Analysis of Context and Critical Evaluation - Essay Example

This makes it easy for an organization like Ford to adapt easily to meet evolving needs. The eternal environment of an organization contains social and economic conditions which play a crucial role in the process of decision making by the executive. These factors must be incorporated with the requirements of the stakeholders which are often inconsistent. Execution of decision in top organizations requires a broad approach and skills. Strategic management cannot be separated from organizational success.

Introduction Strategic management refers to decisions and actions that aim at formulation and execution of initiatives in order to achieve the objectives of the corporation. Henry Ford founded the company in 1903 in Michigan, USA. The company pioneered in the use of the moving assembly line. The company had a market share of 50 percent. In 1956, the company went public. This was greatly influenced by the company’s growth coupled with a significant presence in the automotive market around the world.

However, the company has not been doing well for the last one decade. This has been contributed by a product portfolio that is below par. Allan Mullaly became the chief executive in the year 2006. The company was functioning as detached entities in the United States, Australia, Europe and other regions. The move impacted the company negatively because of the huge operational expenses incurred. Reports indicate that the cost of developing a single vehicle from the scratch was approximately $800 (Ford 2012).

The new top executive was duty bound to come up with strategies that were cost effective and profitable to the running of the organization. The new organizational leadership was compelled to come with strategies that would make the company globally competitive. Mullaly altered the structure of Ford’s management structure. This included transforming the company’s operations from regional ineffective company branches to an integrated globally competitive organization. The company came up with the one-ford initiative whose aim was to reduce time spent in duplication and focus in high quality products instead.

The new organizational strategy intended to make the Ford company products high quality and appealing to the global market. Ford’s business strategy focused on how to make a broad and sustainable strategy in order to remain competitive (Hoffman 2013). The rise in fuel prices and green technologies had called for a change of strategy in the motor vehicle industry. Ford Company decided to invest in development of affordable vehicles in the face of an organizational crisis that amounted to debt (Hoffman 2013).

The company decided to break from using few important products to multiple affordable and accessible products. Ford was able to establish that most of the loyal customers across the world wanted safety, reliable brands and after sales service for customers (Hoffman 2013). Ford Company differentiated itself from other companies by investing in R & D. features like my-ford-touch and sync were only affordable in expensive vehicles. Ford Company has made products affordable to common man. The strategy has made a difference as the company has increased motor vehicle sales.

The Ford used the One-ford strategy to simplify the brand structure. This caused the Ford strategic team to have to sell Land Rover, and Jaguar at most of the Mazda ownership. This reinvented the original Ford brand which had a high reputation when it came to safety,