The increasing influence of globalization has made several companies reorganize their value creation processes to thrive in the competitive market. One of the renowned companies that have equally employed many people across the world is Ford. In addition, this is not exceptional when it comes to strategic planning. This company has been in the motor manufacturing industry for a considered longer. Conversely, there have been several management problems that need to be reformed to boost its production processes and general performance in terms of market share. It is in the line of emerging management restructuring that its methods of production, diversification, and marketing in this case tested for an increased chances of survival and perpetual existence.
Introduction
Automotive industry is one of the most competitive in the world and the individual firms need to undertake a critical analysis of their position in terms of strategy. In this respect, most of the players in this market which happens to be operating at multinational level needs a considerable market research concerning the production standards in accordance with the set goals. This calls for accurate emphasis of requirements depending on long-term and short term requirements. The company under discussion in this case is Ford Motor Company which is one of the most popular names across the world in terms of various brands of Motor (Hoffman, 2012). It is a multinational automaker incorporated for official production and business operation in 1903. The company was founded by one American citizen called Henry Ford. Its headquarter located in Dearborn, in the United States Of American city of Detroit (Gondek, 2011). This company has undergone several changes in terms of its structural and functional management and this call for further investigation into the best strategic pathway that would lead to greater heights of performance (Hoffman,2012). It initially started with producing a few brands of car with a quality outlook and durable structure. Besides success from its allocation, this company has since faced some technical and management challenges that require a complete restructuring. It is a common knowledge that this firm faces stiff competition from other motor firms like Toyota, Mistubishi, Nissan among other related companies (Hoffman, 2012). Therefore, there is a substantial demand that it must up its skills to remain relevant in the global market. It mode of production bases on geographically dispersed value creation centers across the world under the concept of comparative advantage. This is typically optimizing production and marketing costs while maintaining its international quality tradition. The products of Ford are diverse in the form of cars, SUVs and trucks of various sizes (Gondek, 2011). Some common Ford brands that many people are aware of includes Landrover, Volvo, Jaguar, Taurus, Mustang and among others. In the wake of product differentiation and competition, it also introduced model T and F-series (Hoffman, 2012).
Objective of the research on Ford Company
Ford company involves in a series of competitive challenges from other firms in the industry in terms of production costs, process management and marketing policies. Even the employees have not been spared with the evident deteriorating working environment that seems to sink the company further. Therefore, it is indispensable for a critical assessment of its survival aspects in terms market statistics to establish the best production and marketing strategy that would promote it and keep the firm’s market glory burning. This would capture all the management aspects and the laid down strategies (Gondek, 2011).
Significance of the research
Company performance is paramount in serving the overall interest of the society. This includes the employees, shareholders and the consumer community in general. Ford Motor Company is one such organization with a global taste. With such overwhelming ratings, it requires consistent performance evaluation so that it can improve its production techniques in general and marketing strategies in specific. This is the only way to cope with its widely dispersed production and marketing locations across the world.
Production process and marketing strategies
Initially Ford based its operations in the US as it took the time to observe the industry and explore markets across the world. This means that it was laying its strategies on how to confront competitors and develop a sound performance culture (Gondek, 2011). It has so far acquired some level of respect due to its quality products. At the time of the company’s inception, management was still a small challenge since it had not gone international, but this has changed so far with the emergence of globalization culture. It is vital to record that the previous fourth dimensions of this company reveals a number of focuses. This constitutes a considerable quantity of production as marketing excellently achieved through mere direct sales. With the global business dynamics, Ford like any other company has come to realize that today marketing is a critical tool for survival in any market and in-depth company analysis is the basis of creating the confidence in consumers. Taking its operations to multinational level means that Ford must capture the effect on management procedure and marketing strategies (Hoffman, 2012). At the moment, it has several subsidiaries across the various continents in individual countries. This means that manufacturing of a number of cars takes place at minimal costs in comparison to market destinations. The numerous cuts on production cost compromises the quality of cars manufactured by the company.
Management is centralized in its headquarter where all the other branches reports. It is the headquarters that does most of decision making before decisions are distributed in all branches. The various representatives the company has in its widely spread global market and value creation activities undertake groundwork market research and report to the headquarters. Several considerations are always taken in regard to diverse socio-political and economic behavior trend of each country. This regards the taste of consumers and the general cultural beliefs in terms of lifestyle and social alignments (Fear, 2005). Each of its branches in the world has a given brand of motors with spare parts. There is a mechanical breakdown site where clients can always seek repair assistance and maintenance services. The product brands are homogeneous across the world with small differentiated features that accommodate the needs of customized cars. This means that marketing strategy of Ford has been almost the same in the world. Besides, it is boosted by the global culture of increasing convergence in people’s behavior towards lifestyle and taste preference.
Market segmentation is an aspect of Ford’s marketing strategy which has been working for it. This concept that requires the firm to identify existing differences in terms of socio-economic structure of any given community that forms customer base. This explains its evenly distributed motor brands that exploit the need of various customers. For instance, some of its cars like Land Rover, Volvo, Jaguar among others attracts different amount of demand from different markets segments and global regions. The long serving Chief Executive officer of this company Mr. Mullaly has an uphill task to keep with the market dynamics that threatened this company from early 1900’s to date(Hoffman,2012). It is of utter importance that the old and obsolete production methods and inefficient centralized production are reorganized. Ford so far engages in a serious market survey and production diversification. This helps in countering the popular status of its competitor in Toyota Motors of Japan, Chrysler and GM among other firms in the same industry (Gondek, 2011).
