is still produced today. 

• Fiesta (1976) - The first internationally successful model was the Ford Fiesta. In the 1970s, the oil crisis led to a demand for fuel-efficient cars. Car manufacturers all over Europe began introducing compact model cars including the Fiat 127, Renault 5, and BMC Mini. The company spent $870 million developing the model which was the largest development budget in the company’s history at the time. In the first year of sales, the Fiesta broke the sales record that the 1965 Mustang had set. 
• Escort (1980) - The Ford Escort was originally designed as a small family car in Europe in 1968. It became widely popular especially in the United Kingdom where it was the best-selling car during the 1980s and 1990s. It wasn’t until 1980 that Ford brought the Escort to North America when the company needed a quick replacement for the Ford Pinto. The Pinto had a fuel tank design flaw that led to the death of a few hundred people and created a public relations nightmare for the company.
• Explorer (1990) - In the early 1990s, the Ford Motor Company recognized a growing interest in a new type of passenger vehicle — the Sport Utility Vehicle (SUV). They set out to design their own SUV which became the Ford Explorer. The Explorer became the catalyst for the SUV market and other manufacturers soon followed suit. By the late 1990s, SUV sales exceeded that of regular passenger cars. 

• The Ford Motor Company was able to create many popular vehicle models by paying close attention to what their competitors were doing and what their customers wanted. 
• Ford designed and introduced many variations of its models based on the local tastes and demands of each international market.

Introduction and Acquisition of New Brands

Lincoln motor company.

Lincoln Motor Company was created in 1917 as a luxury car manufacturer. The Ford Motor Company began feeling the pressure of competition from luxury brands like Cadillac and Packard. In September of 1922, Ford purchased the Lincoln Motor Company for $8 million (over $123 million today). Today, Lincoln focuses on a small number of models of luxury full-size sedans and SUVs.

The flagship automobile of Lincoln, the Continental was extremely popular throughout the history of the company. It has been reintroduced and discontinued several times, most recently from 2017 to 2020. 

In 1939, under the direction of Edsel Ford, the Ford Motor Company created the Mercury brand. This was intended to compete with General Motors who produced several mid-priced vehicles including Pontiac, Oldsmobile, and Buick. Mercury was the perfect solution to bridge the gap between the affordable Ford brand and high-end Lincoln cars. 

In 2011, after 82 years of operation, Ford announced the decision to end the production of Mercury vehicles. The company decided to put more focus on the Ford and Lincoln brands. 

The Ford Motor Company has been very successful in many of its ventures. However, the Edsel brand turned out to be a costly disaster. Created in 1956 to help the company gain market share from Chrysler and General Motors, Edsel was hyped as the “car of the future”. Despite millions of dollars poured into fancy marketing campaigns, the final product left much to be desired for the consumer. 

There were numerous complaints about the cars being unattractive and having poor quality craftsmanship. One example was the Teletouch transmission selector, which was a series of buttons placed at the center of the steering wheel to change gears. This odd placement confused drivers and was difficult to operate. In order to move the transmission from park to drive, the operator had to shift from park, to reverse, to neutral, and then drive. The transmission motor also didn’t work well on hills requiring drivers to use the parking brake instead of putting the vehicle in park. 

A scathing article published in a 1958 edition of Popular Mechanics highlighted many of the issues that drivers were reporting including poor welding, power steering failure, a leaking trunk, and a faulty odometer. 

After taking a loss of $250 million ($2.2 billion today), the Ford Motor Company chose to discontinue the brand after only three years in 1959. 

Rivian is an American electric vehicle manufacturer founded in 2009. With the rise of electric vehicles, the Ford Motor Company made a brief investment of $500 million into the brand in 2019. However, due to the COVID-19 pandemic, the company decided to terminate the contract. They have decided to maintain their relationship with Rivian for future potential partnerships, but in the meantime, have shifted those resources to the Lincoln Motors brand. 

• Ford faced many pressures from other automotive companies. They purchased and created new automotive brands like Lincoln and Mercury to give them a wider range of options for their customers.
• Not every new brand was a success. The Edsel brand cost the company millions of dollars and damaged its reputation. 

Innovations Led by The Ford Motor Company

The Ford Motor Company had a hand in creating many new products and innovations throughout its history. In addition to new technologies, Ford also played a part in the creation of new industries and historic events such as the moon landing. The Ford Motor Company created its own scientific laboratory in Dearborn, Michigan in 1951 to perform experiments and research for technology and scientific breakthroughs that could be used both inside and outside the automobile industry. 

In 1932, Ford created the first commercially successful V8 engine. This was a hit as American’s became more interested in automobiles with powerful engines. This engine is still popular today with hot rod enthusiasts. 

Early automobiles had a reputation for being unsafe. Ford recognized this and decided to put a focus on reducing automobile accidents and injuries to help change consumer perception. In 1954, the company began performing crash tests to measure the effectiveness of designs and safety features. Since then, Ford has performed more than 31,000 crash tests around the world. In recent years, Ford has begun using computer-simulated tests in tandem with physical crash tests. This has significantly improved the company’s data and insight on safety testing. 

From 1961 to 1974, Ford owned Philco, a consumer electronics company. Philco was responsible for designing, building, and equipping NASA’s mission control during the Apollo and Gemini space programs. The company also launched a series of communications satellites, many of which still provide data and telecommunications access today. 

In 1970, Ford introduced the three-point, self-adjusting lap, and shoulder seat belts into its vehicles as a standard safety feature. 

