Introduction
The ongoing crisis for Ford can be mitigated through adopting novel solutions as opposed to the attempts to support traditional manufacturing processes. In order to do so, it is required to evaluate internal and external conditions for the business while reflecting on the chances of eliminating the underlying risks. Therefore, this report aims to present the ways of increasing profits in the long run based on the evidence received from the previous decisions of the company’s CEOs over decades.
Internal
The first aspect, which is to be taken into consideration when elaborating a new course, is the strengths Ford can rely on when performing shifts. As follows from the past indicators of sales alongside the ideas implemented for increasing them, one of its advantages is flexibility in readjusting to the changing market conditions. It is effectively complemented by innovative approaches to product lines and well-established cooperation between departments. In this way, Ford’s employees are experts in working in the context of unpredictability.
Weaknesses
Alongside the specified strengths, there are significant weaknesses, which can present an obstacle to modifying the business course. They primarily include the lack of resources for keeping up with competitors in the area of autonomous vehicles and the neglect of regular operations when innovating. Subsequently, the financial situation becomes unstable when the established procedures are disregarded while new solutions are not introduced yet. Also, marketing decisions concerning the preferences of particular products do not correspond to country-specific demand but are still ignored by the managers.
External
In the automobile industry, Ford’s opportunities are mainly connected to the rapid evolution of the field and the deriving possibility of becoming a pioneer in an area with insignificant numbers of rivals. More specifically, the provision is accompanied by the chance to invest in mobility services, thereby drawing the attention of greater amounts of people to the company’s vehicles. Also, the potential development of hybrid electric cars might increase sales and allow Ford to occupy a more significant market share in order to overtake the competition.
Threats
The opportunities discussed above are crucial for Ford’s progress in the future, but the existence of critical threats attributed to market conditions, might disrupt these initiatives. Thus, high levels of unpredictability do not allow automobile businesses to make long-term plans. The lack of control over the economy is complicated by shifting customer preferences, which creates more uncertainty. In the end, these two issues, alongside the overall unsatisfactory circumstances of the market and evolving environmental concerns, might prevent Ford from gaining substantial profits in the following years.
Suggestions
The first suggestion for Ford to improve its situation in the long-term perspective is to create a clear focus in relation to the course for developing autonomous technologies. The rationale for this idea is the previous lack of precision in what models should include innovative features, which led to the confusion of investors. At the corporate level, it will increase the effectiveness of employees’ work due to their awareness of expectations. In turn, for the business, it will be advantageous for increasing its attractiveness to shareholders and customers.
The second idea is to eliminate the existing gaps in innovations which were previously introduced by Ford. It is based on the failure in the past to keep up with other competitors in this field. In this case, additional research is required to determine what characteristics distinguish their products and install them on the company’s vehicles as a part of regular manufacturing procedures. From the point of view of the integrated multi-functional perspective of the organization, this solution will also be beneficial for deciding on the expertise of what employees correspond to the task.
The third suggestion is to shift from the traditional approach to the processes of design and production to taking calculated risks. The analysis above showed that Ford’s operations are flexible enough to perform this change, and there are no threats which cannot be timely detected for changing the course. Meanwhile, for the managers of the company, this method would mean the possibility of pioneering in the field as per the opportunities, such as manufacturing eco-friendly hybrid cars. This strategy is best implemented at the level of managers and, consequently, spread to other employees, as in the case with the previously given solutions.
The fourth modification, which is feasible from the perspective of the conducted analysis, is the introduction of different types of loans to clients as opposed to only those purchasing new cars. Its rationale is connected to the fact that the innovative product lines are not yet familiar to the customer, and the application of flexibility to maintenance might be beneficial for evoking interest while promoting business. In this area, the competition will be improved in the corresponding market segment, and on the corporate level, they will indicate a client-oriented approach.
Conclusion
To summarize, the analysis of Ford allowed to formulate the suggestions as per the revealed strengths, weaknesses, opportunities, and threats. It is recommended to develop a clear focus on innovations and eliminate the gaps in similar initiatives which were previously developed by the managers. Also, it is reasonable to take calculated risks to boost the progress based on flexibility and introduce loans to buyers of autonomous cars. In this way, Ford will manage to offer new models as per demand in different countries and guarantee their popularity.