Causes and sources of inefficiencies experienced by Ford
The overall performance of Ford in the motor industry can evidently be seen from its poor balance sheet records since 2008. Past financial records of this iconic company indicates that it was at its best in 1998 being the best producer of trucks and SUVs that saw it shine in the stock market (Fear, 2005). A case study undertaken on Ford shows clearly that its market failure from1998 had to do with several factors that point towards inefficiency and overall underperformance. One of the major contributors to the fall of Ford motor company is its method of production. Its competitors like Chrysler and GM adopts modern technology with well fitted information communication system. This is an application in devised into the cars for improved consumer safety and awareness in various issues while on the road. The global economic meltdown accompanied by high fuel prices significantly affected the performance of Ford products directly and the company’s balance sheet indirectly (Gondek, 2011). Initially Ford invested a lot of resources in production of gas guzzling trucks and SUV’s which and a significant cost effect on the consumers hence affecting sales. This means that the company had poor forecasts and market trend, and it paid with a considerable loss on its overall annual revenue collection. Ford had earlier concentrated in homogeneously serving all its customers with Volvo, Jaguar, Landrover and other cars with a total disregard to the need to any one needs of a market segment. This worked against its revenue expectations and culminated to substantial losses and missing touch with the customers diverse needs. Its luxury cars came in stark sizes, and this was becoming inconsistent with the increasing need for small and fuel-efficient cars thereby worsening its performance in the market.
A company survives if its competitors are in the same level of marketing position, but this is not possible if one adopts a different strategy. GM had long adopted the OnStar technology which armed the customer with an information communication system that could help them trace help in case of any problem (Fear, 2005). Chrysler as one of the other Ford’s competitors. It has significantly taken greater strides in improving the comfort and security of customers when using their cars and this overshadowed the demand of Ford products. The long standing tradition of producing uniform large size of cars was eating into the financial coffers of Ford in terms of the total production cost against a backdrop of global sales and this rebounded in stagnated productivity (Hoffman, 2012). Therefore, it is summarily clear that earlier technological revolution taken up by GM and Chrysler is the main challenger for Ford’s company. Besides, customer focused on production exposed the incompetence of Ford. It is also crucial to note that whereas Toyota deals in a diverse variety that helps in cushioning the company against loss from the reccy effect of the global economy, Ford had limited its products to a few luxurious, expensive and fuel guzzling brands. This had significant inefficiency outcome that is a subject of discussion in this paper.
Measures towards better performance
The strategies to revitalize the performance of Ford revolve around redefined production and marketing techniques. The ever changing competitive environment has put the company on its toes. Several strategic policies progresses to recoup the lost fortune for this motor industry icon. Top on the priority which is on progress courtesy Mullaly’s managerial skills is technological adoption. Ford introduced the Synch technology to counter the OnStar of GM as a shift towards competition management (Hoffman,2012). Synch is more superior and relative market friendly, and this seems to have resurrected the weight of Ford’s presence in the global motor industry. It captures general consumer fraternity and these successes into more threats to the similar companies. The safety and prestigious show of modernity exploited by Synch has seen the company improve its market share and increase volume of its output. Ford shifted from overemphasis on hefty fuel guzzlers to a more diversified customer focused all sizes production strategy to counter the competition from a small car firms like Chrysler and GM (Gondek, 2011). This has equally been focused on neutralizing the power of Toyota across the world and level the competitive ground. The two factors that include technology and diversity has worked to improve the competitive advantage. These factors also reduce cost of production through the learning curve and brand consistency, which keeps the company into global business relevance.
Challenges to policy implementations
The multinational nature of Ford has to do with several operational complexities in regard to bossiness laws and regulations within various countries. This comes at the wake of restructured tax regimes in some countries that significantly affect the revenue of Ford (Hoffman, 2012). The companies still have limited variety as compared to the Toyota and a relatively fuel-consuming brand is still a challenge to contend. The company has been more of conservative in its policies and this significantly presents a barrier to a smooth transition and adaptability to the changing market climate.
Benefits of the reforms
The attitude and urge towards restoring the lost glory of Ford in the motor industry is a function of research and development. This is directly related to the general observation of various actors so far discussed within this work. Most companies adheres toward maximization os returns. On the other hand, others take it a notch higher by well defined marketing strategies. Ford company has well designed policies that require adequate implementation. Besides, an equal responsibility runs from stakeholders and managers. Should the analysis be assessed and reforms be taken up by the company, this is likely to fly higher.
Conclusion
Ford need to shake up its management policies to meet sustainability threshold. This requires putting proper emphasis on marketing and production techniques for it to serve society better and restore confidence of clients and other stakeholders (Gondek, 2011). From this research, it is a clear indication that policies are not concurring with growth demands. Conversely, management is lagging behind to match development in the contemporary society. With this alarming rate technological rise, there is a coinciding demand of footsteps in efforts to straighten weaknesses. Despite numerous challenges recorded in this essay, there is a significant chance for better performance. This would also serve to increase the overall competition, improved quality, low production cost higher revenue and affordability to the customers.

References
Fear, J. R. (2005). Organizing control: August Thyssen and the construction of German corporate management. Cambridge, Mass: Harvard University Press.
Gondek, C. (2011). The product Ford Fiesta: A Marketing Analysis – Part I & Part II. München: GRIN Verlag GmbH.
Hoffman, B. G. (2012). American icon: Alan Mulally and the fight to save Ford Motor Company. New York: Crown Business.

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