Ford Motors analysis for strategic change and Recommended solutions

Olatunde Daniel Obadaye

MBA, Nexford University

BUS 6110

20th September 2024

1.0 Company Review

Ford Motor Company, an American multinational automaker, is headquartered in Dearborn,

Michigan, a suburb of Detroit. Founded by Henry Ford on June 16, 1903, the company sells

automobiles and commercial vehicles under the Ford brand and luxury cars under the Lincoln

brand.

Ford Motor Company is a leading global automotive and mobility company, specializing in the

design, manufacturing, marketing, and servicing of a wide range of vehicles, including Ford cars,

trucks, SUVs and luxury vehicles under the Lincoln brand.

Challenges currently facing Fords Motors

Ford Motor Company is currently facing significant challenges related to production, sales,

and market share. The company is undergoing a restructuring process to adapt to these hurdles and

is required to compete more aggressively today compared to previous decades.

The key issues cited include high pricing, market dynamics, and consumer preferences. Many

consumers in North America still favor gasoline or hybrid vehicles over luxury electric models.

Nearly 50% of EV buyers have switched back to hybrids, indicating growing skepticism about EVs.

Both GM and Ford are also grappling with technical issues and production delays.

2.0 Ford Change Analysis

Ford's change analysis centers on the transformation under the leadership of Jim Farley,

particularly in response to the evolving automotive industry. The company's change management

strategy emphasizes a unified global team approach, leveraging its unique assets while embracing

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innovation, especially in electric vehicles (EVs). This strategic shift aims to position Ford for future

success amid rapid industry changes.

Current Ford’s business structure, culture and mission statement

Ford Motor Company's organizational structure is meticulously designed to encompass both

functional and divisional frameworks, including production, marketing, finance, human resources,

and research and development. This dual structure promotes specialization, enabling each

department to execute its tasks with expertise and precision.

Ford’s organizational culture is a crucial component in driving the company's success, as it

fosters a social environment that effectively motivates personnel to achieve business goals. By

cultivating a work environment that encourages teamwork, innovation, and dedication to excellence,

Ford has been able to position itself as a leader in the automotive industry. This emphasis on

organizational culture not only benefits the company but also serves as an example for other

businesses seeking to achieve similar success in their respective industries.

The following are the main characteristics of Ford’s organizational culture:

F – Foster functional and technical excellence

O – Own working together

R – Role model Ford values

D – Deliver results

Analysis of the domestic and international markets to identify the factors driving the need for
change.

STRATEGIC ANALYSIS

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General Environment (PESTEL framework)

Ford Motor company is profoundly bounded by PESTEL factors, the company has no or little
control over all despite its global size and influence in the automotive industry.

• Political Factors Affecting Ford Motor Company

• Economic Factors Affecting Ford Motor Company

• Social Factors Affecting Ford Motor Company

• Technological Factors Affecting Ford Motor Company

• Legal Factors Affecting Ford Motor Company

• Environmental Factors Affecting Ford Motor Company

Key Stakeholders to be impacted by the change

The company's stakeholders include customers, employees, suppliers, communities, and

shareholders, with customers being the top priority. Ford's commitment to addressing the needs of

its stakeholders can be seen through its efforts to produce environmentally friendly vehicles, support

community development projects, and ensure fair labor practices within its supply chain.

3.0 CASE FOR CHANGE FOR FORD MOTORS

Audience: Tailor the case to the

specific audience.

Choose your audience that you will

need to communicate the change. CEO
Examples: Employee
● CEO Consumers
● Board Member
● Project Manager
● Director/Manager
● Employees impacted by the
change
● Customers

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Background

● What current problems need Ford Production has come to a

to be solved? standstill at plants worldwide,
leading to congested and in some
cases non-existent supply chains.

● How did we get here? At the release of the Q2 financial

results in July 2020, it is obvious that
COVID19 has had a large impact on
the Ford Motor Company with a first-
quarter loss of $1.9 billion dollars

Current State
● Where are we now? 1. Unproductive
2. Lack of sales due to low
turnover in

● Why is what we’re doing

currently not working? 1. It is not in in line with current
industrial strategy and more
efficient way of managing
2. It results in reduced brand
visibility, leading to lower
engagement and potential
clients choosing more visible
alternatives.
● What opportunities are being
missed?
1. Loss of customers acquired
over time to competitors and
potential loss of market share.