• The Ford Motor Company has spent a considerable amount of money on new technology to help it stay competitive. 
• The company wisely chose to focus on developing technology in general and not just the automobile industry. This allowed the company to expand beyond its expertise into industries like aerospace. 

Ford’s Corporate Strategy

The 21st Century has posed many challenges for the Ford Motor Company including the 2008 financial crisis and the COVID-19 pandemic, to name a few. The Ford Motor Company unveiled a new strategic plan at the end of 2020 (called “The Plan”) that will revitalize the company by modernizing how it operates, simplifying processes, and exploring new opportunities for growth. 

Electric vehicles

Ford Motor Company's strategy to embrace electric vehicles (EVs) is a core component of its commitment to achieving carbon neutrality by 2050 and aligns with the Paris Climate Agreement's goals. With an enhanced investment commitment of $22 billion through 2025, Ford is expanding its electric lineup to include not only innovative new models but also electrified versions of its iconic vehicles. This includes the Mustang Mach-E, which combines the marque's legendary performance with electric efficiency, and the F-150 Lightning, an electric iteration of America's best-selling truck, reflecting Ford's ambition to meet diverse consumer needs.

Additionally, the electric Ford Focus represents Ford's foray into the compact car segment with electric power, offering a sustainable, efficient option for city driving and daily commutes. Through these efforts, Ford is actively contributing to the global shift towards sustainable transportation, demonstrating its leadership in the automotive industry's transition to electric mobility.

Sustainability

From a sustainability standpoint, the company wants to tackle an impressive list of environmentally friendly milestones. Its mission is to contribute to 11 of the United Nations’ Sustainable Development Goals (UN SDGs). These goals include moving all manufacturing to renewable energy by the year 2035, replacing all plastic vehicle parts with 100% recycled materials, and eliminating all single-use plastics from its manufacturing process. 

Enhanced safety

The Ford Motor Company is dedicated to making its automobiles safer than ever before. With the development of new safety features and self-driving technology, the company wants to create a world that is free from vehicle accidents and workplace injuries. 

• In 2020, the Ford Motor Company unveiled a new plan to revitalize the company as the world economy comes out of the COVID-19 pandemic. 
• The strategic plan focuses on creating a sustainable line of vehicles through the development of new electric cars, trucks, and vans. 
• The company looks to meet sustainability goals set forth by the United Nations and the Paris Climate Agreement. 
• Ford also wants to place a focus on improving automotive safety.

Ford’s Impact of Racing and Motorsports

The Ford Motor Company has a long history of being a part of racing culture since its beginnings. Even before the company was founded, Henry Ford successfully reached a top speed of 20 miles per hour in his quadricycle. In the years following, Ford also won several races and set speed records with his personally designed Ford 999. 

In 1966, Ford captured the world’s attention when three Ford GT40 MK II’s crossed the finish line at the 24-hour Le Man’s race taking first, second, and third place. Not only did this make Ford the first American car manufacturer to win the title, but they also broke Ferrari’s six-year winning streak. Ford went on to take first place in 1967, 1968, and 1969. 

For over 80 years, Ford has been represented in NASCAR races. The first win came in 1949 when Jim Roper won a race in Charlotte in a Lincoln. The following year Jimmy Florian won the first race in a Ford vehicle at Dayton Speedway in Ohio. Since then, Ford-built cars have won more than 800 NASCAR races, second only to Chevrolet. 

In addition to Le Mans and NASCAR, Ford has drivers participating in many other events and races including Formula 1 and the World Rally races. 

For a car manufacturer, being able to demonstrate your vehicle’s performance on a racetrack helps to signify the brand as a well-engineered machine. The more races won in a Ford brand vehicle, the more notoriety the company receives. Key races like the 1966 win at Le Mans are a great way to capture the attention of car enthusiasts everywhere. 

• The Ford Motor Company has used racing throughout its history to demonstrate the power and quality of Ford vehicles. 
• The investment put into developing race cars like the Ford GT have helped Ford capture historic wins that provide exponentially more value from advertising and positive PR. 

Recovery from the Brink of Financial Ruin

Despite having over 100 years of success, the Ford Motor Company hit a rough patch in 2006 and was in a dismal state. The company was on track to take a loss of $17 billion due to falling sales. This forced plant closures and massive layoffs which resulted in Ford buying out 38,000 unionized workers. The Ford Motor Company needed cash but couldn’t get additional financing due to receiving a “junk” bond status. To remain solvent, the company had to mortgage its assets to raise cash. Share prices had plummeted from an all-time high of about $35 in 1999 to $8 in 2006. 

The CEO at the time was Bill Ford, the great-grandson of Henry Ford. He recognized that the company needed a new leader. In a bold move that shocked the industry, Bill Ford convinced the company board to appoint Alan Mulally as President and CEO of Ford Motor Company. Alan Mulally knew very little about the automotive industry. He began his career as an aerospace engineer at Boeing in 1969. Over his 37 years at Boeing, he rose to the position of president of Boeing Commercial Airplanes (a subsidiary of The Boeing Company). He was known for helping to save Boeing from bankruptcy after financial trouble in the late 90s and early 2000s. Bill Ford felt confident that Alan Mulally could do the same for Ford. 

Mulally quickly identified that there were some underlying issues that were resulting in Ford’s stunted performance including a lack of transparency, bad leadership, and a stagnant product line. He openly admitted to the organization that he didn’t have automotive expertise. This helped to drive a culture of more transparency within the Ford Motor Company. Rather than hiding behind inexperience, challenges, or failures, the team began speaking up when they needed help or additional support. 

