Fundamentals of Strategic Plans: Toyota & Ford Motors



Fundamentals of Strategic Plans: Toyota & Ford Motors

Introduction

An organization or company needs to stay competitive in order to penetrate this market because global market is tough nut to crack. Gaining competitive advantage in today's market has always been a battle for businesses because of increase in the competition. Winner of this battle is always determined by the ability of organization to compete against its competitors. Competition is just like a bottle neck road whoever will go first will always have the advantage over other. An organization must adapt to constant changes because international and national market undergoes never ending phase of change. Today most organizations want to initiate strategy and management system that could maintain the competitiveness, capability and strength of organizations (Dazai, 1997).

Businesses are continuously evolving to remain competitive and maintain progress. Corporate strategy of a business has also gained recognition like any other business strategies among contemporary businesses. Corporate strategy should be assessed in order to know progress and development of the business, evaluation of corporate strategy is a process that measures the efficacy or competence of the business in specific aspect. In short, the corporate strategy is a major priority of all businesses therefore evaluation and measurement of it is very important and essential to assure constant growth and goal achievement. In this paper we will analyze corporate strategy of two major automobile giants; their various indicators will also be discussed. Initially we shall be comparing both giant companies and will to SWOT analysis to better understand their current position and future plans to increase competitive advantage.

Organizational Brief

In majority parts of global market, Automobiles are considered as one of the important means. However, with advent of globalization and competition automobile industry has become fierce. Despite huge competition in the industry there are two giant companies, Ford and Toyota in this automobile industry that are having excellent reputation in car manufacturing business.

Henry Ford in 1903 established Ford Motor Company and till today has remained under family ownership. The company in 1909 released Model T and produced vehicles and plans for Allies in WWII. Since 1904, Ford is operating in international markets (Lacey, 1986). The company opened a branch at Canada to gain access to Commonwealth markets. The Company is divided in two departments: Financial services and automotive. Ford Motors have become totally global in nature, ford have acquired the best dealers in major markets. Ford Motor Company remained dominant car manufacturer for the first half of 21st century but in 1956 Toyota acquired its market share when it's the company exported its first automobile to United Sates. Sakichi Toyoda established Toyota Industries Corporation in 1926. Toyota has been a dominant name in the automobile industry. The company manufactured and sells automatic looms, the company expanded its domain by including automobiles, electronic, textile machinery, and logistic solution however in this paper we will only focus on automobile manufacturing. In 1992, it began its production in UK, ...