BA 490 Business Policy And Strategy: Strategic Audit

Ba 490 Business Policy And Strategystrategic Auditthe Strategic Audit

The strategic audit system is a diagnostic tool to pinpoint an organization’s strengths and weaknesses. Use the Strategic Analysis Framework and other tools in order to conduct a strategic audit. You might consider using a SWOT analysis for both companies to analyze each of their situations. For this assignment, a mini strategic audit will be conducted for two companies with an overall goal to compare how each company differs in the strategy management and implementation, while identifying the importance of strategic management.

Conduct a Strategic Audit on two companies of your choice that are within the same industry. During this audit, you will be comparing each company; to do so, be sure to create a SWOT analysis for each company. In addition, visit each company’s website and conduct research to identify key strategies that each company has.

List a brief introduction of each company, including the Mission Statement and compare key aspects of each company. Be sure to include the concepts identified in the readings for this week's topics.

Paper For Above instruction

Introduction

The automotive industry is characterized by rapid technological innovation, fierce competition, and high consumer demand for sustainability and safety. For this strategic audit, I selected Ford Motor Company and General Motors (GM), two leading automobile manufacturers operating within the North American market. Both companies have storied histories and have significantly shaped the industry through innovation and strategic initiatives.

Ford Motor Company, founded in 1903, has a mission to "build a better world, where every person is free to move and pursue their dreams." This mission underscores its commitment to innovation, sustainability, and customer satisfaction (Ford, 2023). General Motors, established in 1908, aims to "earn customers for life" by delivering quality vehicles and sustainable mobility solutions, emphasizing its focus on technological advancement and environmental responsibility (GM, 2023).

SWOT Analyses

Ford Motor Company

Strengths: Strong global brand recognition, extensive product portfolio including electric vehicles (EVs), and a solid distribution network. Ford’s investment in innovation, particularly through its Mustang Mach-E and F-150 Lightning EV models, positions it well for a sustainable future.

Weaknesses: High dependence on North American markets, recent recall issues impacting brand reputation, and supply chain disruptions affecting production continuity.

Opportunities: Expanding EV market, strategic alliances such as Rivian partnership, and investments in autonomous vehicle technology.

Threats: Intense competition from Tesla and traditional automakers, regulatory challenges related to emissions and safety standards, and global economic uncertainties impacting sales.

General Motors

Strengths: Wide-ranging vehicle offerings, substantial R&D investment especially in EV and autonomous vehicle technologies, and a strong presence in North America and China.

Weaknesses: Perception issues related to past quality concerns, high operational costs, and limited brand diversity in certain segments.

Opportunities: Expansion of electric vehicle models (Bolt EV, Cadillac Lyriq), development of autonomous vehicles through Cruise, and growth in emerging markets.

Threats: Increasing regulatory pressures on emissions, rising raw material costs, and competitive landscape with Tesla and other tech-driven automakers.

Analysis of Key Strategies

Both Ford and GM have prioritized electric vehicle development, autonomous driving technology, and global expansion as core strategic initiatives. Ford’s emphasis on electrification reflects its recent significant investments in EV manufacturing plants and partnerships to accelerate its shift towards sustainable transportation. Similarly, GM’s strategy focuses on becoming an all-electric future with plans to phase out internal combustion engines and invest heavily in autonomous vehicle platforms, notably through its Cruise subsidiary.

Furthermore, both companies leverage technological innovation to stay ahead in a competitive landscape. Ford’s Ford+ plan emphasizes customer experience and digital transformation, while GM’s focus on Mobility as a Service (MaaS) aims to redefine mobility solutions for urban markets. Both companies are responding to regulatory changes concerning emissions and safety, aligning their strategies to meet stringent standards and capitalize on emerging market opportunities.

Comparison of Strategic Management and Implementation

Ford demonstrates a proactive approach through its aggressive electrification strategy, aligning product innovation with sustainability goals. Its investments in battery technology and charging infrastructure reflect a strategic focus on capitalizing on the booming EV market. Ford’s strategic management emphasizes agility and innovation, characterized by accelerated product launches and strategic alliances.

GM, on the other hand, emphasizes a comprehensive transformation into an electric and autonomous vehicle leader. Its strategy involves a shift from traditional manufacturing to a technology-driven enterprise, partnering with tech firms like Cruise and investing in software development. GM’s implementation strategy is characterized by substantial capital expenditure and restructuring efforts aimed at hastening its transition to a zero-emission fleet.

Both companies showcase the importance of aligning strategy with broader industry trends. Ford’s focus on brand heritage combined with innovation contrasts with GM’s technological transformation and venture into new mobility services. Their strategic management approaches reflect different paths to similar goals—sustainability, innovation, and market leadership.

Conclusion

This strategic audit highlights how Ford and GM, although operating within the same industry, employ distinct strategic management processes tailored to their core strengths and market positions. Ford’s emphasis on product innovation, especially in electric vehicles, underscores its commitment to sustainability and customer experience. Conversely, GM’s strategic shift towards autonomous and electric vehicles, backed by substantial investments in technology and partnerships, signals a transformation into a mobility-centric business.

Both companies recognize the importance of innovation and strategic agility in maintaining competitiveness amid ongoing industry disruptions. Their strategic directions demonstrate that successful management involves not only identifying strengths and weaknesses but also proactively capitalizing on opportunities while mitigating threats, emphasizing the significance of strategic management for sustaining long-term growth and profitability.

References

  • Ford. (2023). About Ford. https://www.ford.com/about/
  • General Motors. (2023). Our Mission. https://www.gm.com/our-company/
  • Schmidt, M. (2022). Automotive Industry Trends and Strategies. Journal of Business Strategies, 35(2), 45-67.
  • Johnson, G., Scholes, K., & Whittington, R. (2020). Exploring Corporate Strategy. Pearson.
  • Lee, H., & Lee, S. (2021). Electric Vehicle Market Dynamics and Strategic Responses. International Journal of Automotive Technology, 22(4), 123-135.
  • Evans, P., & Thomas, D. (2022). Autonomous Vehicles and Strategic Transformation. Strategic Management Journal, 43(5), 789-808.
  • U.S. Department of Energy. (2023). Electric Vehicle Trends. https://www.energy.gov/eere/vehicles/electric-vehicles
  • Automotive News. (2023). Ford and GM Accelerate EV Deployment. https://www.autonews.com/
  • Chen, L., & Park, J. (2020). Strategic Alliances in the Automotive Sector. Journal of Business Research, 112, 144-156.
  • Feldman, B. (2021). The Evolution of Automotive Industry Strategies. Business Strategy Review, 32(3), 56-65.

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