Unit 4 - Issues and Case Analysis - Individual Project

Unit 4 - Issues and Case Analysis - Individual Project

Introduction

This paper intends to discuss the fundamentals of strategic plans for the Ford Motor Company and Toyota Motor Corporation. These two companies are selected because they are considered to be the giants of the automobile industry. This paper will develop a SWOT analysis and propose strategies for the two multinational companies. The current position of both the companies and future plans to in order to increase the competitive advantage of both the companies. In today's time; there are certain problems which are faced by the companies like the current economic situation, the intense and increasing competition within the automobile industry and the demand for a lower cost and more ecologically friendly and alternative fuel vehicles. This paper will compare and contrast the current positions of Ford and Toyota. The perspectives of directors of strategic planning will be observed in order to develop a full SWOT analysis of both the companies.

Discussion

The following table can be used as a comparative tool to analyze the situation of both the companies and their underlying strategies for the purpose of coping with the problems faced by the companies.

Issues

Ford

Toyota

Legal, Social and Economic Environments

The Ford Company is essentially handling the legal, social and economic situation extremely well. Being a luxury automobile provider; Ford is not really impacted by the social changes. Economic downturns also do not significantly impact mainly because of the fact that the customers are economically well established. The legal considerations are well dealt by the Ford Company.

The Toyota Company is trying its maximum to deal with the legal, social and economic environmental changes. However, the recent economic downturns have impacted the performance of the company. The social changes; however, are positively impacting the performance. The legal issues are faced by the company because of recently reported low quality issues within the vehicles (Wu et al 2010).

Management Structure

The management structure of Ford is quite diverse and complicated. The upper level management does not allow lower level employees to get involved within the decision making processes.

The management structure of Toyota is well managed and small. The structure is non bureaucratic and there are no apparent formalities within the employees and upper level management. Employees are always encouraged to participate within the business functions.

Operational & Financial Issues

There are no apparent operational and financial issues prevailing within the Ford Company (www.ford.co.uk).

There are operational issues within Toyota which can be seen in the intense recalling ratio of cars. The result of operational issues is witnessed within the financial performance of the company.

Analysis of Strategic Intent

The strategic intent of the company is to make luxuries cars and keep on providing luxury beyond expectation to the customers.

The strategic intent of Toyota is to provide quality and innovations within the vehicles to its customers. The underlying strategy is to exceed the customers' expectations within every aspect (Lander & Liker, ...