Mulally also introduced a new approach to meetings. When arriving at Ford, he quickly realized that there were lots of pointless meetings where many topics and issues were discussed but resulted in no action. The normal Ford meetings were replaced with BPR (Business Plan Review) meetings in which leaders would present their 4-5 top priorities with a green, yellow, or red status. This helped the team quickly identify what areas needed the most attention. 

When Mulally announced his plan to the board of directors, he committed to focusing on four major objectives: 

• Aggressively restructure the organization to operate profitably at the current market demand.
• Accelerate the development of new products based on customer wants and needs. 
• Finance the plan and improve the balance sheet.
• Work together effectively as one team. 

The strategy was extremely successful. Not only was Mulally able to turn the company around, but they also avoided needing the taxpayer bailouts that General Motors and Chrysler needed during the 2007-2008 financial crisis. This was a huge feat and boosted public confidence in the company.

• Ford leadership was able to quickly recognize the need for a new CEO to help redirect the company in 2006 when sales began declining sharply resulting in major losses. 
• Bill Ford, the great-grandson of Henry Ford, convinced the board of directors to hire a man with no experience in the industry, Alan Mulally. He understood that experience leading an organization through tough financial times was more important than technical knowledge.
• Mulally’s success was a result of driving a culture change at Ford Motor Company that increased transparency and eliminated counterproductive attitudes and behavior. 

Final Thoughts and Key Takeaways

The Ford Motor Company is a true innovator in the automotive space. Aside from General Motors, no other car manufacturer has seen the levels of growth that Ford has achieved. Much of the success comes from the brilliant leadership of the Ford family that ran the company for over 50 years. Even through tough times, the company has found ways to grow and adapt. Their dedication to being the best helped make Ford the iconic American brand it is today.

 Recap: growth by the numbers

• The Ford Motor Company thrived under the Ford family leadership for over 50 years. Each Ford president (Henry Ford, Edsel Ford, and Henry Ford II) brought new ideas and perspectives that helped the company adapt to changes in the market and competition.
• One of Henry Ford’s greatest successes was the development and refinement of the moving assembly line process. This significantly increased productivity, improved quality, and decreased production costs.
• Few brands have shaped American culture like Ford. The Ford Motor Company is credited with the creation of the American middle class by offering competitive salaries and reduced working hours.
• Ford has created many ground-breaking and popular models including the Model T, Mustang, F-series pickup truck, and Thunderbird. They have been successful at staying ahead of most market trends and consumer demands.
• The Ford Motor Company has been able to grow by not only developing the Ford brand but also building and acquiring additional brands like Lincoln and Mercury to compete in the luxury and mid-price markets.
• Ford ramped up its international reach quickly between 1917 and 1925. Within a few short years, the company was selling cars on every continent.
• The Ford Motor Company has been an innovator both inside and outside the automotive space. They have been dedicated to many forms of scientific and technological research including automotive safety, aerospace, and clean energy.
• In 2020, the Ford Motor Company announced their new corporate strategy – The Plan. The goal is to revitalize and grow the company as it recovers from the challenges of the 21st century including the 2008 financial crisis and the COVID-19 pandemic. The Plan focuses on converting its vehicle line to electric vehicles, tackling environmental objectives, and focusing on enhancing automotive safety.
• As an automotive manufacturer, Ford has a long history of involvement in racing and motorsports around the world. It’s most famous for its wins at Le Mans in the 1960s and success in the NASCAR series. 

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How Ford Is Thinking About the Future

• Mark W. Johnson

It’s developing a portfolio of new business models.

Dealing with the uncertainty of new, disruptive business models is one of the biggest challenges that faces any large, established company. To gain insight into how to think through these obstacles, the author offers five lessons from Ford’s approach to recent advances in the mobility industry: First, be ambitious with new projects, but don’t over-invest in any one idea. Second, be sure to think not just about the physical functionality of your product, but also about the social and emotional roles it fulfills. Third, constantly examine and update your business model. Fourth, be openminded about creating new rules and metrics for your organization. Finally, to reduce risk, consider building a portfolio of new business models. While there’s no predicting the future, these strategies can position you to take advantage of new opportunities as they emerge.

Everyone’s talking about a future in which vehicles are shared rather than owned, autonomous rather than driven, and where car companies make large shares of their profits on digital “mobility services.” But if you are the Ford Motor Company and face the prospect of investing billions in new technology while your century-old business model is overturned, you might first have a few questions. How are consumers going to react to all of this? What do they really want? How can you tell which opportunities are real and which are science fiction?

• Mark W. Johnson is co-founder and senior partner of the strategy consulting firm Innosight and author of  Lead from the Future   (HBR Press, 2020).

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Ford Case Analysis

Ford Motor Company is an American multinational automaker headquartered in Dearborn, Michigan, a suburb of Detroit. It was founded by Henry Ford and incorporated on June 16, 1903. The company sells automobiles and commercial vehicles under the Ford brand and most luxury cars under the Lincoln brand. Ford also owns Brazilian SUV manufacturer Troller, an 8% stake in Aston Martin of the United Kingdom, and a 49% stake in Jiangling Motors of China. It also has joint-ventures in China (Changan Ford), Taiwan (Ford Lio Ho), Thailand (AutoAlliance Thailand), Turkey (Ford Otosan), and Russia (Ford Sollers). The company is listed on the New York Stock Exchange and is controlled by the Ford family; they have minority ownership but the majority of the voting power.

