Management Information Technology, Essay Example

Ford Motor Company

Ford has had to change its strategic capability in the ever increasing competition in the global automobile industry.  Ford has faced increase competition from both the US domestic market and international spheres of operation.  The driving forces that threated the business have resulted from factors like increased competition, improved product capability of competitors, price and quality factors.  Ford have had to respond to this challenge by becoming more creative, innovative and keeping up the the demands of a modern competitive market place. (Ford Motor Company)

SWOT of Ford

Strengths – Ford has remained a popular supplier of motor vehicles for over 100 years and is considered an international brand leader in this area.

Weaknesses – The Company has increased in both size and complexity and as such this has hindered Fords’ capability to sustain its leading position in the market place

Opportunities – Ford needs to modernize its motor vehicle range and meet the demand for clean energy vehicles with more modern designs.  Vehicles like the new Ford Edge have proved to be a successful response to this problem

Threats – This has been mainly from the increased competition from Foreign Markets like that of South East Asia.  This equally applied to the need for an improved management structure at Ford to tackle the threat of competition from abroad. (Global Markets Direct)

Value Chain Analysis

Historically Ford Motor Company attempted to recover its competitive position by having sufficient sales within its home domestic market in the USA.  In 1994 this concept changed and the strategy became more geared towards being a global competitor in the industry.  Ford identified a large number of sustainability activities that were important for its value-chain activities.  This included such items as:  Population growth, aspects of urbanization, factors of child mortality, biodiversity, poverty, education etc.  Through this lens Ford needed be in alignment with corporate efforts to maintain adequate competitive advantage. (Prabakar Kothandaraman)

Information Systems were to play an important role in the reshaping of Ford. In particular increased technology was directed towards more enterprise wide systems integration and this particularly geared towards improving product innovation and creativity in a range of new vehicles. Ford attacked its B2B Markets, supply chain management and electronic markets by more sophisticated management information systems. This saw a host of more innovative car designs with a modern look and greater fuel economy with leaning towards more environmentally friendly models.  (Kenneth C. Laudon).

Conclusions – Building on core competencies

Ford have a number of significant advantages over their competitors. In particular a trusted and reliable brand name.  A reliable supply chain that has maintained sustainable supplies of raw materials for building its product range.  Excellent inventory management that has earnt them a solid reputation for meeting delivery schedules.  The ability to design cars to meet a loyal customer base. The new sports utility vehicles like the Ford Edge being an excellent example of an innovative design concept. (Mira Wilkins)

Works Cited

Ford Motor Company. Blleprint for sustainability. 2011. http://corporate.ford.com/doc/sr11-blueprint.pdf. 10 9 2012.

Global Markets Direct. Ford Motor Company – Financial and Strategic Analysis Review. 2009. http://www.marketresearch.com/Global-Markets-Direct-v3480/Ford-Motor-Company-Financial-Strategic-2534702/. 10 9 2012.

Kenneth C. Laudon, Jane Price Laudon. Essentials of Management Information Systems. New York: Pearson/Prentice Hall, 2009.

Mira Wilkins, Frank Ernest Hill. American Business Abroad: Ford on Six Continents. New York: Cambridge University Press, 2011.

Prabakar Kothandaraman, David T Wilson. “The Future of Competition: Value-Creating Networks.” Industrial Marketing Management, Vol 30 (4) (2001): 379-389. Elsevier. 10 9 2012.