丰田汽车公司主要从事汽车和金融服务。福特汽车似乎是丰田汽车的竞争对手。丰田汽车公司正在努力实现地理分散，而福特汽车的分化后的压力。然而，如果财务分析是要让它来知道，丰田汽车公司有它的收入超过福特汽车，但这种更高的收入离开丰田汽车公司略有利润。 Marketing Essay 代写： Indentification Of Toyota Ford Motors
公司和治理道德也被认为是丰田汽车使用长期计划和执行，以维持长期与利益相关者和客户的关系。丰田汽车是有意识的客户感知和客户满 Marketing Essay 代写： Indentification Of Toyota Ford Motors意度。丰田汽车品牌适用于每一级。福特汽车在豪华品牌上的执行。现在，如果我们考虑的道德和环境的社会责任，我们知道，丰田汽车和福特汽车都很有意识的道德和社会和环境责任。 Marketing Essay 代写： Indentification Of Toyota Ford Motors
Toyota Motors Company is primarily engaged in automobile and financial services. Ford Motors is seemed to be the competitor of Toyota Motors. Toyota Motors Company is making its best strive to achieve geographical dispersion and while Ford Motors stress upon the differentiation. However if financial analysis is to be made it come to know that Toyota Motors Company has its revenue more than Ford Motors but this higher revenue leaves the Toyota Motors Company with slight margins.
Corporate and governance ethics are also considered .Toyota Motors is using long term plans and enforcing to maintain long term relationships with stakeholders and customers. Toyota Motors is well conscious for customer perceptions and customer satisfaction. Toyota Motors Brand is suitable for each level of class. Ford Motors enforce on luxury brands. Now if we consider the ethics and environmental social responsibility we come to know that both Toyota Motors and Ford Motors are well conscious about ethics and social and environmental responsibility.
INDENTIFICATION OF TOYOTA & FORD MOTORS:
Toyota Motors Corporation is mainly engaged in the automobile and financial services. Toyota has deep roots in the Japan that is registered on stock exchange of New York. There are three main business sections in which it has divided its business. The first one is manufacturing, trading of cars, and trucks and minivans. The business segment of automobile comprises the complete design engineering technologies along with that of wide rang of related accessories. Financial business operations of industry are conducted through various modes like bank loan and leasing services. The other sections are designing and construction of real estate services as well as various information and communications services. (New York Stock Exchange, 2011).
Toyota management mission is to exploit the whole aspect and related business industries related to automobile industry in order to enhance its market sustainability. Diversified industries involvement is producing the Toyota group economic and non-economic benefit that is why company selects to conduct business in more than only automobile.
On the other hand Ford Motors more than hundred years old company, that has about 0.2 million employees, 90 manufacturing plants working across six continents founded by Henry Ford (Ford Motors, 2009), Ford Motors manufactures and delivers automobile and financial services. Ford achieved its major objectives like cost reduction actions over the previous four years to substantially rebuild its business. This includes personnel levels, the solution for the settlement of the United Auto Workers retiree health care Voluntary Employee Beneficiary Association Contact. Ford also obtained capital and liquidity ahead in the financial market crises, which helped the Ford to maintain its investments in new products during a difficult economic period.
Craven et al (2009) discuss that it is necessary that companies should consider the customer’s needs and wants from customer’s point of view rather to apply its own perception on customers. (Cravens & Piercy, 2009). Toyota successful market strategy takes into account the customer perceptions in the local geographical sections and provide services them accordingly. Toyota consider the income group, business customer and consumers while emulating its campaigns. Company provides differentiation strategy in its innovative models to satisfy customers. Company is continuously plan and implement that how to reduce the prices to make its product affordable to customers (Toyota Automobile Corporations, 2010).
Substitutes of Toyota
Toyota is careful for the threats of substitute products due to continuously increase in fuel costs. Manufacturers of electric cars discuss that electric cars would serve the same level of engine power as is executing by the diesel cars. Therefore, Toyota is making its struggle to manufacture the hybrid cars that will switch from petrol or diesel to electric power in 2015 (Business Car magazine , 2010)
Implications of Strategic Space Theory
Automakers size is determined on geographical dispersion and its differentiation strategy at global level. BMW competes based on luxury models whereas Toyota competes by considering both strategies having enlarged rectangle on both side. On the other hand Ford struggle mainly on differentiation and less on cost whereas Honda competes on smaller proportion of both. Ford stress on the development and wide availability of vehicle that provide the buyers the best opportunity to choose the brand that is fuel economy in each market.
