Companies like Ford look to minimize costs and produce uniform products. BUSINESS STRATEGY: Historically, Ford had operated as four different companies: North American Company, South American Company, European company, Asia- Pacific Company. But, an enterprise as big as Ford, they were not able to realize the profits and benefits one gets by going global. They designed cars separately for different regions and this led to lot of waste in time and work. But they realized their mistake just before the recession and this is when they hired Alan Mulaly, who came up with a new business strategy.
Ford decided to go globally for many reasons, such as: economies of scale, higher flexibility and to have a global image. Economies of scale, as we discussed earlier, make better profit margin through producing more. Flexibility means to have more flexibility in suppliers and producing. Global image is to have unique identity and image just like Coca-Cola,
BMW has a reputation for luxury and refined quality. The BMW brand relates well to the domestic owner reinforced by BMW 's reputation for quality, reliability and their dealer‟s attention to service. Respected as the „ultimate driving machines‟ and leading the field in a whole host of classes, BMW are constantly innovating in their quest to stay ahead of their competitors. 2. Environment friendly vehicles.
Transnational strategy Huawei has already passed the international strategy and multinational strategy. Now it is in the global strategy. At the moment, Huawei is entering into the field of transnational strategy through continuous reform. This will help Huawei to establish a brand image, integrate capital, and closely align its service and business models with the local market Specific requirements provide a solid foundation. Strategic alliances, cooperation and joint ventures Since 2007, Huawei has cooperated with these international companies in a variety of forms, ranging from simple product sales (NEC sells Huawei data communications through the OEM market in Japan).
Ford 's organizational structure to support this feature is for the purpose of effective top-down control method of the traditional business management. Regional geography department - Ford in its organizational structure has a great deal of geographical division. In general, the global company to every continent or its business into several areas of the subcontinent. However, ford 's organizational structure is divided into three regions division, only covers all markets around the world. Characteristics of the organizational structure of the potential impact is relatively easy to integration of business
Being transnational enables companies to focus more on research and development and allows them to improve products. This is due to the company’s worldwide presence and large profit margins. In 2007, the top 2000 transnational corporations invested about $460 billion into research and development, which corresponds to about 80% of global business expenditure (IRI). Along with this, the corporations contribute greatly to integrating technology. They often serve as examples to smaller, local companies who have not yet had the opportunity to upgrade to new technology.
Our activities will remain firmly focused on the premium segments of the international automobile markets. Our mission statement up to the year 2020 is clearly defined: the BMW Group is the world’s leading provider of premium products and premium services for individual mobility.” (BMW Group, Strategy, n.d.). BMW Group operates in more than 150 countries and operates 30 manufacturing facilities in 14 countries. The BMW Group currently has sales subsidiaries in the following countries: Argentina, Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland,
This company was found in 1916 and its headquarter is placed in Munich, Bavaria. BMW makes vehicles in various counties. BMW was nominated as the twelfth largest producer in vehicles. BMW had side car manufacturing companies such as Mini and Rolls-Royce is ultimately owned by BMW. The vehicles it manufactures set the highest standards in terms of aesthetics, dynamics, technology and quality.
While it is true that the industry as a whole has such a high exit barrier, most companies would instead continue to compete then close the competition must be done wisely amongst all companies in the industry. While Ford does have a large, loyal customer base, it must continue to improve and add a customer to be able to compete locally and globally in today's market. For example, if Chevrolet releases a new truck with a diesel engine that can run on biodiesel and get 25 miles per gallon then Ford would have to scramble to be able to compete with that model. The consumer base in the market today are not wanting the gas/fuel drinking SUVs of the 1990s. The demand today is for environmentally friendly vehicles that have the room for a family of four
Ford Motor Company’s SWOT Analysis – Recommendations The main issues highlighted in this SWOT analysis of Ford are limitations in speed of innovation and scope of its production network as well as much competition with existing firms and new entrants. Ford needs to improve on its research and development investments and elevate its innovation speed to address tough competition and the entry of high-tech firms in the industry. Also, Ford needs to expand its production network to increase economies of scale, which can lessen the costs and prices to make Ford automobiles more