Ford operates in a global automotive industry. According to current estimates (“Global Automotive Report”, 2013) total revenues of car producers worldwide constituted about $800 billion in 2013, and sales volumes accumulated approximately 80 million cars and other light vehicles. Top players of the industry are headquartered in the U.S., Germany, Japan, South Korea, and Great Britain, and include Volkswagen, Toyota, Daimler, GM, BMW, Nissan, Honda, and Hyundai. Analysts forecast that the global automotive market will continue to expand actively, and over 100 million units will be sold annually by 2020 (“Global Automotive Report”, 2013). Such growth will be fueled mainly by the increasing demand in emerging markets, especially India and China, where out of every 1000 people only 18 and 58 own a car, respectively. Needless to say, this indicator is much higher in Europe and the U.S., so these markets are unlikely to demonstrate excessive growth.
Ford currently maintains the strategy that was first introduced in 2007 within the framework of One Ford plan. The company’s strategy revolves around four major points (“Our Strategy”, 2013): aggressive restructuring to function profitably at the present level of demand and changing mix of models; enhance development of new products that are desired and valued by Ford’s customers; plan financing and balance sheet improvement; effective performance as one team. The emphasis is put on a single global approach and teamwork, and there is a specific set of expected employee behaviors that result in successful strategy execution. Company goals outlined in One Ford plan focus on manufacturing high-quality, energy efficient and smartly designed products, balancing product portfolio and global presence, and making a better world through sustainability strategy. Ford’s strategy incorporates three vital elements of a winning strategy: the employees, the customers, and the environment. Additionally, despite unfavorable economic conditions, the company managed to improve its financial performance in 2013 and during the first nine months of 2014 (“Ford Annual Report”, 2013; “Third Quarter Earnings Review”, 2014). Therefore, Ford’s strategy can be considered a winning one.
Mission statement of Ford is “One Team. One Plan. One Goal.” (Strategic Management Insight, 2013). These key components are reflected in the company’s strategy, with the main focus being put on customer satisfaction and meeting the needs of key stakeholders through effective teamwork on a global level. For the comparison, mission statements of BMW and Honda have been chosen. BMW’s mission statement is “The BMW Group is the world’s leading provider of premium products and premium services for individual mobility.” (Strategic Management Insight, 2013). The mission is oriented on customers, and includes information about the target market and image of the company. However, the main values of the company are not reflected in the mission statement, and does not indicate how BMW is going to address the needs of its key stakeholders. Overall, Ford has a much better structured and more explicit mission statement. Honda’s mission statement is “Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction.” (Strategic Management Insight, 2013). It provides information about the company’s competitive advantage, markets, and reflects the company’s focus on customer satisfaction. However, self-concept, corporate social responsibility (CSR) and key values of Honda are not represented in its mission statement. Consequently, mission statement of Ford is more coherent and all-encompassing.
Vision and values of Ford are incorporated in its mission statement, the key components of which have been analyzed above. They do a great job of reflecting and supporting the company’s strategic objectives, because they address the main aspects which Ford wants to excel at.
References
Clearwater Corporate Finance LLP. (2013). Global Automotive Report 2013. Retrieved from http://www.kurmannpartners.com/fileadmin/user_upload/MR-Automotive/2013_Global_Automotive_Report_IMAP_Clearwater_Corporate_Finance.pdf
Ford Motor Company. (2013). Annual Report 2013. Retrieved from http://corporate.ford.com/doc/916/251/ar2013-2013%20Ford%20Annual%20Report%20MR.pdf
Ford Motor Company. (2014, Oct 24). 2014 Third Quarter Earnings Review. Retrieved from http://corporate.ford.com/doc/359/866/Q3_20141024a_financial_results.pdf
Our Strategy. (2013). Retrieved from http://corporate.ford.com/microsites/sustainability-report-2013-14/blueprint-strategy
Strategic Management Insights. (2013). Mission Statement of Ford, BMW, Honda. Retrieved from http://www.strategicmanagementinsight.com/mission-statements