In North America, Ford has gained immense market share because of the following specification:
Fuel -efficient cars
Convenience and safety
Ford model like Ford Fusion, Fusion Hybrid, Lincoln MKZ, Mercury Milan and Milan Hybrid that are introduced in 2009 attracted the great market . The only reason was that fuel economy, 1-4 and v-6 engines compared to other previous models.
In Europe and Asia, Ford’s new global small car, Fiesta brought latest Power Shift-speed automatic transmission using two internal clutches and six suitable-spaced gears to remain the 1.6 liter 1-4 engine in its most excellent operating range. In Europe, Ford marketed high performance Focus RS. This was new to C-Max and Grand C-Max family vehicles. On the other side Figs was revealed in India to bring a new class of buyers into the Ford brand. By considering the Ford brand it has maximum sales chart for middle class society.
By following table it is easy to understand that that Toyota has its revenues more than Ford Motors Co. Financial strategy of Toyota Motors Corp. is to Total quality management event it has to face little gross margin. On the other hand Ford Motors has inverse situation.
Direct Competitor Comparison 2010
General Motors Company
Toyota Motor Corp.
Ford Motor Co.
CORPORATE GOVERNANCE AND ETHICS
Toyota corporate governance is as follows:
Fundamental Policy of Toyota Motors
TMC has established the stable long range progress of corporate values like top priority issues of management. TMC is achieving long-term and stable progress through establishing good relationships with all shareholder, including customers, business partners, local community, employees and to supply the goods that will satisfy its customers. This policy is considered as ” Guiding Principles at Toyota “, TMC has also considered the CSR policy that is Contribution towards Sustainable Development. Toyota management is working to increase corporate governance through a number of measures designed to further boost up competitiveness like a company that is indentified as global. (Toyota Motors Company, 2011)
Fundamental Policy of Ford Motors
Ford Motors has established the stable and valuable long range progress of corporate values like top priority issues of management. Ford Motors is going to achieve long-term and excellent success through establishing prime relationships with all shareholder, including customers, business partners, local community, employees and to supply the goods that will benefit its customers. This policy is deemed to be as ” Guiding Principles at Ford Motors. Ford Motors has also established the CSR policy that is Contribution towards Sustainable Development. Ford Motors management is working actively to increase corporate governance through a number of measures designed to further increase competitiveness like a company that is indentified as global.
ETHICS ISSUES OF TOYOTA MOTORS AND FORD MOTORS
Ford Motors Company’s aim is to enjoy leading role in the world of automotive industry, it mission to forecast needs of customers and use them accordingly. Ford intends to maximize shareholder value by taking into account the environmental regulatory compliance, and health of consumers (ManonaMission, 2011). The team of company is encouraged by its goals, plans, mission and vision, cultural values, financial strength and growth. Ford management is making efforts towards spreading its customers base through with innovative and fuel efficient cars. Ford Motors head quartered in US; major operations are situated in US, Canada, Brazil, and Mexico. Its overall operations are performed in six continents, that have about 0.2 million employees, ninety plants, potential brands include Volvo, Mercury, Ford, Lincoln (Ford Motors, 2009)
Henry Ford had given birth to Ford motors with his great view, and with help of eleven shareholders’ contribution amounting to $28000 in 1903 (The Great Idea, 2004).
Ford has stressed the idea of “Assembly Line manufacturing” in which workers operated routine operations at same place, which proved impressively efficient. Then Ford’s expansion period started, it acquired Lincoln motor company to stimulate luxury cars, and invented Mercury brand for moderately priced cars. Ford motors continued to develop operations towards local and international markets by delivering Henry’s heritage of development innovated and improved products. However after First World War, Ford faced financial stringency; major banks introduced interest to help it but were refused. Meanwhile, Ford earned more than twenty million through automobile dealership. Further, it purchased Detroit, Ironton railroad to assist supplies transportation (Funding, 2011).
