ISSUES AND CASE ANALYSIS

Unit 4 - Issues and Case Analysis

Unit 4 - Issues and Case Analysis

Introduction

This assignment will focus on the development of fundamentals of strategic plans for the Ford Motor Company and the Toyota Motor Corporation, two giants of the automobile industry. This assignment will also develop SWOT analyses and propose strategies for the two multinational enterprises. In doing so, research will research, analyze, and compare both firms to understand better their current position and future plans to increase competitive advantage.

ISSUES

FORD

TOYOTA

Legal, Social and Economic Environments

Ford stick to the policy of respecting rules and regulations in every company it operates. Moreover, the industry seems less of a worry for Ford, as it had not availed bailout by US government. Ford is producing eco-friendly cars. Moreover, it has also taken initiatives to reduce emission of CO2 from its manufacturing plants, which in the past has led to developing controversies and affected brand image of the company.

Toyota also ensures to follow adhere to the legal environment of every country in which it operates. Moreover, through its different models, Toyota ensures to cater different needs of the society and remain responsible towards it. Finally, the company is pioneer in producing eco-friendly vehicles, along with number of measures which demonstrate that Toyota cares more for environment.

Management Structure

Ford follows traditional approach towards management and is not considered very much open to innovation. Lack of focus towards innovation has restrained the growth of the company to certain extent.

Toyota follows an uncommon management system, remain open to innovation and always encourage recommendations for business process improvement.

Operational & Financial Issues

The financial position of the company is strong; however, the production cost is high which shows lacking at operational level.

The company recalls its models in millions, which demonstrate poor performance at operational level, and affects financial position of the company.

Analysis of Strategic Intent

The strategic intent of the company is to increase its presence in emerging markets.

Toyota lacks presence and strategic intent to focus emerging markets; instead the company is mainly focusing on its existing markets.

Social and External Challenges

Ford has been ranked among the top ten CO2 producers, affecting environment which is affecting the brand image of the company. Moreover, the increase in cost of raw material will further increase the production cost.

The exchange rate of the Yen is increasing, which will affect the profits of the company. However, at societal level, due to increase brand awareness Toyota enjoys a good market position.

Current Manufacturing

Ford has manufacturing plants in United States, Germany, United Kingdom, Mexico, Canada, South Africa, Brazil, China, Argentina, and Australia. The company follows large scale manufacturing process, with little focus on lean system.

Toyota follows lean manufacturing, which reduces the cost. However, manufacturing centers of the company are vulnerable to natural disasters.

Facilities & Distribution System

The company has manufacturing plants in every continent, which helps Ford to distribute its products all over the world with less cost.

The company follows just-in-time process for distribution, which increases return ...