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Strategic Planning Case: Ford Motor & Toyota Motors

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You are to develop the fundamentals of strategic plans for the Ford Motor Company and the Toyota Motor Corporation, two giants of the automobile industry. You are to develop SWOT analyses and propose strategies for the two multinational enterprises. In doing so, it will be necessary to research, analyze, and compare both firms to understand better their current position and future plans to increase competitive advantage. Common problems facing each auto giant today are the current economy; the competition of the other auto firms; and the demand for a lower cost, more ecologically friendly, alternative fuel vehicles.

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Solution Summary

This solution gives 1090 words to start the reader on an external and internal factor analysis including strengths, weaknesses, distribution, manufacturing, threats etc. The sources used are also included in the solution.

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Legal, Social and Economic Environments
Ford: The company faces strong European Union vehicle regulations. Further there is economic weakness in the US markets and Europe.
Toyota: There are tight emission standards. The Japanese Yen is appreciating against the US Dollar.

Management Structure
Ford: Functional Organization.
Toyota: Combination of functional and geographic organization.

Operational & Financial Issues
Ford: Weak designs. Declining operating efficiency. Product recalls.
Toyota: Large scale production leads to mismatch between production and demand. Toyota net profits for the year 2012 have declined.

Analysis of Strategic Intent
Ford: The strategic intent is to increase its presence in emerging economies. It also intends to increase its presence in hybrid models and dual fuel vehicles.
Toyota: Toyota has a strategic intent of developing hybrid technology. In addition, it has adopted the strategy of targeting the youth market.

Social and External Challenges
Ford: Increase in usage of public transport. Competition from international manufacturers.
Toyota: Toyota faces these challenges because of vehicle recalls. There is also the problem of a large number of new entrants.

Current Manufacturing
Ford: Production problems because of labor unrest.
Toyota: High fixed costs of labor and the need to have high manufacturing volumes.

Facilities & Distribution System
Ford: Has good distribution facilities in the US and Europe. However, weak distribution in emerging economies.
Toyota: Facilities located mainly in the US and Japan whereas competitors have better located distribution networks.

Market Demand & Demographics
Ford: Targets a wide range of segments. Targets youth segment through Motorsport sponsorship.
Toyota: Perceived in the market as a ...

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