T-Model brand is a competitive edge for company over a long period, which weakened by Chevrolet brand of General Motors. Ford was the pioneer of giving facilities to employees limiting working days to five in week, eight hours shift, and raising wage rate to $5 per day, which improved overall productivity. Henry Ford revolutionized the growth by establishing British Ford, German Ford, and approached to Soviet Union markets.
Economic crisis of 1929 severely stroked to company growth and profitability, its wise management sharply addressed the situation by reducing work force and business operations but guaranteed its survival. Afterwards, Ford had to face heavy losses gave rise by banking industry crisis.
Ford strongly condemned the American participation in World War II; he declined its support to government agencies but changed it view in the influence of public opinion. During war, company’s main objective was to construct ‘Willow Run Aircraft Plant’, which proved the largest manufacturing capacity in world. Death of Edsel Ford, deprived the company from great leadership, Henry II meted the deficiency of his predecessor and brought back the company towards the path of success through his commitment, enthusiasm, and innovative ideas, Ford faced tough challenges in past which strengthened the base to encounter the future tests of modern era (Funding, 2011).
The Challenges and highly Competencies
Continuous challenge in the automobile industry is to capture the design engineering with changing needs of environment and accommodating it appropriately in the new model,Quality System 9000 is developed by Chrysler, General Motor, and Ford in order to eliminate redundancies in manufacturing processes; improving quality, reliability, and management accountability (Happian-Smith, 2001). It is argued that automakers do not consider the customers’ needs and expectations rather they mountain sales campaign through discounts and complex promotion patterns which yield only short term results and affect profits as well . In original equipment manufacturing, the prime concern is the customer relationship management
GLOBLIZGAION OF GREEN LIFE STYLE
There is need in adoption of green life style, energy preservation that not only leads to green operations but also to cost saving. Specific literature dimensions should throw light on ways to produce green brands, motivators for companies to make green brands, stimulus for customers to demand green brands. Innovative literature spectrum lines should set standards for green operations along with the establishment of internationalization of green operations. Internationalization intends to global marketing of greening, this further includes the global level regulatory body with fund management in order to execute its mission. Such body should strive to beware the consumers of third world countries in fulfilling their duties regarding resource preservation and environmental protection. Globalization of greening can be boosted by eco-friendly advertisements as done by European countries and other advanced countries. Eco-friendly ad campaign should be mounted in the developing countries to beware customer of those countries in order to establish channels of green filed operations. Actually, greening campaign is being conducted in the developed countries that are harming not only environments of developing countries but to disturb overall globe balance. Therefore, developed economies.
PENALITIES AND TAXES MATTERS
Environmental friendly practices and ecological modernization can attract the foreign direct investment that in turn leads to economic development and growth. Government regulations can act as price mechanism to regulate the green field operations. It can exhibit as opportunities as well as threats for the companies and can act positively or negatively towards the foreign direct investment. Government regulatory policies can stimulate the greening (Welford et al., 2006); it can impose additional taxes and penalties for non-green brands and can give tax incentives for green brands. Government can initiate inter or intra nations agreements to produce the supportive infrastructure along with technology tools to enhance the greening. Other government related consist upon the training and development opportunities in the field and academic educational activities
The Importance of Green Operations in Modern Corporate Environment
Companies are using the environmental protective policies in their overall strategy in order to widen their competitive edge in the global arena. Customer awareness is acting as potential driver for companies to use the eco-friendly practices in their business strategy. A potential group of customer is considering analysis of overall supply-chain management of companies with the view to investigate whether it is eco-friendly or not. Environmental consciousness of customers is increasing; therefore they are laying emphasis on green brands. Such class of customer is considering the quality rather quantity while making buying patterns. Some organizations are ethics observers to consider the corporate social responsibility whereas some consider the greening in order to attract the audience attention being the green brand.
Companies intend to accommodate the corporate social responsibility in the overall corporate environmentalism. Successful companies are considering the adoption of proactive approach by anticipating the future corporate social responsibility demands to enhance their competitive edge by building up brand loyalty.
