1. Define and discuss Ford’s business- level strategy.
Henry Ford began a family automobile business in 1903; this was during the industrial revolution. This business has become the most famous automobile brand in the world. Over the years the business structure had adapted to changes in leadership, markets trends and the economic conditions. The Ford family still controls the company through multiple voting shares, even though it owns a much lower proportion of the equity
Ford’s business level is the integrated cost leadership/ differentiation strategy; this involves engaging in primary and support activities that allow the company to simultaneously pursue low cost and differentiation. This strategy is flexible and enables Ford to use technology to control the production of variety of products in moderate, flexible qualities and with a minimum manual interaction, whose goal is to eliminate cost verse product variety. Cost leadership is a strong strategy, but it can be undermined by the frequent changes in technology, the imitation of cost advantage and lost of focus on consumers. Ford’s differentiation strategy focuses on developing a unique product that consumers are willing to pay and the combination of these two strategies enables Ford to stay on its core competencies.
2. Explain how the company’s value-chain activities can be better linked to create value for the company.
A chain value is a diagram that a company uses to decide its activities up into component parts such as its functions or management from top to bottom or vice versa. Example
Research and development Supplies and inventory Management Production Marketing and Customer support management. The chain starts from inputs into the company follow though until emerging from the company as a finished output. Research and development; Ford can use innovation and technology to advance and design smart automobiles in this competitive market. Supplies play very important role in the auto industry, maintaining a key supplier and at reasonable prices of parts could affect the finished product. Computer technology could be used to cut down cost and produce quality goods. Fords’ strength is its customers, Ford should be able to supply products that consumers wants to buy whiles not loosing site of the quality, design performance and the cost consumers are willing to pay. It is very important to focus on the chain value to cheek and make the necessary changes if any in order to stay on track on the company’s business level strategy. The chain value is also used to structure and restructure the company’s operations. From leadership (CEO) level through to lower management level, here the firm has control of all its factors of production and distribution. The chain helps Ford to re-evaluate performance and concentrate on production that they do better and to eliminate waste and time. The change is as strong as its...