Unit 4 DB - Overview When working in the area of strategic management, you will often be asked to look at what appears to be a strategic initiative on the part of another company and speculate as to what the strategy behind the initiative really is. In other words, what is the company really trying to do and why? You will find that you have to use your knowledge of business and strategic management to penetrate the rhetoric and determine what is really behind it. 1

Unit 4 DB - Questions Explore the GM website: Characterize GM’s commitment to the environment? Do you think this commitment will offset the environmental issues with fuel economy and greenhouse gas emissions? Provide support for your opinion. What are GM’s real strategic reasons for these environmental initiatives? Friendly Reminders –Please note: you must answer and support via outside reliable sources and be sure to cite all references in APA format. 2

What Are Some Things We Might Want To Look Into Before We Make Any Decision? 3

Unit 4 IP - Overview You are to develop the fundamentals of strategic plans for the Ford Motor Company and the Honda 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 better understand 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 vehicle. 4

Unit 4 IP - Overview legal, social, and economic environments management structure operational and financial issues impact of potential change factors an analysis of strategic intent future performance projections for at least five years social and external challenges current manufacturing facilities and distribution systems market demand and demographics alternative fuels and propulsion systems 5

Unit 4 IP – Additional Overview We can often better see ourselves when reflected through the perspectives of others. In this exercise you are to take the advantage point of the industry leaders, Ford and Honda. This has the advantage of helping to anticipate competitive positioning that may effect the successful execution strategy. 6

Unit 4 IP - Tasks Based on the narrative of the two companies, their competitors, and additional overview of the situation, please answer the following questions on the next slide from the perspective of being their Director of Strategic Planning and Analysis. For real world situations always keep in mind that the status and plans of competitors can almost never be known except through an analysis of their actions, and even then almost never with certainty. Dealing with imperfect information is one of the essential aspects of the economic problem. 7

Unit 4 IP - Tasks Take the perspective of Ford's Director of Strategic Planning to develop a full SWOT analysis of Ford –Identifying and explaining at least five factors for each category (strengths, weaknesses, opportunities and threats) –Propose a complete strategy which addresses one of Ford’s weaknesses and what you would do about it Implementation Ramification (Pros and Cons) Feedback Mechanism Remember to support your work with outside supporting sources. 8

Unit 4 IP - Tasks Take the perspective of Honda's Director of Strategic Planning to develop a full SWOT analysis of Honda –Identifying and explaining at least five factors for each category (strengths, weaknesses, opportunities and threats) –Propose a complete strategy which addresses one of Honda’s weaknesses and what you would do about it Implementation Ramification (Pros and Cons) Feedback Mechanism Remember to support your work with outside supporting sources. 9

Unit 4 IP - Tasks Use the business terms and concepts from your reading assignments and to use the Library and your course materials. Make sure it includes a –Title page –Abstract –Introduction –Conclusion –Reference list. Make sure it is –Double-spaced –Headings/sub-heading are included –Citations and Reference List via APA Style 6th edition 10

What Are Some Things We Might Want To Look Into Before We Make Any Decision? 11

Unit 4 IP – Things To Look Into Where should we start? What do we know? What do we think? How should we proceed, especially related to supporting our viewpoints? What should we avoid? 12

Unit 4 IP - Overview legal, social, and economic environments management structure operational and financial issues impact of potential change factors an analysis of strategic intent future performance projections for at least five years social and external challenges current manufacturing facilities and distribution systems market demand and demographics alternative fuels and propulsion systems 13

Unit 4 IP - Tasks Take the perspective of Ford’s Director of Strategic Planning to develop a full SWOT analysis of Ford –Identifying and explaining at least five factors for each category (strengths, weaknesses, opportunities and threats) –Propose a complete strategy which addresses one of Ford’s weaknesses and what you would do about it Implementation Ramification (Pros and Cons) Feedback Mechanism Remember to support your work with outside supporting sources. 14

Unit 4 IP - Tasks Take the perspective of Honda's Director of Strategic Planning to develop a full SWOT analysis of Honda –Identifying and explaining at least five factors for each category (strengths, weaknesses, opportunities and threats) –Propose a complete strategy which addresses one of Honda’s weaknesses and what you would do about it Implementation Ramification (Pros and Cons) Feedback Mechanism Remember to support your work with outside supporting sources. 15

Alignment Research legal, social, and economic environments management structure operational and financial issues impact of potential change factors an analysis of strategic intent future performance projections for at least five years social and external challenges current manufacturing facilities and distribution systems market demand and demographics alternative fuels and propulsion systems SWOT Analysis Strengths Weaknesses Opportunities Threats 16

SWOT Analysis Strengths Patents Strong brand names Good reputation among customers Cost advantages from proprietary knowledge Exclusive access to high grade natural resources Favorable access to distribution networks Weaknesses Not having patent protection An unimpressive brand name Mediocre reputation among clients High cost structure Lack of access to the best natural resources Lack of access to key distribution channels 17

SWOT Analysis Opportunities An unfulfilled customer need Arrival of new technologies Loosening of regulations Removal of international trade barriers Threats Fluctuates in consumer tastes away from the company's products Surfacing of replacement products New regulations Increased trade barriers 18

Proposing a Complete Strategy Implementations Ramifications (Pros & Cons) Feedback Mechanism Short-term & long- term 19