Companies are forecasting to market their brand in terms of environmental marketing; it is growing challenge for them how they exploit this aspect of corporate social responsibility for marketing their brand. Researchers are trying to analyze the consequences of environmental marketing by changing cultural backgrounds (Ozanne & LeCren, 2011)
AUTOMOBILE INDUSTRY ANALYSIS
US Government Fiscal Policy has a far-reaching effect on public spending; government can encourage the consumption of certain products by reducing tax on it, vice versa, government can deter the sale of certain harmful item or luxury expensive brand of car by raising tax on it. Similarly, it has direct impact on corporate spending profitability.
Automakers focus is attracted or diverted by industrial policy, grants, or business ancillary policies.
Ford operating countries governments’ Monetary Policy has influential impact on its ability of funds management and debt servicing.
Exchange rate and international trade have dramatic effect on importer and decision-making.
Automobile industry regulation and deregulation have increased consequences on automakers. Competitive factors give rise to merger, acquisition, and takeovers.
Local ethical culture prevailing in business environment in which Ford operates.
People attitude towards academic education, training, and development would affect on Ford’s management ability to hire and train qualified people.
Environmental Regulations have direct impact on automakers. Crucial challenge for automakers is to comply with the environment regulations. Consumers are expecting active support of automakers in environment-friendly policies.
THE ECONOMIC POWERS
Economic Cycle has direct repercussion on consumer spending; likewise, recession adversely affects people income level and spending in luxuries and even in necessities of life as well; as happened in 2008 global recession. Now automakers are targeting the coming boom and consequently the opportunities thereto.
Level of Employment is severely disturbed by recession, it gives rise to low demand product and cheap labor force.
Inflation Rate has positive aspect of boosting demand of goods and services, employment level as well; vice versa, it eats away profits when product price is low as compared to input costs of product.
Real estate and stock exchange markets influence consumer confidence level and consequently spending level.
Economic Development proportionately influenced by supportive infrastructure of country in which Ford operates. Demand varies from emerging economies and matured economies accordingly.
SOCIAL ISSUES & RESPONSIBILITY
Population growth rate is more in developing countries than in developed countries. This factor is contributory to automakers’ decision making, which implies that Ford has many opportunities in Asian and American developing markets.
Age composition is entirely different in East and West. Western countries are facing the trouble of increased average rate of aged population, whereas underdeveloped countries have majority of younger population. Age structure of population has implication such as saving and investment proportions, working and non-working class among population.
Migration trend are also indicator of people’s attitude. People usually migrate from rural to urban areas locally and internationally. Labour market is highly mobile in matured European markets. Marketing strategy of automakers accounts for population density in urban areas.
Miscellaneous Social and Cultural variables. People’s level of investing in new ventures vary from region to region, few class of people feel enthusiasm by taking risky decision making while others have vice versa attitude. People working and leisure habits influence labour market. Women proportion in work force is low in some Asian countries.
INROMATION TECHNOLOGY AND RELATED ISSUES
Competitors’ spending in latest technological equipment should be checked by Ford. As if Ford lacks in some technology, it can lose competitive strength.
New technology gives rise to the new avenues of global markets.
Manufacturing Process. Ford can only sustain its competitive advantage by continuous improvement in new and improved means of production.
Solar Cars Technology. Through innovation of solar-electric cars, Ford can boost its market penetrations.
USING BROADBAND DATA
Rapid access to internet broad banding (high-speed connectivity) has changed the life style of people. During strategy formulation, automakers should visualize the future of broadband and data access. Analysis of Ford
Objective and Goals
Now we are going to conduct the analysis of Ford motor, which helps in maximizing the efficiency and allocation of resources to gain sustainable competitive advantage over competitors. Components are as follows.
Overall view based on Resource
It includes analysis of resources to gain competitive advantage to Ford over customers. It implies that, what Ford motors can do the others cannot do. The techniques including are VRIO analysis, core competencies analysis (as described above).
It implies the optimum allocation of resources towards competitive edge which is based on value chain add chain analysis, value system analysis.
This approach is more useful and relevant to Ford. It covers financial and human resources.
