CASE ASSIGNMENT

Faced with an overwhelmingly complex situation, Alan Mulally has been brought in as Ford Motor Company's new president and CEO. As diverse global dynamics confront the company and competitive pressures continue to build, he has the challenging task of improving Ford's brand image and returning the company to profitability. Mulally has invited your consulting firm to advise his management team on restoring the company's reputation and viability. Assigned to the project, you have been asked to evaluate Ford's situation and prepare a report with the following content:

1. Define and discuss Ford's business-level strategy.

a. How can the company's value-chain activities be better linked to create value for the …show more content…

In the face of fierce global competition, dramatic (and even painful) steps are needed to transform the business. The company needs to significantly improve its cost structure, raise quality, load the product pipeline with exciting new vehicles, and finance its efforts until Ford returns to profitable levels.

a. How can the company's value-chain activities be better linked to create value for the company?

Ford’s value chain should be analyzed to determine whether the company can indeed create value by using the differentiation strategy. Without the skill to link primary and support activities in ways that create value, Ford cannot expect to successfully differentiate its proposition from that of competitors.

To deal with an increasingly fragmented and crowded global automotive marketplace, low growth rate in North America, and an expectation of more manufacturers offering greater numbers of products in the market, Ford should focus on linking the following activities to sustain the company's differentiation strategy:

• Market Research and Development - define and understand customer needs and shifting preferences, and determine a marketable product mix.

• Product Research and Development - enhance and create product offerings to match market needs, and accelerate the pace of new product introductions.

• Finance - improve the company's ability to support innovation initiatives, and secure adequate liquidity for restructuring