Ford introduced methods for large-scale manufacturing of cars and large-scale management of an industrial workforce using elaborately engineered manufacturing sequences typified by moving assembly lines; by 1914, these methods were known around the world as Fordism. Ford’s former UK subsidiaries Jaguar and Land Rover, acquired in 1989 and 2000 respectively, were sold to Tata Motors in March 2008. Ford owned the Swedish automaker Volvo from 1999 to 2010. In 2011, Ford discontinued the Mercury brand, under which it had marketed entry-level luxury cars in the United States, Canada, Mexico, and the Middle East since 1938.

Ford is the second-largest U.S.-based automaker (behind General Motors) and the fifth-largest in the world (behind Toyota, VW, Hyundai-Kia and General Motors) based on 2015 vehicle production. At the end of 2010, Ford was the fifth largest automaker in Europe. The company went public in 1956 but the Ford family, through special Class B shares, still retain 40 percent voting rights. During the financial crisis at the beginning of the 21st century, it was close to bankruptcy, but it has since returned to profitability. Ford was the eleventh-ranked overall American-based company in the 2018 Fortune 500 list, based on global revenues in 2017 of $156.7 billion. In 2008, Ford produced 5.532 million automobiles and employed about 213,000 employees at around 90 plants and facilities worldwide.

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During the Late 1960’s the Ford Motor Company was one of the leading auto manufactures in the United States. Ford was credited with revolutionizing the muscle car era of the 1950’s and 1960’s. During the mid 1960’s Lee Iacocca helped Ford establish itself in the late 1960’s with the introduction of the Ford Mustang. During […]

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Ford Pinto Case

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Ford’s Generic Strategy & Intensive Growth Strategies

Ford Motor Company’s market position as one of the biggest automobile manufacturers in the world is supported through the firm’s intensive growth strategies aligned to its generic strategy for competitive advantage. Intensive strategies are used to support organizational growth. In this case, Ford’s business growth is dependent on the varying emphases on market penetration, product development, and market development. On the other hand, a generic strategy defines the general approach used for business competitiveness. The automaker’s generic strategy changes over time, although its original generic strategy of cost leadership remains influential in the business. Ford’s generic strategy and intensive growth strategies determine the approaches to growing its multinational business.

Ford’s generic strategy (based on Michael Porter’s model) shows the general trajectory of developing the firm’s competitive advantages through affordable mobility solutions. These competitive advantages relate to core competencies, such as innovation capability and the other business strengths identified in the SWOT analysis of Ford Motor Company . The generic strategy also enables competitiveness that supports the organizational improvement goals of the intensive strategies for the automaker’s business growth in the global automobile market.

Ford’s Generic Strategy (Porter’s Model)

Ford’s generic strategy is differentiation , although the business is still transitioning from its previous generic competitive strategy – cost leadership. Initially, the company’s generic strategy was cost leadership. This generic strategy supports business competitive advantage based on cost reduction and the ability to offer competitive prices to attract customers to the company’s automobiles. In the early 1900s, Ford’s vision was to make its automobiles affordable for working-class Americans. To apply this generic strategy, the firm developed the assembly-line method to minimize costs and maximize productivity. Ford succeeded in attracting customers based on cost leadership as its generic strategy. A strategic objective for competitive advantage based on this generic strategy was cost minimization through process streamlining.

However, cost leadership did not protect Ford from competition. Americans were gaining higher wages and started valuing automobile style and design, and not just low prices. Today, given Ford’s mission statement and vision statement , the company still emphasizes the goal of affordability, but has been moving its generic strategy to focus on differentiation for competitive advantage. For example, the company invests in advanced smart technologies for its vehicles. In using broad differentiation as its current generic strategy, Ford effectively competes against other automakers, like Tesla , General Motors , and Toyota . As shown in the Five Forces analysis of Ford , these competitors are aggressive in the automotive market. A strategic objective based on the company’s current generic strategy is product innovation to gain stronger competitive advantage that gives the company a leading edge over the innovative automobiles of competitors.

Ford’s Intensive Strategies (Intensive Growth Strategies)

Market Penetration . Ford’s primary intensive growth strategy is market penetration. Based on the Ansoff Matrix, this intensive strategy entails selling more products to current customers to grow the business. The automotive company applies this intensive growth strategy by increasing the number of its dealerships and increasing sales volume. This intensive growth strategy is linked to the strategic objectives of increasing customer retention and increasing sales. This intensive strategy is also linked to Ford’s generic competitive strategy by highlighting the benefits of low costs and increasing differentiation to gain a bigger market share. The competitiveness of price and features of cars are communicated in Ford’s marketing mix (4P) . In this way, the company’s marketing strategy adopts objectives connected to the generic strategy and intensive growth strategies.

Product Development . Ford Motor Company uses product development as its secondary intensive strategy for growth. This intensive growth strategy involves offering new products to increase sales revenues. The automaker applies this intensive strategy through R&D investments for new products, such as all-electric cars. A strategic objective based on this intensive growth strategy is to increase R&D investments for product innovation to improve business growth and competitive advantage. These investments account for social trends favoring electric vehicles and other market trends, such as the ones identified in the PESTEL/PESTLE analysis of Ford . Moreover, product development depends on operational capacities. For instance, Ford’s operations management in product design and quality management affect the outcomes of this intensive strategy. Such outcomes, then, influence the realization of the automotive company’s competitive advantages based on the generic strategy of differentiation.

