Ford Motor Company and Honda Motor Corporation
La Sharon Johnson
MGT/680 – Strategic Management
March 4, 2012
In this current growing environment of technology and continuous development large corporations are facing difficulties. In this paper, I will discuss both Ford Motor Company and Honda Motor Corporation which are considered as two large multinationals and the way they maintain themselves on the floating line.
The purpose of this paper is to develop the fundamentals of tactical plans by creating SWOT analyses and by proposing strategies for these two multinationals Ford and Honda. The research areas that will be explored are as follow: ...view middle of the document...
Partners are most commonly dissatisfied when they do not get paid or if the companies are not true to their word and/or promise. However, banks have the power to freeze funds or file a lawsuit if the companies do not pay their loan(s). Due to the fact that large companies are always in need of money it is important for them to keep a good relationship with the bank(s). Lastly, if the government finds that the company’s pollution levels are above allowed level they can file a lawsuit as well.
Fords economic environment consist of generated income, market strategies, international regulations, relationship with their clients and providers as well as other aspects of economic nature. Since Ford is a multinational company they have to be extremely careful when operating businesses in other countries because foreign countries are subjected to different regulations. According to (Saporito, 2010) Ford’s has had a corporate turnaround by increasing profits and sales in 2010 compared to 2009 when they loss business. Honda’s has also seen increase in profits of 16.5% in 2010 compared to the fiscal year in 2009. The company’s social environments are extended because both of them have over 150,000 employees which is why they must be very careful when developing and implementing employment policies.
Management Structures, Potential Change Factors, and Performance Projections
Ford Motor company important people are as follow: Bill Ford Jr. is the chairman, Allan Mulally is the president, director and CEO and Lewis Booth is the EVP and CFO. The remaining people are in a well established hierarchical structure beneath them. Honda structure is much different than that of Ford; Honda has numerous key executives while Koichi Kondo serves as chairman. Honda is also more diverse than Ford in that they have more individuals in key positions within the management structure. The potential change factors can be referred to as the companies having to change strategies to address the fuel alternatives for their cars since the earth’s fuel supplies are depleting fast which is why they must modify their strategies and performance projections in regards to these environmental factors. (Bonini and Kaas, 2010), states that Ford hopes are to become leaders in applying technology that makes life better within the next five years and to be recognized for that by the consumer.
External and Social Challenges, Current Production Facilities and Distribution Channels
The most significant external challenges faced by both of these companies are their positions as important big player’s role in the automobile industry. They both rank within the top 100 largest companies in the world with Ford Motor being 25th and Honda Motor being 45th. Unfortunately, Volkswagen (13th), General Motors (20th), Nissan (48th) and Hyundai (55th) which are their competitors also ranked within the top 100 largest corporations of the world in 2010.
Since both Ford and Honda distribute products...