Ford Motor Company BCG matrix, Brainstorming, Gap analysis and Mind Maps

Ford Motor Company is one of the most successful firms in the automotive sector, with highly unique products. The company’s products, as well as its management, have been scrutinized over the years. Several analytical methodologies were employed to assess its performance, product life cycle, and market share, among other things. Ford employees also play an essential influence in deciding the company’s success. The report investigates several management analysis methodologies and how they might be applied to Ford. It then discusses how the company’s resources influence management analysis and how they might be employed in the planning process. The role of an internal analysis during an in-depth examination as well as understanding the capabilities of an examination are also explored.

There are various management analyses that are applicable to Ford. These include the BCG matrix, Brainstorming, Gap analysis and Mind Maps among others.

The BCG Matrix

The BCG Matrix is used to evaluate the portfolio of an organization in planning and marketing (Armstrong, et al., 2014). It evaluates each product of the organization in two dimensions. These are the market share and the market growth. The BCG matrix is represented in a diagram as:

High Market Share

Low Market Share

High Market Growth

Star

Question Mark

Low Market Growth

Cash Cow

Dogs

Fig 1: BCG Matrix (Schermerhorn, 2011)

Each type of product is represented as either a cash cow, stars., dogs and question marks. Cash cows are the most profitable and do not require high investments (Schermerhorn, 2011). The dogs are products that diminish production and should be withdrawn from the company’s product portfolio (Armstrong, et al., 2014). The stars are products that can become cash cows and should be advertised. The question marks, on the other hand, are promising products that need to be differentiated (Armstrong, et al., 2014). Ford can use this market to categorize its products into those that make profits, those with potential and those that should be withdrawn.

PESTLE Analysis

The letters of the analysis method are an abbreviation of political, economic, social, technological, legal and environmental (Cadle, Paul & Turner, 2010). Political factors are dynamics on how the government decisions impact the business and the economy. Economic factors include exchange rates, inflation and interest rates and influence an organization’s ability to perform successfully. The social factors reflect shared attitudes and beliefs of a population (Armstrong, et al., 2014). Among these factors, Ford should consider changing health attitudes, age distribution and careers among others. The technological factors affect how Ford operates in terms of methods of communication, investment and efficiencies. The legal and environmental factors are focus on operation within the law and sustainability issues respectively (Armstrong, et al., 2014). PESTLE Analysis can be used by Ford Motor Company to assess the impact of its ability to thrive and operate.

Porters Five Forces Model

The Porters Five Forces involves five forces that determine the competitive influence of an organization in the market. These include the supplier bargaining power, customer bargaining power, producers of substitute products, and threats of new entrants (Cadle, Paul & Turner, 2010). Ford Motor Company can use this analysis method to assess the intensity of competition in the market and helps in the strategic thinking on the best way to match a business strategy.

Impact of Resources on Management Analysis

Organization resources involve raw materials, human, monetary and capital. Human resources carry out a management analysis. Their knowledge, skills and expertise will determine the quality of the management analysis (Armstrong, et al., 2014). Financial resources will influence the whether or not an organization can carry out an analysis as well as the quality of the analysis. Organizations with insufficient financial and human resources may not be able to undertake a management analysis.

Role of Value Chain Analysis in Planning

Value chain analysis plays an important role in the planning process of an organization. The technique recognizes the most valuable activities to an organization as well as those that can be improved to ensure a competitive advantage (Armstrong, et al., 2014). The planning of an organization’s future can be achieved as the technique not only identifies goal related tasks but also prioritizes them by completing those deemed important first.

Improvement Methods for Auditing Organizational Performance

An internal analysis involves the examination of the competitive viability, competency and cost position of the market place (Schermerhorn, 2011). The analysis determines the level of competency and strength. It determines whether an organization has updated technology, competent staff and resources to become competitive. Organizational weaknesses can also be identified and the strategic plan revised to overcome failed goals and eliminate weaknesses (Cadle, Paul & Turner, 2010). The internal evaluation can further help the business to deter threats, take advantage of business strengths and capitalize on opportunities.

Capabilities assessment profile involves analyzing the capabilities of an organization and has two phases. These include identification of distinctive capabilities and their development (Cadle, Paul & Turner, 2010). One of the steps of the assessment profile involves identification of distinctive capabilities. Ford has a strong dealership network that provides it with a great competitive advantage. Global market expansion, product development, the growing auto market and increased levels of e-commerce are some of the capabilities of Ford. Hence, Ford Motor company can capitalize on its capabilities to have even a greater market share in the motor vehicle company.

In conclusion, the analysis provided a great insight into the strategic plan of an organization. The evaluation provides valuable information such as impediments, pricing policies, cost structure, financial ratio, competency of staff and competitive advantage that can help in improving the strategic plan. In addition, the analyses help in the development of tactics used in achieving strategic objectives in the most effective and efficient manner.

References

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Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of Marketing VS. Sydney: Pearson Education Australia.

Cadle, J., Paul, D., & Turner, P. (2010). Business analysis techniques: 72 essential tools for success. London: British Computer Society.

Schermerhorn, J. R. (2011). Exploring management. Hoboken, N.J: Wiley.

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