Ford Motor Company Strategic Audit
The purpose of this paper is to give a brief detail of the strategic audit of Ford Motor Company. The method of research used was Internet research by topic. In addition to the class textbook audit example used, other written references in the area of Ford Motor Company were used, in order to develop the subject more in detail. This topic was selected among a series of topics of general interest in the area of strategic audit for a corporation, as a class requisite. The different aspects of development and research studies findings are discussed in detail or briefly. The subject of â€œStrategic Audit of a Corporationâ€ is what this paper is ...view middle of the document...
"Ford Motor Company's objective is to deliver a total return to shareholders in the top quartile of the S&P 500 over timeâ€. The company will meet this goal by the transformation into the world's leading consumer company for automotive products and services which make attractive dividend yield and growth in their share price (Ford Motor Company increases fourth-quarter dividend by nine percent).
Over time, Ford business strategy has responded to the challenges of the motor industry. The corporate culture of Ford management is establishing strategic business units that complement the company's global scale and structure. They have being able to meet the challenges in the motor industry through the implementation of different strategies that trace the critical path throughout the complexity of the business.
These strategies include the fallowing areas;
â€¢ Information Technology â€“ This technology is a critical and competitive differentiator for Ford (Career Programs).
â€¢ Climate Change â€“ Ford is pursuing a three-pronged strategy as they see potential for innovative business opportunities in solving them (Ford Issues Climate Change Report).
â€¢ Consumer-Focused Organization â€“ Ford is establishing strategic business units to more closely target consumersâ€™ need and react quickly to changing in market conditions (Consumer-Focused Organization).
For Ford their main strategy is to â€œaggressively restructuring to operate profitably at the current demand and changing mix, accelerating development of new products customers want and value, financing its plan and improving its balance sheet, and working together effectively as a global teamâ€ (About the Company), by accomplishing this, they are able to meet the challenges of their competitors.
The policies in the Standard of Business Conduct are the basis for Ford Motor Company. These policy letters â€œestablish a framework of broad, basic principles within which the Company conducts its business globallyâ€ (Policy Letters and Directives). In addition to policy letters and Directives, numerous descriptions of business practices, handbooks and statements of business standards govern the conduct of employees globally (Policy Letters and Directives).
Ford Motor Companyâ€™s governance establishes accountability for performance to include integrating actions to support the ethical conduct of business. The Board of Directorâ€™s consists of fifteen members that are dedicated to serving the interests of their shareholders. The members are William Clay Ford Jr., Allan R. Mulally, Lewis Booth, Stephen G. Butler, Kimberly A. Casiano, Edsel B. Ford II, Irvine O. Hockaday Jr., Richard A. Manoogian, Ellen R. Marram, Homer A. Neal, Michael Bannister, Gerald L. Shaheen, John L. Thornton, Robert Graziano, and William Clay Ford Sr. The board members are mainly external except for William Clay Ford Jr. which serves as the Executive Chairman, Allan R. Mulally which serves as Fordâ€™s President and Chief...