Market Development . Market development is only a minor intensive strategy that supports Ford’s growth. This intensive growth strategy involves providing existing products to new markets or market segments. The automobile manufacturer already has global operations, which means that market development is not as significant as it has been for the business in its early years. Also, Ford has not taken any significant strategic action to establish new operations and take growth opportunities in entirely new industries or market segments in recent years.

• Ali, B. J., & Anwar, G. (2021). Porter’s Generic Competitive Strategies and its influence on the Competitive Advantage. International Journal of Advanced Engineering, Management and Science, 7 (6), 42-51.
• Ford Motor Company (2023, May 22)  Company Says Ford+ is Maximizing Value for Customers, Improving Business Resilience, Efficiency, Growth, Margins .
• Ford Motor Company – Form 10-K .
• Ford Motor Company – Governance and Policies .
• Lampón, J. F., & Muñoz-Dueñas, P. (2023). Are sustainable mobility firms reshaping the traditional relationships in the automotive industry value chain? Journal of Cleaner Production, 413 , 137522.
• U.S. Department of Commerce – International Trade Administration – Automotive Industry .
• Copyright by Panmore Institute - All rights reserved.
• This article may not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its author/s.
• Educators, Researchers, and Students: You are permitted to quote or paraphrase parts of this article (not the entire article) for educational or research purposes, as long as the article is properly cited and referenced together with its URL/link.

Ford Motor Company’s Strategic Management Report (Assessment)

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Using appropriate theory and models identify the major external factors which have undermined Fords Strategic position as at 2007.

2007 was considered to be the year of great losses for Ford Motor Co. The losses were even bigger than it was forecasted and the experts did not reject the greater losses in the future. Ford’s leading F-series were at the bottom of sales and the company had to cope with those problems as far as it could (Isidore 2007). The company’s position was not a surprise for the Wall Street as due to some specific external factors the situation was predicted.

Globalization is one of the main external impacts on the company performance. The increase of the competitors from other countries, such as Japan, does not give Ford Motor Co. an opportunity to follow their fast change and meeting consumers’ tastes. Japan swiftly entered the US market and gained a leading position. Placing its manufacturing in low-wage and non-union regions in the USA, it was in the privileged position. Toyota and other companies also entered the international market and their manufacturing activities were greater than those of Ford Motor Co. were Thus, it may be stated that high competition was one more reason which caused the decline of the production in Ford Motor Co. (Schifferes 2007).

Financial crisis of 2007-2009 was one more reason which impacted Ford’ decline in sales. The inability to meet the coming changes and accommodate to them was one more external factor which identified the company’s position in 2007. Using ‘financialization’ strategies, Ford tried to save its position as the reduction in sales was observed even before 2007 and the financial crisis could have been devastating for the company. The government offered help and implemented a number of policies to protect automotive industry (Bailey, Ruyter, Michie & Tyler 2010). However, Ford did not want to take the governmental help, it was assured that it could cope individually, without influential assistance (Schifferes 2007).

Which changes in the automotive industries Critical Success Factors, over recent years have most impacted upon this organisation, in terms of its current level of “EVR” congruency or loss? i.e. Environment, Values and Resources, from Thompson and Martin (2005).

Before getting down to discussing changes in the automotive industries Critical Success Factors which influenced Ford Motor Co. over recent years, it is important to understand the nature of Environment, Values and Resources. According to Thompson and Martin (2005), E-V-R congruency is a guarantee of successful business strategy. The figure 1 helps understand the real nature of the congruency and explain the role of each factor in the model. Therefore, it may be concluded that E-V-R congruency is an essential part of international strategy which Ford Motor Co. tried to achieve.

Thompson and Martin (2005) are sure that financial success fails to be the only guarantee of leading effective business in the company. Furthermore, they even declare that the absence of E-V-R congruency is one of the reasons of business failure. Following the situation with Ford Motor Co., it should be stated that the changes in the automotive industry affected the organization under consideration in terms of E-V-R congruency.

Ford Motor Co. believes that the job cut is one of the most effective reasons. Being interested in reducing the costs on production, the company reduced 45,000 jobs in North America (‘Ford and GM see US sales decline’ 2007). Thus, it may be concluded that the increase of competition, the greater number of rival companies on the international market is one of the factors which impacted Ford. The governmental desire to affect the business in Ford organization and to offer a loan to it was ruined as the company preferred to preserve its family business, even though its share was not that great in the company (Szczesny 2008). Market segment has been changed due to the changes in the global issues. “Hybrid electric vehicles and forthcoming battery-electric and plug-in hybrids” (Hughes-Cromwick 2011, p. 167) are the changes the company has implemented in the E-V-R congruency. The nature friendly direction is one of the most positive and necessary changes which impacts company advertising strategy and the customer demand rate greatly.

How would you describe the nature of the E-V-R configuration at Ford as at 2007. Justify your argument.

Considering the company profile of 2007, it may be completed that the company losses were devastating. The organization lost about US$5bn. The company decided to implement aggressive changes as the means for recovering from current situation. However, the actions were not positively reacted. Unfavourable economic situation in North America made the company reconsider its product markets and redirect more attention at the markets in South America (‘Company Monitor’ 2009).