2. Lack of innovation and failure

to adapt to evolving market
trends.

Risks of Not Taking Action

● What future problems are 1. Liquidation of company assets

anticipated if no action is

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 taken? to offset debts
2. Lay off of staff

● What is the impact to the 1. For closure

organization? 2. Debts

Benefits of Taking Action

● What are the benefits of 1. By adopting new technologies

making the change? in the Ford company and
optimizing procedures, Ford
can enhance adaptability and
reduce costs.

2. This enhancement will result in

higher catch yielding
customers' demands and
satisfaction.
● What is the impact to the
organization? 1. The process can effectively
maintain the current position
of the company while also
creating new revenue streams,
increasing customer loyalty,
and improving employee
morale. This will ultimately
contribute to the overall
success and growth of the
business

2. By staying current with the

latest market trends, Ford will
position itself as industry
innovators. This approach will
allow the company to attract
top talent and foster a culture
of ongoing evolution, growth,
and improvement.

4.0 Communication Plan

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1. Identify the project's stakeholders The specific stakeholders vary based on the unique

characteristics of each project, but generally, they can be classified into two categories: Internal

stakeholders: Those who are involved in managing and executing the project, such as the project

manager, project sponsors, and the employees responsible for completing the project

External stakeholders, including clients, competitors, contractors, and regulatory government

bodies, play a crucial role in the success of a project. Their interests and concerns can impact

decision-making and overall outcomes. It is important for businesses to engage with these

stakeholders in a transparent and proactive manner to ensure their needs are considered and

addressed

2. Set the objectives

In general, the more precise you are in defining what the organization needs to achieve and where it

should be in the foreseeable future, the more effective you are at communicating this information to

stakeholders. Clarity and specificity in goal-setting provide a roadmap for all involved parties,

aligning efforts towards a common vision. This precision fosters understanding and buy-in from

stakeholders, ultimately enhancing the organization's ability to accomplish its objectives.

3. Establish your methods of communication

In order to determine the most effective communication channel, one must carefully consider the

intended recipient and the nature of the message being conveyed. Different channels may be more

appropriate depending on factors such as urgency, confidentiality, and the recipient's preferred

method of communication. Taking these considerations into account will help ensure that your

message is delivered in a clear and effective manner.

4. Use the gathered data to create your stakeholder communication plan

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Upon identifying the project's stakeholders, articulating the project objectives, and evaluating the

most effective communication methods tailored to each stakeholder, one can leverage the collected

data to formulate a comprehensive communication plan. This strategic document will serve to

ensure clarity, facilitate engagement, and promote alignment among all parties involved, thereby

enhancing the overall success of the project.

5. Assign a communication plan owner

Depending on the size and complexity of the communication plan, it is advisable to designate

multiple owners, each responsible for a specific type of communication or targeted stakeholder

group. This approach ensures that all aspects of the communication strategy are effectively managed

and tailored to meet the diverse needs of the audience. By distributing ownership, organizations can

enhance clarity, streamline processes, and foster accountability, thereby improving overall

communication effectiveness

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REFERENCES

Waseem Tahir 2020 Ford Motor company

https://www.researchgate.net/publication/338630788_FORD_MOTOR_COMPANY

(Jaak 24.01.2024) General Motors and Ford Face Significant Challenges in Electric Vehicle
Market in 2024

https://auto.pub/general-motors-and-ford-face-significant-challenges-in-electric-vehicle-market-in-
2024/

https://edrawmind.wondershare.com/org-chart/ford-organizational-structure.html

Anesh Soni 2020 CASE STUDY INTO PROPOSED CHANGE TO FORD STRATEGY IN
RESPONSE TO COVID19

https://www.linkedin.com/pulse/case-study-proposed-change-ford-strategy-response-covid19-
anesh-soni/

How To Create an Effective Stakeholder Communication Plan

https://www.indeed.com/career-advice/career-development/how-to-create-stakeholder-
communication-plan