Resource Based View:
Strategic planning process seeks to enforce policies that maximize the profitability, competitive strength, and sustainability. Businesses strive to invent unique resources to enhance their market share. Following techniques are used invent resources to ensure competitiveness.
VRIO analysis is a systematic approach to analyze that whether Organization is exploring its resources for competitive strength that are valuable, rare, and imitable.
The Ford’s resources including its cost management policy, which enables it lowering down the costs, F-series differentiation products, allow it to charge prices higher than competitors, its human empower it towards market penetration are the valuable ones.
Differentiation policy of Ford is rare that competitor cannot produce or replicate. It is valuable resource that is unavailable to competitor thus is rare.
Ford competitive factors should be long lasting that competitor cannot copy. Robust brand perception establishment and expensive resources required to sustain imitable competitive edge.
This implies that Ford should be able to exploit its Valuable, Rare, and Imitable to sustain competitive edge, which may require reorganization of business operations.
Configuration of Resources:
Uniqueness of resources is not the ultimatum but configuration of resources also does matter. The configuration and utilization of resources amounts to competitive strengths as described below.
Values add Analysis:
Value addition described as earning before interest and tax (EBIT); it is related to profitability. Values add analysis would help the Ford in improving weak area of business, which require little addition to improve. If Ford is suffering losses in some business segments for example product delivery, design engineering, tyres, computer technology etc it can be outsourced that operation on profitable terms.
The Value Chain:
It allows business to gain sustainable competitive advantage by performing overall operations at low cost than competitors and charge premium prices form customers by delivering goods and services in unique ways. Value chain analysis consist of five primary and four support activities , primary activities are explained with respect to Ford as below.
Inbound Logistics is the Ford’s raw material acquisition for automobile parts, other related services from suppliers and delivering to operations centre.
Operations are the finished cars manufacturing, producing services; production may consist of series of steps, it also includes make or buy decisions of automobile parts.
Inbound Logistics covers order execution, finished car warehousing; delivering cars to customers, delivery may be self-served or outsourced.
Marketing accommodates market analysis, market research, and development, pricing plans.
Services is the after sale services.
Following are support activities, which assist the primary activities.
Ford’s Infrastructure includes general administration, accounting department, planning and control, and other facilities.
Human Resource Department of Ford includes recruitment, labour union relation, development and training, and pay rates.
Technology development is the primary activity among Ford’s operations like design engineering technology, manufacturing processes technology, innovative models of F-series.
Procurement functions also include in primary activities. These include raw material and parts purchasing functions, office equipment and others.
VALUE CHAIN ANALYSIS APPLICATION
Foremost advantage of value chain analysis is to trace inconsistencies among strategy. If Ford is competing on low cost basis then every step of chain analysis should lead to low cost strategy. For example, online procurement system of cars has reduced the cost of commission agents. Customers make selection of model and place an order through website of Ford.
Value chain analysis of Ford supports the just in time manufacturing to reduce the inventory cost and update itself according to changing needs.
It helps in deciding whether to buy or make a part of automobiles, which one is better.
Resource audit is conducted in connection with value chain analysis. To sustain competitive advantage, Ford has to make effective utilization of operational, human, financial and organizational resources. Resource audit is made of following Ford’s resources:
Utilization of resources
Effectiveness and efficiency of operations
Raw material, finished goods inventory level
Quality of services
Market research and development
In fiscal year 2010, Toyota has to face very tuff business conditions like that company initially forecast operating losses. But Toyota achieved profitability on a consolidated basis. Toyota is making very hard struggle to quickly achieve their trusts on customers. Toyota is ensuring a system that will boost up awareness and facilities to the customers. Toyota Motors emphasize on Geographical dispersion .
Ford Motors expects 70 percent growth in the following next 10 years to introduce itself in Asia Pacific and Africa region. These regions includes markets on three continents that includes Australia , China, South Africa, India and Thailand. The volume of sales in the region increased from 24.5 million units in the year 2009 and further 30.7 million units in 2010. In India and in the rest of the world Ford Motors is simplifying the way the work with suppliers by minimizing complexity and widening parts easily available. In 2014 the minimum 80 percent of the vehicles sold under the Ford Brand internationally. Ford is expecting 70 percent of its growth in the next 10 years to come from its Asian regions.