Considering E-V-R congruency at Ford as at 2007, it should be stated that the Environment was positively directed at the company. Stakeholders were not depressed with the created situation, they even tried to support the company. Governmental support was also seen, even though Ford refused to get Senate’s assistance (Szczesny 2008). The national approval of the company was not ruined as well. The preference to Ford was because of the increased competition and variety, but customers did not lose trust to the car manufacture. The company resources, however, were lost. Ford Motor had to cut job places and shut down some specific plants with the purpose to remain in the business (‘Ford and GM see US sales decline’ 2007). However, public relationships were not ruined that points at the fact that the company’s actions directed at job cutting and area selling were not that negative.

Assuming that Ford’s retrenchment strategies, in terms of job cuts and selling of areas of its business portfolio, are successful in supporting a turnaround strategy generate, using appropriate concepts and models, generate four alternative possible strategic options they could now pursue.

Ford Motor Co. makes all possible to return at the market on the position it occupied. However, the job cuts and closure of several companies have negatively impacts the structure. Still, having considered the company strategy for 2011, it should be stated that the closure of some plants is planned on 2014 to make the process less painful. Nevertheless, the company has to sacrifice some manufacturing with the purpose to protect the whole company business (‘Company Profiles’ 2011, p. 30).

Having conducted a SWOT analysis for Ford Motor Co., it may be concluded that the company should choose the strategies aimed at the opportunities and company strengths. The deep consideration of the Ford’s strengths and opportunities helped to develop four following strategies the company may use:

• Increase of the production of the hybrid electric vehicles.
• Extend a production on a new Asia Pacific market.
• Increase of the strategic investment.
• Making engineering, research, and development as an outsourcing branch for other companies (‘Datamonitor’ 2010).

These four techniques may help Ford Motor Co. gain its previous positions in the world car manufacturing. These strengths and opportunities the company has should be used. Getting down to more detailed consideration of each of the strategies mentioned above, the following information should be stated.

The increase of the production of the hybrid electric vehicles should be explained by the world tendency to the increased demand on such vehicles. The environment protection movements caused great demand on nature safe vehicles. Ford should pay more attention to the development of the highly innovative hybrid with emissions reduced to minimum. The company also pays more attention to small cars as the way to help people safe on fuel (Cable 2010).

The extension of the production on a new Asia Pacific market is a guarantee of successful company development (‘Datamonitor’ 2010). Having too tight competition in North America, Ford should search for new product markets were Toyota (the main rival of Ford) has not spread its influence. Investment into innovative development is exactly what Ford needs at the moment. Offering engineering, research, and development as outsourcing for other companies is a good idea, paying attention to the fact that Ford’s engineering capability is rather strong and can satisfy the needs of the company and those who need such services.

Apply evaluative techniques to each of these strategic options.

Dwelling upon the strategies mentioned above in detail, it should be stated that “company operates over 65 engineering, research and development centers worldwide” (‘Datamonitor’ 2010, p. 5). The company has an opportunity to use these resources to satisfying the needs of other companies, get profit (which comprised about $4.9 billion in 2009) and direct that profit for company development. The working positions are going to be saved along with additional financial profit (‘Datamonitor’ 2010).

The occupation of a new market is a great opportunity. A compound annual growth rate increased on 3.8 % ($285.5 billion) in 2009 in comparison with the previous period in Asia Pacific market. Indian and Chinese markets are opened for a new manufacture and are ready to consume its product (‘Datamonitor’ 2010). Ford should do all possible and invest more in improving its capacity at a new market. A new plant in China is a great step on the way to occupying Asia Pacific new car market.

Ford is interested in investing into new products. Working on such options for several years, the company has reached much success (‘Ford Motor Company 2011’ n.d.). One of the most successful affairs the company invested into is the support of research, design and development of hybrid vehicles. The company plans to put into production new next-generation hybrids in 2012. Moreover, the investment f the company in “powertrain engineering and facility upgrades in North America to $1.8 billion to support its 2011 vehicle launches” (‘Datamonitor’ 2010, p. 9).

The development of research and using this facility as outsourcing is a great opportunity for making some companies depend on Ford. This strategy may be used for developing business and economic connections with other companies and help Ford safe its brands. To the word, Ford had to sell some brands in 2007-2010 to remain a competitive company (Cable 2010).

From your evaluation which strategic option would you recommend to Ford?

Having considered a number of specific strategies Ford Motor Co. may use, it should be stated that strategic investment is considered to be one of the best strategies. The innovative technologies have become a guarantee of company success. The possibility to meet customers’ demand (environment safe vehicles) and their desires (small cars), Ford can become one of the leading companies again. Having experienced downsizing in 2007, Ford cannot recover from crisis up to now. The investment into new products may be helpful in increasing company segment, and attracting more loyal customers.

Moreover, investing into new development and technologies resulted into creation new vehicles may help the company return its leading positions in North American market. Many customers have refused from Ford products because the company is unable to meet their requirements. The tendency to ecologically safe vehicles is a good business and Ford should do all possible to satisfy customers’ needs. Thus, Ford Motor Company should direct more attention at strategic investment into development of innovative vehicles aimed at consuming fewer natural resources. Such strategy is winning, as the society needs ecologically neutral cars.

Moreover, according to the research in a couple of years, the USA is going to be the largest market for hybrid electric and plug-in hybrid electric vehicles with rough sales of 640,000 cars (‘Datamonitor’ 2010). If Ford Motor Co. wants to return its previous magnificence and leadership, it should make all possible to occupy this market.

Reference List

Bailey, D, Ruyter, A, Michie, J & Tyler, P 2010, ‘Global restructuring and the auto industry’, Cambridge Journal of Regions, Economy and Society , vol. 3, no. 3, pp. 311-318.

