Ford Motor Company’s mission statement and vision statement focus on product effectiveness and business leadership in the automotive industry. The company’s strategic position as a major player in the global automobile market is linked to the fulfillment of the corporate mission and corporate vision. Ford’s corporate mission aims to benefit target customers through mobility. The company’s products are designed to address mobility needs and issues in the transportation sector. On the other hand, Ford’s corporate vision focuses on achieving top performance in the industry, considering competition and other variables. The company competes against Toyota, General Motors, Tesla, Volkswagen, Hyundai/Kia, Nissan, Honda, and other manufacturers. This market condition imposes strong competitive rivalry, as shown in the Porter’s Five Forces Analysis of Ford Motor Company. The company’s corporate vision and mission statements influence strategic management decisions for enhancing business performance despite the challenges present in the automotive industry.
Ford’s corporate mission statement and corporate vision statement guide the enterprise’s organizational development. Policies and strategies for various business areas interpret how these statements apply to automotive operational effectiveness. For example, Ford’s operations management and productivity measures apply strategic management interpretations of the vision statement and mission statement, specific to decision areas of operations, such as product design and human resource management.
Ford Motor Company’s Mission Statement
Ford’s corporate mission is “to make people’s lives better by making mobility accessible and affordable.” This mission statement focuses on moving people, which is a basic function expected in automobiles and the transportation sector. Such emphasis on mobility indicates the purpose of Ford’s business in society. As one of the biggest players in the international market, the company aims to make people’s transportation more effective. The following are the main components of Ford’s corporate mission statement:
- Make people’s lives better
- Make mobility accessible
- Make mobility affordable
The mission statement’s first component (make people’s lives better) is a factor in Ford Motor Company’s value proposition to its target customers. For example, the company’s goals are directed toward improving people’s lives. To make such improvement specific, Ford’s corporate mission statement includes the other two components. The company’s strategic plans address accessibility and affordability of mobility to make people’s lives better. Thus, accessibility and affordability are variables in assessing Ford’s fulfillment of its value proposition. With this corporate mission statement, the automotive business sees its role as a contributor to the improvement of transportation to enhance quality of life. Considering strategic management objectives, the affordability component of the corporate mission statement depends on selling prices and production costs, which are linked to Ford’s generic strategy for competitive advantage and intensive growth strategies.
Ford Motor Company’s Vision Statement
Ford’s corporate vision is “to become the world’s most trusted company, designing smart vehicles for a smart world.” This vision statement reflects the multinational company’s strategic goal of becoming a leader in the automotive industry. Ford’s focus on smart vehicles is pertinent to current market conditions and customers’ preferences. The company aims to maximize its profitability and relevance to the market, where more efficient technologies are preferred. The following are the main components of Ford’s corporate vision statement:
- Worldwide scale
- Most trusted company
- Designing smart vehicles for a smart world
The vision statement’s first component (worldwide scale) is a specification of Ford’s target market, which is the global market for automobiles. On the other hand, through the second component, the corporate vision pertains to corporate or brand image, which influences the attractiveness and profitability of the company’s automobiles. For example, customers’ confidence in and preference for Ford electric cars depend on how these vehicles’ brand value is perceived. In relation, the corporate vision statement indicates that the corporation is focused on smart vehicles. This focus implies a strategic response to the industry’s electric car trend, as discussed in the PESTEL/PESTLE analysis of Ford Motor Company. Thus, the corporate vision statement ensures that the company is abreast of the latest technologies suited to current market trends.
Summary & Recommendations – Ford’s Corporate Mission and Corporate Vision
Corporate Mission Statement. Ford Motor Company’s corporate mission statement is brief and a general description of the business. For example, the corporate mission focuses on making accessible and affordable mobility, inclusive of automobiles. The general term, “mobility,” is indicative of Ford’s future product development, which could include mobility technologies other than automobiles. The company could develop personal flying vehicles, and new mobility products for transporting small parcels. Overall, the corporate mission statement is descriptive enough to guide strategic management in terms of what Ford’s business does and should do, and aligns with the corporate vision statement. A recommendation is to improve the corporate mission by including information about the company’s target markets, customers, mobility technologies, and business philosophy and values as an automotive enterprise. It is notable that the corporate mission statement’s focus on improving people’s lives relates to Ford Motor Company’s corporate social responsibility strategy and stakeholder management, in terms of business contributions to societal improvement.
Corporate Vision Statement. Ford Motor Company’s vision statement is concise, future-oriented, and inspirational, while describing the business as a developer of smart vehicles. The vision statement’s specification of smart vehicles complements the corporate mission statement by providing a more detailed picture of what the company does. Also, Ford’s corporate vision is challenging and abstract enough to drive the business organization toward high performance. To achieve this corporate vision’s aim of becoming the world’s most trusted company, it is essential to strengthen the enterprise through enhancement or creation of competitive advantages, such as the ones shown in the SWOT analysis of Ford Motor Company. Also, achieving the corporate vision statement requires strategic initiatives for making the automotive brand attractive to target customers. Thus, a recommendation based on the vision statement is to develop Ford’s marketing mix or 4Ps in a way that strengthens customers’ trust in the company. Moreover, it is recommended that the company include more information about the strategic direction of the automotive business, to make the corporate vision statement more effective in guiding management and human resources toward the desired business goals.
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