Ford Vs Honda

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. Your research should include the following issues for both firms:

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
Your document must evaluate, compare and contrast Fordâ??s and Hondaâ??s current position on these issues, then respond to the following:

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Take the perspective of Fordâ??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) and propose a complete strategy (implementation, ramification and evaluation) which addresses one of Fordâ??s weaknesses and what you would do about it.

Take the perspective of Hondaâ??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) and propose a complete strategy (implementation, ramification and evaluation) which addresses one of Hondaâ??s weaknesses and what you would do about it.

If you were Honda, propose a complete strategy (implementation, ramification and evaluation) explaining what would you do about the alternative fuel vehicle issue?


Analyze the relationships between a firm and the political and economic forces within its community.

Apply critical thinking skills to analyze business situations.

Use effective communication techniques. Solution Preview
SWOT analysis for Ford:


Long, successful history in automobile business and legacy of “Ford” brand: Ford is one of the oldest automobile manufacturers in the world and carries a strong legacy of its founder Henry Ford. It is one of the most visible brands in automobile industry.

Global manufacturing and sales presence: Ford has strong global sales and manufacturing presence in numerous countries all across the globe. It has the capability to leverage on growth opportunities in numerous countries all over the world.

Strong brand portfolio and wide range of product offerings: Ford has a strong brand portfolio and offers wide range of products catering to different target segments in the automobile industry. Although Ford has sold iconic brands like JAguar, it still has brands like Ford, Mercury and Lincoln in its brand portfolio.

Large scale operations: Ford is currently the fourth largest automobile manufacturer in the globe. Its sheer size and scale of operations makes it a strong global contender in the automobile industry and allows the company to enjoy economies of scale.

Increase in Market share in European operations is a good signal for the company.


The company’s financial position has worsened over the years owing to declining sales in US markets due to recession, mounting cost structure and increasing competition from efficient car makers like Toyota. The company was able to turn back its financials in black recently only after few years of financial crisis. It still faces challenge pertaining to high cost structure, liquidity and high debt. The weakening North American market has also hit the company hard as it is the most important market for the company.

The company has significantly lost on its brand reputation and image due to its poor efficiency, especially compared to far more efficient carmakers from Japan like Toyota and Honda.

Regular product recalls have also resulted in poor brand reputation for the company and has created a negative impact on the perceived product quality among the customers.

Ford has been steadily losing market share over the years. Its domestic operations in North America has been plagued by problems like “costly US manufacturing facilities caused by high wages and expensive healthcare and retirement obligations for union labor.”

Reference for quoted content:


Strong growth opportunities exist for the company in emerging markets like India, wherein company can tap growth in the small car segment by offering high fuel efficient cars.

Ford has closed numerous factories and cut its workforce and is working on a turnaround plan to regain its lost market share by operating more efficiently and offering more fuel efficient products. This turnaround has already started producing results and company is progressing strongly to regain its lost ground in key markets like USA by offering more fuel efficient products. It is continuous restructuring its operations to become more efficient and compete with …

Solution Summary
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.To continue with the answer check on

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