Cable, J 2010, ‘Fighting Through the Worst of Times’, Industry Week/IW , vol. 259, no. 6, p. 24-28.

‘Company Monitor: Ford Motor South America Regional Overview’ 2009, Brazil Autos Report , pp. 50-55

‘Company Profiles’ 2011, Canada Autos Report , vol. 5, no. 2, pp. 28-31

‘Datamonitor: Ford Motor Company’ 2010, Ford Motor Company SWOT Analysis , pp. 1-11.

‘Ford and GM see US sales decline’ 2007, BBC News .

‘Ford Motor Company 2011 Investor Day – Final’ n.d., Fair Disclosure Wire (Quarterly Earnings Reports) , International Security & Counter Terrorism Reference Center, EBSCOhost, 2011.

Hughes-Cromwick, E 2011, ‘Ford Motor Company’s Global Electrification Strategy’, Business Economics , vol. 46, no. 3, p. 167-170.

Isidore, C 2007, ‘Ford: Biggest loss ever’ , CNNMoney , Web.

Schifferes, S 2007, ‘The Decline of Detroit’, BBC News .

Szczesny, JR 2008, ‘Ford family values: Why the automaker wants to go it alone’, Time Business , Web.

Thompson, JL & Martin, F 2005, Strategic management: awareness and change , Cengage Learning EMEA, London.

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IvyPanda. (2021, January 14). Ford Motor Company's Strategic Management. https://ivypanda.com/essays/ford-motor-companys-strategic-management/

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How a century-old brand is transforming the auto industry

Before the pandemic, automakers were already facing massive disruption, including driverless cars, electric vehicles, and shared mobility. But COVID-19 dealt another blow: Automotive was one of the hardest hit sectors in 2020, especially in the U.S., where auto sales sank by 15% .

In the midst of these unprecedented challenges, however, 118-year-old Ford Motor Company leaned in and began to reinvent itself.

As the virus accelerated, dealerships were forced to close their lots and shift to servicing and selling cars online , while larger supply chain concerns caused shortages in critical parts like microchips, which slowed vehicle production.

In the midst of these unprecedented challenges, however, 118-year-old Ford Motor Company leaned in and began to reinvent itself. Under the leadership of two new executives — Jim Farley as CEO and Suzy Deering as global CMO — the company saw an opportunity for business transformation and started mapping out a strategy.

Questioning everything, from its organizational structure to its customer experience, Ford made difficult decisions to put technology at the center of its business and get ahead of auto consumers’ evolving needs.

While still in the early stages of its journey, Ford has developed something of a blueprint for auto brands of the future. Recently, I spoke to Farley and Deering about the company’s transformation strategy. They shared three key changes they’re focused on.

1. Reimagining what auto brands do

Business transformation has been a buzzword for decades, but for years, it wasn’t an urgent reality for Ford. Then along came the pandemic, and its significance accelerated.

We have to invest in electric architectures and build software know-how in the company. And we need to integrate that know-how in ways we’ve never had to before.

“Events of 2020 made it clear that modernization is required to be a sustainable company,” explains Farley. A critical factor to modernizing has been disrupting its organizational model to aid the shift toward vehicle electrification and other digitally connected products. Since consumers expect more safety and convenience from automakers, the future of the auto industry will increasingly exist outside the doors of the vehicle.

According to Farley, this has required Ford to “unglue” its organization to allow for a new way of being. “The biggest transformation for us is to a software services–dominated company and brand,” he explains. “We have to invest in electric architectures and build software know-how in the company. And we need to integrate that know-how in ways we’ve never had to before.”

Such a fundamental pivot, Deering acknowledges, impacts company culture. “We have to make sure that we bring people along with us, and at the same time, give them the space to fail. There is strength in knowing that change is not going to be easy, but we’re going to do it together, and we’re going to look forward.”

2. Driving the connected car experience forward

By committing to look forward, the automaker is building on Henry Ford’s original vision — that every American consumer can own a vehicle — by reimagining what vehicle ownership looks like. Through software and other technology, Ford is working to ensure that it’s a fully connected, always-on experience.

When we have the ability to update our products dynamically with software, the customer relationship is no longer episodic. It’s every day.

“For so long, cars have really been isolated from the rest of people’s lives. We can change that by making them digital products,” Farley explains. To facilitate this shift, Ford has tapped into strategic partners like Google and is integrating software into its vehicles. Beginning in 2023, for example, millions of Ford and Lincoln models will be powered by the Android operating system, with Google apps and services built in.

Beyond offering drivers more assistance and convenience, connected vehicles also give Ford the ability to deepen its customer relationships. “When we have the ability to update our products dynamically with software, the customer relationship is no longer episodic. It’s every day,” says Farley.

3. Transforming the customer relationship model

To deliver on its vision of an always-on customer experience, Ford is also evolving how it approaches relationship-building. While many automakers stick to a traditional acquisition model to attract consumers through ads and rebates, Ford is bringing customer relationships to the forefront by shifting to a loyalty-based model.

“Another big transition for us as a company — and an industry — is to stop being obsessed with conquest and start putting all of our resources into taking care of the customers who already love the brand and own the product,” Farley explains. “This is a model that is available because of the always-on nature of digital. Our products and services are now integrated.”

We want to know our customers well enough to meet their needs while they’re in the vehicle, while they’re outside the vehicle, and before they even think about buying a vehicle.

Gearing marketing efforts to meet people’s ongoing needs in a more personalized way is critical to Ford’s loyalty-based push, because, as Deering points out, “The customer expects us to know them.”

For Deering and her team, this means relying more than ever on first-party data and signals to create an ecosystem that nurtures deeper relationships. “We want to know our customers well enough to meet their needs while they’re in the vehicle, while they’re outside the vehicle, and before they even think about buying a vehicle from us,” she explains.

While Deering and Farley both readily admit that Ford’s business transformation is a yearslong journey, they’re committed to playing the long game and continuing to drive brand love and loyalty through the 21st century.

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Pierre frankel in moscow (b): plowing ahead case study memo, case study recommendation memo assignment.

At Fern Fort University, we write Pierre Frankel in Moscow (B): Plowing Ahead case study recommendation memo as per the Harvard Business Review Leadership & Managing People case memo framework. If you are looking for MBA, Executive MBA or Corporate / Professional level recommendation memo then feel free to connect with us. Other topics that can be covered in the above case memo are Entrepreneurship, Innovation, IT, Leadership development, Organizational culture, Organizational structure . The recommendations in the case memo are - aligned with strategy of the company, based on robust data, and provide a clear roadmap for execution.

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Pierre Frankel in Moscow (B): Plowing Ahead Description

Leadership & managing people case study | authors :: rosabeth moss kanter, matthew bird.

After several months into his turnaround of a global technology company's Russia subsidiary, a young and upcoming French executive reflected on how to institutionalize the subsidiary's transformation by further driving cultural change and breaking down internal silos. He realized that to complete the change he may need to continue into a second year. Yet the physical separation from his family had begun to take a toll. Had the executive done enough to institutionalize change or was it still too dependent on his personal relationships and the ability to build an internal coalition and exchange favors?

Entrepreneurship, Innovation, IT, Leadership development, Organizational culture, Organizational structure

Purpose of leadership & managing people case study recommendation memo.

A Case Study Memo or Case Study Recommendation Memo is a routinely used document in leading organizations, and you may be writing number of such memos to executive leadership to “sell” or elevate an initiative that either you are undertaking or you wanted to kick start. Therefore, it is essential that you have a professional case study recommendation memo.

The purpose of a recommendation memo is to concisely recommend a course of action and provide rationale supporting the recommendation. The case study recommendation memo is a one-two page document (not including exhibits) that recommends your course of action and rationale. This format promotes a concise and clear strategic thought process.

Elements of a Case Study Recommendation Memo for – MBA & Executive MBA

1. first paragraph of pierre frankel in moscow (b): plowing ahead recommendation memo.

• This paragraph expresses your intent or action that you required after reading the Pierre Frankel in Moscow (B): Plowing Ahead case study (This recommends……).
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• Highlights - what brought us to this moment, why we are in this position, what brought about the need to make this decision.
• Dimensionalize the importance of the problem to the organization and how it is impacting the organization.
• Constraints – Provide a situational analysis based on case study analysis.
• Keep the background section both factual and concise. It is part of the memo where we provide a brief insight into the problem and define the problem.

Is the background clear, concise, and easy to follow? Does it explain why action is needed now? Does the appropriate sense of urgency come across in the case study?

3. Recommendations for Pierre Frankel in Moscow (B): Plowing Ahead Case Memo

• The details of what, when and how. NO 'why'.
• This section should be very specific (100% clear). It must be actionable (How much will it cost, when, how, who). The reader should be able to read this and know how to carry out this recommendation.
• Some cases will require more than one recommendation. It often happens that the firm will require more than one recommendations as there are numerous unknown in the market place.

Is the recommendation clear and actionable? Does the firm has capability to implement the recommendations or does it needs to hire fresh talent?

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• 2-3 solid reasons are typical. The reasons should be backed by clear logic, organization’s vision and mission statements, and robust data analysis.
• Orignal recommendation can be backed by few supporting roadmap to actions. In operations cases the Critical Path Method of PERT can be used to illustrate the point.
• Support includes impact on profit, share, and anything else that can affect long-term business goals of the firm.
• Analysis should address applicable quantitative issues such as NPV, break even analysis, pro forma statement of project budget, sensitivity analysis; as well as qualitative issues, such as, technology consistency, architectural conformance, innovation potential, etc.
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• The goal is to read the basis and conclude the recommendation.
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• Are all assumptions explicitly stated (e.g., needs, technology trends)?

5. Discussions

• Outline other alternatives not selected and provide brief reasoning for doing so.
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• Risks associated with recommendation for Pierre Frankel in Moscow (B): Plowing Ahead are properly addressed given the present capabilities and future expectations?

6. Next Steps for Pierre Frankel in Moscow (B): Plowing Ahead case study memo

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• Clear follow-up/next steps?
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7. Exhibits for Pierre Frankel in Moscow (B): Plowing Ahead case memo

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• While doing the calculations please mention all the assumptions. The reader won’t able to decipher each of the assumption so make them explicit.
• Exhibits should have Title, sources, footnotes to calculation. The point of the Exhibit should be instantly clear to the reader.
• Exhibits should be cited in the proper order (i.e., do not cite Exhibit 4 first in your Memo and then Exhibit 2).

Checklist for Pierre Frankel in Moscow (B): Plowing Ahead case study memo exhibit

• Is the analysis presented in the case memo - precise, accurate, and data-based?
• Are the exhibits clearly laid out, titled, and referenced in the case study memo?
• Is every assumption mentioned in the case memo is explicitly listed?

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You can order pierre frankel in moscow (b): plowing ahead case study recommendation memo with us at fern fort university ., next 5 case study recommendation memo.

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